FINDINGS AND RECOMMENDATIONS Assessment Prepared for Byer’s | April 2022
BYER’S > FINDINGS AND RECOMMENDATIONS
Thank You Partnership starts with trust. We are honored you trust in us to collaborate with your team to assess the current state of your business. We’re excited to share our findings and eagerly anticipate the opportunity to drive continued business growth with you. Again, on behalf of our entire team — thank you.
CONFIDENTIALITY NOTICE: This document contains confidential information intended solely for the recipient(s) named herein. The information set forth in this document may not be reproduced or disclosed by the recipient(s) without the prior written consent of the author.
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Contents Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Background to Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Assessment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Byer’s Current State Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Taylor’s Recommendations for Change. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Implementation of Future State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Discovered and Potential Savings Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Technology Solutions from Taylor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Process Flow (Current State) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Process Flow (Future State) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
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BYER’S > FINDINGS AND RECOMMENDATIONS
Executive Summary Taylor is proud to be a trusted partner to Byer’s. For the past several years, we have consistently worked on your behalf to support your growth objectives and store signage program needs. The results of this partnership have been remarkable for Byer’s the company has grown into a national leader in providing your customers with quality products at the lowest prices. However, this rapid growth has also proven to be challenging to support efficiently and in some ways cost effectively. As your primary print, kitting and distribution provider for store signage, we acknowledge Byer’s unique needs and requirements. We are also aware of the challenges we experience in supporting your monthly campaign pushes and new store openings. Byer’s has likewise realized the need to look at the current campaign development and deployment activity in search of process improvements and opportunities for optimization. For this purpose, Taylor proposed a due diligence assessment of your current state with a resulting readout of findings and recommendations for improvements. The assessment targeted the current process utilized for the execution of monthly signage pushes with a focus on: • Gaining insight into the current state to identify gaps, bottlenecks and areas of risk • Determining what is and isn’t working • Documenting cost and lost opportunities Based on our findings, Taylor committed to providing feedback to Byer’s outlining findings, identifying areas for improvement and presenting specific recommendations for Byer’s consideration. This Findings and Recommendations document provides Taylor’s suggestions of: • Implementing a series of immediate and short term changes and process improvements to the current workflow • Establishing an “owner” of monthly signage pushes, kit contents and coordinated new store kits • Implementing a defined SKU process for assignment and item integrity • Utilizing technology tools to create and maintain a “single source of truth”, artwork, signage templates and campaign workflow management and reporting • Establishing a path to an optimized future state to manage store attributes and allow for regionalization, variable signage pricing and personalization to improve store ROI As a result of our assessment, our primary recommendation is that changes in process and adoption of supporting technology are required if Byer’s is to effectively support continued fast-paced growth. Without process improvements applied, ongoing expansion with monthly campaign pushes have been and will become more problematic and costly to the organization. We appreciate the time invested by the Byer’s team, as well as key stakeholders in participating in this assessment and helping us in formulating our recommendations. We look forward to your feedback with an intent to work collaboratively with Byer’s to improve your processes and realize the savings, time efficiencies and advanced reporting available as a result of this review. Respectfully, Your Taylor Team
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Background to Assessment The Byer’s mission started with providing working people with great quality products at the lowest prices, and for over 40 years you have done just that. Byer’s commitment and consistency to their customer has created growth in their reach across the United States. That growth led Byer’s to reach out to Taylor as a key partner in support of monthly store pushes and new store openings, to further support the objective of rethinking and optimizing their current processes. The goal was to make recommendations for enhanced outcomes, seeking process improvements, efficiencies and opportunities for savings and improved ROI within their marketing execution efforts. The implementation of today’s marketing programs is manual, cumbersome, complex and extremely time consuming. Byer’s has stated they are seeking solutions for their monthly store pushes based on the following: • Evaluate and redefine the process required to execute a monthly sign push • Find ways to reduce the number of days required to execute a monthly sign push • Create a single source of truth — a store profiling database for regionalized pricing in the future • Bring new ideas to the Store Environment Team to help elevate the store experience • Add insights and analytics to ensure we are implementing best practices and are on course to be best in class Taylor committed to: • Developing appropriate assessment questionnaires to gather information from all relevant stakeholders in the monthly store signage pushes • Conducting follow up interviews with key stakeholders to develop an understanding of current state process, challenges and workflow • Analyzing findings and conduct additional interviews to resolve potential conflicting information and resolve gaps • Documenting all findings and analyze for proposed recommendations for improvement and advancement to a more optimized future state • Presenting findings and recommendations with financial analysis to Byer’s review and action items for next steps
