ECR Quarterly Meeting Bienvenido a Barcelona!
Welcome to Barcelona!
Quarterly Meeting - Barcelona Day 1 10th October Afternoon Agenda
13.30 Welcome and Co Chair Update Declan & Tomas
14.30 New ECR Community Member Declan & Tomas I Introduction
14.45 Marketing and Communications Update Eileen
15.00 Digital Transformation Project Arnd (Virtually) Update/Feedback Welcome and Co-Chair Update – 13.30 New ECR Community Member Introduction – 14.30
Presented by Declan and Tomas Marketing and Communications Update 14.45 Eileen Marketing and Communications
• Newly Launched Newsletter – 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 • ESM Shopper Magazine – Confirm Country Participants • ECR Quarterly Meeting Hosts & Dates to be confirmed • Membership Fee’s - review to date • One to One Meetings – new medium for promoting national activity, 2 x per month – Countries to be agreed
ESM Shopper Magazine ESM Shopper Magazine Countries to provide content (Agreed in Barcelona)
• October 2018 – Italy • December 2018 – Czech & Slovac • February 2019 – Spain • April 2019 – New Members – Global Members + Conference • June 2019 – Poland • August 2019 - Russia • October 2019 – Austria • December 2019 – Switzerland Quarterly Meetings - Update
• Barcelona – October 2018 • Vienna – December 2018 – Please note this meeting has been cancelled and moved to June 2019 • 1. Brussels – February 22nd 2019 • 2. Paris – April 12th & 13th 2019 • 3. Vienna – June 11th & 12th 2019 • 4. Kazakhstan/ China explore (TBC) October 2019 • 5. Virtual Meeting December Dates (TBC) 2019 Membership Fee’s Update
• All countries have paid their 2018 membership subscriptions with the exception of the following: • ECR Ireland – the plan has always been to pay this in November 2018 in order to balance the cashflow. It is on track for this payment. • ECR Russia – Update from Max invoices to be agreed and paid before the December 31st 2018 • ECR Romania – awaiting clarity One to One Meetings – ECR Nationals Confirmed at the meeting in Barcelona
• October - Cypress • November x 2 – Portugal (contact via Jordi meeting next week)/ Romania • December x 2 - Finland/ Croatia Digital Transformation Project Update 15.00 Arnd – Virtually – (no slides were presented) 10th October Afternoon Agenda 16.15 CGF Health & Wellness Sharon & Enrico
17.15 ECR Spain – Local market Update Jordi
17.40 Lean & Green (Connekt) Lia
18.00 Recap and Close Declan
20.00 Dinner - Can Majó - L' Almirall Aixada, 23, 08003 Barcelona, España CGF Health and Wellness Presentation 16.15 Sharon & Enrico (Virtually)
Lean and Green Connekt Update 17.40 Presented by Lia
Recap and Close – 18.00 Declan and Tomas Quarterly Meeting - Barcelona Day 2 11th October Morning Agenda
8.50 Welcome Tea & Coffee Jordi
9.00 Digital Transformation Proposal Update Marc (Virtually)
9.30 Digital Transformation Discussion ECR Community
10.00 ECR National Updates
11. 15 Tea & Coffee Break Digital Transformation Update 9.00 followed by a discussion with ECR Community (No slides were presented)
Marc - NWU Switzerland ECR National Updates 10.00 – 11.15 ECR Poland – National Update Presented by Mateusz Ariadne’s Thread project Is the transport easy to manage? Whose problem is it? KPIs COSTS ?
PEOPLE
5050 Is it safe?
Car crash fatalities per 1 000 000 citizens – European Union Top 10 causes of death (Poland)
Source http://www.who.int/gho/mortality_burden_disease/causes_death/top_10/en/ Źródło: http://ec.europa.eu/eurostat/web/products-eurostat-news/-/EDN-20171119- 1?inheritRedirect=true_08.04.2018 r.
