How does the PCI benchmark differ from the benchmark studies conducted by GMA/FMI?
The difference between PCI and other industry benchmarks is the specificity of the data. PCI starts at the UPC level and builds the benchmark by UPC code within manufacturer within category within supply chain channel. All manufacturers within the benchmark are identified.
What is the PCI benchmark data validation process?
PCI validation protocols have been developed with the knowledge that PCI will be the reimbursement basis for ARP policies. Validation protocols are divided into three primary edit processes: data acquisition agreements with participating PCI retailers, extensive “outlier” computer edits, and a rigorous check list procedure that is performed on all data before it is posted to the PCI database.
Who are the retailer participants and will I be able to see their performance data?
Participating retailers and key operating facts (number of DC’s, stores, operating divisions and geographic locations) are published in the sample section of the benchmark. Confidentially clauses in the data acquisition agreements prevent disclosure of specific retailer operating data. However, all participating retailers are committed to improving the supply chain and are willing to entertain disclosure if there is an opportunity to improve supply chain performance.
What is Policy Manager?
Policy Manager is a policy modeling tool developed by SGC. Subscribers utilize Policy Manager to develop various policy reimbursement alternatives. PM can also be used to administer the policy once it has been developed. PM contains a monitoring function that constantly compares actual supply chain performance to the original assumptions behind the policy.
How is discontinued product identified and quantified?
Data feeds from participating retailers include data on discontinued items (Discos). Policy Manager provides users the ability to remove discontinued items from the benchmark sample when considering policy alternatives.
Can PCI and Policy Manager replace current ARP Policies?
A major manufacturer is utilizing PCI and Policy Manager to facilitate the implementation of an ARP policy. Benefits of using these tools include cost (80% less expensive than the traditional ARP audit based policy), rate adjustments (rates change automatically based on supply chain performance) and retailer acceptance (policy is based on an independent benchmark that has been derived from participating retailers).
Can ARP audit investment be utilized in the formulation of an ARP replacement policy?
Policy Manager allows users to calculate the “Shared Responsibility” portion of any policy model. This allows users to take advantage of past ARP audit investments.
Does the benchmark include multiple supply chain channels?
The initial PCI benchmark includes the grocery channel (33% of the traditional grocery channel). Additional supply chain channels will be added in the future.
How is “Best in Category” performance calculated?
Categories contained in the PCI benchmark are based on similar supply chain characteristics. UPC codes are assigned to each PCI category. UPC failure rates are summarized by manufacturer and delivered to subscribers in a format that ranks each manufacturer within category based on lowest supply chain failure rate. The system also calculates the percentage improvement required to obtain “Best in Category” supply chain performance.
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