Vision for ECR Europe Presentation to National Initiatives April 3 rd, 2003 Paris.

Vision for ECR EuropeVision for ECR Europe

Presentation to National Initiatives

April 3rd, 2003 Paris

ECR EUROPE - The only platform at European level for co-operation on a parity

basis between retailers and manufacturers in the consumer goods

industryMISSION

Working together to fulfil consumer wishes better, faster and at less cost

BROAD OBJECTIVES• Create value for consumers/shoppers • Grow the market • Be an authoritative source of research and opinion for policy makers where ECR Europe is best placed to inform the debate

SPECIFIC OBJECTIVES •Deepen the focus on consumers - deliver what the consumer wants•Eliminate waste: drive for standards and implement; achieve synergies among relevant organisations

•Further industry knowledge: bring industry and academics together to; develop broad-based joint education programmes for manufacturers and retailers

•Develop the acceptance that professional management of the relationship between companies is as important as professional management within companies

•Keep all our efforts simple, practical and free of jargon

Mission Broadobjectives

Specificobjectives

High Priority projects

KPIs(Measure

ment)

Improvement areas

ECR EUROPE&

ALL NATIONAL

INITIATIVES

The only platform at European level for

cooperation on a parity basis between retailers and manufacturers in the consumer goods

industry


- Create value for consumers- Grow the market- Be an authoritative source of research and opinion for policy makers

- Deepen the focus on consumers- Eliminate waste, drive for standards, achieve synergies- Further industry knowledge- Develop relationship management between companies

- OSA- CRM- Global standards- Product data file- Furthering knowledge- POS-Data- Shrinkage- Global ECR scorecard- ECR annual conference

(see project briefs)

- Retailer involvement- Top management involvement- ECR Europe/ National Initiatives coordination- Furthering knowledge-

Implementation

ECR Xxxxxxx

To be defined if

different to ECR

Europe’s

To be defined if different to ECR Europe’s

To be defined if different to ECR Europe’s

To be defined if different to

ECR Europe’s


ECR Europe’s


ECR Europe’s

Common agenda

Efficient Consumer Response

ECR France

Mission Broadobjectives

Specificobjectives

High Priority projects

KPIsMeasurem

ent

Improvement areas

ECR EUROPE&

ALL NATIONAL

INITIATIVES

The only platform at European level for

cooperation on a parity basis between retailers and manufacturers in the consumer goods

industry


- Create value for consumers- Grow the market- Be an authoritative source of research and opinion for policy makers

- Deepen the focus on consumers- Eliminate waste, drive for standards, achieve synergies- Further industry knowledge- Develop relationship management between companies

- OSA- CRM- Global standards- Product data file- Furthering knowledge- POS-Data- Shrinkage- Global ECR scorecard- ECR annual conference

(see project briefs)

- Retailer involvement- Top management involvement- ECR Europe/ National Initiatives coordination- Furthering knowledge-

Implementation

ECR France

same

In addition to the ECR Europe objectives:- Promote bilateral initiatives of cooperation between member companies

In addition to the ECR Europe objectives:- Always strive for critical mass to enable faster improvement

- Quality, traceability, consumer safety- Tools and solutions for B2B e-commerce


ECR Europe’s

same

Common agenda

CONSUMER FOCUS Keep all our efforts simple, practical and free of jargon

ECR Europe Project Importance Project readiness

Status Key deliverables Key Performance Indicators

Optimal ShelfAvailability (Co-chairs: Retail t.b.d. Manufacturer J ochen Rackebrandt - Kraft Foods)

High High

* ECR Europe project* roadmap ready for May 2003* now discussing future activities

Roadmap to higher shelf availability, based on practical improvement levers

reduction of out-of-stocks per productper store (a product not found in the desired form, flavour,size and saleable condition, or not shelved in the expected location)

CRM (Co-chairs: Retail t.b.d. Manufacturer Enrico Toja - J ohnson & J ohnson) High Low

* ECR Europe project* roadmap ready for May 2003* future activities to focus on implementation

* Roadmap for collaborative CRM to differentiate beyond price* CRM to become part of company culture & strategy* Guidelines for communication at POS

* share of requirement* sales* market share

Social / EnvironmentalIssues (ECR Italy project)

Medium Low

* ECR Italy project* exploring issues for ECR Europe

DRIVE FOR STANDARDS Keep all our efforts simple, practical and free of jargon



Gobal Standards (ECR Europe contribution as one of the sponsoring organisations of GCI) High High

* Global Commerce Initiative established since 1999* focus on data synchronisation

* Input to business requirements for global standards* Implementation of global standards* Improved functioning of Global Standards Management Process

* number of companies using global standards (GCI implementation scorecard)* number of European companies involved in GSMP

