ECR Baltic General Meeting · Initiatives by Edgars Pentjuss, ECR Baltic 15:10 – 16:00 ECR Baltic...

ECR Baltic General Meeting25th of March 2014

12:00 Tallink Hotel Elizabetes 24,Riga

1

Anti-trust caution and Competition LawCompliance

ECR Baltic will not enter into any discussion, activity or conduct that may infringe, on its part or on the part of its members and participants, any applicable competition laws. By way of example, members and participants shall not discuss, communicate or exchange any commercially sensitive information, including non-public information relating to prices, marketing and advertisement strategy, costs and revenues, trading terms and conditions and conditions with third parties, including purchasing strategy, terms of supply, trade programs or distribution strategy. This applies not only to discussion in formal meetings but also to informal discussions before, during or after meetings.

Message to new members, participants and/or people taking part for the first time: Please note that taking part in ECR Europe’s and ECR Baltic activities is subject to having read and understood ECR Europe’s EC Competition Law Compliance Program. If you have not done so, please do so now. http://www.ecr-baltic.org/f/docs/clcp.pdf

2

AGENDA:

12:00 – 12:15 Welcome coffee and registration12:15 – 12:30 Introduction and agenda12:30 – 12:50 Competition law, anti-trust compliance and legislation updates in Baltics (the compliance check on ECR Baltic supply chain standardization initiatives) by Rūdolfs Eņģelis, RinglaVīksne, Sorainen Law Offices;12:50 – 13:30 ECR Baltic and Cross National Initiatives projects 2014 by Edgars Pentjuss, ECR Baltic13:30 – 13:50 Rimi Baltic Data Pool pilot results (18 suppliers in 3 Baltic Countries) by Zane Silina, Rimi Baltic

3

AGENDA CONTINUED:

13:50 – 14:30 Coffee/Lunch break (Networking)14:30 – 15:10 Summary of ECR projects with other National Initiatives by Edgars Pentjuss, ECR Baltic15:10 – 16:00 ECR Baltic annual report 2013 and plan for 2014.- Membership fees update- ECR visibility and marketing: gold membership and awards programs- ECR Baltic Board members election16:00 – 16:30 Members time: discussion and closure

4

Efficient Consumer Response fundamental believe is that

manufacturers and retailers can work together for the benefit of

shopper and consumer!

5

ECR Baltic membership 2014

6

Benefits of being EfficientConsumer Response:

7

ECR Baltic working streamssummary:

Current:

- Update EUR and EPAL Pallets Assessment Cards, train the trainer session and development of e-learning module;- RTI (Returnable Transit Items) unification and dissemination in dairy, meat, f&v, bakery, what’s next?- Maintaining Master Data user group (Data pool), new challenges on B2C information: 1169/2011 EU Directive.- ECR Baltic Forum 2014

NEW:

- Collaborative Supply Chain Guide project with ECR Switzerland, Coca-Cola, Royal Unibrew, Rimi Baltic, Tallinn University of Technology;- Affordable Benchmarking project with ECR Poland and Baltic CM and shopper marketing benchmarking survey;- Promote European Supply Chain Initiative www.supplychaininitiative.eu(ECR Baltic as self-regulation platform for regional stakeholder forum).

8

Competition law and antitrustcompliance check: ECR EUR palletsassessment and RTI unification

• Participation in standard-setting is unrestricted• The procedure for adopting the standard in question is

transparent• There is no obligation to comply with the standard• Access to the standard is on fair, reasonable and non-

discriminatory terms

• Conclusion: there is no doubt that they (in this case ECR RTI Standardization Initiative) can provide effective contribution to the market integrity giving economic efficiencies to all stakeholders.

