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The foundation of Policy Comparison Index (PCI) is a large and comprehensive validated sample that represents a statistically accurate view of the supply chain. Data is acquired from participating retailers under a data acquisition contract. Reclaim data is provided each month via electronic feeds. All data is benchmarked via a “constant retailer supply chain". Industry standard distribution centers, product handling equipment and personnel are utilized to handle all product within a category.
Policy Comparison Index applications:
- Benchmark internal supply chain performance against “Best in Category” performance for all competitors.
- Provide additional data points to supplement ARP rate formulation.
- Provide a basis for both retailers and manufacturers to implement reimbursement policies based on an independent benchmark.
- Identify SKU rationalization prospects. ARP profit or loss is calculated for each UPC.
- Calculate ARP activity for all manufacturers and categories. ARP gap (positive or negative) is calculated for each manufacturer and category.
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