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BYER’S > FINDINGS AND RECOMMENDATIONS
Assessment Overview Byer’s leadership team recognized the need to review the processes and strategy behind their monthly store pushes. With the opportunity for improvement identified, Taylor conducted a thorough assessment of Byer’s current monthly push processes, new store processes and technology needs. We also reviewed and assessed the current Taylor team and structure. Taylor conducted virtual workshops with the following teams within Byer’s: Procurement, Store Environment, Store Operations and New Store Field Leads. A group of Taylor subject matter experts met with Garrett Imhoff and Lucy Ojeda to discuss Byer’s current processes and the improved future state they desired. The following areas were evaluated as part of the Byer’s assessment:
Visual and POP Print
Process
Ownership Roles and
Technology
Distribution
Responsibilities
Special Thanks The success of the assessment process is heavily dependent on the availability, partnership and expertise of key customer stakeholders. Time is also a chief struggle for many organizations and the reason many turn to Taylor for an assessment. For this reason, we would like to recognize the following stakeholders who made the difficult decision to sacrifice their time in order to ground and drive the success of this assessment. Field Leaders
Store Environment
• Mike Senecal, Field Leader
• Julie Smith, Retail Merchandising Manager
• Robert Flanagan, Field Leader
• Keisha White, Presentation
• Catherine Theriot, Field Leader
• Sara Ochs, Space Planner
Procurement
• Jeremy Wilson, Space Planner
• Garrett Imhoff, Purchasing Agent
• Fred Dowling, Director of Store Environment
• Lucy Ojeda, Buyer
Taylor
Store Operations
• Account Support Team
• Clifton McNeese, Store Experience Manager
• Production Team
• Alisha Daughtrey, Store Experience Manager
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Your Success is Important to Us Many competitive assessment offerings in the marketplace focus simply on quoting business. We want you to be successful. That is why we have taken a thorough approach to resourcing this assessment. Again, thank you for inviting us in and allowing us to take such a comprehensive look at your processes and operations.
250+
Hours invested
7
Taylor experts
About Taylor • Industry leader with U.S. retailers • Taylor serves many of the world’s largest brands — including most of the Fortune 500 — with all aspects of print products and services; store graphics, labels, promotional marketing, compliance products and more • Taylor continuously invests in technology and talent to ensure the highest quality for everything we print • Taylor is a global graphics communications company with experience in delivering solutions to more than 40,000 diverse customer groups from large enterprises to individual consumers • Taylor’s 10,000+ employees are actively making communities better, healthier and safer places for all through their donations of time and money • Taylor companies review target goals for reducing hazardous substances, air emissions, noise and waste on an annual basis; we are continually seeking ways to conserve energy, water and other natural resources
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BYER’S > FINDINGS AND RECOMMENDATIONS
Byer’s Current State Issues Overall Process Owner Ownership is defined at a high level but there is a lack of a clearly defined process and ownership when the areas cross over: • Space Planners own some content • Store Operations own some communication • Procurement owns the relationship with vendors • Space planners own content, store operations owns communication, but the definitions of content and communication are unclear and differ between people • Current process has single points of failure at multiple intervals; single point of contacts for tasks with no backups
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Information Gathering and Communication Sign requests and specifications: All information necessary for introducing a new sign into stores for Monthly Pushes and making it available for reorder or New Store Kits is not provided at the beginning of the process. Multiple departments are needed to supply this information, but the current process does not provide for a disciplined flow of information. SKUs: • Lack of unique SKUs • No master list • Assigned at end of process • Multiple people involved in creation of parts of SKUs (SKU, POG, description) • One person assigns SKUs • Assigned by product SKU • Non-live SKUs (sign without a SKU assigned) Specifications: • Space Planners do not have access to full printing specifications that need to be assigned to a particular sign • Necessary specification details are requested when they are discovered missing, which causes delays • Multiple personnel are contacted to provide the missing information Art: • Signs produced without printed SKUs • Lack of repository for approved art • Lack of version control Manual signage process is slow and cumbersome. Lack of defined process to identify signs allowed in store. Multiple Active Signage Guides with mismatched information: • Each guide is manually created • Information in these guides are not pulled from the same set of data Monthly sign push: • Inconsistent documentation of specifications • Lack of documentation on signage that needs to be added/removed/updated to the new store list • Lack of unique sign types • Lack of defined marketing calendar possessed by SO and SE • Print quantities don’t take new store list into consideration • Lack of consistent, timely and accurate reporting