9

ECR Baltic working streams:

Competition law, anti-trust compliance and legislation updates in Baltics (the compliance check on ECR Baltic supply chain standardization initiatives) by Rūdolfs Eņģelis, Ringla Vīksne, Sorainen Law Offices

10

ECR Baltic working streamssummary:

Current:

- Update EUR and EPAL Pallets Assessment Cards, train the trainer session and development of e-learning module;- RTI (Returnable Transit Items) unification and dissemination in dairy, meat, f&v, bakery, what’s next?- Maintaining Master Data user group (Data pool), new challenges on B2C information: 1169/2011 EU Directive.- ECR Baltic Forum 2014

NEW:

- Collaborative Supply Chain Guide project with ECR Switzerland, Coca-Cola, Royal Unibrew, Rimi Baltic, Tallinn University of Technology;- Affordable Benchmarking project with ECR Poland and Baltic CM and shopper marketing benchmarking survey;- Promote European Supply Chain Initiative www.supplychaininitiative.eu(ECR Baltic as self-regulation platform for regional stakeholder forum).

11

ECR Baltic EUR Pallets Assessment working group (Baltic and Latvian subgoup).

• Brief and key competences: The pallets quality assessment working group was called following recent euro pallets open pool "whitening" initiatives in the Baltic States and in order to legalize market to respect all EPAL/UIC industrial property rights on euro pallets (as branded goods). The second reason was different quality acceptance (interpretation) rules and standards for accepting/disqualifying euro pallets to/from circulation between companies.

• Aims: • Align pallets quality acceptance rules between retailers, distributors and manufacturers;• develop/adopt tools (i.e. pallets quality assessment cards and trainings) which would help companies

to apply common quality standards to all• Deliverables:

• EUR Pallet assessment cards v1.0 (5 languages, printed around 3’000 pcs)• Temporary EUR Pallet assessment cards for Latvian market with LPUF and LPTA http://www.ecr-

baltic.org/eurpallets/• Activity based pallet management cost calculation tool: http://www.ecr-

baltic.org/f/docs/ECR_PL_Pallet_Calculations_Sheet_v.1.02EN.xls (source ECR Poland)• Market legalization and transparency, new pallet systems: Chep, One way pallets.

• Key milestones and future challenges: • EPAL/UIC split for EUR pallets (New single brand UIC and EPAL pallets from 31.08.2013)• Dissemination of v1.0 and status of v2.1 for Latvian market to be revised in April 2014• Train the trainer workshops on 06.02.2014 and devlopment of online training!

Leaders, participants: Maxima Grupe, Palink, Rimi Baltic, Coca Cola, Rakvere, Cido group, Carlsberg group, Prisma +

12

New single brand EUR and EPAL Pallets:

13

Color coding and temporaryLatvian v2.1 version merge with v1.0 April 2014

Learnings from recenttrain the trainer session:

• 6 different opinionson one pallet colorcode! (watch video)

• Full pallets can notbe checked from thetop, means limitedassessmentpossibilities.

• Abrasion rate 10% + have to researchdeeper, what is theproblem?

14

2. ECR Baltic RTI (Reusable-Returnable Transport Items) unification and pooling initiative(Baltic and Lithuanian subgorup)

• Brief and key competences: Reusable Transport Items (RTI), crates, pallets and roll cages, represent the "Nuts and Bolts" of the FMCG Supply Chain. Different incompatible management systems for RTI (we have recognized more than 120 crate types in Baltics) have led to market fragmentation and supply chain inefficiencies - standardized methods are needed to organize their distribution and return.

• Aims: • Moving to the standard crates in meat & dairy flows in all Baltic market. Other flows possible.• Specification and range of crates developed and agreed between suppliers and retailers.• Generic crate specification (sizes), not owned by any solution provider

Deliverables: • Survey on primary packaging fit in recommended (eliminated 3 types of crates for dairy plus 2 types

for other produce). Recent feedback from Lithuanian working group shows: 2 more dairy crates needed.

• Set recommendations for the Baltic market supported by major retailers.• Calculation tool RTI v carton

• Key milestones and future challenges: • Dissemination and offers of standardized RTIs systems with pooling (renting) option. • (More than 7 systems besides Suppliers crates examined). Leaders, participants: Maxima Grupe,

Palink, Rimi Baltic, Prisma, PZ, Rokiskio, Zemaitijos, Tere, Valio

Learn more: http://www.ecr-baltic.org/en/working-groups/rti-unification-and-pooling-initiative/ 15

ECR Baltic RTIunification and pooling initiative, next steps?