5151 Do we know the truckers’ reality?
52 What it’s like to be a driver?
▪ EN: https://www.youtube.com/watch?v=molOFyjpmMc&t=0s&index=3&list=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx
▪ FR: https://www.youtube.com/watch?v=dfd8Iugfn-Y&t=0s&index=8&list=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx
▪ RU: https://www.youtube.com/watch?v=Yk9Bi8i1J4c&t=0s&index=5&list=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx
▪ UKR: https://www.youtube.com/watch?v=tjYkzreHABk&t=0s&index=4&list=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx
▪ IT: https://www.youtube.com/watch?v=zWzvrHjAevs&t=0s&index=7&list=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx
▪ PL: https://www.youtube.com/watch?v=UM21sOgZcyQ&list=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx
▪ DE: https://www.youtube.com/watch?v=oCr4N1B59G0&index=5&list=PLxjR4zfa88BmeCp3m8WRcUhZMuwY1EBVx
5353 Is there a solution? Dedicated, Enhanced Logistics Information System for
Truckers & Forwarders
5454 Ariadne’s Thread project
Drivers’ ❖ Road safety working ❖ Easier navigation Supply Chain conditions ❖ Logistics conditions / DC requirements improvement ❖ First & Last Mile optimisation Integrity
Transport ❖ Decrease the number of drivers quitting the job / trade availability ❖ Increase new drivers arrival / retention rate increase
Transport efficiency ❖ Cargo space optimisation ❖ Parking, breaks & routing optimisation improvement
❖ OSA to shopper increase Deliveries ❖ Warehousing space & flows optimisation On-Time ❖ More efficient resources use improvement
5555 What’s ahead for us?
Market environment Next steps ➢ Increased demand for transport ➢ Increasing Supply Chain costs ➢ Database structure finalised ➢ Accidents rate / road traffic safety ➢ Interfaces & business model discussions
Challenges ➢ Stakeholders involvement ▪ Manufacturers / Shippers ➢ Drivers’ shortage ▪ Retailers / DC operators ➢ Increased complexity ▪ Logistic Service Providers / Forwarders ➢ Communication between SC parties ➢ Launching in Poland first, Europe firster? Opportunities ➢ Supply Chain 4.0 ➢ GS1 standards (GLN, EDI) ➢ ECR – collaboration platform
56 ECR Austria – National Update Presented by Teresa ECR Task Forces 2018
Image & Media Database Omni Shopper Journey
Packaging 360°
Promotion-Displays
On Shelf Availability
58 Image & Media-Database
• Guideline published in 2017
• Trials between retail & manufacturers ongoing
• English Version available!
59 Latest Paper „Displays“
• Recommendation about Standards of Displays
• Publication: Infotag 2018
60 Packaging 360°
• 2 Priorities:
• Circular Economy → Cooperation with Universities of Applied Sciences Campus Vienna + ARA
• Smart Packaging → „specification sheet“
• Recommendation for Packaging Experts?
61 Omni Shopper
Kick off Touchpoint- Personas/ TP measurement/validation Analysis Shopper
ECR Board
ECR Infotag
February April June September November
→ Professional Support needed?
62 On Shelf Availability Targets: • Consumer focused definition • Root cause analysis • Solution validation with real trials retail/industry
63 ECR Infotag 2018 65 ECR Education Programme
66 28 speakers
67 Average vote 1,4
68 Recommendation > 87 %
69 ECR Digital Edition: www.ecr.digital • 2 years live
70 Development ECR Digital Edition
60000 50000 + 146% + 66% 40000 30000 20000 10000 0 2016/17 2017/18 Nutzer Seitenaufrufe Shopper Marketing:→ New Chapter 2018 • New author: Andrea Stevens • Head of Shopper Marketing at Intersnack Group •Previous role: Head of Category Management & Shopper Marketing at GS1 Germany ECR Italy- National Update Presented by Sylvia Conference Sustainable logistics: it is possible and cheaper
3rd October 2018 How to reduce emissions
✓You can work on means of transport. ✓New engines, aerodynamics, right tyres. ✓You can work on transport modes. ✓Sea and rail modal shift. ✓You can work on fuels. ✓LNG. ✓You can work on people. ✓Driving styles. ✓You can work on organization. ✓Fill rate, empty kilometers. Concrete examples measured with
#ecologistico
Photovoltaic roof on the non food DC
Load fill level optmization
-600 ton CO2e/anno Concrete examples measured with
#ecologistico
Decentralised management of dispalys
Electric forklift in the warehouse and electric trucks 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.
22nd October 2018 13th November 2018 26th November 2018 3rd December 2018 2:00 – 6:00 pm 2:00 – 6:00 pm 2:00 – 6:00 pm 2:00 – 6:00 pm
Circular economy: Environmental Environmental legal framework, Circular economy: Footprint: Footprint inside strategic and case studies and guidelines, the company operational best practices methodologies and strategies and aproaches standards processes A self assessment on circular economy
How “circular” is your company?
