ECR Quarterly Meeting -...

197
ECR Quarterly Meeting Bienvenido a Barcelona! Welcome to Barcelona!

Transcript of ECR Quarterly Meeting -...

Page 1: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR Quarterly MeetingBienvenido a Barcelona

Welcome to Barcelona

Quarterly Meeting - BarcelonaDay 1

10th October Afternoon Agenda

1330 Welcome and Co Chair Update Declan amp Tomas

1430 New ECR Community Member Declan amp Tomas I Introduction

1445 Marketing and Communications Update Eileen

1500 Digital Transformation Project Arnd (Virtually) UpdateFeedback

Welcome and Co-Chair Update ndash1330

New ECR Community Member Introduction ndash 1430

Presented by Declan and Tomas

Marketing and Communications Update 1445

Eileen

Marketing and Communications

bull Newly Launched Newsletter ndash The Format Design and Layout has been kept simple to include 1 x Picture 1 x Headline 1 x Quick Summary allowing for the reader to click and read more

bull ESM Shopper Magazine ndash Confirm Country Participants

bull ECR Quarterly Meeting Hosts amp Dates to be confirmed

bull Membership Feersquos - review to date

bull One to One Meetings ndash new medium for promoting national activity 2 x per month ndash Countries to be agreed

ESM Shopper Magazine

ESM Shopper Magazine Countries to provide content

(Agreed in Barcelona)

bull October 2018 ndash Italy

bull December 2018 ndash Czech amp Slovac

bull February 2019 ndash Spain

bull April 2019 ndash New Members ndash Global Members + Conference

bull June 2019 ndash Poland

bull August 2019 - Russia

bull October 2019 ndash Austria

bull December 2019 ndash Switzerland

Quarterly Meetings - Update

bull Barcelona ndash October 2018

bull Vienna ndash December 2018 ndash Please note this meeting has been cancelled and moved to June 2019

bull 1 Brussels ndash February 22nd 2019

bull 2 Paris ndash April 12th amp 13th 2019

bull 3 Vienna ndash June 11th amp 12th 2019

bull 4 Kazakhstan China explore (TBC) October 2019

bull 5 Virtual Meeting December Dates (TBC) 2019

Membership Feersquos Update

bull All countries have paid their 2018 membership subscriptions with the exception of the following

bull ECR Ireland ndash the plan has always been to pay this in November 2018 in order to balance the cashflow It is on track for this payment

bull ECR Russia ndash Update from Max invoices to be agreed and paid before the December 31st 2018

bull ECR Romania ndash awaiting clarity

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 2: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Quarterly Meeting - BarcelonaDay 1

10th October Afternoon Agenda

1330 Welcome and Co Chair Update Declan amp Tomas

1430 New ECR Community Member Declan amp Tomas I Introduction

1445 Marketing and Communications Update Eileen

1500 Digital Transformation Project Arnd (Virtually) UpdateFeedback

Welcome and Co-Chair Update ndash1330

New ECR Community Member Introduction ndash 1430

Presented by Declan and Tomas

Marketing and Communications Update 1445

Eileen

Marketing and Communications

bull Newly Launched Newsletter ndash The Format Design and Layout has been kept simple to include 1 x Picture 1 x Headline 1 x Quick Summary allowing for the reader to click and read more

bull ESM Shopper Magazine ndash Confirm Country Participants

bull ECR Quarterly Meeting Hosts amp Dates to be confirmed

bull Membership Feersquos - review to date

bull One to One Meetings ndash new medium for promoting national activity 2 x per month ndash Countries to be agreed

ESM Shopper Magazine

ESM Shopper Magazine Countries to provide content

(Agreed in Barcelona)

bull October 2018 ndash Italy

bull December 2018 ndash Czech amp Slovac

bull February 2019 ndash Spain

bull April 2019 ndash New Members ndash Global Members + Conference

bull June 2019 ndash Poland

bull August 2019 - Russia

bull October 2019 ndash Austria

bull December 2019 ndash Switzerland

Quarterly Meetings - Update

bull Barcelona ndash October 2018

bull Vienna ndash December 2018 ndash Please note this meeting has been cancelled and moved to June 2019

bull 1 Brussels ndash February 22nd 2019

bull 2 Paris ndash April 12th amp 13th 2019

bull 3 Vienna ndash June 11th amp 12th 2019

bull 4 Kazakhstan China explore (TBC) October 2019

bull 5 Virtual Meeting December Dates (TBC) 2019

Membership Feersquos Update

bull All countries have paid their 2018 membership subscriptions with the exception of the following

bull ECR Ireland ndash the plan has always been to pay this in November 2018 in order to balance the cashflow It is on track for this payment

bull ECR Russia ndash Update from Max invoices to be agreed and paid before the December 31st 2018

bull ECR Romania ndash awaiting clarity

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 3: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

10th October Afternoon Agenda

1330 Welcome and Co Chair Update Declan amp Tomas

1430 New ECR Community Member Declan amp Tomas I Introduction

1445 Marketing and Communications Update Eileen

1500 Digital Transformation Project Arnd (Virtually) UpdateFeedback

Welcome and Co-Chair Update ndash1330

New ECR Community Member Introduction ndash 1430

Presented by Declan and Tomas

Marketing and Communications Update 1445

Eileen

Marketing and Communications

bull Newly Launched Newsletter ndash The Format Design and Layout has been kept simple to include 1 x Picture 1 x Headline 1 x Quick Summary allowing for the reader to click and read more

bull ESM Shopper Magazine ndash Confirm Country Participants

bull ECR Quarterly Meeting Hosts amp Dates to be confirmed

bull Membership Feersquos - review to date

bull One to One Meetings ndash new medium for promoting national activity 2 x per month ndash Countries to be agreed

ESM Shopper Magazine

ESM Shopper Magazine Countries to provide content

(Agreed in Barcelona)

bull October 2018 ndash Italy

bull December 2018 ndash Czech amp Slovac

bull February 2019 ndash Spain

bull April 2019 ndash New Members ndash Global Members + Conference

bull June 2019 ndash Poland

bull August 2019 - Russia

bull October 2019 ndash Austria

bull December 2019 ndash Switzerland

Quarterly Meetings - Update

bull Barcelona ndash October 2018

bull Vienna ndash December 2018 ndash Please note this meeting has been cancelled and moved to June 2019

bull 1 Brussels ndash February 22nd 2019

bull 2 Paris ndash April 12th amp 13th 2019

bull 3 Vienna ndash June 11th amp 12th 2019

bull 4 Kazakhstan China explore (TBC) October 2019

bull 5 Virtual Meeting December Dates (TBC) 2019

Membership Feersquos Update

bull All countries have paid their 2018 membership subscriptions with the exception of the following

bull ECR Ireland ndash the plan has always been to pay this in November 2018 in order to balance the cashflow It is on track for this payment

bull ECR Russia ndash Update from Max invoices to be agreed and paid before the December 31st 2018

bull ECR Romania ndash awaiting clarity

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 4: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Welcome and Co-Chair Update ndash1330

New ECR Community Member Introduction ndash 1430

Presented by Declan and Tomas

Marketing and Communications Update 1445

Eileen

Marketing and Communications

bull Newly Launched Newsletter ndash The Format Design and Layout has been kept simple to include 1 x Picture 1 x Headline 1 x Quick Summary allowing for the reader to click and read more

bull ESM Shopper Magazine ndash Confirm Country Participants

bull ECR Quarterly Meeting Hosts amp Dates to be confirmed

bull Membership Feersquos - review to date

bull One to One Meetings ndash new medium for promoting national activity 2 x per month ndash Countries to be agreed

