Shop in shop Philips merchandise
Index 01
Business today
02
Shop-in-shop
03
USP’s
04
How business could look like
05
Why it doesn’t it work?
06
First and second step
07
What could be the bigger picture
08
Global partner network
09
Compliance
10
Brand guidelines
11
Brand helpdesk
12
Benchmark model
13
Group buy
14
Case study
15
Global distibution
16
Time saving
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Business today • Procurement has a relatively large number of preferred suppliers for this category • Stakeholder orders with preferred supplier of liking • Total budget is unclear • Stakeholders do not get notifications when colleague in or outside BU orders a similar item • Stakeholder does not contact or does not approach Brand Helpdesk sufficiently enough for approvals • Raising a PO takes too much time • Timelines for ordering corporate merchandise are relatively long (15 days) • There is a high demand for new innovative items • There is a high demand for ecological items • Compliances for small custom-made productions are a challenge • Stock risks are high • Corporate identity is not consistent
01
Shop-in-shop Looking to establish a range of promotional products for your organisation without having to worry about the detail? Brand-Butler offers shop-in-shop solutions for the SME market, multinationals and corporates. A very effective tool for organising and controlling the distribution and purchase of promotional items within your organisation. Together with the client, Brand-Butler makes an initial selection of items. Existing stock can be added. On-demand items are printed in accordance with the brand guidelines and dispatched worldwide. Philips shop-in-shop administrator: https://brandbutler.premiumid.nl/!/account jaime@brand-butler.com Brand001
“Great overview and time-saving” - Procurement Manager, Philips -
02
USP’s Managing your corporate gifts from a central point gives your organisation the following benefits:
Monitoring and control of brand guidelines
1
Insight into expenses and processes
2
Flexible product range
3
Inventory management
4
Reporting tools
5
No more administrative actions
6
Control and minimisation of stock risk
7
03
How business could look like? • Procurement works with very a limited number of preferred suppliers • Stakeholder orders with preferred supplier • Stakeholder uses shop-in-shop platform for ordering all promotional items (80/20) • Efficiencies are booked based on benchmark model • Total promotional item budget can be traced per BU • Items in shop-in-shop are in line with corporate identity and corporate values • Stakeholder can order fast and easily • Stakeholder gets updates about new items and trends • Low stock risk • Compliances for standard corporate merchandise are in place • By integrating shop check out in Ariba we can shorten lead times to (6 – 8 days)
04
Why doesn’t it work? • Stakeholder does not know who the preferred supplier is • Stakeholders do not know of the existence of a shop-in-shop • Difficult to find shop-in-shop • Shop-in-shop is not integrated • Newsletters end up in SPAM • Stakeholders are busy and because of time issues they just order
05
First and second step? • Make sure stakeholder knows where to order Survey to determinate needs • Analyse current spent
second step • Integrate shop-in-shop into Ariba • Pilot in Europe Evaluate
06
What could be the bigger picture? • Total spent promotional items can be determent • All promotional items worldwide are in line with corporate identity and values (statement) • Stock risk will be much lower • Warehouses on all continents ensure short timelines • Compliances are managed • Economies of scale • 20% of the orders that cannot be covered by the standard array of products can be solved differently
07
Global Partner Network
02 01 01 01
09 08
03
07
05
06
04
Oasis
1
Europe
4
South Africa
7
Guatemala
2
Russia
5
Singapore
8
Mexico
3
Middle East
6
Australia
9
USA
08
Compliances Goods are produced in China for the different continents to ensure that compliances are always in accordance with local legislation. For example; Lipbalm for the US market needs to meet FDA standards Lipbalm for the EU market needs to meet EMA regulations
“Although they look very similar, their composition and ingredients may be different.”
09
Brand guidelines All items in the shop get a certificate once approved by Brand helpdesk All items are in line with corporate identity
10
Brand helpdesk Stakeholders save a lot of time. Correct interpretation of corporate identity by increasing knowledge.
“In USA they produce items in colour PMS 300 C where this colour is only permitted for Shield and Wordmark” 11
Price
Benchmark model Brand-Butler has developed a benchmark model for multinationals. Our goal is to be fully transparent in every step of the process. The model proves how competitive our prices are and proves efficiencies. How does this work on a day-to-day basis? Brand-Butler compares prices with at least three online competitors to determine the lowest market price. Based on pre-agreed terms, companies get an additional discount on top of the proven lowest market price. The difference between the lowest market price and the discount is the efficiency booked. The great thing about this model is that it proves the competitiveness of our prices.
• • • •
competitor A competitor B competitor C
Lowest market price -5 % End price
Efficiency booked
Determines lowest market price Proves how competitive prices are Stakeholder saves time comparing prices Efficiency and added value are visualised
“Our transparent, competitive pricing saves you time” 12
$
Group buy Group buy is a process where you can enlarge your collective buying power to purchase promotional items at reduced prices. Group buy takes advantage of price breaks to offer products to your stakeholders at a more desirable price. Our group buy organisers work hard to negotiate these. What Group buy can do for your organisation in six steps:
• The stakeholder purchases items from the • • • • •
shop-in-shop environment. Other stakeholders (gatekeepers) receive an invitation to join in on the order. The price advantage is visible when ordering. The decision-making process is managed by a preset countdown clock for ordering so that deadlines can be monitored. An order management system ensures allocation of budgets. Order is dispatched and economies of scale and efficiencies are reported to the administrator.
