April 2009
Walgreens has launched the Retail Synergy Program (RSP) to allow vendors to efficiently schedule in-store merchandising activities through a centralized process. All in-store activities are executed by merchandisers certified on Walgreens’ in-store procedures. Vendor benefits by participating in RSP include:
• Improved consumer access to products
• Deployment of resources to the right store at the right time
• Speed-to-market via chain wide coverage in two weeks
• Compliance improvement of merchandising activities
• Actionable reports and scorecards
How it Works
• In-store activities are requested through on-site RSP Coordinators
• RSP Coordinator helps design the project including store coverage, activity, and time in store based upon vendor’s objectives
• RSP Coordinator loads the projects into RSPTrak system for vendor approval
• Retail projects can be scheduled in 15 minute increments of in-store time and are completed in a two week execution window
• Vendors will receive web enabled access to results
• Walgreens will bill vendors for completed in-store activities
Reports and Scorecards
• Available to participating vendors
• Stores complete vs. stores in plan
• Summary of project results vs. activity plan
• Individual store results vs. activity plan
Examples of Approved In-Store Activities
• Ensuring placement of existing and new items
• Out of stock correction
• Seasonal product pack-out
• Department reset and revision work
• Recall and rework activity
• Product rotation
• Auditing
• Point of purchase material placement
• RFID remediation
• Fixture installation
• IRC placement
• System inventory correction
• Markdown and sell-through expedition
• Promotional display building and replenishment
• Customized activities as needed
RSP Rates
• 15 minutes = $11.00
• 30 minutes = $15.00
• 45 minutes = $20.00
• 60 minutes = $23.00
Frequently Asked Questions
1. Who do I see to set up a retail project?
Two RSP Coordinators will be set-up within Walgreens corporate office and will work with all vendors to input projects into the system. Each RSP Coordinator will be assigned to a group of vendors. Multiple retail activities can be loaded within one project, as long as the store list remains consistent. If two different store lists require the same set of service types, two projects will be loaded into the system.
2. What is the required timing of a retail project?
Vendors have a minimum of a two week lead time to work with their RSP Coordinator to input projects into RSPTrak. Vendors are encouraged to load projects as far in advance as possible to ensure optimal dates for the execution of projects. All projects must be approved by the vendor in RSPTrak no later than 5 p.m. Central Time Zone on Monday, two weeks prior to start. If a project has not been approved by COB on Monday, it will be pushed back two weeks to the following cycle or the next available cycle.
3. Is there a minimum time required in order for a project to run at Walgreens?
All projects will be loaded in 15-minute increments, with 15 minutes being the minimum amount of time required. The amount of time will be determined based on the service type(s) requested and the number of products requested for each service type(s). The RSP Coordinator will work with the vendor and will be able to recommend the amount of time required.
4. What types of images, WIC number or UPC number information are required from a vendor for each project?
Product images, WIC numbers and UPC numbers are required for all products that are worked within a project. It is encouraged that images be sent for display, endcap, and tower building as well. This will aid the Retail Reps when they are executing the project at the store level. Any attachments (images, planograms, distribution by set size, etc.) that total more than 7 pages will be charged $0.20 per page, per store.
5. How is distribution of materials such as IRCs, fixtures, POP, etc. handled?
All materials will be sent to the store for arrival on Friday prior to the start date. Vendors must have “Hold for RSP Representative” and the RSPTrak ID# on a separate label (not the shipping label) on all boxes. Walgreens will have a designated area in the backroom for all RSP program initiatives. Instructions on how vendors will handle project materials will be on the confirmation e-mail sent to vendors — once the project(s) is loaded into RSPTrak. If materials are not in store by the project start date, vendors will be charged full time for the project. The project could potentially be canceled and pushed back if vendor cannot confirm the arrival date to the store. Cancellation fees will apply.
6. Can RSP handle recalls or approved resets?
Recalls and resets must be approved by Walgreens prior to inputting the project into the RSPTrak system. Resets will follow the normal timelines for project entry. Since recalls require immediate action, the project information must be submitted to the RSP Coordinator by noon in order for the project to be managed by COB same day. The project can begin two days after information has been entered into RSPTrak, provided that timelines have been followed.
7. Do any projects require category manager approval?
There are five service types that will require Walgreens’ approval in addition to the vendor’s approval. Those service types are Item Recalls, IRC Placement, Endcap/Tower Building, Resets and Custom (projects that fall outside the pre-defined, pre-approved in-store activities).
8. What happens if a vendor needs to cancel a project?
If projects are canceled the week prior to the start date vendors will be charged a 5% penalty. If projects are canceled after the project start date vendors will be charged a 10% penalty. All visits that are made prior to cancellation will be charged to the vendor. Penalty Percent Calculation = number of stores x project time x rate of project.
9. What reports will the vendor receive, how and when?
Vendors can access RSPTrak and pull reports as often as they like. The reports will include a Project Summary Report, a Project Detail Report, and an Exceptions Report (stores that didn’t get executed). Please note: Microsoft Silverlight must be loaded onto the computer during the first visit in order to access RSPTrak. This is a free download plug-in.
10. How will the vendor be billed for the retail projects?
Vendors will be billed through Walgreens at the end of the project. Walgreens will pull billing reports 7-10 days after project completion, and will bill vendors accordingly.
Points of Contact
CROSSMARK
Alex Yakulis, VP Business Development, (469) 814-1434, alex.yakulis@crossmark.com
Dave Fister, Branch Manager Drug, (630) 424-1300 ext. 2211, dave.fister @crossmark.com
Premium Retail
Pat Lockridge, VP Business Development, (479) 845-2840, plockridge@premiumretail.com
Chuck Averkamp, VP Walgreens Team, (262) 880-5034, caverkamp@premiumretail.com