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. Logistics flows in the FMCG industry in Italy (Research 2010)
SI.RI.O. New analysis on logistic flows
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, 7/24 opening hours, new players, automation in logistics / Industry 4.0, green packagings and solutions, …) 11th October Morning Agenda
11.30 National Updates ECR Community
12.30 New ECR Community Projects ECR Community
13.30 Lunch
14.00 Shrink & Oza Update Colin (Virtually)
14.30 Global Web Hour Declan Co-ordinates
15.30 AOB & Close ECR National Updates 11.30 – 12.30 ECR France – National Update Presented by Emilie ECR Community Meeting Barcelona – October 2018 ECR focus in France
14 rue Magellan - Paris 8ème Tel. 01 56 89 89 30 | LA NOUVELLE PLATEFORME D’ECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I
[email protected] Copyright IDC 2018 Mission, role and activities
Benefits of becoming a member
14 rue Magellan - Paris 8ème Tel. 01 56 89 89 30 | LA NOUVELLE PLATEFORME D’ECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS DU CONSOMMATEUR ET DU COMMERCE I
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(14 Jun) - D (member (member exclusive) | ELIVER Develop senior a (2 (member (member exclusive) Feb ) (member (member exclusive) | Merchandising 4.0 | | Mobile shopping (Jan2019) (Mar2019) – friendly friendly approach | | Proximité | | Product (with (with ECR (5April) (on sale) (on sale) | (5 Copyright IDC 2018 Category Management 2018 2018 ceremony ceremony e on retailers strategy 2019 Nov) the new shopping missions Prospective : vitrine la l’IdC de 2018 - commerce commerce & omnichannel – - ( - subject to to modifications) subject Retail Retail Tour « Promotion efficiency | How to communicate on social responsibility Retail Retail you :all want to know on retailers strategy (14Nov) Drive (28 Mar)(28 - » (14Mar) Collaborative | (20 Sep) Journée Partage& Prospective The :showcase for IdC (27jun) (31May) | Retail | Retail Tour « | Promotion efficiency | CONFERENCES Convenience RETAIL RETAIL TOURS | e Merchandising TRAINING - commerce & omnichannel S HARE New New convenience (26Sep) (28Mar) (29Jan) (11Oct) | Promotion | | | Award | Award ceremony : SIRIUS Retail Retail :all you want to know Journée Partage& » Paris Paris » (26 Jun)(26 (17 Oct) (17 (21Sep) | | | Successful Convenience : | SIRIUS Award SIRIUS Award (23May) (8 | Copyright IDC 2018 SUPPLY TRANSALLIANCE ASSOCIES, RETAIL MERCHANDISING, COMMERCE, EXTERNIS, LOGISTICS, GROUP, ARTHUR A SOLINEST, UNION), (DELIFRANCE), MATERNE, LBD DOUWE GOUTERS LAUDER, CROUSTIFRANCE (SHISEIDO), ANDROS, SYSTEME Cash ( France, ADEO Bricomarché 3 DISTRIBUTION, MAISON, & CHAIN EXPLORER, CATALINA, Services, LOYD FM EGBERTS, PHILIPS Carry, U, CASINO, EURIAL, SITOUR, DIAGMA, SONY ARLA MAGIQUES, TOTAL LOGISTIC, Mc CANDIA, France LA LOGISTIQUE, , SERVICE, LINDT, BricoCash ACTEOS, ORANGE, NUMSIGHT, NATUREO, POSTE, Interactive LIGHTING, ROAMLER, SOFRILOG, CCI CORMICK L FOODS, FERRERO, AUCHAN DIAMART, BENELUX, MKG JOHNSON CASTORAMA, ES PARIS GENERIX, L'OREAL, TRANSPARENCY CHANEL LUCKY GUERLAIN/DIOR, AGENCE SERVICES, ATMOSPHERES, , IDF, PARABELLUM, AXIANE M ORANGINA Roady SAGUEZ SORAP, DIAM PUIG, NOCIBE, FINDUS, France, Entertainment, DANONE France, HAROPA, CHEP, & CART, MARIE EMBRES JOHNSON INTERNATIONAL, CROSS, SAS, ), RAYNAL SPI, VENTE PARTNERS, COOP MEUNERIE, CLIC LAGARDERE FJP, ONE, BRICO PHARMACTIV MARKETING B&BMARKET, STEF, BRIZARD PECLERS CLARINS, HIGHCO, MERISANT, EAUX, 2 AGOV SCHWEPPES, BUY, FLEURY PRIVEE TRANSPOREON, HANES, ET STORETAIL Santé ATLANTIQUE, TEISSEIRE, CONTAINER SEGMENTS, Belgium, ROQUELAURE, 82 MANUFACTURERS (LaComDigitale), DANONE PARIS, DISTRICOM, BACARDI, IER WINE MICHON, TRAVEL SCAN, COCA BEBETTER&CO, Beauté, BOLLORE, PAR 98 98 PROVIDERS HARIBO, M 31 31 RETAILERS / MKG PICXYZ, PANZANI, & TEREOS, OCP, INDUSTRIE