ESM Shopper Magazine

ESM Shopper Magazine Countries to provide content

(Agreed in Barcelona)

bull October 2018 ndash Italy

bull December 2018 ndash Czech amp Slovac

bull February 2019 ndash Spain

bull April 2019 ndash New Members ndash Global Members + Conference

bull June 2019 ndash Poland

bull August 2019 - Russia

bull October 2019 ndash Austria

bull December 2019 ndash Switzerland

Quarterly Meetings - Update

bull Barcelona ndash October 2018

bull Vienna ndash December 2018 ndash Please note this meeting has been cancelled and moved to June 2019

bull 1 Brussels ndash February 22nd 2019

bull 2 Paris ndash April 12th amp 13th 2019

bull 3 Vienna ndash June 11th amp 12th 2019

bull 4 Kazakhstan China explore (TBC) October 2019

bull 5 Virtual Meeting December Dates (TBC) 2019

Membership Feersquos Update

bull All countries have paid their 2018 membership subscriptions with the exception of the following

bull ECR Ireland ndash the plan has always been to pay this in November 2018 in order to balance the cashflow It is on track for this payment

bull ECR Russia ndash Update from Max invoices to be agreed and paid before the December 31st 2018

bull ECR Romania ndash awaiting clarity

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 5: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Marketing and Communications Update 1445

Eileen

Marketing and Communications

bull Newly Launched Newsletter ndash The Format Design and Layout has been kept simple to include 1 x Picture 1 x Headline 1 x Quick Summary allowing for the reader to click and read more

bull ESM Shopper Magazine ndash Confirm Country Participants

bull ECR Quarterly Meeting Hosts amp Dates to be confirmed

bull Membership Feersquos - review to date

bull One to One Meetings ndash new medium for promoting national activity 2 x per month ndash Countries to be agreed

ESM Shopper Magazine

ESM Shopper Magazine Countries to provide content

(Agreed in Barcelona)

bull October 2018 ndash Italy

bull December 2018 ndash Czech amp Slovac

bull February 2019 ndash Spain

bull April 2019 ndash New Members ndash Global Members + Conference

bull June 2019 ndash Poland

bull August 2019 - Russia

bull October 2019 ndash Austria

bull December 2019 ndash Switzerland

Quarterly Meetings - Update

bull Barcelona ndash October 2018

bull Vienna ndash December 2018 ndash Please note this meeting has been cancelled and moved to June 2019

bull 1 Brussels ndash February 22nd 2019

bull 2 Paris ndash April 12th amp 13th 2019

bull 3 Vienna ndash June 11th amp 12th 2019

bull 4 Kazakhstan China explore (TBC) October 2019

bull 5 Virtual Meeting December Dates (TBC) 2019

Membership Feersquos Update

bull All countries have paid their 2018 membership subscriptions with the exception of the following

bull ECR Ireland ndash the plan has always been to pay this in November 2018 in order to balance the cashflow It is on track for this payment

bull ECR Russia ndash Update from Max invoices to be agreed and paid before the December 31st 2018

bull ECR Romania ndash awaiting clarity

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 6: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Marketing and Communications

bull Newly Launched Newsletter ndash The Format Design and Layout has been kept simple to include 1 x Picture 1 x Headline 1 x Quick Summary allowing for the reader to click and read more

bull ESM Shopper Magazine ndash Confirm Country Participants

bull ECR Quarterly Meeting Hosts amp Dates to be confirmed

bull Membership Feersquos - review to date

bull One to One Meetings ndash new medium for promoting national activity 2 x per month ndash Countries to be agreed

ESM Shopper Magazine

ESM Shopper Magazine Countries to provide content

(Agreed in Barcelona)

bull October 2018 ndash Italy

bull December 2018 ndash Czech amp Slovac

bull February 2019 ndash Spain

bull April 2019 ndash New Members ndash Global Members + Conference

bull June 2019 ndash Poland

bull August 2019 - Russia

bull October 2019 ndash Austria

bull December 2019 ndash Switzerland

Quarterly Meetings - Update

bull Barcelona ndash October 2018

bull Vienna ndash December 2018 ndash Please note this meeting has been cancelled and moved to June 2019

bull 1 Brussels ndash February 22nd 2019

bull 2 Paris ndash April 12th amp 13th 2019

bull 3 Vienna ndash June 11th amp 12th 2019

bull 4 Kazakhstan China explore (TBC) October 2019

bull 5 Virtual Meeting December Dates (TBC) 2019

Membership Feersquos Update

bull All countries have paid their 2018 membership subscriptions with the exception of the following

bull ECR Ireland ndash the plan has always been to pay this in November 2018 in order to balance the cashflow It is on track for this payment

bull ECR Russia ndash Update from Max invoices to be agreed and paid before the December 31st 2018

bull ECR Romania ndash awaiting clarity

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 7: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ESM Shopper Magazine

ESM Shopper Magazine Countries to provide content

(Agreed in Barcelona)

bull October 2018 ndash Italy

bull December 2018 ndash Czech amp Slovac

bull February 2019 ndash Spain

bull April 2019 ndash New Members ndash Global Members + Conference

bull June 2019 ndash Poland

bull August 2019 - Russia

bull October 2019 ndash Austria

bull December 2019 ndash Switzerland

Quarterly Meetings - Update

bull Barcelona ndash October 2018

bull Vienna ndash December 2018 ndash Please note this meeting has been cancelled and moved to June 2019

bull 1 Brussels ndash February 22nd 2019

bull 2 Paris ndash April 12th amp 13th 2019

bull 3 Vienna ndash June 11th amp 12th 2019

bull 4 Kazakhstan China explore (TBC) October 2019

bull 5 Virtual Meeting December Dates (TBC) 2019

Membership Feersquos Update

bull All countries have paid their 2018 membership subscriptions with the exception of the following

bull ECR Ireland ndash the plan has always been to pay this in November 2018 in order to balance the cashflow It is on track for this payment

bull ECR Russia ndash Update from Max invoices to be agreed and paid before the December 31st 2018

bull ECR Romania ndash awaiting clarity

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 8: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ESM Shopper Magazine Countries to provide content

(Agreed in Barcelona)

bull October 2018 ndash Italy

bull December 2018 ndash Czech amp Slovac

bull February 2019 ndash Spain

bull April 2019 ndash New Members ndash Global Members + Conference

bull June 2019 ndash Poland

bull August 2019 - Russia

bull October 2019 ndash Austria

bull December 2019 ndash Switzerland

Quarterly Meetings - Update

bull Barcelona ndash October 2018

bull Vienna ndash December 2018 ndash Please note this meeting has been cancelled and moved to June 2019

bull 1 Brussels ndash February 22nd 2019

bull 2 Paris ndash April 12th amp 13th 2019

bull 3 Vienna ndash June 11th amp 12th 2019

bull 4 Kazakhstan China explore (TBC) October 2019

bull 5 Virtual Meeting December Dates (TBC) 2019

Membership Feersquos Update

bull All countries have paid their 2018 membership subscriptions with the exception of the following

bull ECR Ireland ndash the plan has always been to pay this in November 2018 in order to balance the cashflow It is on track for this payment

bull ECR Russia ndash Update from Max invoices to be agreed and paid before the December 31st 2018

bull ECR Romania ndash awaiting clarity

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 9: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Quarterly Meetings - Update

bull Barcelona ndash October 2018

bull Vienna ndash December 2018 ndash Please note this meeting has been cancelled and moved to June 2019

bull 1 Brussels ndash February 22nd 2019

bull 2 Paris ndash April 12th amp 13th 2019

bull 3 Vienna ndash June 11th amp 12th 2019

bull 4 Kazakhstan China explore (TBC) October 2019

bull 5 Virtual Meeting December Dates (TBC) 2019

Membership Feersquos Update

bull All countries have paid their 2018 membership subscriptions with the exception of the following

bull ECR Ireland ndash the plan has always been to pay this in November 2018 in order to balance the cashflow It is on track for this payment

bull ECR Russia ndash Update from Max invoices to be agreed and paid before the December 31st 2018

bull ECR Romania ndash awaiting clarity

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 10: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Membership Feersquos Update

bull All countries have paid their 2018 membership subscriptions with the exception of the following

bull ECR Ireland ndash the plan has always been to pay this in November 2018 in order to balance the cashflow It is on track for this payment

bull ECR Russia ndash Update from Max invoices to be agreed and paid before the December 31st 2018

bull ECR Romania ndash awaiting clarity

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 11: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