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BYER’S > FINDINGS AND RECOMMENDATIONS
New store kits: • Lack of master sign list used across departments (four lists currently) resulting in missing signs • Inconsistent communication methods to add/remove signs • Some signs are needed but not orderable (non-live SKUs) • Communication (including tracking) on the additional sign doesn’t come over until the day of delivery, often after the package has delivered • New Store shipments are sent parcel (20+ boxes per store) and can arrive at different times • New Store team has to spend hours checking in, reviewing and ordering additional signage • Signs with incorrect version of art can be received with no easy way to communicate the need for a replacement • High degree of waste and losses due to fulfilling “missing signage” not included in the New Store Kit, but needed by the store • New Store team does not receive tracking in a timely manner • Recent addition of Active Signage Guide is a good step in the process but lacks all of the information (no quantity listed, not all of the items listed) • Shipping/tracking of additional signage needed lacks communication, and tracking often comes the day that the package arrives
Summary Conclusions and Impacts of Current State The process to produce a monthly sign push touches many business units without any one unit or person having ownership of the process. There is a loosely defined theme of Space Planners owning the content and Store Operations owning the communication. Most of this is undocumented knowledge that is defined differently between business units. The result of this lack of ownership is a process that experiences multiple single points of failure with ineffective and time-consuming communication. That information is often incomplete, inaccurate or delayed, as people are working on other deliverables, with no true accountability. The lack of streamlined process and defined ownership ultimately costs Byer’s time, money and lost opportunity. Similarly, the lack of a defined process to assign product SKUs to individual signage pieces early in the creative process results in challenges identifying individual signage components by stores and marketing as well. This makes the management of a comprehensive signage list (or Active Signage Guide and New Store List) more difficult to update and keep current. This also leads to inefficiencies in ordering replacement and replenishment signage, and in managing versions for changes in future pushes. Finally, the lack of a central repository for all signage results in challenges for the Store Experience team in developing new signage and creates confusion relative to specifications, versions and current art. Byer’s rapid growth and expansion has challenged processes put in place years ago. While these processes have worked in the past, the size and pace of growth has exposed weaknesses that require change. This has impacted Byer’s ability to have your in-store sign pushes maintain pace and reflect your digital advertising efforts.
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BYER’S > FINDINGS AND RECOMMENDATIONS
Taylor’s Recommendations for Change As an outcome of our assessment and findings as detailed in the Current State portion of this document, Taylor recommends review and adoption of the changes noted below in this section. These recommendations are the result of our years of experience in working with some of the largest retailers in North America — helping them advance their marketing, promotional messaging and merchandising efforts. Byer’s should consider:
Assign Ownership and Redefine Roles This means: • Byer’s can effectively implement the changes necessary to streamline the creation and execution of monthly pushes and New Store launches • Clearly defined roles leads to better communication and reduces the likelihood of tasks being dropped • Assigning responsibility and authority will ensure that team members are held accountable for the roles and tasks they are given ◦
Note: Based on our observations and findings, Taylor recommends that Store Operations be the “owner” of the Monthly Push process and updating of the New Store Kits. This decision is a Byer’s decision to make. Taylor will support whatever Byer’s should decide in assigning ownership, and in developing and implementing the suggested workflow and related SOPs
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Information Gathering and Communication SKUs: • By assigning a unique SKU at the start of the request process, the SKU will be attached to that sign from start to finish. There will no longer be a stage in the process where the sign doesn’t have a unique identifier ◦
This creates a process where the communication regarding a sign SKU is fast and clear. Time is no longer lost in the miscommunication regarding a sign »
There is no longer the conversation about: -
What sign type are you referring to (is this the channel sign or the other sign)?
-
What version of art (spending hours going back through previous monthly pushes to find that information)?