CENTRALEN, BRICODEPOT, SES TVS MEDIA SPIRITS, RETAIL, PF, DISTRIPLUS, COLA CORA, SERVICES, BEIERSDORF, LABORATOIRES FRANCAISE IMAGOTAG, PILOTES ETUDES, IMPACT HEINEKEN RIANS, PICARD, D'AUCY, C AGRO TRIBALLATNOYAL, BEMYEYE, PERFORMANCES, MARS MARIONNAUD PARMENTINE, European OLLÈGE CULTURA, COSPIRIT, PLV, STORIES France, UNIBAIL (IFMG), DS RICARD, DEVELOPPEMENT, SMITH SC BUT DAUNAT, POOLING CHOCOLAT, DES SHIPPEO, ENTREPRISE, BONIAL, BIC, GALEC, IMPP, RODAMCO, DESIGN, M&L CPM INTERNATIONAL, PACKAGING, JEUX, Partners, MOET SAINT FCJPE, BLEDINA, France, BRAND INTERLOG PEPSICO, (L'Occitane), MOBEYE, PARTNERS, PARFUMERIE, SHOPPER UNIBAL, ECKES FROMAGERIES STRADA SCHIEVER, HUBERT, AKDV HENNESSY MARS HENKEL ) 8 1 0 2 t û o a ( VIRAGE FRANCAP, LOYALTY, CRITEO, COLGATE DUNNHUMBY, BOLTON SERVICES, GRANINI, INTELLIGENCE, MUTUALLOGISTICS, - UNILEVER REED MARKETING, LONSDALE, PERNOD PETCARE SAVENCIA CONSEIL, CARNET France, DATA LACTALIS, MBLOG SCHMIDT MIDEM BUDGETBOX, DIAGEO, SOLITAIRE, BEL, ITM IRI, PALMOLIVE, IMPACT, France, EMNOS, EDGEWELL, S ALKEMICS, JPG . SYMPHONY FOOD, VOXMINING, MAPIC, A GALLIANCE Alimentaire, (Mr SHOPPERMIND, INTERSNACK, DE . BONGRAIN, , LA GROUPE, CONSEIL, PETIT DATA Bricolage), VOL, CACOM, NEFAB, ESGCV NESTLE, FOURNEE WERNER&MERTZ RETAIL BONDUELLE, MARTINIQUAISE, ARMADA, NAVIRE SOLUTIONS, CRISTAL RETAIL ESSITY, CARREFOUR WEVIOO, - KANTAR, ESGM, NIELSEN, ELABORES, AND SEPHORA, CAMELEON ITM SODEBO, NUTRIXO SIMON JACOBS DOREE, AI, METRO DETAIL, ARMIS, ESSEC, ESTEE (THAI LEMI CO, TCC, KLEE XPO DDS BPI NP et Copyright IDC 2018 ComitéGTet Supply Supply Chain Directeur Général Xavier Xavier HUA Tel. 01 56 89 89 30 Suivi CHD,des marchés, économie circulaire économie circulaire CHALVIGNAC Directricedes GT Zéro rupture,ZéroGT ComitéRetail Opérations Emilie Emilie INSTITUTDUCOMMERCE.ORG 14 rue Magellan 14 Magellan rue T HE [email protected] T EAM - Paris Paris 8 GTE Coordinatrice ème GT PromotionGT GT ProximitéGT Françoise Formation Projets - ACCA commerce commerce Baromètre de la Baromètre la de Consommation Responsable GUINGOIS EtudesIdC Cycleapp Etudes Sylvie Sylvie Copyright IDC 2018 • • • Regulation Shopper Market • • • • • • • • • • seasonnal New for roadmap French Demographic of theFragmentation quality « & transportMassive impact on & commerce Voice New outof home of the Transformation Organic Naturality • • / retail thebest? Increase Drastic law generation of food to your or development » ( limit of of the consumption perishable What food tsunami food E C N A R F N I S D N E R T L I A T E R G I B promotion on FMCG (34% in value, (34% in value, in 25% volume) FMCG on promotion of organic impact for the brands? & non & deposit truckdriver products circular retail shopper is of of products coming product food organic landscape system economy …) ), journey shortage referencing transparency with specialist offer thesenior in in > hybridation, conventional complexity stores, ( https://yuka.io/ distriration store : to follaw which the , online, snacking, , : merchandising evaluate market except data the for is Copyright IDC 2018 • • commerce, images centralisation for merchandising,information New IoT service…) • • to ECR Proposition ECR Proposition : maintenance, Usage: needs • • track Innovative vision? international geofencing transport/ for product , not temperature complex handlings , geolocalisation Information produit and quick and quick follow (palets etc…) up, win , securised invoice ECR S C I P O T Community ( transparency by use transfer projet for 2019? projet of responsibility , material traceability passport , anticipate for for the circular food , e - ECR Czech & Slovak National Update Presented by Tomas Core activities 2018
