Executive Overview Retail scorecards are now more than a decade old. The companies in this study had an average of more than five years of experience using retail scorecards. Buyers and suppliers now manage multiple scorecards simultaneously (in the same relationship) in trading partner communications. The most common scorecards are focused in the areas of supply chain. As with any relationship, there is always a carrot and a stick. A carrot, or an incentive to do better, is a positive reward system given to affirm good behavior; while a stick is a punitive action for an unwanted behavior. Today, in the administration of retail scorecards, they are more focused on deductions and the withholding of payment. The primary value of the retail scorecard is the improvement of on-time and in-full shipments. Both parties have the opportunity to use the scorecard to improve assortment and reduce total costs. Today, these opportunities are aspirational. Here we share the insights from the study and end with recommendations for both trading partners.

1. Retail Scorecards Study
Supply Chain Insights LLC Copyright © 2014, p. 1
Summary Charts
January – June 2014

2. Supply Chain Insights LLC Copyright © 2014, p. 2
Agenda
 Study Overview
 Retail Scorecard Overview
 Primary Scorecard Relationship
 Suppliers/Manufacturers
 Retailers

3. Supply Chain Insights LLC Copyright © 2014, p. 3
Study Overview

4. Definition Given to Respondents
Supply Chain Insights LLC Copyright © 2014, p. 4

5. Even Representation of Retailers and Suppliers
Supply Chain Insights LLC Copyright © 2014, p. 5

6. All Use Retail Scorecards
– Suppliers Have Used Them Longer
Supply Chain Insights LLC Copyright © 2014, p. 6

7. One-Third in Supply Chain Role
Supply Chain Insights LLC Copyright © 2014, p. 7

8. Supply Chain Insights LLC Copyright © 2014, p. 8
Agenda
 Study Overview
 Retail Scorecard Overview
 Primary Scorecard Relationship
 Suppliers/Manufacturers
 Retailers

9. Supply Chain Scorecards Are Most Common Type
Supply Chain Insights LLC Copyright © 2014, p. 9
Worked With

10. Suppliers More Likely than Retailers
to Work with CSR Scorecards
Supply Chain Insights LLC Copyright © 2014, p. 10

11. Supply Chain Scorecards Are
Most Common Type Used by Retailers
Supply Chain Insights LLC Copyright © 2014, p. 11

12. Review Scorecards Face-to-Face
with an Average of 25% of Suppliers / Retailers
Supply Chain Insights LLC Copyright © 2014, p. 12

13. Suppliers and Retailers Equally Likely to
Review Performance Face-To-Face
Supply Chain Insights LLC Copyright © 2014, p. 13

14. Most Common Criteria for Meeting Face-To-Face
Are Volume and Impact on Business
Supply Chain Insights LLC Copyright © 2014, p. 14

15. Supply Chain Insights LLC Copyright © 2014, p. 15
Agenda
 Study Overview
 Retail Scorecard Overview
 Primary Scorecard Relationship
 Suppliers/Manufacturers
 Retailers

16. Most Respondents’ Primary Relationship
Is with a Discrete Product
Supply Chain Insights LLC Copyright © 2014, p. 16

17. For Both Suppliers and Retailers, Most Respondents’
Primary Relationship Is with a Discrete Product
Supply Chain Insights LLC Copyright © 2014, p. 17

18. High in Importance and Performance:
On-Time, Accurate Shipments, Properly Labeled Cases
& High Product Quality
Supply Chain Insights LLC Copyright © 2014, p. 18

19. Top in Importance, Performance & Impact:
On-Time and Accurate Shipments
Supply Chain Insights LLC Copyright © 2014, p. 19

20. High in Importance and Performance:
On-Time, Accurate Shipments, Properly Labeled Cases
& High Product Quality
Supply Chain Insights LLC Copyright © 2014, p. 20

21. Greatest Gap in Importance and Performance:
Lowest Total Cost and On-Time
Supply Chain Insights LLC Copyright © 2014, p. 21

22. Suppliers See Most Elements as More Important
Than do Retailers – Except Assortment Excitement
Supply Chain Insights LLC Copyright © 2014, p. 22