Currentrecommendations basedon general EUR size: 300x400 and 400x600

• Already availableroyalty free drawingsof crates to developcompatible (nestable) solutions to existingsystems;

• ECR to defenddetailed standardbefore community (isit needed)?

16

3. Master Data Management andData Synchronization working group

Brief and key competences: Alignment of Baltic Retail product cards and manage master data quality issues and compliance to standards (GS1). Global Data Synchronization (connection to GDSN) and common data pool introduction/promotion in Baltics.

Aims: • Enable quality master data management and synchronization through GDSN certified data pools in

Baltics • Setting digital agenda for ECR Baltic community (Data extensions from B2B2C, B2G, aggregators, EDI,

e-commerce, mobile commerce)Deliverables:• Solution providers benchmarking (3 potential solution providers)• Pilots (pairs of practice) support• Common Data model/filter to be defined and agreed between retailers and suppliers• Quality Master Data and Data Synchronization Manual publication (promoting the concept)

Key milestones and future challenges: • EU packaging and digital information requirements, product classification, • Common data model (filter) used by all solution providers for mapping brand owner product data.

• Leaders, participants: http://www.ecr-baltic.org/en/working-groups/gds-and-md-working-group/

17

3. Master Data Management and Data Synchronizationworking group:

18

+ B2C information

The EU Food Information Regulation 2011/1169 is known as FIR, the Food Information regulation.

Critical for brand owners to gather, format, validate and share themandatory information withretailers in an efficient and ideally electronic way, so that it will be website-friendly for food that is sold online.

ECR/GS1 Sweden reported 60% error rate for data sumbittedagainst the directive.

Pilots verified B2B data model (filter)

Finland sample: http://www.gs1.fi/sinfos-tuotetietopankki/tuotetietolomake

ECR Baltic working streams:

Rimi Baltic Data Pool pilot results (18 suppliers in 3 Baltic Countries) by Zane Silina, Rimi Baltic

19

ECR Baltic Forum 2104: Jūrmala Baltic Beach Hotel

• Extended 3 Day format (Tour + Workshop);• Sponsorship opprotunities?• Suggest agenda topics, speakers?• Join Forum working group to set agenda and

the main theme, April 2014

22

Collaborative Supply Chain Guide project with ECR Switzerland, Coca-Cola, Royal Unibrew, Rimi Baltic, Tallinn University of Technology

The guide is based on already published ECR and GS1 Switzerland 4 publications

1. Merchandise planning models (VMI/BM/CMI)2. Models of flow of Goods (direct/Cross Docking 1+2/Others)3. Collaboration with Logistics Service Providers (information flow, responsibilities etc.)4. In various business models (trading, consignment, concession, commission etc.)

* The publications contain instructions for practitioners. The handbook explains major supply chain processes and provides support for project managers in implementing such processes as a “standardized” best practice process throughout Europe which involves agreement on collaborative ECR best practice process models for retailers, suppliers and logistics service providers.

23

Collaborative Supply Chain Management Guide

24

Affordable benchmarking project with ECR Poland and Czech Republic for evaluating companies SC on the 5 key KPIs for instant improvement:

on-time delivery to customers [%], in-full delivery to customers [%],level of customer claims (error-free) [%],stock coverage rate [in days],accuracy of sales forecast (for 1 month and 3 months) [%]

http://www.logibar.net/test/en

25

What are the most valued skills for a Category Manager Today?

1. Data analytics skills2. Ability to anticipate & capitalize on market trends3. Cross-functional collaboration4. Merchandising skills

What will be the most valued skills for a Category Manager in five years time (2018)?

1. Data analytics skills2. Schematics & planograms3. Ability to anticipate & capitalise on market trends4. Negotiation skills

Join Annual ECR Category Management & Shopper Marketing Benchmark Survey,intermediary results:

26

The purpose of this ECR survey is to benchmark the use of category management & shopper marketing including the rate of adoption of traditional principles & early identification of growing trends in the Baltics.

www.ecr-baltic.org/survey

How would you summarise the maturity of Category Management in your organisation?

Basic. No standardised approach to category strategy creation and implementation. Toolkits andtraining are limited and inconsistent. Stakeholders uninterested in concept. Focus is on negotiation.