• Project OSA Barometer / sponsored by WG Benchmarking & OSA. • Digital Receipt - Feasibility Study / sponsored by WG Digital Retail Transformation (with E&Y) • Collaborative Data Market Place – concept / sponsored by WG Digital Retail Transformation (with E&Y) • Food waste – economic analysis of redistribution model / with University of Economy • Lean & Green / Unilever – L&G Award on LOG-IN Conference in October Planning main topics 2019
• Project OSA Barometer – solution for OSA / technical workshop, pilot projects,.. • Digital Receipt -> Shopper journey / Digital footprint of retailer / Digital visibility. • Collaborative Data Market Place –> Collaborative Processes efficiency review (Listing/Delisting, Forecasting & Planning) • Food waste –> Product & Packaging waste / Deposit scheme (PET, cans), Plastics footprint of retailers,… • Lean & Green – on spot / retailer support • Promotion Effectiveness / ECR Platform • Retail shrink & loss interest group CZ-SK ECR / Working groups
• EDI • OSA & Benchmarking • 4 KPI (Service level, On-time delivery, Invoice Accuracy, Forecast Accuracy) • OSA Barometer – launched / 1st wave in June, final report – October/November, gap scan. • Shared merchandizing (on-hold) • ECR Digital & Omni-channel Retail • Digital transformation in retail and effective models of collaboration • Digital Customer Collaborative market place platform
• Benefiting areas / processes: • Sales / demand forecast • Promo planning • NPI planning • Out of stock • Expiration & Waste • Stock optimization
WIN-WIN SCENARIOS TO BE PREPARED AND PILOTED! Digital Receipt CZ-SK ECR / Projects & Programs
• Food waste • Analysis of FW in Supply Chain (University of Economy Prague): • Collecting data from retailers (surplus food / given food / animal feeding / waste • Economic model of re-distribution (costs analysis – retailers + food banks) • Lean & Green / CO2 – GHG emissions reductions • Pilots: Unilever, CHEP, 1 retailer / autumn? • Audit + support: 4 CZ Universities. • Support from Retail Chamber – sustainability • Collaborative Promo Management • Workshop AHOLD: Data sharing principles, NPI & Delisting, Forecast Accuracy Improvement, Implants – added value, Food waste / Tesco example
Recalculation: • Beer, wine, spirits – 2% of 38 054 tons of waste = 761,08 tons • It represent recalculated in 0,5 liter beer = 1,5 mil of beers!!!!!! Annually. Not consumed, but wasted! Lean & Green Europe
www.lean-green.eu www.lean-green.cz Collaborative Promo Management
• Project key focus areas 2018: • Data sharing principles & scorecard & datapack • Effectiveness of Product Listing & De-listing processes (Effective new product introduction) • Effective role of Implant / added value • Main activities 2018: • Pilot testing preparation & testing (Nestlé, Unilever) • Next phase: • Roll out 1 / suppliers with implant • Roll-out 2 / other group of suppliers ECR Ireland National Update
Presented by Declan NEW FOR 2018 RETAILER HOSTED STORE TOUR DAYS
Retailer members of ECR Ireland will host guided tours and Each retailer will decide the areas of focus – possible focus insight presentations to showcase effective collaboration in areas include; action and new ways of retailing. Effective collaboration in action In-store activation Category Management The objective is to encourage collaboration and better understanding between retailers and their manufacturers and Shopper Marketing service providers. We encourage two-way discussion New ways of retailing throughout the store visits so that retailers & their trading partners debate and challenge each other as to what is Retailer insight / consumer insight working well or could work better. Promotions Product availability Hot Topics Each ECR Store Tour Day should feature; 1. Retailer Introduction 2. Guided store tours in 2-4 outlets 3. Focus on specific areas of retailing, hot topics & collaboration ECR is the flagship for collaboration 4. Conclusion via an interactive debriefing session.
