Lowe's Integrating Planning and Execution (IPE)

Lowe’s announced poor 2Q11 financial results with anemic growth and flat same store sales recently.   To improve performance, CEO Robert Niblock and EVP merchandising Bob Gfeller are implementing Integrating Planning and Execution (IPE), which places an emphasis on putting the right product in the right store at the right quantity.  This new focus got our attention since we provide EDI 852 data analysis and reporting to Lowe’s vendors.  Putting the right product in the right store at the right quantity is exactly what vendors use EDI 852 to accomplish.  Localized merchandising is the right strategy for Lowe’s, but they may run into some challenges executing the strategy with vendor’s assistance.  

Many vendors we work with have Lowe’s as a customer, as well as other ‘big box’ retailers.  Across the board, these vendors get EDI 852 from their big box retail customers and we help them analyze the data at a SKU/store level.  But many of these vendors choose not to use Lowe’s EDI 852.  Instead,  they opt to pull reports from LowesLink®.  LowesLink® is a fine system for pulling reports.  The problem is the reports offer a snapshot of performance, not an analysis system.  If the vendor does not have a database to store weekly SKU/store data, it is nearly impossible for them to analyze weekly sales effectively and efficiently enough to participate in localized merchandising strategies.  Lowe’s does have Vendor DART which offers analysis tools, but the most powerful tools are reserved for large vendors.  

Weekly analysis of EDI 852 at a SKU/store level is the foundation of a successful program like Lowe’s IPE.  Vendors know their products best and there are simply too many products for Lowe’s staff to conduct weekly SKU/store level analysis.  For Lowe's Integrating Planning and Execution (IPE) to be successful long term, they must get vendors actively using the EDI 852.

LowesLink® is a registered trademark of LF, LLC.