ECR Europe - Supply Side Work Group11 February

Participating organisations:Retailers:– Metro, Metro Greece, Tradeka, WoolworthManufacturers:– Colgate-Palmolive, Coors Brewers, Douwe Egberts, Gillette,

Heineken, Henkel, Kraft Foods, Nestlé, Procter & Gamble, SCA Hygiene Products, SC Johnson Wax

Organisations:– ECR Germany, France, Italy– GS1, EuroCommerce – ECR Europe Shared Learning Initiative

Objective:Review status and identify supply side agenda

2005/2006 and next steps

– Where are we today on supply side• What have we done ?• Do we have solid foundations to move forward ?• Barriers to optimal results on supply side • Bridges to overcome barriers

– Axis of supply side agenda 2005 &2006• Focus on results and efficiency & effectiveness

Content & Context of Supply Side Review

Supply side implementation - We can be pleased but not yet proud of where we are

today

Average Global ECR Scorecard results between 1.6 and 2.9 (out of 4)

Pilot stageImplementation started

ECR has done a lot but we are far away from foundations of ECR "every day"

Key "Barriers"to Supply Implementation

– Awareness and education among the industry– Lack of critical mass and stakeholder engagement

(especially by retailers)– Transparency and alignment between stakeholders– Mindset - Do we really live the ECR principles and

want to collaborate– Need to drive and focus the implementation process– Basic enablers e.g standards need stronger and

broader adoption

We have to address "bridges to barriers" to ensure an agenda has optimum foundations

for success

Key "Bridges" to supply side implementation

– Total industry leadership and commitment • Get a "burning platform" for our industry• Governance - more focused, more forceful.

– Open up - Transparency and objectives• Scorecard, Measure, Share, Review, Act • "Gain Share" - motivate engagement

– ECR Europe General Learning Programme• accelerate - reach, depth and influence mindset

– Nurture and support supply collaboration in industry• Do not mix with commercial negotiations or disputes

– Focus on enablers to drive ECR agenda

ECR Supply Side Agenda - Axis to be relevant & deliver in 2005/2006

1. "Back to Basics" - to get optimum "ROI" on what we already have done to date.

2. "New supply side agenda" to address business challenges in efficiency & effectiveness

1. Recommendation: "Back to basics" to achieve tangible deliverables for ECR now !

– Address the foundations and barriers with vigour with a focus on implementation of enablers

– Measure "maturity" and accelerate action on key and targeted enablers to drive a focused agenda.

– Establish critical mass & scale of targeted enablers

– We have an abundant agenda based on previous work

( ECR Blue books)– Re- evaluate &Re- Focus on key areas of industry

relevance to become "completer/finishers" of work already started

– Agenda requires joint agreement of industry

Taking existing work further:Taking existing work further:– Optimal Shelf Availability

• More practical solutions and embed in daily work

– Transport Optimisation (incl. pallet standards and management)• Environment, cost etc...

New agenda items:New agenda items:– Shelf-ready packaging

• "Standards" as appropriate

– Optimise the industry supply chain structure• strategy alignment and asset reduction

– Migration to EPC/RFID• From "pilots" to scale

2. Recommendation: "New Supply Side Agenda" to Efficiency & Effectiveness in the

industry 2005/2006

Summary and Conclusions

•Key priority tackling "Barriers and Bridges"

•Commitment by board and industry essential

•ECR Governance should be reviewed:•Focus, priorities, alignment

•Highest ROI is to focus on "Back to Basics"

•New "Supply side agenda" is strong but will not be optimised without "basics" being addressed

Unless we address the above Unless we address the above with all relevant with all relevant playersplayers to drive for results relevance of ECR to drive for results relevance of ECR agenda will diminishagenda will diminish