111 ECR IRELAND SUPERVALU STORE TOUR DAY CENTRA September 2018 1ST ECR STORE TOUR DAY - SUPERVALU & CENTRA - TUE 11 SEPTEMBER
Summary Feedback This Store Tour was a first for ECR Ireland & The feedback from suppliers was enthusiastic and Musgraves. they genuinely appreciated the time & respect given to their questions & ideas during the day. ECR is the “Flagship for collaboration” and the tour illustrated Musgrave’s commitment to collaborating Focus Areas with suppliers & service providers. The major focus areas of the Musgraves ECR Store Key to the success of the tour was the Musgrave’s Tour Day were; insight, the open nature of discussion and the Store layout by format debriefing session which allowed for in depth discussion and exchange of ideas. Shopper Missions Identifying categories that will grow or decline significantly over the next 3 years
113 1ST ECR STORE TOUR DAY SUPERVALU & CENTRA TUE 11 SEPTEMBER
Stores A walking tour of central Dublin focussing on SuperValu & Centra stores • Centra Parnell St • SuperValu Talbot St • SuperValu Aston Quay • Centra Dame St • Debrief Session
Host Paul Corcoran, Range & Space Planning Manager, Musgrave Retail Partners Ireland
114 KEY FEEDBACK
“Hugely beneficial, lots of learnings and some great “This was one of the most insights from a very open, productive sessions I have spent honest and engaging SuperValu in the trade in term of team. One of the best events we understanding the retailer and have attended and one that will also networking with other help us add a lot of value to our FMCG colleagues” growing business with SV"
“I have circulated all my notes “I felt it was very beneficial to internally so as to ‘push’ understand Musgraves thinking forward what Musgraves are and to see how my company can looking for when considering play a part in that vision going NPD, range changes and forward.” promotional submissions.”
“Many thanks to Paul for his time and for being very transparent, “Very inspiring and informative sharing the thinking behind day, it was nice to take a step Musgrave’s strategy and back and think about the whole mentioning a few quite practical store layout.” things, like explaining the Musgrave product flow.” 115 WHAT DID YOU TAKE OUT OF THE DAY?
“The use of natural materials and the “A better understanding of some of the ‘wood’ effect gave a ‘market feel’ to reasons behind the store layout and the store, not that I haven’t noticed these design particularly the Centra format in the past but you often zoom in and and its total focus around ‘food to go’, out of stores without taking the time to ‘convenience’ and ‘freshness’” actually look at what’s in store and how well it all comes together”
“I got a great understanding of the “How open Paul and Musgraves are for convenience shop from the square Supplier input once it is insight based footage, layout of areas and shopper and scalable” missions.”
“with the re-vamps currently underway and in the near future – we have an “To know which areas are in growth and opportunity as a business to collaborate decline and how this is affecting the and support MRPI in bringing overall layout was very interesting.” products/ranges to support these shopper missions!” 116 “I need to spend more time in the field in all the retailer formats, it’s amazing how much you see when you take the time to visit different store formats”. “We will be pulling together an insights deck on how we believe ambient Grocery can be grown”. “Yes! Now that I know what the ‘push’ 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 on”. “Considering the demographic of the stores is also one to consider”. “The Shopper Missions are key – 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 HAS THE DAY PROMPTED YOU TO categories further”. “I intend to go out in store more during my normal working week (not just when doing my DO ANYTHING DIFFERENTLY? own personal grocery shop at the weekend!)”.
117 DO YOU UNDERSTAND MORE ABOUT MUSGRAVE’S CATEGORY MANAGEMENT?
“In all areas of the store there is evidence of thinking in the ‘shoppers’ eyes”. “The use of key words like ‘Chilled’ ‘Convenience’ ‘Fresh Quality’ all re- enforce or prompt the shopper to interact with the category”. “The 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 consumer”.
118 “It’s 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 – understanding this we can present scaled & sized solutions rather than fact based decks”.
“We now understand that there is a 26wk category reset process and as a supplier we need to work with Paul’s team in the first 4 weeks”.
“It was very clear that new and exciting ideas are key to driving categories further and so as a supplier we need to step up!”.