Improving. Some standardisation around approach to category strategy creation and implementation. Efforts have been made to standardise toolkits and training. A few stakeholders supportive. Negotiation takes precedence over strategy creation

Embedded. Full standardisation around approach to category strategy creation and implementation. Toolkits and training consistently available. Most stakeholders supportive. Category strategies given same focus as negotiation.


27

Annual participation in the survey will allow participants to conduct gap analyses and identify how the discipline is progressing year on year.


Do you measure the ROI of the CatMan Dept.?Vast majority: We do not measure ROI - it is seen as a cost of business

Please rank the following KPIs in order of importance when evaluating individual category management projects.

Product distributionExecution by trading partnerProduct availabilityShare of shelfProfit


28

This benchmark will provide tangible insights for a company's senior leadership and Category Managers. It will illustrate how widely practisedcategory management & shopper marketing is within the industry and pinpoint which activities are gaining in participation and prominence.


Promote European Supply Chain Initiative (ECR Baltic as self-regulation platform for

regional stakeholder forum).Current situation: Opportunities:

- unfair business practices in B2Bcommercial dealings.

- Different National regulations in place already: On prohibition of unfair trading practices for food chain and near food companies in Lithuania and soon to be approved in Latvia, Estonia seems to support «self regulation way»;

- New EU regulation? The Industry is challenged on EU regulation level against fair trade in food supply chain.

- for Industry associations:Establish a dialogue between stakeholder organizations and build national/regional platforms around www.supplychaininitaive.eu code (Founders: Eurocommerce, AIM, FoodDrinkEurope, others)

- for companies signing under the code means ensuring fair trade and fast, cost effective dispute solving.(Already signed: ICA, Lidl, Rewe, Multinational manufacturers).

Key apsects of European fair tradeB2B framework?

- Voluntary but based on commitments - Company web-based registration- Quick, efficient and cheap dispute resolution options- Encouragement to set up national dialogues- System is governed by EU level dialogue and on European scale- Complementary to the development of ECR good practices

designed to optimize the entire value chain to fulfill consumer wishes better, faster and at less cost.

- Complementary to National legislations and/or National Fair Trading schemas (National legislation has precedence over the framework);

30

Food chain company

Self regulation or Court?

Have to deal with infridgment of good tradingpractice

Competition Authority,Court,Costs,Time

Companies subscribedto fair trade practicecode, settle disputes

according to the optionsgiven

You can go both ways!

31

EU Companieson grouplevel:

National (Baltic) stakeholder platform

Localcompanies

onNational /

BalticLevel

EU HIGH LEVEL MULTI

STAKEHOLDER FORUM)

(MULTI STAKEHOLDER FORUM at ECR: LPUF, LPTA, LTA,

LLKA,)

=

32

Call for Action: ECR working group!

ECR WG would facilitate multi-sector dialogue set up process on regional or national level. Main activities proposal: (a) Get familiar with Principles of Good practice and the Framework for implementation and enforcement. (b) Analyze maturity of the market to adopt the principles of good practice and readiness of all key stakeholders. Analyze gaps, identify existing regulatory and voluntary framework, and what is missing. (c) Discuss fair and unfair practices. According to present EU Supply Chain Initiative checklist and guidelines define structure and guidelines to establish a national dialogue platform, get the commitment from main national association representatives, agreement on rules of procedure. (d) Develop awareness raising activities: promote initiative, organize workshops and seminars, promote 7 good reasons to sign, promote tools e.g. self-assessment or e-learning (local languages?). (e) Raise awareness about possible existing national mediation or arbitration schemes, define mechanism for analyze of aggregated disputes. (f) Contribute to and disseminate the annual survey.

33

What it is for ECR Baltic?

- Framework describes and defines how and what is allowed in vertical relationships (including dissemination of ECR best practices and recommendations);

- Build better relationships and understanding with traditional Industry associations and authorities by providing ECR Baltic platform to build national dialogues/framework for Industry Associations (as a members of ECR Baltic);

- More content, education and trainings (members services) at ECR Baltic, attracting new members on 2nd tier activities;

- Following ECR Europe / ECR Baltic one of 10 for 20 KPIs – ECR Baltic core members base: Brands and Multinational Retailers already joining on European level and are the part of the framework.