One to One Meetings ndash ECR Nationals Confirmed at the meeting in Barcelona

bull October - Cypress

bull November x 2 ndash Portugal (contact via Jordi meeting next week) Romania

bull December x 2 - Finland Croatia

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 12: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Digital Transformation Project Update 1500

Arnd ndash Virtually ndash (no slides were presented)

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 13: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

10th October Afternoon Agenda

1615 CGF Health amp Wellness Sharon amp Enrico

1715 ECR Spain ndash Local market Update Jordi

1740 Lean amp Green (Connekt) Lia

1800 Recap and Close Declan

2000 Dinner - Can Majoacute - L Almirall Aixada 23 08003 Barcelona Espantildea

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 14: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

CGF Health and WellnessPresentation 1615

Sharon amp Enrico (Virtually)

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 15: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Lean and Green Connekt Update

1740Presented by Lia

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 16: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Recap and Close ndash 1800Declan and Tomas

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 17: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Quarterly Meeting - BarcelonaDay 2

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 18: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

11th October Morning Agenda

850 Welcome Tea amp Coffee Jordi

900 Digital Transformation Proposal Update Marc (Virtually)

930 Digital Transformation Discussion ECR Community

1000 ECR National Updates

11 15 Tea amp Coffee Break

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 19: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Digital Transformation Update 900 followed by a discussion

with ECR Community(No slides were presented)

Marc - NWU Switzerland

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 20: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR National Updates1000 ndash 1115

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 21: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR Poland ndash National Update

Presented by Mateusz

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 22: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Ariadnersquos Thread project

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 23: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

5050

Is the transport easy to manageWhose problem is it

COSTS

KPIs

PEOPLE

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 24: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

5151

Source httpwwwwhointghomortality_burden_diseasecauses_deathtop_10en

Źroacutedło httpeceuropaeueurostatwebproducts-eurostat-news-EDN-20171119-

1inheritRedirect=true_08042018 r

Car crash fatalities per 1 000 000 citizens ndash European Union

Is it safe

Top 10 causes of death (Poland)

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 25: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

52

Do we know the truckersrsquo reality

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 26: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

5353

What itrsquos like to be a driver

EN httpswwwyoutubecomwatchv=molOFyjpmMcampt=0sampindex=3amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

FR httpswwwyoutubecomwatchv=dfd8Iugfn-Yampt=0sampindex=8amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

RU httpswwwyoutubecomwatchv=Yk9Bi8i1J4campt=0sampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

UKR httpswwwyoutubecomwatchv=tjYkzreHABkampt=0sampindex=4amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

IT httpswwwyoutubecomwatchv=zWzvrHjAevsampt=0sampindex=7amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

PL httpswwwyoutubecomwatchv=UM21sOgZcyQamplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

DE httpswwwyoutubecomwatchv=oCr4N1B59G0ampindex=5amplist=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 27: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

5454

Dedicated Enhanced Logistics Information System

for

Truckers amp Forwarders

Is there a solution

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 28: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

5555

Ariadnersquos Thread project

Deliveries On-Time

improvement

Transport efficiency

improvement

Transport availability

increase

Driversrsquo working

conditions improvement

Supply Chain Integrity

Road safety Easier navigation Logistics conditions DC requirements First amp Last Mile optimisation

Decrease the number of drivers quitting the job trade Increase new drivers arrival retention rate

Cargo space optimisation Parking breaks amp routing optimisation

OSA to shopper increase Warehousing space amp flows optimisation More efficient resources use

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 29: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

56

Increased demand for transport Increasing Supply Chain costs Accidents rate road traffic safety

Market environment

Driversrsquo shortage Increased complexity Communication between SC parties

Challenges

Supply Chain 40 GS1 standards (GLN EDI) ECR ndash collaboration platform

Opportunities

Database structure finalised

Interfaces amp business model discussions

Stakeholders involvement Manufacturers Shippers Retailers DC operators Logistic Service Providers Forwarders

Launching in Poland first Europe firster

Next steps

Whatrsquos ahead for us

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 30: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR Austria ndash National Update

Presented by Teresa

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 31: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR Task Forces 2018

58

Image amp Media Database

Promotion-Displays

Packaging 360deg

Omni Shopper Journey

On Shelf Availability

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 32: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Image amp Media-Database

59

bull Guideline published in 2017

bull Trials between retail amp manufacturers ongoing

bull English Version available

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 33: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

60

Latest Paper bdquoDisplaysldquo

bull Recommendation about Standards of Displays

bull Publication Infotag 2018

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 34: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Packaging 360deg

61

bull 2 Priorities

bull Circular Economy rarr Cooperation with Universities of Applied Sciences Campus Vienna + ARA

bull Smart Packaging rarr bdquospecification sheetldquo

bull Recommendation for Packaging Experts

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 35: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Omni Shopper

62

February April September November

Kick off Touchpoint-Analysis

PersonasShopper

TP measurementvalidation

ECR Board

ECR Infotag

June

rarr Professional Support needed

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 36: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Targetsbull Consumer focused definitionbull Root cause analysisbull Solution validation with real trials retailindustry

On Shelf Availability

63

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 37: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR Infotag 2018

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 38: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

65

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 39: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

66

ECR Education Programme

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 40: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

67

28 speakers

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 41: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Average vote 14

68

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 42: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Recommendation

gt 87

69

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 43: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR Digital Edition wwwecrdigital

bull 2 years live

70

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 44: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Development ECR Digital Edition

0

10000

20000

30000

40000

50000

60000

201617 201718

Nutzer Seitenaufrufe

+ 66+ 146

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 45: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Shopper Marketingrarr New Chapter 2018

bull New author Andrea Stevens

bull Head of Shopper Marketing at Intersnack GroupbullPrevious role Head of Category Management amp Shopper Marketing at GS1 Germany

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 46: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR Italy- National UpdatePresented by Sylvia

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 47: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Conference

Sustainable logisticsit is possible and cheaper

3rd October 2018

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 48: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

How to reduce emissions

You can work on means of transportNew engines aerodynamics right tyres

You can work on transport modesSea and rail modal shift

You can work on fuelsLNG

You can work on peopleDriving styles

You can work on organizationFill rate empty kilometers

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 49: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Photovoltaic roofon the non food DC

ecologistico

Load fill level optmization

-600 ton CO2eanno

Concrete examples measured with

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 50: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Concrete examples measured with

Decentralised management of dispalys

ecologistico

Electric forklift in the warehouse and electrictrucks for urban deliveries

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 51: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Concrete examples measured with ecologistico

LNG trucks and hybrid electric gondola (Venetian boat)

LED lighting technology and a new green warehouse

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 52: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Other examples

ecologistico

Powered by

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 53: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Circular economy and Product Environmental Footprint

4 workshops to know nd deepen the tools the most innovative aproaches and the opportunities for the

FMCG companies

Circular economylegal framework

strategic and operationalaproaches

Circular economycase studies and

best practices

EnvironmentalFootprint guidelines

methodologies and standards

EnvironmentalFootprint inside

the company strategies and

processes

22nd October 2018

200 ndash 600 pm

13th November 2018

200 ndash 600 pm

26th November 2018

200 ndash 600 pm

3rd December 2018

200 ndash 600 pm

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 54: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

A self assessmenton circular economy

Check-up tool on the company

readiness to adopt the circular economy principles

A practical tool to

understand the actions the operational solutions and the

opportunities inside the company and

along the supply chain

How ldquocircularrdquo is your company

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 55: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Logistics flows in the FMCG industry in Italy (Research 2010)

SIRIO

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 56: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

10 years after the first research we want to update the

photo of the FMCG sector

- taken from a logistics perspective (flows orders

volumes pallets means warehouses trips)

- Focus on new trends (omnichannel retail 724

opening hours new players automation in logistics

Industry 40 green packagings and solutions hellip)

New analysis on logistic flows

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 57: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

11th October Morning Agenda

1130 National Updates ECR Community

1230 New ECR Community Projects ECR Community

1330 Lunch

1400 Shrink amp Oza Update Colin (Virtually)

1430 Global Web Hour Declan Co-ordinates

1530 AOB amp Close

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 58: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR National Updates1130 ndash 1230

