Innovation and Productivitydanone-danonecom-prod.s3.amazonaws.com/user_upload/... · - State of the...

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Innovation and Productivity Stanislas de Gramont Paul Gardner Martin Powell

Transcript of Innovation and Productivitydanone-danonecom-prod.s3.amazonaws.com/user_upload/... · - State of the...

Innovation and ProductivityStanislas de GramontPaul GardnerMartin Powell

Innovation and Productivity

OVERVIEWPACKAGINGRAWS / RECIPES INDUSTRIAL DESIGNCUSTOMER SERVICE AND LOGISTICSCONCLUSION

Productivity – COGS, non-COGS, cash & Capex

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SUPPLIERS MANUFACTURING LOGISTICS CUSTOMERS’WAREHOUSES

CUSTOMERS’SHOPS

SHOPPER / CONSUMER

Opportunity M€

2011 Danonebrand target

Best in classBenchmark

M€

Cost & cashStretchthe Model

Change the Model

Do more with less

Innovate and change

Buy Better

Each Division has it’s own COGS focus

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WatersDairy

MedicalBaby

Raw materials

Packaging

Industrial

Logistics

Innovation and Productivity

OVERVIEW

PACKAGINGRAWS / RECIPES INDUSTRIAL DESIGNCUSTOMER SERVICE AND LOGISTICSCONCLUSION

Lightweighting PET Bottlesusing new technologies

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Evolution of Hayat 0,5 L bottle weight

1614.9

12.912.1

11.4 10.9

0

2

4

6

8

10

12

14

16

18

2004 2006 2009 2010 2011 2012

Driven by technology upgrades

Weight optimisation Preform

technology

Shortneck

New bottle

New elimination

bottle

Do more with less

Innovate and change

Buy Better

Ensure consumer preference and logistics performance

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Do more with less

Innovate and change

Buy Better

Key Success factors:- Keep the same consumer preference

- Lightweight to the max thanks to new technologies

Outputs:- 7,500T of PET saved in 2010

- 25,000T CO2 emission reduction

Thickness and weight distribution

Thickness & weight distribution 12.7 gr & 11.3 gr Adana blowing

1.9 gr 2.1 gr1.4 gr 1.7 gr

2.9 gr

2.8 gr1.4 gr1.3 gr

4.5gr4 gr

Push to the max the Technologies to lightweight our Actimel Bottles

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Do more with less

Innovate and change

Buy Better

Key Success factors:- Consumers studies to permanently check the preference

- State of the art technical management at Graham & Danone Side (R&D/Ind)

Outputs:-Bottle weight divided by 2 since the Actimel Launch in 1996 ( 39kt HDPE saved)

- CO2 reduction equivalent 130 KT saved since 1996

Bottle weight evolution

?

• Started at 9g of HDPE in 1995 today produced in 6.0g and with a worldwide target of 5.5g (Poland already at 5.2gr)

• Combined with High speed blowing machine developed by our Partner (Graham Packaging) to meet our growth

• Optimizing cardboard surfaces and label thickness

Push to the max the Technologies to lightweight our Polystryrene Cups: FOAM project

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Do more with less

Innovate and change

Buy Better

Key Success factors:- State of the art in bubble size & repartition management at the supplier stage

- Machines well equiped & maintained to deliver the best performing cups

Outputs:- 12 to 14% less plastic for the same performance & Consumers preference

-19% less CO2 emission for the Packaging, 40 KT to date. € 7 mln COGS savings

Foam Volumes Evolution Europe

4,830 9,000 13,400 23,560 16%

28%38%

54%

2008 2009 2010 2011

Foam (T) % lines

The middle one is expanded thanks to a Foaming agentDensity 0.65

Two “standard” layersDensity 1.05

A 3 layer PS

Removing the carton pickups- a real business success story

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Do more with less

Innovate and change

Buy Better

+4% +9% +16% +15%

Innovation and Productivity

OVERVIEWPACKAGING

RAWS / RECIPESINDUSTRIAL DESIGNCUSTOMER SERVICE AND LOGISTICSCONCLUSION

Project Jumbo baby food

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• Anticipate reglementationevolution

