Context:

• Within the context of increasing local and global uncertainty, grocery supply chains are critical. 
• To improve the efficiency and effectiveness our client wanted to understand how leading grocery chains were managing grocery demand planning, supplier management and integrating vendor replenishment planners into their operations
• The research needed to provide insights from the perspective of both operating models and technology systems landscapes

Accelerated’s approach:

• 7 interviews were conducted with subject matter experts over 8 days by Geoff Tham, who has performed 160 similar projects globally and is an alumnus of McKinsey
• Experts were sourced from Tesco, Sainsbury, Walmart, Woolworths, Amazon, Unilever & Loblaws and held roles such as Global Director of Supply Chain Partnerships, Head of Supplier Management, and Operations Director

Synopsis of key findings:

Amongst these leading organisations, we found generally:

• Grocery chains manage their core demand and supply planning centrally, and in-house, utilising automation to some extent
  • There are typically between ~100-150 staff in demand forecasting and supply planning/mgmt
  • The supply planning/mgmt team is typically 2 to 5 times larger than the demand forecasting team
  • A range of technology systems were adopted spanning Oracle, Manhattan, JDA, SAP, BlueYonder as well as proprietary systems
  • Companies with proprietary systems use demand forecasts more extensively and with less human intervention
• All of the grocery chains used vendor replenishment planners (VPRs) sometimes referred to as implants, vendor associates or integrated supply planners, with their role typically restricted to the top 25-50 suppliers
• The VPR role involves a combination of the operational (liaison and coordination between the grocery chain and the supplier, troubleshooting and ensuring availability) and strategic (assistance with planning)
• VPRs provide a valuable service for grocery retailers who require accurate demand planning and good supplier management to maximise stock availability whilst minimising inventory
• There is a potential change in the role of vendor replenishment planners in improving the efficiency of demand planning and supplier management, whilst ensuring stock availability with minimal inventory