34

Who have joined?

35

If you are a local company, be the first to join: www.supplychaininitaive.eu

AGENDA CONTINUED:

13:50 – 14:30 Coffee/Lunch break (Networking)14:30 – 15:10 Summary of ECR projects with other National Initiatives by Edgars Pentjuss, ECR Baltic15:10 – 16:00 ECR Baltic annual report 2013 and plan for 2014.- Membership fees update- ECR visibility and marketing: gold membership and awards programs- ECR Baltic Board members election16:00 – 16:30 Members time: discussion and closure

36

Industry (FMCG – Food/Near food): touching people lives every day.

Summary of ECR projects with other National Initiatives

38

- New ECR Shopper Types by ECR Austria, project involved common shopper types definitions on national level (defined 8 shopper types) enabling easy comparing of data from data companies, manufacturers and retailers;- Retail security (common in store training program for 3rd party security firms staff);- Feeding Britain’s and Ireland future, the food industry initiative to address the youth unemployment issues;- ECR NI hosting www.storewars.net game: the business simulations used by the leading FMCG manufacturers & retailers in over 40 Countries, where participants take charge of virtual FMCG company and by developing strategies, negotiating and making decisions determine its success.

Austria: new shopper types

39


40


41

Feeding Ireland Future

42


43


44

What activities / training?Standard activitiesHow to write a great CV How to apply for jobs on line/application formsInterview tipsMock InterviewsSocial media skills for job searchingHow to behave in the workplace, how to dress etc.Feedback/Q&A

1 Day site tour – “Follow the life of a strawberry”

A Day in the Life of a Territory Representative

Site tour of Distribution Centrein Clonmel

Sustainability improvements:1 out 4 shopping bags goes in waste

Food Waste is a huge economic cost to companies and cost to the environment and society at large.

• 90m tones of food is wasted in the EU.

• 39% of this is through food production, 14% Foodservice, 5% Retail and 42% through Households. source EU Commission.

Food Waste Management(UK sample):

Source: UK ECR Waste Hierarchy

Obtain support from industry to share common goal:

- to reduce waste along the food chain and optimise the use of surplus that still occur at different steps of the value chain.

- Extensive support required from producers, retailers, logistics and transportation companies, associations and public administrations connected to the value chain to make this work.

Prevention CommitteeRedistribution Committee“Guide to Waste Prevention” for use by industry

Summary of ECR projects with other National Initiatives

47

UKJob Swap : Unilever & SainsburryInternship planning for summer 2014Feedings Britain’s future Year 2Food waste : 200.000 Food waste reduction 2010->2014GS1 UK toolkit for automated goods receipt

GreeceContext : 6th year of recessionInventory optimization projectShelf shrinkage projectEfficiency & carbon footprint monitoring in the supply chain project

Switzerlande-commerce : White paper on e-commerce and the role of GS1/ECR Switzerlande commerce : E category Management processe-commerce : trusted source of dataGood Practice on how to provide accurate data to shoppers and consumersFashion business : Business processes with consignment stocks, concession and commission at store level

IrelandFuture trends forumBest Practices projectsMacro Space planningROI ProjectCategory Review templateField tripECR Supply Chain summitFeeding Ireland’s Future

RussiaConference 1082 ParticipantsBook on efficient promotionCategory Management game

PolandShrinkage in transportMobECom29 May 2014 conference (MobECom & sustainability)

AustriaNew shopper types

GermanyNFC Berlin

BelgiumECR AwardCO2 calculation tourlabelling of complex pallet3 days catmantrainingBundling of loadsSpeed docking

France: Shopper

48

Theme Content Deliverables due

OSA • Benchmark OSA 2013• “Zero OOS” : awareness kit• Conference Zero OOS + 3rd Awards

