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Sustainability: Moving from Common Sense to Common Practice
2016 International Conference
Leesburg, VA - National Conference Center

September 18th - 21st


TOC Retail: The Works-A Comprehensive View of the TOC Solution for Retail and its Next Steps of Development

Humberto Baptista - Vectis Solutions CEO




The TOC Retail solution is now a flourishing one, but the tools, results concept pertaining it are scattered, uncoordinated and sometimes inconsistent. In this presentation the author gathers all that was developed in TOC for Retail, makes the assumption explicit, irons out the inconsistencies and presents a comprehensive view of the breath of application and what is to be expected as new developments to come. The content will include (but not be limited to): basic assumptions of TOC Distribution and Retail and their validity, limits of pull replenishment, product focusing, seasonalities, mix management, short life products, purchasing, product development, pricing, etc.

The TOC solution for Retail is the grandchild of the TOC solution for Distribution, and although it evolved significantly to expose even deeper focus than previously known it is still mostly dedicated to deal with stock and mix decisions. Even the 2009 Retailers S&T by Eli Goldratt touches briefly a few points beside these.

Based on 7 years of experience in Retail TOC, Humberto will present a comprehensive view of the retailing ecosystem with all elements that are important to retailers. The concept of constraint in retail is revisited and challenged. The concept of Decisive Competitive Advantage is discussed as well as the challenges associated with it. A generic model of retailing is presented to capture all the flow and serve as a basis to understand everything that is done in such an organization.

Taking this generic model we move through the supply chain towards the end-consumers analyzing issues like the relationships with suppliers, the role of integrated (own) production, the structure of distribution, the layout and visual merchandizing of stores, the differences between self-service and served stores and their relationship with different products. Also we cover purchasing, mix management, life cycle management, short life products, pricing, the evaluation of conversion and in flow rates, the consumer life cycle, the role of e-commerce as a challenge to the core assumptions of MTA and others.



Humberto Baptista - Vectis Solutions CEO, member of the TOCICO Board of Directors, former member of Goldratt Group. Led from VV projects on Consumer Goods and Retail to manufacturing, projects and services, translation (TOC Insights, GWS in CCPM, S&Ts, etc.), taught TOC VV Application Experts and Project Leaders worldwide. Current interests: TOC Principles, Implementations by S&Ts, advanced TOC Finance, TOC Retail, TOC NPO (Government, Health and Education) and TOC4E.


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