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 59: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR France ndash National Update

Presented by Emilie

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 60: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

ECR Community MeetingBarcelona ndash October 2018ECR focus in France

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 61: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

| LA NOUVELLE PLATEFORME DrsquoECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I

Copyright IDC 2018

14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30

idcinstitutducommerceorg

Mission role and activities

Benefits of becoming a member

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 62: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Co

pyri

gh

t ID

C 2

018

The unique and recognized platform within which

all players small and big manufacturers retailers

and service providers can work together to better

fulfil consumersrsquo expectations

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 63: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Co

pyri

gh

t ID

C 2

018

BETTER PREPARE

TOGETHER THE

FUTURE OF

RETAIL

Institut du Commerce combines since 2017 the

best of the 3 industry associations that it unites

ECR IFLS and IFM

Its mission is to actively support its members

needs to collectively build increased efficiency

in a deeply changing retail environment by

better understanding consumer behaviours

and their impact on the manufacturer-retailer

relationship

Our activities are based on the ECR approach

of ldquoworking together to fulfil consumer needs

better faster and in a sustainable wayrdquo

Each member company is free to implement

the best practices and adapt them according

to their systems and organisation

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 64: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Co

pyri

gh

t ID

C 2

018

A MEMBER DRIVEN APPROACH

General Assembly 1 delegate from each member

company

Board of Directors 12 manufacturers 12 retailers 2 partners

define the strategic vision

Retail Committee amp Supply Chain Committee 10 to 15

manufacturers retailers and partner members build the

activity roadmap

Visualise amp

Manage

Analyse amp

Deliver

Think tanks deciphering the new process and technology

usage

Working Groups building the best practices of retailer-

manufacturer relationship

Surveys understanding the shopper and monitoring the

evolutions of retail

Share

Conferences sharing use cases

InnoLaB understanding innovation

SIRIUS awarding best cases

Training modules

Store Tour showcasing new trends

The activity program is built by the members (content deliverables format) output is member exclusive and included in the membership fee as well as attendance to the conferences

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 65: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Co

pyri

gh

t ID

C 2

018

Achieved - Digital Supply Chain (31 Jan) | Circular Economy (2 Feb) | Merchandising 40 (5 April) | Usage of IA amp Machine Learning in Forecasting (14 Jun) | Develop a senior ndashfriendly approach (5 July)

Scheduled (subject to modifications) ndash Datasharing what is really at stake (Jan 2019) | Product Information exchange (Feb 2019) | Omnichannel Category Management (Mar 2019)

ANALYSE - DELIVER

WORKSHOPS

SURVEY

PROSPECTIVE THINK TANKS

RETAIL E-commerce | Convenience | Merchandising | Shopper survey and market trends | Promotion efficiency | Omnichannel Category Management | Out of home consumption

SUPPLY CHAIN Last mile delivery| Tracking amp IoT | No OOS| OSA amp Shrinkage (with ECR Community)

CSR Circular economy| Food Waste (with ECR Community)

NON FOOD Toys | DIY | Perfumes| Electronics

Naturality a new lifestyle (on sale) | Out-of-stocks on amp off line (member exclusive) | Proximiteacute (on sale)

| Direct Purchase (on sale) | New payment processes (member exclusive) | Mobile shopping (on sale)

BAROMETERS

Monthly Out-of-stock (member exclusive) | Monthly Consumer trends (member exclusive)

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 66: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Co

pyri

gh

t ID

C 2

018

2018 - Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective la vitrine de lrsquoIdC (31 May) | e-commerce amp omnichannel (26 Jun) |Convenience the new shopping missions (20 Sep) | Promotion efficiency (11 Oct) | Award ceremony SIRIUS (8 Nov)

2019 (subject to modifications) - Collaborative Merchandising (29 Jan) | Retail all you want to know on retailers strategy (28 Mar) | Journeacutee Partage amp Prospective The showcase for IdC (23 May) | e-commerce amp omnichannel (27 jun) | Convenience (26 Sep) | Promotion (17 Oct) | SIRIUS Award ceremony (14 Nov)

SHARE

RETAIL TOURS

CONFERENCES

2018 - Retail Tour laquo Drive raquo (14 Mar) | Retail Tour laquo New convenience raquo Paris (21 Sep)

TRAINING

2018 ndash Promotion efficiency | How to communicate on social responsibility | Successful Category Management

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 67: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Co

pyri

gh

t ID

C 2

018

LES MEMBRES PAR COLLEgraveGE ( a o ucirc t 2 0 1 8 )

31 RETAILERSADEO Services AUCHAN France BRICO Belgium BRICODEPOT BUT INTERNATIONAL CARNET DE VOL CARREFOUR

France CASINO CASTORAMA COOP ATLANTIQUE CORA CULTURA FCJPE FRANCAP ITM Alimentaire ITM LEMI

(Bricomarcheacute BricoCash Roady) LAGARDERE TRAVEL RETAIL MARIONNAUD PARFUMERIE MBLOG (Mr Bricolage) METRO

Cash amp Carry NATUREO NOCIBE PHARMACTIV OCP PICARD SC GALEC SCHIEVER SCHMIDT GROUPE SEPHORA

SYSTEME U TOTAL MKG SERVICES VENTE PRIVEE

82 MANUFACTURERSANDROS ARLA FOODS AXIANE MEUNERIE BACARDI BEIERSDORF BIC BLEDINA BOLTON SOLITAIRE BONDUELLE BPI

(SHISEIDO) CANDIA CHANEL SAS CLARINS COCA COLA European Partners COLGATE PALMOLIVE CRISTAL CO

CROUSTIFRANCE BENELUX DANONE EAUX DANONE PF DAUCY DAUNAT ECKES GRANINI EDGEWELL ESSITY ESTEE

LAUDER EURIAL FERRERO FINDUS FJP FLEURY MICHON FRANCAISE DES JEUX FROMAGERIES BEL GALLIANCE ELABORES

GOUTERS MAGIQUES GUERLAINDIOR HANES HARIBO HEINEKEN ENTREPRISE HENKEL France INTERSNACK JACOBS

DOUWE EGBERTS JOHNSON amp JOHNSON Santeacute Beauteacute LABORATOIRES MampL (LOccitane) LACTALIS LA FOURNEE DOREE

LBD MAISON LINDT LOREAL MARIE BRIZARD WINE amp SPIRITS MARS CHOCOLAT MARS PETCARE FOOD MARTINIQUAISE

MATERNE Mc CORMICK France MERISANT M INDUSTRIE France MOET HENNESSY DIAGEO NESTLE NUTRIXO

(DELIFRANCE) ORANGE ORANGINA SCHWEPPES PANZANI PARMENTINE PEPSICO PERNOD SA PETIT NAVIRE (THAI

UNION) PHILIPS LIGHTING PUIG RAYNAL ET ROQUELAURE RIANS RICARD SAINT HUBERT SAVENCIA BONGRAIN SODEBO

SOLINEST SONY Interactive Entertainment TEISSEIRE TEREOS TRIBALLATNOYAL UNIBAL UNILEVER France WERNERampMERTZ

98 PROVIDERSA3 DISTRIBUTION ACTEOS AGENCE CROSS AGOV (LaComDigitale) AGRO DEVELOPPEMENT AKDV-LONSDALE ALKEMICS ARMADA ARMIS

