Operations

Executing – Channel Integration

Executing - Ensuring Channel Integration of Operations  

Priority :    0

Capability :    0

Statement

Execution of aligned RGM, Segmentation and RTM. There is sufficient financial data, info transparency, data transfer and joint performance monitoring to support teamwork towards aligned value sharing objectives. The System personnel operate as an integrated unit, with roles, support systems and management routines designed to optimize the revenue growth productivity of System resources. Include routines and processes that support smooth day to day operations.

Score

Low - Basic

Medium - Advanced

High - Expert

.

Basic Integrated Execution model with shared and open focus on System end-to-end data from upstream revenue growth to downstream cost-to-serve optimization. Impact of price and segmented services changes on the market is monitored.

Use of Integrated Execution framework in place to identify opportunities and prioritize PicOS / space / operations actions and investment. Utilization of opportunities to drive headquarter-to-shelf actions with accountabilities across the system.

Implementation of System-aligned Integrated Execution routines. There is sufficient financial data, info transparency, data transfer and joint performance monitoring to support teamwork towards value sharing objectives. Optimization of PicOS, space and execution management to reduce OOS driving headquarter-to-shelf actions with accountabilities across the system. RED certification process is aligned and applied.

Issues / Implications

Monitoring the impact of price and segmented services changes on the market. Smooth day to day System operations critical to remaining focused on the core initiatives. How the RED certification process can be used as the central process for channel integration and system collaboration to ensure smooth day to day operations linked to the delivery of business objectives. RED certification should be in place.

Evidence / Clarification

Integrated Execution Metrics include RGM (eg competitive price architecture, promo, channel P&L, etc); Segmentation (eg consumer, channel, customer indicators, assortment, package mix, etc) and RTM (eg Salesforce, Distribution and Merchandising Effectiveness, Cost-To-Serve, etc).

Action It Leads To

An Integrated Execution model requires shared and open focus on System end-to-end data from upstream revenue growth to downstream cost-to-serve optimization. Review of System resources, roles and responsibility linked to achievement of annual RGM objectives.

KPI / Directions

Indicator: P&L Breakdown by Channel. Directions: Waterfall P&L Analysis and Channel P&L (CHAMPS Integrated Framework & System Economics) Tools.

Operations

Executing – Operational Standards

Executing - Establishing PicOS Operational Standards By Customer  

Priority :    0

Capability :    0

Statement

PicOS measurement and optimization by customer - Formal communication process where operational standards, procedures and objectives are defined in line with the Segmented PicOS communicated and agreed with all relevant personnel.

Score

Low - Basic

Medium - Advanced

High - Expert

.

PicOS is set as the blueprint for how the System executes segmented pricing, promo, brand, pack strategy and sales, delivery, merchandising activation standards in retail outlets.

Formal automated (photo-recognition) monitoring and communication processes to continue improving PicOS in-field implementation is in place to optimize business growth. Advanced analysis and tools to support PicOS refinements, selling stories and personnel training.

System commitment to the PicOS tracking and controlling is set for sustainable business results. Drive headquarter-to-shelf actions to optimize PicOS, space, and execution based on advanced analytics and root cause insights.

Issues / Implications

System commitment to the PicOS tracking and controlling is required to establish sustainable business results. Standard operating procedures play a large role in this area. Business, customer and stores should adhere to these procedures across all initiatives.

Evidence / Clarification

PicOS is the blueprint for how the System should execute segmented pricing, promo, brand, pack strategy and sales, delivery, merchandising activation standards in retail outlets to optimize business growth.

Action It Leads To

Development of formal monitoring and communication processes to continue improving PicOS in-field implementation. The Standard operating procedures would be updated once a quarter and placed in a location accessible by all parties impacted.

KPI / Directions

Indicator: Standard Operating Procedures Analysis and Salesforce Effectiveness Efficiency and Execution RED Score KPIs. Directions: Salesforce Automation (SFA) - iRED and KOmobile Survey – (Time & Motion and Customer Value Drivers Surveys Modules) Tools.

Operations

Executing – Competitive Landscape

Executing – Interpreting Competitive Advantage vs Market Attractiveness  

Priority :    0

Capability :    0

Statement

Leveraging business knowledge and insights to address categories and consumer behavior; costs and economics of channel / customer services; competitors’ strategies, systems and objectives. There is a process in place to respond in a structured way to customer or competitor driven pricing actions that could destroy the consistency of the OBPPC architecture and the potential for value creation across the markets.

Score

Low - Basic

Medium - Advanced

High - Expert

.

Business knowledge and insights are used to address market attractiveness (eg potential new players, substitutes, consumers, customers & suppliers pressure) and competitive cost / differentiation advantage.

Clear understanding of categories and consumer behavior; costs and economics of channel / customer services; Competitors strategies and objectives. Information about business strategy and commercial terms is actively collected and used; Competitive strategy implementation with key customers is monitored.

A systematic and systemic approach to report and improve competitive business performance is in place. Analytical scenario planning tools are used to identify in advance alternative courses of action and contingency opportunities for tailoring strategies around potential competition moves.

Issues / Implications

A full assessment versus competition, based on their strategies and value chain, is completed as part of the evaluation of the systems current and potential portfolio. In developing new solutions, understanding how a competitor could respond is key in determining whether differentiated and valuable consumer and customer propositions can be established and maintained. Opportunity to capture the capability of RED to track initiatives ie RED should track the full end to end integrated execution. Consult with other areas/ functions (sales, finance, marketing etc.) to discuss and identify opportunities.