• Measuring tool• Training Webinar• Conference

• monthly• June• October

Promotion efficiency

• Training module

• Shopper survey• Kit update

• Training

• Survey + conference• Guidebook

• March – June –August - October

• June• November

Panelists • Food e-commerce channel• Fresh products• Convenience channel

• Recommendation• Recommendation• Recommendation

• November• November• November

Non Food Panelists

• Retailer brands• Mixed lots

• Recommendation• Recommendation

• April• April

France: Supply Chain

49

Theme Content Deliverables due

Logistic pooling

• Prospective survey : establish the vision for ultra pooling

• Survey / Vision • June

Multimodal transport

• Development of multimodal transport • Conference• Survey• Conference

• January• June• September

Food categories

• Frozen Food Supply Chain optimization • Etude• guidebook

• February• June

Specialists • Electronics – Logistic guidebook• Sport – KPIs benchmarking tool• Supply Chain Committee « Specialists »• Beauty – Guidebook for not-for-sale product flows

• Guidebook• Benchmark tool• workshop• guidebook

• May• June• June• October

CSR • Waste reduction • Survey + guidebook • June

Various • Guidelines for replenishment around holidays• RFID : state-of-the-art• Supply Chain Event

• Recommendation• Conference • Conference

• February• July• November

Netherlands

50

The FMCG catches the trainMilan, 15 April 2014 - h 10.00/18.00

at Progetto Calabiana Milan

• OSA: new working group launchedFrom single 1-to-1 projects to the implementation of an ongoing business process

• Cost analysis of logistics inefficiencyAnalysis completed and simulation tool available for member companies

Italy: Other supply side ongoing projects

The main recent Antitrust developments in Europe:Leassons to be learned by manufacturers and retailers

Italy: Antitrust Compliance

In the programme:

• Recent Antitrust Developments in the Food Sector in the EUPaul Csiszár – Director Basic Industries, Manufacturing and Agriculture, DG Competition, European Commission (presentation available at: link)

• Italian Competition Authority

ECR Baltic annual report 2013:

54

• Financial results: ECR Baltic finalized the year 2013 with EUR 4’903 losses) to be covered equally by reserves from previous years and income related to 2013 activities (LIAA/ERAF co-funding ECR Tallinn Forum). 2013 income: 74,581, membership fees: 35,437

• Members 38 on 31st of December 2013 (drop by 3)• 2014 extensive members onboarding campaign with

participation at major trade events in Lithuania, Latvia and Estonia in joint missions with members;

• All inclusive gold membership program (3 subscribers)

At Lithuaninan Traders Forumwith Coca-Cola and Rimi,

GS1, Chep and EPAL

56

Shopper Marketing Masterclasswith Ken Hughes

57

Gold membership program: www.ecr-baltic.org/gold

(+EUR 2’500 to regular fees)

58

• Basic sponsorship benefits at ECR Baltic• Joint missions and booths at Estonian, Lithuanian Traders

Forums and Riga Food Fair under ECR Baltic domain.• Sponsor logo on all ECR Baltic electronic publications and blue

books in 2014: New Pallets Assessment Cards, Master Data Management best practices (manual), Executive benchmarking surveys reports on Baltic Supply Chain and Category Management - Shopper marketing.

• 1 free pass to all pay events

Sustainable and Retail Ready Packaging (RRP) Award [draft]

59

AIM: promote and drive adoption and introduction of sustainable and RRP solutions in Baltics.Jury: Representatives of Retailers, Manufacturers, Industry Associations (GS1, Packaging associations).What solutions are examined: Shelf Ready Packaging and SRP - Retail Ready Packaging (RRP). Samples:

Bonus points (optional):* Correct GS1 Logistic Label on transport units* Correct allocation of GTINs and labelling on all packaging levels* Product Data in GDSN Data Pool* Online Retail Ready (Digital Consumer Information Availability) checked against 2011/1169 EU Directive

ECR Baltic Board members election:

60

- Teemu Kilpia (replacing Jorma Rautanen in his position of commercial director at Prisma as from the end of March) and

- Jonas Paulauskas (Commercial Director, Nestle Baltics)

Thank you!

Edgars Pentjuss+371 26546645

[email protected]

61

ECR Baltic General Meeting · Initiatives by Edgars Pentjuss, ECR Baltic 15:10 – 16:00 ECR Baltic...

Documents

Transcript of ECR Baltic General Meeting · Initiatives by Edgars Pentjuss, ECR Baltic 15:10 – 16:00 ECR Baltic...