ARTHUR LOYD LOGISTIQUE ATMOSPHERES BampBMARKET BEBETTERampCO BEMYEYE BONIAL BRAND LOYALTY BUDGETBOX CACOM CAMELEON

GROUP CATALINA CCI PARIS IDF CHEP CLIC2BUY CONTAINER CENTRALEN COSPIRIT CPM France CRITEO DATA IMPACT DATA SOLUTIONS DDS

LOGISTICS DIAGMA DIAMART DIAM INTERNATIONAL DISTRICOM DISTRIPLUS DS SMITH PACKAGING DUNNHUMBY EMNOS ESGCV-ESGM ESSEC

EXTERNIS FM LOGISTIC GENERIX HAROPA HIGHCO IER BOLLORE IMPACT (IFMG) IMPP INTERLOG SERVICES IRI JPG CONSEIL KANTAR KLEE

COMMERCE LA POSTE LUCKY CART MARKETING SCAN MEDIA PERFORMANCES MOBEYE MUTUALLOGISTICS NEFAB NIELSEN NP

MERCHANDISING NUMSIGHT PARABELLUM PECLERS PARIS PICXYZ PILOTES PLV POOLING PARTNERS REED MIDEM MAPIC RETAIL AND DETAIL

RETAIL EXPLORER ROAMLER SAGUEZ PARTNERS SEGMENTS SES IMAGOTAG SHIPPEO SHOPPER INTELLIGENCE SHOPPERMIND SIMON et

ASSOCIES SITOUR SOFRILOG SORAP SPI STEF STORETAIL MKG SERVICES STORIES DESIGN STRADA MARKETING SYMPHONY RETAIL AI TCC

TRANSALLIANCE SERVICE TRANSPARENCY ONE TRANSPOREON TVS ETUDES UNIBAIL RODAMCO VIRAGE CONSEIL VOXMINING WEVIOO XPO

SUPPLY CHAIN France

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 68: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Co

pyri

gh

t ID

C 2

018

Xavier

HUADirecteur Geacuteneacuteral

Comiteacute et GT

Supply Chain

Franccediloise

ACCACoordinatrice

Projets

GT E-commerce

GT Proximiteacute

GT Promotion

Formation

Emilie

CHALVIGNACDirectrice des

Opeacuterations

Comiteacute Retail

GT Zeacutero rupture

Suivi des marcheacutes CHD

eacuteconomie circulaire

Sylvie

GUINGOISResponsable

Etudes

Baromegravetre de la

Consommation

Etudes IdC

Cycleapp

THE TEAM

INSTITUTDUCOMMERCEORG14 rue Magellan - Paris 8egraveme

Tel 01 56 89 89 30 idcinstitutducommerceorg

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 69: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Co

pyri

gh

t ID

C 2

018

B I G R E T A I L T R E N D S I N F R A N C E

bull Marketretail

bull Organic food

bull Drastic development of organic specialist stores

bull Increase of the organic product offer in conventional store which merchandising isthe best What impact for the brands

bull Transformation of the retail landscape hybridation distriration online snacking out of home consumption

bull New generation of deposit system

bull Voice commerce amp impact on referencing

bull Massive transport amp truckdriver shortage

bull Shopper

bull laquo Naturality raquo (food amp non food) transparency (httpsyukaio evaluate the quality of your food products hellip)

bull Fragmentation of the shopper journey gt complexity to follaw the market data

bull Demographic tsunami is coming with the senior

bull Regulation

bull French roadmap for circular economy

bull New law to limit promotion on FMCG (34 in value 25 in volume) except for seasonnal or perishable products

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 70: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Co

pyri

gh

t ID

C 2

018

T O P I C S

bull New needs for product Information produit (transparency material passport for circular e-commerce images centralisation for merchandising information traceability for foodservicehellip)

bull IoT to track transporthandlings (palets etchellip)

bull Usage geofencing geolocalisation securised transfer of responsibility anticipate the maintenance temperature follow up invoice by use

bull ECR Proposition

bull international vision

bull Innovative not complex and quick win ECR Community projet for 2019

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 71: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR Czech amp Slovak National Update

Presented by Tomas

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 72: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Core activities 2018

bull Project OSA Barometer sponsored by WG Benchmarking amp OSA

bull Digital Receipt - Feasibility Study sponsored by WG Digital Retail Transformation (with EampY)

bull Collaborative Data Market Place ndash concept sponsored by WG Digital Retail Transformation (with EampY)

bull Food waste ndash economic analysis of redistribution model with University of Economy

bull Lean amp Green Unilever ndash LampG Award on LOG-IN Conference in October

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 73: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Planning main topics 2019

bull Project OSA Barometer ndash solution for OSA technical workshop pilot projects

bull Digital Receipt -gt Shopper journey Digital footprint of retailer Digital visibility

bull Collaborative Data Market Place ndashgt Collaborative Processes efficiency review (ListingDelisting Forecasting amp Planning)

bull Food waste ndashgt Product amp Packaging waste Deposit scheme (PET cans) Plastics footprint of retailershellip

bull Lean amp Green ndash on spot retailer support

bull Promotion Effectiveness ECR Platform

bull Retail shrink amp loss interest group

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 74: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

CZ-SK ECR Working groups

bull EDI

bull OSA amp Benchmarking bull 4 KPI (Service level On-time delivery Invoice Accuracy Forecast Accuracy)

bull OSA Barometer ndash launched 1st wave in June final report ndashOctoberNovember gap scan

bull Shared merchandizing (on-hold)

bull ECR Digital amp Omni-channel Retail bull Digital transformation in retail and effective models of collaboration

bull Digital Customer

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 75: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Collaborative market place platform

bull Benefiting areas processes bull Sales demand forecast

bull Promo planning

bull NPI planning

bull Out of stock

bull Expiration amp Waste

bull Stock optimization

WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 76: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Digital Receipt

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 77: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

CZ-SK ECR Projects amp Programs

bull Food wastebull Analysis of FW in Supply Chain (University of Economy Prague)

bull Collecting data from retailers (surplus food given food animal feeding waste bull Economic model of re-distribution (costs analysis ndash retailers + food banks)

bull Lean amp Green CO2 ndash GHG emissions reductionsbull Pilots Unilever CHEP 1 retailer autumn bull Audit + support 4 CZ Universitiesbull Support from Retail Chamber ndash sustainability

bull Collaborative Promo Management bull Workshop AHOLD Data sharing principles NPI amp Delisting Forecast Accuracy

Improvement Implants ndash added value

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 78: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Food waste Tesco example

Recalculation

bull Beer wine spirits ndash 2 of 38 054 tons of waste = 76108 tons

bull It represent recalculated in 05 liter beer = 15 mil of beers Annually Not consumed but wasted

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 79: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Lean amp Green Europe

wwwlean-greeneuwwwlean-greencz

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 80: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Collaborative Promo Management

bull Project key focus areas 2018 bull Data sharing principles amp scorecard amp datapack

bull Effectiveness of Product Listing amp De-listing processes (Effective new product introduction)

bull Effective role of Implant added value

bull Main activities 2018bull Pilot testing preparation amp testing (Nestleacute Unilever)

bull Next phase bull Roll out 1 suppliers with implant

bull Roll-out 2 other group of suppliers

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 81: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR IrelandNational Update

Presented by Declan

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 82: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

NEW FOR 2018RETAILER HOSTED STORE TOUR DAYS

Retailer members of ECR Ireland will host guided tours and insight presentations to showcase effective collaboration in action and new ways of retailing

The objective is to encourage collaboration and better understanding between retailers and their manufacturers and service providers We encourage two-way discussion throughout the store visits so that retailers amp their trading partners debate and challenge each other as to what is working well or could work better

Each ECR Store Tour Day should feature1 Retailer Introduction

2 Guided store tours in 2-4 outlets

3 Focus on specific areas of retailing hot topics amp collaboration

4 Conclusion via an interactive debriefing session

Each retailer will decide the areas of focus ndash possible focus areas include

Effective collaboration in action

In-store activation

Category Management

Shopper Marketing

New ways of retailing

Retailer insight consumer insight

Promotions

Product availability

Hot Topics

ECR is the flagship for collaboration

111

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 83: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR IRELANDSTORE TOUR DAY

September 2018

SUPERVALUCENTRA

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 84: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

1ST ECR STORE TOUR DAY - SUPERVALU amp CENTRA - TUE 11 SEPTEMBER

Summary

This Store Tour was a first for ECR Ireland amp Musgraves

ECR is the ldquoFlagship for collaborationrdquo and the tour illustrated Musgraversquos commitment to collaborating with suppliers amp service providers

Key to the success of the tour was the Musgraversquos insight the open nature of discussion and the debriefing session which allowed for in depth discussion and exchange of ideas