◦
This process starting at the beginning and being unique will streamline the communication process. Too much time is spent asking clarifying questions because people are not sure which “version” of the SKU or even to what campaign it was assigned
◦
Assigning a unique SKU will remove the standard practice of making sure that the “updated art” SKUs that are produced in monthly pushes are also added to the new store kit
◦
Having a redefined SKU process for signs where multiple personnel can assign SKUs from an approved database will eliminate the single point of failure
• The SKU will be printed on the sign and will allow the stores to easily identify the signs • This creates a process where there will not be a non-live SKU Implement DAM (Digital Asset Management) as the single source of truth: • Art: Having a repository, version control and signs printed with SKUs means: ◦
The art will be easily found, selected and segmented
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The art can be stored in the DAM with metadata defined by Byer’s
◦
You will have access to the art that is printed for campaigns
◦
Art can be defined as active or inactive, but still have access to both
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Never order the wrong sign again
• Master sign types, signs, SKUs and art will mean: ◦
All of the data will be in a defined place and everyone will know where to look for it
◦
It will remove the multiple lists (new store, active signage guide, etc.) and allow for the data to be output as the user needs
◦
There will be consistent documentation of sign specs to the vendor to make the quoting process faster and less dependent upon the vendor “knowing” what the specs should be
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BYER’S > FINDINGS AND RECOMMENDATIONS
Implement a kitting management solution: • Automation tool to support, sustain and maintain the kitting workflow and SOPs • Historical pricing to aid in budgeting and campaign planning • Setting up a process to account for sign changes via a Kitting Management database for the monthly sign push, which will also drive any changes to new store kits creating a process to ensure accurate maintenance of the kit. Without technology, there will be a lot of manual work and it will be very difficult, if not impossible, to maintain New stores: • Bring New Store kitting master list in line with current Active Signage Guide using a single source of truth • Moving from parcel (20+ boxes) to LTL (one skid) will: ◦
Create less confusion as to what signs arrived at the store, as they will now all arrive at one time
◦
Reduce the damage that occurs shipping parcel
◦
Reduce the amount of packaging required saves money on materials and reducing time spent in new stores opening boxes
• Assigned SKU and associated processes mean that new stores will no longer be faced with needing signage that they can’t order (non-live SKUs) • Utilize a Kitting Management solution for automation: ◦
Setting up a process to account for sign changes via a Kitting Management database to automate kit list updates for campaigns and new stores: »
To be managed at the front of the process with less time spent on it
»
The kit will not be double the size that the stores need
»
Reduces the amount of shipping costs
»
Reduces the amount of sign costs
»
Reduces the labor to manage the changes
Optimal future state: • Start to collect attributes of new stores to build the foundation for segmented targeted campaigns • Deploy a store profiling solution to manage location attributes: ◦
Store size
◦
Windows (number, size, sequence)
◦
Fixtures, displays and end caps
◦
Language preferences
• Create sophisticated segmented campaigns • Customize/personalize messaging for all locations • Regionalized variable pricing and promotions
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Strategic planning — fixing the above creates the time to: • Start a monthly push calendar that defines the campaigns for the year • Reduce the surprise campaigns that happen • Plan the monthly push quantities to account for new store openings • If you increase quantities on the monthly push because the item is going into the new store, you will decrease the overall cost per store • Get control of the inventory that is printed and held • Provide insight into obsolescence costs • Establish an environment for continuous improvement
Summary Impacts of Implementing Recommended Changes Assigning ownership, authority, and documenting redefined roles of the in-store signage process allows for the creation of an effective and efficient workflow that, coupled with the use of enabling technology, will facilitate the ability for growth as Byer’s expands to 3,000 stores in North America. The establishment of a defined SKU assignment methodology and process will ensure consistency in signage identification, version control, specifications, deployment and replenishment. The resulting benefits will include clearer communications, improved proofing and product identification, reduced errors and waste. Creating a single source of truth, managed through a structured Digital Asset Management tool, will introduce the capability to have accurate data at your fingertips. This will allow for the business to make faster, more informed decisions than current processes allow. The result for Byer’s will generate the ability to move faster in their goal of following more responsive digital advertising efforts. Byer’s can also benefit from the creation of templates within the DAM to assist Space Planners in the creation of new signage without having to be print experts. This will increase efficiency and reduce questions and errors arising for omissions further downstream. Space Planners can also benefit from exposure to new concepts and ideas available from Taylor’s Account Management Team and Creative Services group. Through regular Business Reviews, the Store Environment Team and Taylor’s Innovation and R&D Team can share needs and best practices for new messaging tactics. The Optimal Future state allows for Byer’s to speak directly, effectively and in a timely fashion to your customer. A customer experience with messaging that is more data segmented and personalized will help drive improved revenue per store for Byer’s. This can also improve alignment with Byer’s initiatives in more targeted digital advertising.