Yes! Understanding more about… Shopper Missions, Store Demographics, Layouts and Configurations, Ambient Grocery DO YOU UNDERSTAND MORE ABOUT space, OFD’s, Promotions and Store Manager discretion. MUSGRAVES CATEGORY MANAGEMENT? Musgraves are striving to improve implementation across range & promotional implementation and this was evident on (CONT’D) the shop floor
119 SUGGESTIONS “I WOULD LOVE TO “I WOULD REALLY “BUS TOUR TO OTHER HAVE TRADE TOURS ENJOY SEEING AND SITES AROUND THE TO THE “NEW ERA” ‘STUDYING’ A LARGER COUNTRY; LARGER FOR FUTURE STORES LIKE STORE FORMAT. I GOT STORE VISITS AND CASTLETROY/MIDDLET SO MUCH OUT OF GETTING OUT OF ON. I THINK MOST THE CONVENIENCE DUBLIN, PARTICULARLY STORE TOURS? SUPPLIERS WOULD DAY, THAT I WOULD TO STAKE-IN-THE- TRAVEL TO SEE LIKE TO BUILD UP MY GROUND OR CUTTING EDGE KNOWLEDGE BASE FLAGSHIP STORES FOR EXECUTIONS AND FURTHER WITH A A PARTICULAR UNDERSTAND THE LARGER FORMAT”. RETAILER”. THOUGHT PROCESS THAT HAS LED TO THE STORE LAYOUT”.
120 2014 – 2018 Providing job seeking FEEDING IRELAND’S FUTURE skills for 5,000+ young people FIF 2018 – LIST OF PARTICIPATING COMPANIES Young unemployed FEEDING IRELAND’S FUTURE people & early school leavers 1. What is your company’s 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? DISCUSSION 6. Will Brexit present any opportunities? Brexit Timelines Withdrawal Agreement (Comprising Transitional Arrangement)
ECR Ireland 23rd August 2018 PwC 125 Business Awareness – Key Impact Areas
1 2 3 4 5 6
Tariffs Customs Route to Supply Chain People Regulatory Compliance Market Divergence
This will drive UK market access will Supply chain lead times will Mobility restrictions need Issue of regulatory Tariffs will apply to both become longer and more EU imports and exports incremental cost for become more difficult as to be reviewed. divergence / organisations as they seek EU imports become more expensive with the need to regulatory drift will with the UK. These tariffs allow for Restrictions will create will vary by product and to comply with the expensive versus UK barriers to obtaining the create ongoing lead to cost increases. additional customs competitors. increased inventory within right people with the right complications for EU- requirements both on the supply networks. skillset UK trade EU and UK sides.
ECR Ireland 23rd August 2018 PwC 126 Possible Brexit scenarios and their implications
‘Hard’ Brexit ‘Soft’ Brexit No bilateral trade Transition deal agreed, Free Trade Agreement agreement between EU broadly business as between EU and UK & UK usual during this time** (FTA) (WTO terms) Goods Tariffs ✓ X X* Customs borders & admin compliance ✓ X ✓ Risks of customs borders delays and ✓ X ✓ backlogs Import VAT (payable immediately on entry ✓ X ✓ to UK)
*Dependent on final outcome – tariffs may not be eliminated on all products ** E.g., falling away of EU FTAs
ECR Ireland 23rd August 2018 PwC 127 Supply Chain implications of a Hard Brexit
EU Tariffs and Customs Compliance
No Tariffs or Customs Compliance
WTO and EU Tariffs/Customs Compliance however can be mitigated
WTO Tariffs
WTO and EU Tariffs/Customs Compliance however can be mitigated
WTO and EU Tariffs/Customs Compliance however can be mitigated
WTO and EU Tariffs/Customs Compliance however can be mitigated
ECR Ireland 23rd August 2018 PwC 128 Cost Inflation Impact
Brexit adds additional cost throughout all stages of the value chain. Additional costs driven by imported raw materials and finished goods
Three additional costs: 1. Custom duties working capital implications 2. Custom administration charges COGS 3. Tariffs on finished goods INCREASE The Challenge
Increased logistics costs driven The increase driven by the factors below: by longer lead times and need Logistics for additional stock holding • Tariffs will apply to both EU imports and exports with the UK applicable to both raw materials and finished products Margin • Non-tariff barriers such as customs compliance will come into effect adding further Value cost and complexities Landed Cost Adding • Supply chain lead times will become longer Cost driving logistics costs • Price increases will need to be absorbed within the business or passed on to the customer • Greatest impact will be on multinational suppliers due to higher tariffs on finished Tariffs on raw materials will Prime goods. apply and drive cost increases Cost • Indigenous suppliers will be impacted to a lesser extent, as tariffs are applied on ingredients only.