Feedback

The feedback from suppliers was enthusiastic and they genuinely appreciated the time amp respect given to their questions amp ideas during the day

Focus Areas

The major focus areas of the Musgraves ECR Store Tour Day were

Store layout by format

Shopper Missions

Identifying categories that will grow or decline significantly over the next 3 years

113

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 85: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

1ST ECR STORE TOUR DAYSUPERVALU amp CENTRATUE 11 SEPTEMBER

Stores

A walking tour of central Dublin focussing on SuperValu amp Centra stores

bull Centra Parnell St

bull SuperValu Talbot St

bull SuperValu Aston Quay

bull Centra Dame St

bull Debrief Session

Host

Paul Corcoran Range amp Space Planning Manager Musgrave Retail Partners Ireland

114

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 86: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

KEY FEEDBACK

115

ldquoHugely beneficial lots of learnings and some great insights from a very open honest and engaging SuperValu team One of the best events we have attended and one that will help us add a lot of value to our growing business with SV

ldquoThis was one of the most productive sessions I have spent in the trade in term of understanding the retailer and also networking with other FMCG colleaguesrdquo

ldquoI felt it was very beneficial to understand Musgraves thinking and to see how my company can play a part in that vision going forwardrdquo

ldquoI have circulated all my notes internally so as to lsquopushrsquo forward what Musgraves are looking for when considering NPD range changes and promotional submissionsrdquo

ldquoVery inspiring and informative day it was nice to take a step back and think about the whole store layoutrdquo

ldquoMany thanks to Paul for his time and for being very transparent sharing the thinking behind Musgraversquos strategy and mentioning a few quite practical things like explaining the Musgrave product flowrdquo

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 87: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

WHAT DID YOU TAKE OUT OF THE DAY

116

ldquoA better understanding of some of the reasons behind the store layout and

design particularly the Centra format and its total focus around lsquofood to gorsquo

lsquoconveniencersquo and lsquofreshnessrsquordquo

ldquoThe use of natural materials and the lsquowoodrsquo effect gave a lsquomarket feelrsquo to

the store not that I havenrsquot noticed these in the past but you often zoom in and out of stores without taking the time to actually look at whatrsquos in store and how

well it all comes togetherrdquo

ldquoHow open Paul and Musgraves are for Supplier input once it is insight based

and scalablerdquo

ldquoI got a great understanding of the convenience shop from the square

footage layout of areas and shopper missionsrdquo

ldquoTo know which areas are in growth and decline and how this is affecting the overall layout was very interestingrdquo

ldquowith the re-vamps currently underway and in the near future ndash we have an

opportunity as a business to collaborate and support MRPI in bringing

productsranges to support these shopper missionsrdquo

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 88: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

HAS THE DAY PROMPTED YOU TO DO ANYTHING DIFFERENTLY

117

ldquoI need to spend more time in the field in all the retailer formats itrsquos amazing how much you see when you take the time to visit different store formatsrdquo

ldquoWe will be pulling together an insights deck on how we believe ambient Grocery can be grownrdquo

ldquoYes Now that I know what the lsquopushrsquo areas are in these convenience stores I can help drive that message internally Healthier options Food to Go Coffee and its associated purchases etc are the areas to focus onrdquo

ldquoConsidering the demographic of the stores is also one to considerrdquo

ldquoThe Shopper Missions are key ndash all product offerings promotions and layouts are designed to support each mission We need to support this by coming up with npd and promotions to encourage purchases and drive categories furtherrdquo

ldquoI intend to go out in store more during my normal working week (not just when doing my own personal grocery shop at the weekend)rdquo

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 89: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

DO YOU UNDERSTAND MORE ABOUT MUSGRAVErsquoS CATEGORY MANAGEMENT

ldquoIn all areas of the store there is evidence of thinking in the lsquoshoppersrsquo eyesrdquo

ldquoThe use of key words like lsquoChilledrsquo lsquoConveniencersquo lsquoFresh Qualityrsquo all re-enforce or prompt the shopper to interact with the categoryrdquo

ldquoThe consumer of today is time poor but seeks quality and freshness both of which are catered for and positioned really well in the both the store formats we saw on the store visits demonstrating how well the group understands the Irish consumerrdquo

118

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 90: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

DO YOU UNDERSTAND MORE ABOUT MUSGRAVES CATEGORY MANAGEMENT

(CONTrsquoD)

119

ldquoItrsquos refreshing to see how Shopper focused they are and that they are open to advice and information at any time What struck me was that they have to sell key

concepts into retailers ndash understanding this we can present scaled amp sized solutions rather than fact based decksrdquo

ldquoWe now understand that there is a 26wk category reset process and as a supplier we need to work with Paulrsquos team

in the first 4 weeksrdquo

ldquoIt was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to

step uprdquo

Yes Understanding more abouthellip Shopper Missions Store Demographics Layouts and Configurations Ambient Grocery

space OFDrsquos Promotions and Store Manager discretion

Musgraves are striving to improve implementation across range amp promotional implementation and this was evident on

the shop floor

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 91: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

SUGGESTIONS FOR FUTURE

STORE TOURS

120

ldquoI WOULD LOVE TO HAVE TRADE TOURS TO THE ldquoNEW ERArdquo

STORES LIKE CASTLETROYMIDDLET

ON I THINK MOST SUPPLIERS WOULD

TRAVEL TO SEE CUTTING EDGE

EXECUTIONS AND UNDERSTAND THE

THOUGHT PROCESS THAT HAS LED TO THE

STORE LAYOUTrdquo

ldquoI WOULD REALLY ENJOY SEEING AND

lsquoSTUDYINGrsquo A LARGER STORE FORMAT I GOT

SO MUCH OUT OF THE CONVENIENCE DAY THAT I WOULD LIKE TO BUILD UP MY KNOWLEDGE BASE FURTHER WITH A

LARGER FORMATrdquo

ldquoBUS TOUR TO OTHER SITES AROUND THE COUNTRY LARGER STORE VISITS AND GETTING OUT OF

DUBLIN PARTICULARLY TO STAKE-IN-THE-

GROUND OR FLAGSHIP STORES FOR

A PARTICULAR RETAILERrdquo

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 92: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

FEEDING IRELANDrsquoS FUTURE2014 ndash 2018

Providing job seeking skills for 5000+ young

people

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 93: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

FIF 2018 ndash LIST OF PARTICIPATING COMPANIES

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 94: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

FEEDING IRELANDrsquoS FUTUREYoung unemployed

people amp early school leavers

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 95: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

DISCUSSION

1 What is your companyrsquos view on Brexit

2 What are the major challenges predicted

3 What preparation is being put in place

4 Will Brexit lead to

Higher OOS

Increased stockholding

Increased product cost

5 Will increased lead-times and customs delays occur and remain

6 Will Brexit present any opportunities

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 96: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

PwC

Brexit TimelinesWithdrawal Agreement (Comprising Transitional Arrangement)

ECR Ireland

125

23rd August 2018

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 97: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

PwC

Business Awareness ndash Key Impact Areas

ECR Ireland

126

23rd August 2018

1 2 3

Tariffs will apply to both EU imports and exports

with the UK These tariffs will vary by product and

lead to cost increases

Tariffs Customs

Compliance

Route to Market

This will drive incremental cost for

organisations as they seek to comply with the additional customs

requirements both on the EU and UK sides

5 6

People Regulatory Divergence

Issue of regulatory divergence

regulatory drift will create ongoing

complications for EU-UK trade

Mobility restrictions need to be reviewed

Restrictions will create barriers to obtaining the

right people with the right skillset

UK market access will become more difficult as EU imports become more

expensive versus UK competitors

4

Supply Chain

Supply chain lead times will become longer and more

expensive with the need to allow for

increased inventory within supply networks

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 98: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

PwC

Possible Brexit scenarios and their implications

ECR Ireland

127

23rd August 2018

lsquoHardrsquo BrexitNo bilateral trade

agreement between EU amp UK

(WTO terms)

Transition deal agreed broadly business as

usual during this time

lsquoSoftrsquo BrexitFree Trade Agreement

between EU and UK (FTA)