• Better nutrition• Better ingredients • 81 Recipes, 1000 labels

for 35 CBUs in 9 months

Project JUMBO: Recipe/Formula upgrades

PRODUCT DEVELOPMENT & OPERATIONS

• 81 Recipes improved, 12,000 hrs R&D/PD • Complexity reduction

(15 recipes and 5 base-powders less)• No impact on

customer service and low write-offs

Do more with less

Innovate and change

Buy Better

Smaller volumeSame nutrition in 125ml bottle as in original 200ml bottle

Innovation in Protein Technology

Innovation that improves patient compliance at a lower cost price and less packaging

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Do more with less

Innovate and change

Buy Better

• Reduction in size of protein fraction reduces viscosity of high protein nutrition

• Less packaging material

• Reduced conversion costs

• 20% reduction in carbon footprint at production level

• Improved patient compliance

• Improved intake

TransformationTraditional use of milk

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Skimmedmilk

Sweet whey

Acid whey

Cream è Butter

Skimmer

Directly to cheese

WPCsWheyPowders

SMPBlends

Feed1Lt for each1kg of product

Do more with less

Innovate and change

Buy Better

What is Membrane technology?

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MEMBRANE FILTRATION

WHEYPROTEINS

PROTEINS LACTOSE + MINERALS

LACTOSE MINERALS

Other optional filtration step Other optional filtration step

CASEIN

SKIMMED MILK

Do more with less

Innovate and change

Buy Better

TransformationTodays use of milk

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Skimmedmilk

Whey

By-Products

Cream è Butter

Skimmer

Directly to cheese WPCsWheyPowders

SMPBlends

Crackingmilk

InnovationDrinks

Cream desserts

Optimise salesEg cream

ExcessComponents

Casein

Whey

Minerals

Lactose

Water

Do more with less

Innovate and change

Buy Better

Innovation and Productivity

OVERVIEWPACKAGINGRAWS / RECIPES INDUSTRIAL DESIGN

CUSTOMER SERVICE AND LOGISTICSCONCLUSION

Danone Eaux FranceCarrefour Miramas case

1st common warehouse between 1 supplier & 1 customer in France, supplied by full trainsWarehouse with 2 functions:- Deliver 123 Carrefour stores Just In Time- Deliver other Danone customer warehouses

Benefits: CO2 reduction/ Service / Innovation/ Customer intimacy/ positive media coverage

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Do more with less

Innovate and change

Buy Better

21%

9%

37%

16%

17%

Increasing on-shelf availability

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Buy another flavour

Buys product later

Buy other brand

Doesn’t buy at all

Buys in other store

30% sales lostby the Retailer

46% sales lost bythe Manufacturer

Do more with less

Innovate and change

Buy BetterFOR ALL

Shopper behaviour when product is missing on shelf (ECR Europe)

€ 4 bn of saleslost in Europe

Store or Field Alert

Store Order Control

Danone Store Alert

Danone Sales Force

Customer Store Team

In StoreExecution

OSA proven solutions

E-Pos DataDanone

Store OrderDanone

WarehouseTo Store Delivery

Do more with less

Innovate and change

Buy BetterFOR ALL

Customer Warehouse

E-Pos Data

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Innovation and Productivity

OVERVIEWPACKAGINGRAWS / RECIPES INDUSTRIAL DESIGNCUSTOMER SERVICE AND LOGISTICS

CONCLUSION

Innovation & Productivity – Summary

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Stretchthe Model

Change the Model

Do more with less

Innovate and change

Buy Better

A track record of deliveryInnovation and productivity go together Inno gives sustainable productivity perspectives Our culture of labbing and landing provides vivid pipeline filling and roll out Innovative and cost efficient formulas will provide ground for further growth opps in emerging AND developped market

SUPPLIERS MANUFACTURING LOGISTICS CUSTOMERS’WAREHOUSES

CUSTOMERS’SHOPS

SHOPPER / CONSUMER

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