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BYER’S > FINDINGS AND RECOMMENDATIONS
Technology Our findings and recommendations uncovered that, while Byer’s currently utilizes Workfront for some design and signage creation, no other technology is consistently used in managing content and processes. This results in multiple spreadsheets and emails, creating inconsistencies and poor communications and records. Taylor has recommended several technology tools as being critical to process improvement, and the ability to sustain and maintain an improved future state. Our recommendations include:
Digital Asset Management (DAM) • Deploy DAM as a central repository of all signage-related assets • Create and maintain templates and signage library for reference and new/revised content • Consistent documentation of specifications by asset • Byer’s branded • Individual user access with permissions and roles • Assets maintained for life
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• Version control and history • Download, email and share assets • Storage: 1 TB initially, scalable by TB • Self-serve • One Byer’s administrator • Byer’s owns data
CD Kits Management Platform • Deploy Kit Management automation tool • SKU Creation and Kit Creation • Master database and consolidated kit lists and Active Signage Guide • Kitting workflows and communications for Monthly Campaign Pushes and New Stores • Enforce SOPs • Centralized automated collaboration and project visibility • Historical pricing by campaign and asset • Roles and permission-based access defined • Integrate with DAM for single source of truth • Change management process automation • Integrate with Print Site platform • Robust reporting and history
Profile Manager (Optimal Future State) • Deploy Profile Manager platform for detailed store and signage attribute management • Collect and input individual store attributes (size, fixtures, windows, displays, end caps, etc.) • Manage languages, store revenue and seasonality • Supports regional campaigns • Supports regional pricing • Variable kit management • Variable imagery and personalization
Implement
Set up campaign profile and begin campaign onboarding
Configure
Configure campaign strategy and materials
Analyze
Utilize built in campaign analytics features
Execute
Output and distribute kits to execute the campaign
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BYER’S > FINDINGS AND RECOMMENDATIONS
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Reporting In the current state, Byer’s has limited reporting and multiple databases not in sync relative to campaign pushes and new store openings. As a byproduct of utilizing the Taylor’s recommended technology stack, Byer’s will be able to pull multiple reports on demand that will be accurate and consistent. Examples of online dashboard metrics and reports that Byer’s can pull on demand include, but are not limited to: • New Store Kit contents (current) • Monthly Kit contents (current) • Quoting documents • Historical pricing • Artwork version report • Artwork creation assignments • History reports • Active Signage Guide Taylor will work with key stakeholders at Byer’s to review the proposed standard reports and identify any custom reports needed.
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BYER’S > FINDINGS AND RECOMMENDATIONS
Implementation of Future State Should Byer’s accept Taylor’s recommendations and desire to move forward, Taylor will assign the necessary resources to support the Account Management team in implementing the agreed upon steps. This will include an implementation project manager to on-board any new technology or processes that impact key functions. At a high level, these actions could include any or all of the following:
Step one: Fix the process and implement DAM • Define ownership (Taylor recommends Store Operations) • Redefine roles and responsibilities (Byer’s to define/Taylor to consult) • Define areas of change and develop revised SOPs (Byer’s to define/Taylor to consult) • Create Sign Template Library (Byer’s to define/Taylor to consult) • Implement unique SKU system (Byer’s to define/Taylor to consult) • Create DAM structure (Byer’s to define/Taylor to consult): ◦
Sign templates
◦
Approved sign library
• Byer’s owns data • Begin to collect marketing attribute data as new stores come online (Byer’s to define/Taylor to consult)
Step two (concurrent with step one): Bring CD kits online to utilize DAM repository for the creation and management of kits • Single source of truth established • DAM integration with CD kits (Taylor) • Print site integration (Taylor) • Report creation (Byer’s to define/Taylor to consult and create): ◦
Kit list
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New store kit list
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Quoting document
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Historical pricing
◦
Art creation assignments
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History reports
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Active Signage Guide
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• Implement CD kits monthly push process (Taylor to train Byer’s): ◦
Store operations creates kit project
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Manage kit process
◦
Art creation workflow
• Implement CD kit new store process (Taylor to train Byer’s): ◦
Create kit in real time
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Streamlined new store kit process (manual processes eliminated)
• Byer’s owns data
Future steps: Profile manager to assign attributes and segment monthly pushes based on data defined by Byer’s This will give Byer’s the tools to create specialized campaigns by store location, resulting in increased revenue through tailoring messaging to specific audiences. The complexities and challenges of specialized campaigns are handled by the software, freeing up Byer’s to focus on selling product: • Going back to existing stores and collect data (Managed services and site survey option) • Attributes specific to stores: ◦
Regionalized pricing
◦
Segment stores based on data: »
Language
»
Revenue
»
Size
»
Seasons: Pushes that highlight seasonal products can start at different times to match up with seasons across the country
◦
Variable Campaign creation and management
• Byer’s owns data Based on the recommendations accepted by Byer’s, required Statements of Work (SOWs) will be developed and agreed upon, and a timeline will be established with responsibilities and milestones for project management purposes. These will be coordinated by the Implementation PM.