Goods

Tariffs X XCustoms borders amp admin compliance X Risks of customs borders delays and backlogs

X

Import VAT (payable immediately on entry to UK)

X

Dependent on final outcome ndash tariffs may not be eliminated on all products Eg falling away of EU FTAs

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 99: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

PwC

Supply Chain implications of a Hard Brexit

ECR Ireland

128

23rd August 2018

EU Tariffs and Customs Compliance

No Tariffs or Customs Compliance

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO and EU TariffsCustoms Compliance however can be mitigated

WTO Tariffs

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 100: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

PwC

Cost Inflation Impact

ECR Ireland

129

23rd August 2018

The increase driven by the factors below

bull Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products

bull Non-tariff barriers such as customs compliance will come into effect adding further cost and complexities

bull Supply chain lead times will become longer driving logistics costs

bull Price increases will need to be absorbed within the business or passed on to the customer

bull Greatest impact will be on multinational suppliers due to higher tariffs on finished goods

bull Indigenous suppliers will be impacted to a lesser extent as tariffs are applied on ingredients only

Value Adding

Cost

Margin

Logistics

PrimeCost

Landed Cost

COGS INCREASE

Pre-Brexit Post-Brexit

Tariffs on raw materials will apply and drive cost increases

Increased logistics costs driven by longer lead times and need

for additional stock holding

Three additional costs1 Custom duties working capital implications

2 Custom administration charges3 Tariffs on finished goods The Challenge

Brexit adds additional cost throughout all stages of the value chain Additional costs driven by imported raw materials and finished goods

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 101: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

PwC

Day 1 Readiness ndash Illustrative List

ECR Ireland

130

23rd August 2018

EORI Registration Deferred PaymentContractual

ReviewAppointment of Customs Broker

Assess non-tariff barriers

Assign tariff classification

codes

Determine rates of duty

Value imports exports

Assign originIssue Broker with

ImportExport Instructions

Assess availability of duty reliefs

Availability of Import VAT mitigation measures

Benefits of AEO

Engagement with customs broker to agree ldquorate

cardrdquo

Ensuring resources in place to support business (strategically amp

operationally)

Consideration of FTA benefits

Ensure appropriate IT

controls in place

Use of Customs Simplifications

Customs procedures (eg

IPRtransit)

Not within immediate control

1 Electronic single window2 Port amp other infrastructure3 Regulatory amp quality divergence4 EU or gvt support (possibly ldquostate

aidrdquo)5 Replica of Dutch Article 23 Licence

(VAT)6 Irish RevenueHMRC approach to

simplifications7 Creation of conformity

warehousingtransit procedures

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 102: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

PwC

Day 1 Readiness - Functional Necessities

ECR Ireland

131

23rd August 2018

Understand who will be

importerexporter

Ensuring resources in

place to support business

Issue Broker with ImportExport

Instructions

Functional Requirements

Appointment of Customs Broker

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 103: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

PwC

Day 1 Readiness ndash Operational Requirements

ECR Ireland

132

23rd August 2018

Critical Importance

Must have

bull EORI Registration

bull Assign tariff classification codes

bull Assign origin

bull Value importsexports

bull Prepare for non-tariff barriers amp Border delays (eg vet checks)

bull Deferred payment accountOther Priority Actions

bull Determine rates of duty and communicate to relevant stakeholders

bull Contractual review

bull Use of duty reliefs

bull Customs procedures (eg OPRIPRtransit)

bull Customs warehouse

bull Availability of Import VAT mitigation measures

bull Potential benefits of AEO

bull Use of Customs Simplifications

bull Engagement with customs broker to agree ldquorate cardrdquo

Recommended to avoid significant costs

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 104: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

PwC

Authorised Economic OperatorBrexit Mitigation Strategy

ECR Ireland

133

23rd August 2018

AEO ndash What is it

AEO status is an internationally

recognised lsquotrusted traderrsquo status

indicating that your role in the international

supply chain is secure and that your

customs controls and procedures are

efficient and compliant

Not mandatory but it gives quicker

access to certain simplified customs

procedures

There are three types

bull AEO-C (Customs simplifications)

bull AEO-S (Safety amp Security)

bull AEO-F (A combination of CampS)

Authorised Economic Operator

(AEO)AEO ndash Benefits

bull Greater access to priority

clearance

bull Reduced administration

obligations

bull Traceability of flows of goods

bull Increased transport security

bull Fewer delays in dispatch

bull Improved security between

supply chain partners

bull Quicker access to certain customs

procedures

bull Mutual Recognition ndash ease of

movement through 3rd country ports

How to get AEO

Before applying

bull Complete self-assessment

questionnaire

bull Evaluate internal procedures

ensuring that they meet the

criteria for AEO

Once completed

bull Complete amp submit

application for AEO certificate

(In Ireland submitted to

Simplifications and

Compliance Unit in Revenue)

AEO amp Brexit

AEO will become increasingly important

post-Brexit for businesses that trade with the

UK bull Mitigates risks of border delays

bull Ease of movement through ports

and airports

bull Quicker customs clearance and

less stringent checks

ldquothe UKrsquos proposal for a so-called

trusted-trader programme [as a]

realistic way to keep trade

flowing across the borderrdquo - RTE

ndash 26 September 2017

Why Important

AEO is a mitigation

strategy which helps to reduce

lead times at the port reduce

border delays and reduce the

scrutiny on goods

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 105: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

PwC

Customs amp Trade Compliance and Management

ECR Ireland

134

23rd August 2018

It is important to consider the requirement for a dedicated operational amp strategic customs trade compliance and management function

Until a function is established responsibility will rest at operations level within the business Specific responsibilities for a customs and trade function include

1 Point of contact for customs and trade compliance and management including both regulatorylegal requirements and ongoing business operations optimisation

2 Strategic advice relating to key aspects of customs namely tariff classification valuation and origin

3 Optimisation of new products and new product flows (with a particular Brexit emphasis) including securing duty reliefs

4 Ongoing maintenance and support of trade mechanisms including audit support communication with trade authorities

5 Logistics and shipment support for customs clearance including management of customs agentsbrokers

6 Communication and coordination with other departments within the business contract manufacturers and other service providers

7 Data management including classification and collection monitoring and the analysis of trade and shipment data

8 Maintaining compliance using established policies and procedures

Post-Brexit businesses will need a plan detailing how those specific responsibilities will be managed including an option for an internal resources model

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 106: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

BREXIT OPINIONS hellipBrexit will almost certainly result in a combination of custom duties and tariffs on goods entering amp leaving UK post Brexit

Risks of border delays amp backlogs are likely Delays will add to transportation cost and challenge drivers shift hours

Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space shipping and tying up working capital

Stockpiling by consumers is possible Media sensationalism (egAmazon comments this week) could create a shopping frenzy The Frozen Food Pet Food and Bread categories all experienced increased sales during Storm Emma an event whose impact on sales is only marginal in comparison to the Brexit effect

Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the beginning of Brexit

New customs roles amp duties will be required by most companies affected

Most manufacturers are investigating their sourcing strategies at present

Ireland will be less likely to be used as a land-bridge for product en-route to Northern Ireland

Inflation on grocery ambient product is very likely This will affect

household expenditure

Cash flow concerns are an issue for manufacturers

The necessity of stockpiling may challenge the cost benefit of cross-docking

The range of ambient products sold by the Discounters is predominantly EU manufactured and will be unaffected by tariffs amp duties and Brexit induced inflation Albeit category dependent this may accrue an advantage

Stress testing of the Irish supply chain for systematic risk is advised

Many companies are investigating their Raw Materials suppliers to avoid transit through UK

Border checks on movement of goods tofrom NI remains likely

There was disagreement amongst the group as to whether an agreement will be reached on EUUK Brexit negotiations by October 19th (EU Summit) January 2019 (date for withdrawal treaty ratification) midnight on 29 March 2019 (withdrawal date) or not at all

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 107: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