Product data file (Co-chairs: tbd)

High High

* New ECR Europe project to support EAN.UCC* to run for a limited time period, then to be handed over to EAN.UCC

* European alignment of product data standard requests* Reduced divergences in product data requirements

* reduced number of requests for new product data standards emanating from Europe

Radio-frequency identification (RFID) (ECR D-A-CH project)

High Low* ECR D-A-CH project* exploring issue for ECR Europe

* Understanding of impact of RFID on ECR processes* Best practice applications

tbd

Traceability inConsumer safety (co-chairs: tbd)

High Low

* New ECR Europe project led by ECR D-A-CH & France

* guidelines for implementation of interoperable traceability systems & efficient recalls

tbd

FURTHER INDUSTRY KNOWLEDGE Keep all our efforts simple, practical and free of jargon



Learning programmes for broad-basedbehavioural change across total industry - massification

High t.b.d.

* Local education programmes by national ECR & EAN organisations, supported by academia, consultants.* Intra- & inter company programmes to spread ECR knowledge* J oint manufacturer-retailer 'hands-on' programmes* Central repository of ECR knowledge, accessible electronically* ECR Europe and national ECR conferences* wide use of ECR global

* Number of attendees and balance of retailers, manufacturers and service providers* Use of cental repository* Actual implementation of learning in companies* number of conference participants and proportion of retailers* number of companies using scorecard

Educationprogrammes for high achievementmiddle managers to equipthem better to lead our industry in future

High t.b.d.

* Programmes to focus on value of working together versus confrontation* J oint manufacturer-retailer programmes on concrete topics (e.g. optimal shelf availability)* Start with small number of countries and roll out gradually

* measure changes in relationship between companies before and after programme* Measure knowledge improvement* Reward systems to reflect ECR mode

Identify gaps in knowledgeand initiate new research

High t.b.d.

* Establish the 'business case for change' to persuade CEOs to adopt ECR* Establish ECR Europe as authoritative source of research on consumer & business trendse.g. Reseach on all trends impacting consumer behaviour and category growthe.g. Establish inventory of consumer/shopper measurese.g. Research on trend-setting industry practices and market growth - also learning from other industries

* CEO awareness level of ECR and its value to business and consumers* Acceptance of ECR Europe as authoritative source of research* share of wallet

Attracting talent -student education High t.b.d.

ECR courses at universities& business schools

tbd

PROFESSIONAL RELATIONSHIPS Keep all our efforts simple, practical and free of jargon



POS Data management & sharing (Co-chairs: Retailo Rita Marzian, Metro; Manufacturer Thomas Block, Henkel) High Low

* ECR Europe project* Recommendations for May 2003

guide on how to implement standardised exchanges of POS data as key enabler to visibility of real time consumer demand

* Number of European retailers providing POS data to suppliers, including percentage of total retail sales covered by POS data exchangesub-sets:*Number of retailers providing POS data on manufacturer assortment level*Number of retailers providing POS d

Collaborative Planning, Forecasting and Replenishment(CPFR) (Co-chairs: Retail Rita Marzian, Metro; Manufacturer Esteban Garriga, Henkel)

Medium Low

GCI project, including a European platform

Define simplified CPFR processto drive implementation

80% of results in 20% of the time

IMPLEMENTATION Keep all our efforts simple, practical and free of jargon



Shrinkage (Co-chairs: Retail J ohn Fonteijn, Ahold; Manufacturer Colin Peacock, Gillette)

High High

* ECR Europe project* Roadmap produced & now in implementation phase* research on 'hot stores' under way

Collaborative shrinkage approach to become day-to-day practice

% of profit margin increase due to shrinkage reduction

Global ECR scorecard (Co-chairs: Retail Martin White, Sainsbury's; Manufacturer J im Flannery, Procter & Gamble; Martin White, Sainsbury's)

High High

GCI project * set of scorecards optimally suited to measure implementation of ECR and global data synchronisation* database for benchmarking of performance

number of companies using scorecard

‘PARKING LOT’ Keep all our efforts simple, practical and free of jargon



Fresh -(need for definition)

n.a. n.a.

further discussion necessary

Non-food

n.a. n.a.

further discussion necessary

Pre-PackagedMerchandisingUnits (PPMU) n.a. n.a.

Proposal made byChris Tyas, furtherdiscussion necessary

Reusable transport items (chair: CCG)

n.a. n.a.

* EAN International project, set up on request of ECR Europe* permanent body: 'International Council for RTI'

* design & management guidelines for manufacturers, retailers and providers* global identification & communication standards

compatibility of new Reusable Transport Items brought to the market

Collaborative business relations n.a. n.a.

