Collaboration through Data Analytics
The Ahold-RSi Vendor Collaboration program is designed to better align Ahold USA with its suppliers to improve operational execution, achieve efficiencies and, ultimately, to improve product availability and customer service.
Our focus is on driving efficiencies in the following areas: On Shelf Availability, Promotional Efficiency, Inventory Management and Unsaleables Reductions.
RSi provides data and analytics, which Ahold and their suppliers use to establish appropriate accountabilities and performance metrics and to allocate resources. Ahold has invested their resources in this program to drive value for both them and their vendor partners. Support for the program goes to the top of the organization, including merchandising, supply chain and the executive board. The results to-date have been impressive for both the vendor partners and Ahold.
- RSi and Ahold have partnered to create an industry leading Vendor Collaboration Program since 2013. Both RSi and Ahold have been striving to continuously improve processes and provide value to Ahold and its suppliers. At the end of 2014 over 38 supplier teams were participating in the program. An industry first Store Alerting program has been created for Ahold that leverages the daily Ahold data and RSi’s proprietary alerting algorithms to improve store in-stock rates and planogram compliance. Ahold store personnel are actioning thousands of alerts daily returning over $60M value back to our supplier partners in 2014.To make the program fully integrated, Ahold created a Continuous Improvement (CI) team that is tasked with extracting value from our supplier partners. These CI managers work with the supplier partners to ensure that your efforts are focused on areas where they can make an impact and result in actions being taken by Ahold. You are not left to fend for yourself with the data – you have an Ahold guide to help you, resulting in more efficient use of your time and better return on your investment. Data management has been one of the cornerstones of success the Ahold program. Our production office in Shanghai, China allows us to process Ahold’s data nightly and rapidly load it for client use at the start of business the next day. This next day availability allows for quick response to issues and makes managing inventory a near real-time process for our supplier partners.
- We work hard with Ahold in developing a best-in-class program that can transform data into insights, actions and ultimately add immediate tangible value to both Ahold and its suppliers. RSi and Ahold collaborate daily on customized uses cases which resonate with merchants and provide meaningful ROI. Some of the top Ahold customized use cases include post-promotion analysis, promo allocations, new product introductions and run down management.
- Promotion Analysis: Analyze promotion performance from division down to store level, price point and product mix to improve promotional performance by identifying lost sales opportunities.
- Promotion Allocation: Provide suppliers with the ability to understand store-item level allocation quantities and make changes to drive increased allocations of fact-based distributions.
- Inventory Optimization: Identify stores, items with high or low inventory or high unsaleables and recommend changes to case packs, assortment, shelf capacity to make better use of carrying costs and reduce markdown expenses.
- New Product Introductions: Metrics were created to enable manufacturers to see where new products are planogrammed before they are reset to enhance speed to shelf and speed to scan.
- Distribution Voids: Ahold’s industry leading Store Alerting program sends void alerts directly to store personnel who action alerts daily to reduce distribution voids, shelf out of stocks, phantom inventory and increase planogram compliance, resulting in higher in-stock rates for vendor partners than non-participants.