NEW FOR 2018ECR PHARMA

Quarterly ECR Pharma Workgroups

For all trading partners along Pharmacy value chain

1 Small medium amp large Pharmacy groups

2 Independent owners

3 Suppliers distributors manufacturers

4 Pharmacy service providers

Purpose

1 Neutral platform to work together to advance the industry

2 Predict future changes in pharmacy consumer amp shopper behaviour

3 Irish Pharmacy Shopper Insights

4 Understand successful category management amp shopper marketing in the Pharmacy sector

5 Establish Best Practices for operations amp collaboration

6 Examine data accuracy amp store inventory accuracy as current issues

7 Monitor new business models (including paid services e-commerce and the role of digital technology in the future of Irish pharmacies)

8 Track international amp digital developments

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 108: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

SHOPPER SYMPOSIUM SERIES BY V360deg amp ECR IRELAND

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 109: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR SHOPPER ENGAGEMENT CONFERENCE amp AWARDS08 NOV 2018

The ECR Ireland Shopper Engagement Conference is the major annual

event highlighting the path to purchase amp in-store activation for the

FMCG retail amp consumer packaged goods sector

Theme

Format

Awards ndash Entries Sep 21

138

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 110: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR UK

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 111: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

New ECR Community Projects amp Proposals Workshop

1230 ndash 1330

ECR Community

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 112: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Brief Summary of ECR Projects 2019

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 113: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

ECR Community Shrink amp OSA Group

ECR Community Update

Presented by Eileen

167

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 114: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Loss Prevention Challenge

bull Retail Loss loses 230 Billion per annum to theft damage and error

bull It is hard to measure itrsquos hard to understand the true root causes and itrsquos hard to design and execute an organisation wide approach that leads to prevention

bull We need new thinking new ideas and new initiatives

bull The idea to Head Hunt start up businesses came about to challenge existing thinking

bull The simple approach included - 5 retailers 5 briefs 200 start uprsquos

bull 20 Start ups went Speed Dating

bull 5 Finalists entered a Pitch Battle

bull Resulted in 19 Pilots that are committed to over the next 15 months

bull Aim is to see a step change for the Retailers

bull httpswwwyoutubecomwatchv=HIrF3n4gd5U

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 115: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 Work Plan Recap

bull Publish Research Findings on RFID Inventory Accuracy Collaboration Model Returns and Self Scan Researchbull Webinars Workshops Press Releases

bull Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank)

bull Identify and align new research projects

bull Engage more retailer and manufacturer participantsbull CEO Letter

bull Bring a Friend

bull Organize and deliver working group meetingsbull Full Working Team ndash Feb 7th amp 8th June 20th amp 21st and October 24th amp 25th

bull Sell More Waste Less ndash Jun 7th (Hamburg) and October 23rd amp 24th (Lisbon)

bull UK News amp Magazines ndash March 22nd (London) and October 31st

169

On Track except IRA

Delivered

On Track

On Track

Delivered On Track to be Delivered

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 116: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

New Research Studies

170

November 2018

Feb March 2019

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 117: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

We must disseminate better Quote Declan

Latest Thinking Model

bull Identify relevant interested partners and then leverage the energy of their marketing team and $$$ to launch the study (GS1 and NCR being most recent examples)

bull Plan a global webcast with press releases etc to launch

bull Deliver a webinar on study (more detail)

bull Deliver a round table workshop (face to face)

bull Seek to find case studies in success at follow up For example the Albert in Czech FCC case study

171

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 118: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Work in Progress ndash What does it take

172

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 119: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

15 New Research Ideas

bull Understanding the Organisational Framework of Retail Loss Prevention

bull Building on the Self-scan Study

bull Building on the Inventory Accuracy Research

bull Building on the Online Returns Research

bull Utilising CentralRemote Monitoring Hubs

bull Store Use of Video Technologies

bull Defining and Understanding ORC in Europe

bull Understanding the Impact of Trolley Pushouts on Retail Losses

bull Locating Losses Throughout the Retail Supply Chain

bull Getting to Grips with Violence in Retailing

bull Information Sharing Best Practices to Manage Retail Loss

bull Reviewing the Loss and Management of Retail Assets

bull Assessing the Value and Impact of Store ExitEntry Strategies

bull Predictive Modelling

bull Measuring the Impact of E-commerce Losses

173

Objective will be to commission for 2019 the three most popular ideas

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 120: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2019 Plans

bull Disseminate Returns and IRA research

bull Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects)

bull Launch the 2019 Waste Prevention Challenge

bull Deliver 5-6 working group meetings

bull Increase participation with retailers especially in Germany

174

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 121: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

bull objective of the hour was to include a summary of the two-day Meeting which would include presentation summaries from guest speakers national updates and any community actions

bull

bull We were delighted to have ECR China present the work that their organization is involved in

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 122: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

176

bull ECR China was set up in July 2001 and located in GS1 China create

core value of customer requirements into FMCG industry to increase

supply chain efficiency and to develop in consumable industry

bull Structure

ECR China

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 123: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

177

ECR China

bull Co-chair organizations

Board Members

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 124: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

178

ECR Chinabull Activities

Annual conferenceHost ECR China

2015 13th ECR China Conference Omni-Channel Strategy and Company Reform

2016 14th ECR China Conference Focus on Supply-side Reform Co-create New Consumption

Era

2017 15th ECR China Conference Innovation Integration Create intelligent supply chain

2018 16th ECR China Conference Cloud Chain Reshape new relationship between retailers

and suppliers

Board of directors Executive management role

Twice meeting of a year

Formulate direction of ECR China create cooperation environment promote ECR

development

Working Committees ( please see next slide)

Excellent cases appraise amp elect

Objective strength cooperation commend excellent cases

Two directions Supply chain amp consumer requirements (platinum amp gold)

Others

Internationalnational standard

Training

Marketing research

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 125: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

179

ECR China

Working Committees

Supply chain optimization WC

Co-leaders Bill Zhang( PampG) Wu An(CRV) Tang Haibin (SPAR)

Content OSA logistics infrastructure standard ( pallet size of track packaging)

CPFR

Information amp solution WC

Co-leaders Guo Weihua (GS1 China)

Content GDSN EDI standard

Customer requirement amp innovation WC

Co-leaders Ella Feng (PampG) Niu Chaofeng( JD) Stella Xie (IBM)

Content customer research experience consumption industry innovation food

tracing

E-commerce WC

Co-leaders Olivier Carnet(Unilever) Ma Song(JD)Wang Zhe(Suning) Kong

Hongliang(GS1 China)

Content make high-quaility products convenient platform Omni-channel data

sharing and CPFR in eCommerce

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 126: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Working Committees

Policy amp Law WC

Co-leaders Zhou Liang (CRV) Richard Tian (Unilever) Tracy Cui (Loscam)

Content National policy--Supply chain system construction

SMEs Service WC

Co-leaders Linda Kang (SPAR) Yang (PampG)

Content Solution service for SMEs Eg Supply Chain financial

180

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 127: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 Visiting Yong Hui Xi Yong Logistics Park

Participants120+

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 128: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 1st Board Meeting

20 board members

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 129: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 130: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

Alliance Propose Digitization of Product

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 131: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

2017 ECR Company of the year

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 132: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

2017 People of the Year

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 133: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

High Level Panel Discussion

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 134: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference2017 ECR Excellent Case

Platinum Award

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 135: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

2017 ECR Excellent Case

Gold Award

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 136: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 137: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Best Booth

2018 ECR China Conference

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 138: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

Supply Chain sub-forum

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 139: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

Customer Requirements amp Innovation sub-forum

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 140: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

E-commerce sub-forum

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 141: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 142: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

2018 ECR China Conference

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 143: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

197

1 Category management

2 CPFR guideline

3 Pallet guideline

4 Package guideline

5 OSA guideline

Projects in the past

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 144: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

198

2018 Key projects

1 Digitalization supply chain

2 Customer research in new retail environment

3 Marketing analyze by data model and focus on

data standardization

4 SMEs supply chain development

Thank You

Page 145: ECR Quarterly Meeting - ecr-community.orgecr-community.org/wp-content/uploads/2018/10/Barcelona-Meeting... · 14.30 New ECR Community Member Declan & Tomas ... •Previous role: Head

Thank You