ST2AR – Sell Thru Triggered Automated Replenishment and Improving Forecast Accuracy

Cuneyt Kayacan - Sony

Cuneyt Kayacan - Sony

I came to work at SONY 16 years ago with lots of passion and energy. I worked across several countries and held many different responsibilities from marketing to finance to supply chain.

Now, at my present vocation, being operations director at SONY, I find myself responsible for many different areas of the business. My responsibilities now reach to areas such as IS (Information Systems), After Sales Services, Sales Order Processing, Customer Information, Logistics, Procurement, as well as Demand & Sales Planning.

From my first day at SONY through today, I have witnessed hours of time and effort devoted to the implementation of CPFR or other replenishment schemes, but each of them failed somehow. The concepts were far from practical they did not provide for our basic business needs and neglected to consider what our customer wants.

I was part of several discussions, both internally and with retailers. I was also involved in various CPFR projects over the past years, none of which resulted in success. Finally something clicked for me. It was a solution which could truly suit the needs of SONY and our retailers. I just don’t know why it took this long to find it. We called it St2ar, which stands for Sell-Thru Triggered Automated Replenishment. It was easy to implement, easy to use and also to manage. St2ar it built on basic concepts of demand planning and supply chain.  However, it takes a different approach to CPFR. We also did not have to over-engineer anything. The system is built so that it is really the simplest thing for any person from retailer to our internal staff to grasp and manage

This was a tremendous discovery. For the first time in years, we actually had the means and the tools to implement a replenishment program within the existing reality of SONY and it’s retailers. The St2ar project is pushing many transformations in various areas within our company. Processes from Production Planning, to Forecasting as well as Sales Management are all driven by St2ar. It has allowed us to manage everything on a weekly level and also on a store and city level too. Transformations are also being realized in focusing from sell-in to sell-out. This means that we all now need to manage and focus on consumer purchases.  It is no longer enough to sell-in to retailer inventory especially if you are now bonus based on sell-out. There are big changes happening, transformation itself is a big change for SONY and is sure to lead to huge success in time. Also our customers value this greatly, which is very encouraging.

So we are very proud of the progress we have made thus far. During IBF’s Supply Chain Forecasting & Planning Conference: Asia I will share with you the basic principles of St2ar and how we managed to solve the long term problems we suffered within our forecasting and replenishment operations both for SONY and for our customers as well.

You will hear more when we are together in Shanghai. I really look forward to meeting you and learning further from all of your experiences as I hope you will learn from mine.

Cüneyt Kayacan
Operations Director
Sony Consumer Electronics

Hear Cüneyt Speak at

IBF's Supply Chain Forecasting & Planning Conference: Asia

 

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