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BYER’S > FINDINGS AND RECOMMENDATIONS
Discovered and Potential Savings Opportunities Through the course of our assessment, the Taylor team observed several opportunities for Byer’s to implement changes that would directly benefit Byer’s through both hard dollar and soft dollar savings. The first significant area of discovery involved the New Store Kits. Though not initially in scope, we were asked to review the processes related to New Store Kits. Through consultation with Field Leaders and Store Operations we were able to identify significant amounts of waste and inefficiencies. As a result, changes were implemented that lead to: • Elimination of obsolete and unnecessary signs from New Store Kits (right-sizing) resulting in savings of $1,000 per store (14% spend reduction) • Identified endcap signs not needed and eliminated from New Store Kits resulting in freight savings of $69 per store (1% spend reduction) • Successfully converted shipping method from parcel to LTL resulting in freight savings of $274 per store (4% spend reduction of kit value) • Documented reduced time by Field Leaders in unpacking, sorting and installing signage as a result of right-sizing New Store kits, saving roughly 6 labor hours per store (FTE savings of $312 per store) Byer’s stands to benefit further through the adoption of Taylor’s recommendations within this document. By implementing our recommended process improvements and deploying enabling technology to support and maintain an improved state, Byer’s could realize the following: • Reduce labor and cycle time on monthly pushes by as much as 15-30% through process improvements (SOP) and automation (technology) • Sustain and maintain SOPs and practices implemented in rollout with automated process (kitting) management technology • Expansion of savings through improved SKU management for reduced waste and errors • If current average waste is 10% per push — Byer’s would realize $120,000 annually in savings ($100 per store annually) By continuing to implement industry leading technology (Profile Manager), Byer’s would be positioning themselves for a leap forward to an optimal state: • Reduced waste from one size fits all kit by versioning to fit store size and attributes • Unknown at this time, but estimated at 10-20% savings through print reductions • Enhanced sales, margins and market acquisition through regionalized versioning and promotions • Ability to personalize monthly pushes by region, language, seasonality and market pricing and promotions
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Technology Solutions from Taylor To support the recommendations for the use of enabling technology, Taylor is proposing adoption of the following tools in two phases. The first phase is designed to support and maintain process improvements implemented as a result of this document. Without enabling technology, Byer’s would be reverting to your current state of manual spreadsheets and no central repository or templating tools to ensure a single source of truth and kit deployment management. Any benefits and savings realized from implementing these changes would soon be lost without enforcement discipline. Digital Asset Management and kit management • DAM (1 TB Storage) with CD kits. . . . . . . . . . . . . . . . ◦
Each additional TB storage (per TB) . . . . . . . . . . .
◦
Software as a service (SaaS) licensing fee
◦
Central repository
◦
Automation workflows and kit management
◦
Print site integrationv
Annually $70,000/year $500/year
At 1,200 per Store
At 2,000 per Store
$58/year
$35/year
-
-
At 1,200 per Store
At 2,000 per Store
Profile Manager (future phase) • Store profile manager (tiered pricing)
Annually
◦
Up to 250 stores . . . . . . . . . . . . . . . . . . . . . . . . . . .
$50,000/year
-
-
◦
Up to 1,000 stores. . . . . . . . . . . . . . . . . . . . . . . . . .
$100,000/year
-
-
◦
Up to 2,500 stores. . . . . . . . . . . . . . . . . . . . . . . . . .
$150,000/year
$125/year
$75/year
◦
Location attributes and data
◦
Regionalized/personalized campaign management
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SaaS licensing fee
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BYER’S > FINDINGS AND RECOMMENDATIONS
Process Flow (Current State) • No single source of truth • Lack of ownership • Lack of unique SKUs • Lack of version control • Inaccurate, manually generated reports for monthly pushes and new store kits
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BYER’S > FINDINGS AND RECOMMENDATIONS
Process Flow (Future State) • Assigning an overall process owner allows for coordination (Traffic Coordinator/Project Manager) of consistent communication and enforcement of change in culture • Implement a DAM for centralized data collection and use by process owner to coordinate information flow • Implement kitting management system to automate campaigns and provide expanded reporting • Implement a Store Profile Management system for realization of an Optimal State
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