Consumer focus 1.1OSA Co-chairs Rank Ready Status Key deliverables KPIs

R tbd. H H Roadmap ready for May '03 Roadmap to higher shelf tbd.Europe tbd. availability, based on

M Kraft Foods practical improvementJ .Rackenbrandt levers

R Auchan H H OOS survey completed Continuous measurement tbd.France E. Alcaïde Requirements of measurement system based on POS data

M Nestlé France system defined J .P. Zablithe

CRM Co-chairs Rank Ready Status Key deliverables KPIsR tbd. H L Roadmap ready for May '03 Roadmap to differentiate Share of requirement

Europe tbd. Future activities to focus on beyond price SalesM J & J implementation Guidelines for communication Market share

E. Toja at POSR H

France participant in the ECR Europe projectM

Social & Co-chairs Rank Ready Status Key deliverables KPIs Environmental R tbd. M L Roadmap ready for May '03 Roadmap to differentiate Share of requirement

Europe tbd. Future activities to focus on beyond price SalesM tbd. implementation Guidelines for communication Market share

tbd. at POSR L

France no focus point for ECR France at present timeM

Current ECR EUROPE structure

ExecutiveBoard

AdvisoryGroup

ConferenceGroup

In-depth preparation of Board meetingssupervision of ECR projects and conference content

Responsible for annual ECR EuropeConference & Marketplace

NationalECR InitiativesContribute to ECR

agenda setting & development activities

Train and facilitate implementation

Supreme decision-making body Finance

Committee

ECR Europe Secretariat

Provides support to ECR Europe Board, national ECRs, Advisory Group & Finance committee

Co-ordinates projects

Deals with all financial issues: budgeting, reserves, monitoring and presentation of accounts

Key constituencies: sponsoring organisations (represented in Board and Finance Committee)/ GCI (global sister organisation)

Academic Partnership

Liases with academia world-wide to promote and sponsor innovation and research in ECR

Recommended ECR EUROPE structure

Principles

• Increase networking with the National ECRS• Enhance involvement and accountability of National ECRs• Allocate roles & responsibilities within the Advisory Group

5 co-chaired areas of focus– Project development prioritisation & monitoring– Learning – broad-based education programme– Implementation of collaborative ECR practices & “value

realisation”– Conference management– Communications

Recommended ECR EUROPE structure

ECR Europe Board

Advisory

Group

Finance Committee

NationalECR

Initiatives

ECR Europe secretariat

? ET GBHW

Project Development

BK

Conferences

Implementation

Learning

TL FR

?

Co-chair Coordination

Communication

?

??

??

LDKR

?

RW?

?

??

?

DTPK

Roles of the ECR bodies

• Executive Board – Supreme decision-making body

• Advisory Group– Develops and recommends the long and short-term agenda for

the Board and coordinates the tracking against set objectives

• National Initiatives– Contribute to ECR agenda setting, development, implementation

and learning activities

• Secretariat– Provides support to all functional groups within the ECR Europe

structure

• Finance committee– Deals with all financial issues: budgeting, reserves, monitoring

and accounts presentations

Roles of the ECR bodies

• Communication– Handles all aspects of communication and corporate identity

• Project Development– Initiates governs and tracks projects

• Implementation– Champions and tracks implementation of ECR practices– Makes recommendations– Validates the advantages of ECR

• Learning– Develops and promotes educational and research programmes with the

support of the Academic Partnership.

• Conference – Is responsible for concept, content and execution of the annual

conference and market place.

Conditions of success

• Co-operation with national ECRs to drive a common agenda

• Commitment by members of ECR Europe Board to take on a share of the work and dedicate resources

– Profile– Time

=> Retail participation

• Identification & prioritisation of scope of activities & related tasks

• Support and financial resources

Resource requirementsResource requirements

• Retail participation• Commitment of ECR companies to dedicate

resources• Support resources• Financial resources

Next steps Next steps • Distribution of an “ECR Vision Kit” to all National

Initiatives and translation into local language.• ECR Vision to be an agenda point at next possible

National Board meeting before mid August 2003.• Completion of the common agenda document

including national specifics if different or complimentary to ECR Europe set objectives

• Common agenda to be formally approved by all National co-chairs and ECR Europe co-chairs at summit meeting on Sept. 4th, 2003 in Brussels

• Official approval by Executive Board on Sept. 5th

• Pan-European alignment by December 2003

Roll-out at National Initiative levelRoll-out at National Initiative level

ECR kit containing:– Vision and common agenda – Project overview– ECR organisational structure – ECR advancement process– ECR Operating Principles– ECR Europe Board composition overview– All necessary templates for completion

• Project status • Events calendar

Vision for ECR Europe Presentation to National Initiatives April 3 rd, 2003 Paris.

Documents

Transcript of Vision for ECR Europe Presentation to National Initiatives April 3 rd, 2003 Paris.