Зачем нужен GMROII и как его посчитать - идеи Coca Cola

1. Wal*Mart Global Account Team GMROII Orientation

3. GMROII is a Retail Metric that measures the productivity and profitability of an element of the business Sales Inventory Gross Margin Maintain Margin (Gross Margin) Average On-Hand Inventory Cost GMROII (Gross Margin Return On Invested Inventory) Measures the amount of gross profit dollars generated on an annual basis for each dollar of inventory purchased = Source: MVI research and company reports See actual formula in Appendix

4. GMROII is a simple, yet powerful Metric INVENTORY COST OR INVESTMENT PROFIT OR RETURN ON INVESTMENT If you invest one dollar in inventory and you sell that inventory for $1.25, Then you have gained a return on investment of $0.25 or a 20% margin. After the end of one year you sell your inventory 20 times, each time making $0.25 for each dollar of inventory investment. Your return on one dollar of investment into inventory is 20 quarters or $5.00. Source: CCE Internal Training

7. The CSD category has traditionally out-performed other categories Apparel Sporting Toys Electronics CSDs Goods Turns 5.0 3.0 3.0 4.0 110 Margin 35 28 30 20 10 GMROII $2.70 $1.20 $1.30 $1.00 $12.00 Source: CCE North America - 2005

11. GMROII in Action: How Wal*Mart is using GMROII to assess inventory performance Non Profit Zone Opportunity Zone Profit Zone GMROII = Margin % X Turnover rate Annual Inventory Turnover rate M A R G I N Source: Wal*Mart Mexico - 2007 Coke Zone GMROII > $5 GMROII < 1 = Loss

13. Appendix 1) GMROII Formula GMROII tells you how much profit you get back at the end of one year for investing one dollar in inventory . GMROII (Gross Margin Return On Invested Inventory EXAMPLE: If an item is sold for $1.25 and the item cost the retailer $1.00, then the Gross Margin is 20%. 25-Cents is profit and $1.00 is cost. Yearly turns for this example are 52 times per year. GMROII = X INVENTORY TURNS (1YEAR) GM % 1 - GM % GMROII = X INVENTORY TURNS (1YEAR) GM % 1 - GM % X 52 20% 1 - 20% = = $13.00 What does $13.00 mean? For every dollar that is purchased of inventory the retailer will receive $13.00 in Gross Margin by the end of the year.

14. Appendix 2) GMROII Quadrant Sleepers High Margin Low Turns Price - Lower Prices Assortment - Add segments; reduce coverage percent Shelf Presentation - Reduce space Promotions - Increase frequency Product Supply - Reduce inventory Mid point: Average Questionables Low Margins Low Turns Price - Increase prices Assortment - Reduce segments; reduce coverage percent Shelf Presentation - Reduce space Promotions - Run off shelf Product Supply - Reduce cost, Reduce Inventory Winners High Margins High Turns Price - Maintain, check against competitors Assortment - Add segments increase percent coverage Shelf Presentation - Better location, more space Promotions - More frequency Product Supply - Increase Inventory, Reduce out-of-stocks Net Margin / Turns TURNS Opportunities Low Margins High Turns Price - Review segment mix, Increase prices Assortment - Increase percent coverage Shelf Presentation - More space for high turn SKU’s Less space for lower turning SKU’s Promotions - Maintain, check promoted segments Product Supply - Increase inventory, reduce out-of-stocks Net Margin Percentage

15. Appendix 2) GMROII Quadrant Example Source: ABC Study Source: ABC Study Brazil GMROII by Package