The Road Map

1
The Road Map
Source Beck, A., Bilby, C.A.L., Chapman, P.A.
and Harrison, A., (2001) Shrinkage Introducing
a Collaborative Approach to Reducing Stock Loss
in the Supply Chain, ECR Europe Brussels.
2
Wake Up!
0. Wake Up
1. Plan
2. Map Measure
6. Evaluate
3. Analyse
5. Implement
4. Develop Solutions

• Stock loss shrinks profit and sales
• Action needs to be taken now
• Current attempts to address shrinkage are
  unfocused and unstructured
• Reactive response to loss, without collaboration
• Fail to remove the causes of loss

Source Beck et al, 2001
3
Plan
0. Wake Up
1. Plan
2. Map Measure
6. Evaluate
3. Analyse
5. Implement
4. Develop Solutions

• Develop a strategic plan
• Set goals and establish a plan to deliver them
• Use a systematic approach
• Focus effort using a structured approach
• Take a systemic perspective
• Across organisations and the supply chain
• Collaborate with supply chain partners
• Manufacturers, Distributors Retailers

Source Beck et al, 2001
4
Map Measure
0. Wake Up
1. Plan
2. Map Measure
6. Evaluate
3. Analyse
5. Implement
4. Develop Solutions

• Process Map
• The total supply chain
• The flow through each supply chain node
• Focus initially on Hot Products
• Concealable, removable, available, valuable,
  enjoyable and disposable products.
• Measure the Amount of Loss

Retailer Store
Retailer DC
Supplier DC
Source Beck et al, 2001
5
Analyse
0. Wake Up
1. Plan
2. Map Measure
6. Evaluate
3. Analyse
5. Implement
4. Develop Solutions

• Identify Causes of Loss

Source Beck et al, 2001
6
Analyse
0. Wake Up
1. Plan
2. Map Measure
6. Evaluate
3. Analyse
5. Implement
4. Develop Solutions

• Identify Causes of Loss

Source Beck et al, 2001
7
Develop Solutions
0. Wake Up
1. Plan
2. Map Measure
6. Evaluate
3. Analyse
5. Implement
4. Develop Solutions

• Ensure allignment with business strategy
• Solutions will be context specific, dependant
  upon
• Business and social environment
• Technology choices
• Staff skills
• Organisational structures

Source Beck et al, 2001
8
Implement
0. Wake Up
1. Plan
2. Map Measure
6. Evaluate
3. Analyse
5. Implement
4. Develop Solutions

• Develop implementition plans
• Specify implemention team roles
• Pilot implementation
• Limited scale to assess effectiveness
• Monitor progress and refine full rollout
• Wide spread rollout of solution

Source Beck et al, 2001
9
Evaluate
0. Wake Up
1. Plan
2. Map Measure
6. Evaluate
3. Analyse
5. Implement
4. Develop Solutions

• Independent evaluation of
• Actual cost/benefit against planned cost/benefit
• Performance over time
• Identify further opportunities to reduce stock
  loss
• Learn from experience
• Apply learning and improve further

Source Beck et al, 2001