“Economies of scale achieved by having multiple stakeholders” 13
CASE STUDY:
Global distribution of promotional items
The Global Partner Network Philips is looking to reorganise the production and distribution of their promotional items and by doing so aligning their corporate identity on a global scale. Together with Philips we determined the following objectives for their business case;
3.
Produce, distribute and stock high quality corporate gifts in line with the needs of their stakeholders Minimalise investments for producing promotional items Lower financial stock risks Control and align the use and the look of promotional items Keep stock globally to shorten lead times and to obtain economies of scale
We have developed a system for Philips; named Global Partner Network. Items are produced at big scales at low cost in Asia taking into consideration different compliances for each target market. Items are then distributed globally where the Global Partner Network stocks the items. Depending on the market needs and sales numbers per item the overlap of similar stock per partner is up to 80%. For example; in the USA the market demands larger cups than in France. Depending on these demographical differences our array of products per continent can vary. In terms of compliances stock per continent can also be slightly different. For example: lip balm produced for our USA partner looks the same but compliances are in line with USA regulations, therefore the lip balm that is in stock in the USA is FDA approved, lip balm that is in stock in Europe is EMA approved and so on for the partners on other continents.
02 01 01 01
09 08
03
07
04
05
06
Items are produced at big scale at lower costs according to markets specific regulations. The Global Partner Network produces items at a bigger scale per target market than Philips needs. By cumulating the annual global volumes of Philips promotional needs, Philips can benefit and buy at lower costs.
14
Global distribution In the current situation the Philips stakeholders produce on demand. Most items are not in stock and need to be produced and distributed to the various locations. There is no standard array of products in place and therefore the corporate identity needs to be discussed each and every time with Brand Helpdesk being consulted. After purchase, the stakeholders is in charge of administration and requests a PO. Stakeholders buy last minute and with different preferred suppliers terms vary and prices are higher. The whole process between ordering and delivery is very time consuming, it can take between 5 to 14 weeks before items are delivered. With the global Philips promotional array of products, items are available at all times and can be distributed within 3 to 6 days. Look & feel of the items is already determined and digital printing proofs are available and in line with Philips corporate identity. The whole process will be shortened to 3 weeks and because there is a global contract in place we can offer economies of scale based on Philips total volume. Stakeholders have one point of contact for the global distribution of their promotional items. Using the special developed shop-in-shop environment stakeholders can save time. It is less time consuming. For example; stakeholders do not have to explain the corporate identity and send proofs to the Brand Helpdesk for each order and every order and using the shop-in-shop not spend time on requesting a PO. In time, depending on usage the shop-in-shop will be integrated to the Philips Ariba guided buying system. .
Management system administrator
Log-in stakeholder
Services
Webshop
Product details page
Check-out
In conclusion Brand-Butler manages the global distribution and stakeholders save time. Besides specific delivery details and discussing deadlines stakeholders can manage within minutes instead of days (in practice sometimes weeks). The current solution covers 80% of Philips global needs. The remaining 20% are items that are custom made such as awards. This last group of items we produce at low cost and distribute globally or if possible find a local Philips sales office to stock the items to save on the total logistic costs.
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15
Time saving and total cost reduction Using historical data we determined a corporate gift assortment for the Global Event Team. The Global Event Team of Philips is responsible for organising events to promote Philips products. Their main target markets are; Europe, the United States and China but they also organise events on different locations throughout the world. Using the existing stock for the open market of the Global Partner Network we are able to distribute at low costs on a global scale. Items are warehoused by the Global Partner Network against selling prices which include the actual warehousing costs but only need to be paid when ordering. Promotional items are also available on the open market, i therefore stock levels in place are managed to allow sales of the items.
Purchase on demand
Low price high flexibility
Price Quality Flexibility Printing costs Branding options Transport costs
With stock already in place we are able to minimalise stock risks. As items are part of the standard array of products that the Global Partner Network is carrying inventory levels are actively managed to keep stock levels high. By offering volume commitments we can manage stock levels, For example; knowing the annual volume per item we can anticipate and buy at bigger or smaller scale to keep stock levels optimised and be price efficient. Depending on total volume the overall look and feel of a stock item can also be changed. For example: in Europe the standard colour of the cloth of the stock umbrella (cloth) is Pantone 300 C (Philips blue) in the USA the same model umbrella has a different colour cloth, for example PMS 296 C. Understanding the total annual volumes we can adjust the standard colour of the cloth to PMS 300 C as long as this same model is also available for the open market. With items already in place we can shorten lead times considerably whilst at the same time save money.
Lowest price
Leadtime Stock risk Availability Scale advantage Payment / risk
1
From stock
Blank 3 days
Printed 6 days
Transit 2/3 days
Europe production
Production ± 4 weeks
Transit 2/5 days
Express 1 day
China production
Production ± 20/40 days
Ocean freight 2/5 days
Express 1 day
China production
Production ± 20/40 days
Air freight 5 days
Express 1 day
2
3
4
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