2. VCF Retail Scorecard Analysis Project You won’t improve if you don’t keep score!

3. Scorecards … Matter

4. Scorecards … depends upon POV VCF … Compliance  Collaboration

5. VCF Scorecard Project Challenges … No one wants to be first! Confidentiality … How to showcase ?

6. Initial Project Scope Retailer Scorecards ~ 20 Retailers submitted scorecard samples Focus on Compliance Additional metrics Scorecards represented wide diversity of retail: Apparel … hardlines Mass merchants … Department & Specialty

7. Review representative sample scorecards (retail) Common metrics Best practices Discover trends Identify opportunities Explore collaboration Objectives of VCF Scorecard Project

8. Process Analyze Interviews Composite Trends Insights

9. “Scorecards = Key for Top to Top Meetings” Retailer Sound bites … “A matter of Accountability … Have to hold their feet to the fire … “ “Scorecards are proactive messages for BIG issues … even if you are not there!” “Problem is that vendors don’t see compliance as strategic …” “Compliance scorecards are the springboard to Partnership!” “Need to listen to suppliers to get to ground truth …”

10. Reminder … Retail Scorecard POV

11. Finding: Common Metrics  Compliance Scorecard Core Metrics not surprising: ASN Fill rate On-time Order Accuracy Error rate / % Packaging Chargebacks Focus on Vendors on what affects both our costs and their performance on floor

12. Finding: Scorecard Frequency Quarterly – IF only minimal violations Monthly – Standardized for all key vendors Weekly – Trend for top, key accounts Portal – Current is on-line Frequency increasing with automation of scorecards

13. Retailer Insights on Effectiveness Clear metric definitions Consistency and ACCURATE data! Same scorecard internally with your merchants! Drill down capability Enable Vendors to drill down Diagnostic, meaningful compliance error codes Communication with top vendors Reach common understanding Focus on partnership rather than catching “bad”

14. Findings: Feedback beyond the #s Data = Events Metrics = Performance / ratios Benchmarks = Performance against standards Critical Success Factors: Alignment Alignment Accuracy Accuracy Definitions Definitions

15. Putting data in a computer … doesn’t make it or you any smarter!

16. Discovery …

17. Online Scorecard Complexities Different weekly cycle Different SKUs Packaging requirements Inventory Separate Scorecards?

18. Best Practices: Composite Scorecard “Dashboard like” … Portal Multi-Dimensional Graphical Trends Coded Alerts Drill Down Efficiency + Execution + Profitability

19. Composite: Supply Chain & Compliance Best of Breed Mouse over Drill down

20. Best Practice: Alerts, Trends Grades Critical Success Factors: Easy, consistent definitions Easy, consistent definitions Communication & feedback Communication & feedback “Grades don’t mean anything or tell us what to change, unless they are consistent across scorecards”

21. Best Practice: Execution & Profitability

22. Best Practice: Portals w/ User Views User Criteria: Filter variables Select time Drill down

23. Nirvana … beauty lies in the eyes of the partners Next Steps: How do we proactively change

24. A question of balance & perspective “Problem is that vendors don’t see compliance as strategic” “How come retailer scores vary so much … can’t afford to adjust to each one!”

25. Best Practices We need to survey vendors! What is their POV? What do they need? What makes it work? What are their metrics

26. Toward Collaboration …

27. Getting on the same page Definitions Consensus Consistency Joint Metrics Don’t leave money on the table

28. Toward Collaboration … Profitability Retailer Scorecards Vendor Scorecards ? UnderstandingAlignBalance Joint Metrics Vendor KPIs Sales GM$ AUR  Mix $ / sq.ft. Conversion Attach Market Basket Returns ROI Ads & Promos

29. VCF Scorecard Project Next Steps Retailer Scorecards: Expand retailer scorecard sample Expand scope beyond compliance Analyze online Vendor Scorecards: Collect Vendor Sample Core Vendor Metrics Best Practices Build a composite joint scorecard POV

30. You always have a choice …

31. Q & A What surprised you the most? What didn’t surprise you? What is your biggest take away? Who else needs to hear this …

32. Continuing the Conversation … Chris H. Petersen, PhD Integrated Marketing Solutions Senior Partner, CEO Email: chris.petersen@imswired.comchris.petersen@imswired.com Twitter: @chrishpetersen@chrishpetersen LinkedIn: Handle - ChrisHPetersen Website: www.imswired.comwww.imswired.com Blog: www.ResultsCount.Typepad.comwww.ResultsCount.Typepad.com Twitter: @IMSResultsCount@IMSResultsCount Facebook: IMS Results CountIMS Results Count

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