Evidence / Clarification

Clear understanding of information and monitoring-to-improve business plan, commercial terms and strategy implementation with key customers. The plan to add, delete or change existing brands and packs need to be reviewed for robustness versus current and potential competitors. There is a list of documented and quantified growth opportunities within the commercial function.

Action It Leads To

Use a systematic and systemic approach to report and improve business performance vs competition; use of analytical tools to drive findings around market attractiveness and how to leverage competitive advantage across key categories and target services to drive customer value.

KPI / Directions

Indicator: Competitive Marketing Analysis. Directions: Competitive Advantage vs Market Attractiveness Approach.

Operations

Executing – Commercial Effectiveness

Sales, Delivery & Merchandising Effectiveness  

Priority :    0

Capability :    0

Statement

The System follows a formal process to track in-outlet execution to ensure compliance with agreed PicOS objectives by outlet, identifying and executing changes in outlet as required. The System has effective influence at the point of sale to deliver the plan, taking accountability and responsibility for results.

Score

Low - Basic

Medium - Advanced

High - Expert

.

Outlet execution tracking process is in place to drive the System’s ability to improve performance and appropriately reward or disinvest in customers depending on their achievement versus agreed objectives.

The System follows a formal process to track in-outlet execution to ensure compliance with agreed PicOS objectives by outlet, identifying and executing changes in outlet as required.

Comprehensive monitoring process and tracking tools are set to achieve business results. Salesforce, delivery & merchandising effectiveness metrics and incentives (pay-for-performance) to leverage field performance are routine. Optimization of resource allocation to achieve business objectives.

Issues / Implications

Failure to track execution undermines the System’s ability to improve performance and appropriately reward or disinvest in customers depending on their achievement versus agreed objectives. Monitoring and tracking tools alone aren’t enough to drive results. Need to outline the analytic and action capabilities on top of the tracking.

Evidence / Clarification

The System follows a formal process to track in-outlet execution to ensure compliance with agreed PicOS objectives by outlet, identifying and executing changes in outlet as required. Opportunity for Salesforce, Delivery & Merchandising Effectiveness processes to monitor field performance. Defined set of analysis to use this information and clear action plans are being devised based on RED results

Action It Leads To

Development of monitoring process and tracking tools - potentially Salesforce, Delivery and Merchandising Effectiveness metrics. Mentorship, sharing of best practices, Standard Operating Procedures, sharing of tools, and potentially designating ambassadors to lead coaching and training.

KPI / Directions

Indicator: Salesforce / Delivery / Merchandising Effectiveness – Efficiency and Execution RED Score KPIs. Directions: Salesforce Automation (SFA) - iRED and KOmobile Survey – (Time & Motion Module) Tools.

Operations

eRED – Digital Shelf

eRED - Digital Shelf / OOS - OTIF Digital Operations  

Priority :    0

Capability :    0

Statement

The System has digital platforms to support deployment of RGM, Segmentation, Route-To-Market and Route-To-Consumer performance indicators tracking. eRED digital shelf is part of the digital plan and directly influences consumers to drive share vs competition. Out-Of-Stocks is mitigated via OTIF digital operation. Sales and delivery effectiveness are leveraged by digital platforms.

Score

Low - Basic

Medium - Advanced

High - Expert

.

Sensing - Consumer & customer led digital insights are established to determine potential growth in the market by category, brand, package and channel. Digital operations are not fully explored to optimal potential. E-commerce platforms are very limited to basic insights.

Shaping - Segmented growth opportunities increase the value of consumption occasions by digital consumer group. KO products are available on digital platform and digital operations are in place but not managed to reduce Out-Of-Stocks. eRED Digital shelf is not fully explored to optimal potential.

Service - System alignment of digital opportunities is in place. Digital consumer and customer insights are applied to leverage growth opportunities. Fully integrated execution is available as part of a routine process. End-to-end logistics from OTIF digital operations and integrated distribution network are in place to reduce OOS.

Issues / Implications

Poor digital price planning and targeted pricing will cost the System lost potential revenue per sale, or sales versus competitors. Lack of eRED digital shelf implies a missed opportunity to reduce OOS and gain competitive advantage in the “New Normal” consumer behavior.

Evidence / Clarification

eRED Digital shelf and OTIF are strongly correlated with brand building and competitive differentiation. In the digital arena it is critical to identify what brands need support to build equity, what packages could be optimized and how mix supports price increases. Reduced Out-Of-Stocks and increased availability / penetration is essential in developing new brands and packages across the digital space. Opportunities to leverage the existing portfolio of brands and packages through eRED digital shelf.

Action It Leads To

Identify brands/packs targeted to compete in digital arena with alternative offerings and determined the admissible price gaps by occasion. Sensitivity analysis can be used to validate digital pricing decisions. Key issue in digital is product differentiation vs competition. Opportunity to utilize Artificial Intelligence modeling for tracking threshold outliers and generate immediate action against out-of-stocks.

KPI / Directions

Indicator: Out-Of-Stocks Analysis and Salesforce / Delivery / Merchandising Effectiveness – Efficiency and Execution RED Score KPIs. Directions: OOS Root-Cause Approach; Salesforce Automation (SFA) - iRED and KOmobile Survey – (Time & Motion Module) Tools.