23. Suppliers Care More About Billing and Compliance;
Retailers Care More about Assortment Excitement
Supply Chain Insights LLC Copyright © 2014, p. 23

24. Suppliers Rate Most Elements as Higher Performing
Than do Retailers – Except Assortment and ASNs
Supply Chain Insights LLC Copyright © 2014, p. 24

25. Scorecards Have Had the Greatest Impact on
On-Time Performance and Accurate Shipments
Supply Chain Insights LLC Copyright © 2014, p. 25

26. For Both Suppliers and Retailers, Most Impactful
Elements Are On-Time Performance and Accurate Shipments
Supply Chain Insights LLC Copyright © 2014, p. 26

27. Most Common Definitions for “On-Time Order:”
Received on Same Day or Within Week
Supply Chain Insights LLC Copyright © 2014, p. 27

28. Most Common Definitions for “On-Time Order:”
Received on Same Day or Within Week
Supply Chain Insights LLC Copyright © 2014, p. 28

29. Most Common Definitions for “Accurate Shipment:”
Fill Rate or On-Time
Supply Chain Insights LLC Copyright © 2014, p. 29

30. Retailers More Likely Than Suppliers to Consider “Accurate
Shipment” to be “Accurate and Scan-able Labeling”
Supply Chain Insights LLC Copyright © 2014, p. 30

31. In the Primary Relationship, Scorecards Are Updated
37 Times per Year on Average
Supply Chain Insights LLC Copyright © 2014, p. 31

32. On Average, the Primary Relationship Scorecard
Is Redefined 1.6 Times per Year
Supply Chain Insights LLC Copyright © 2014, p. 32

33. Supply Chain Insights LLC Copyright © 2014, p. 33
Agenda
 Study Overview
 Retail Scorecard Overview
 Primary Scorecard Relationship
 Suppliers/Manufacturers
 Retailers

34. Most Believe Doing a Good Job of Using
Scorecards to Improve Performance
Supply Chain Insights LLC Copyright © 2014, p. 34

35. Most Suppliers Share Scorecards Internally,
with Five Groups on Average
Supply Chain Insights LLC Copyright © 2014, p. 35

36. Most Suppliers Get Data from Retailers and
Four Types on Average
Supply Chain Insights LLC Copyright © 2014, p. 36

37. Over Half Receive Data for Retail Sales/Order Forecasts,
Forecasts and/or Store point of sale
Supply Chain Insights LLC Copyright © 2014, p. 37

38. Most Types of Data Are Typically Shared via Portal
Supply Chain Insights LLC Copyright © 2014, p. 38

39. High in Alignment Importance and Performance:
Sales & Marketing and Operations & Compliance
Supply Chain Insights LLC Copyright © 2014, p. 39

40. Greatest Gaps in Supplier Alignment:
Sales & IT, Sales & Operations and Operations & IT
Supply Chain Insights LLC Copyright © 2014, p. 40

41. Supply Chain Insights LLC Copyright © 2014, p. 41
Agenda
 Study Overview
 Retail Scorecard Overview
 Primary Scorecard Relationship
 Suppliers/Manufacturers
 Retailers

42. Monetary Penalties Are Most Common for Retailers
Supply Chain Insights LLC Copyright © 2014, p. 42

43. Over Half of Retailers Are Using e-Commerce
Supply Chain Insights LLC Copyright © 2014, p. 43

44. For Nearly Half of Retailers,
House Brands Are 26% of Volume
Supply Chain Insights LLC Copyright © 2014, p. 44

45. Over Half of Retailers Have Perpetual Inventory Signals
Supply Chain Insights LLC Copyright © 2014, p. 45
for Warehouses

46. One-Third of Retailers Book Chargeback Deductions
Supply Chain Insights LLC Copyright © 2014, p. 46
into Cost of Goods;
One-Third Budget for Chargebacks

47. High in Retailer Alignment Importance and Performance:
Supply Chain & Operations and Merchants & Inventory
Supply Chain Insights LLC Copyright © 2014, p. 47

48. Greatest Gaps in Retailer Alignment:
Merchants & Operations, Inventory & Advertising and
Merchants & Finance
Supply Chain Insights LLC Copyright © 2014, p. 48