Pre-Brexit Post-Brexit
ECR Ireland 23rd August 2018 PwC 129 Day 1 Readiness – Illustrative List
Contractual Appointment of Assess non-tariff EORI Registration Deferred Payment Review Customs Broker barriers
Issue Broker with Assign tariff Determine rates Value imports/ Assign origin Import/Export classification of duty exports codes Instructions
Availability of Customs Assess availability Import VAT Consideration of procedures (e.g. of duty reliefs mitigation FTA benefits IPR/transit) measures Engagement with Not within immediate control: Use of Customs customs broker Benefits of AEO Simplifications to agree “rate 1. Electronic single window card” 2. Port & other infrastructure 3. Regulatory & quality divergence 4. EU or gvt support (possibly “state Ensuring resources in place to Ensure appropriate IT aid”) support business (strategically & 5. Replica of Dutch Article 23 Licence controls in place operationally) (VAT) 6. Irish Revenue/HMRC approach to simplifications 7. Creation of conformity warehousing/transit procedures ECR Ireland 23rd August 2018 PwC 130 Day 1 Readiness - Functional Necessities
Understand who will be Appointment of importer/exporter Customs Broker
Functional Requirements
Ensuring resources in Issue Broker with place to support Import/Export business Instructions
ECR Ireland 23rd August 2018 PwC 131 Day 1 Readiness – Operational Requirements
Critical Importance Recommended to avoid significant costs
• Determine rates of duty and • Availability of Import VAT Must have communicate to relevant mitigation measures • EORI Registration stakeholders. • Potential benefits of AEO • Contractual review • Assign tariff classification codes • Use of Customs • Use of duty reliefs Simplifications • Assign origin • Customs procedures (e.g. • Engagement with customs • Value imports/exports OPR/IPR/transit) broker to agree “rate card” • Prepare for non-tariff barriers • Customs warehouse & Border delays (e.g. vet checks) • Deferred payment account Other Priority Actions
ECR Ireland 23rd August 2018 PwC 132 Authorised Economic Operator Brexit Mitigation Strategy
AEO – What is it? AEO & Brexit AEO status is an internationally recognised ‘trusted trader’ status AEO will become increasingly important indicating that your role in the international post-Brexit for businesses that trade with the supply chain is secure, and that your UK • Mitigates risks of border delays customs controls and procedures are • Ease of movement through ports efficient and compliant. and airports • Quicker customs clearance and Why Not mandatory, but it gives quicker less stringent checks. access to certain simplified customs “the UK’s proposal for a so-called Important? procedures. trusted-trader programme [as a] There are three types: realistic way to keep trade AEO is a • AEO-C (Customs simplifications) flowing across the border” - RTE • AEO-S (Safety & Security) mitigation – 26 September 2017 • AEO-F (A combination of C&S) strategy which Authorised helps to reduce Economic lead times at the Operator port, reduce (AEO) border delays AEO – Benefits How to get AEO and reduce the • Greater access to priority Before applying: clearance • Complete self-assessment scrutiny on • Reduced administration questionnaire. goods obligations • Evaluate internal procedures, • Traceability of flows of goods ensuring that they meet the • Increased transport security criteria for AEO. • Fewer delays in dispatch • Improved security between Once completed: supply chain partners • Complete & submit • Quicker access to certain customs application for AEO certificate. procedures. (In Ireland, submitted to • Mutual Recognition – ease of Simplifications and movement through 3rd country ports. Compliance Unit in Revenue).
ECR Ireland 23rd August 2018 PwC 133 Customs & Trade Compliance and Management
It is important to consider the requirement for a dedicated operational & 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 regulatory/legal 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 agents/brokers; 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.
ECR Ireland 23rd August 2018 PwC 134 BREXIT OPINIONS …
Brexit will almost certainly result in a combination of custom duties household expenditure. and tariffs on goods entering & leaving UK post Brexit. Cash flow concerns are an issue for manufacturers. Risks of border delays & backlogs are likely. Delays will add to transportation cost and challenge drivers shift hours. The necessity of stockpiling may challenge the cost benefit of cross- docking. Food stockpiling is likely to occur in Ireland in advance of Brexit creating a demand on warehouse space, shipping and tying up The range of ambient products sold by the Discounters is working capital. predominantly EU manufactured and will be unaffected by tariffs & duties and Brexit induced inflation. Albeit category dependent, this Stockpiling by consumers is possible. Media sensationalism (eg may accrue an advantage. Amazon comments this week) could create a shopping frenzy. The Frozen Food, Pet Food and Bread categories all experienced Stress testing of the Irish supply chain for systematic risk is advised. increased sales during Storm Emma, an event whose impact on sales is only marginal in comparison to the Brexit effect. Many companies are investigating their Raw Materials suppliers to avoid transit through UK. Both delays and consumer stockpiling will create an amplification or bullwhip effect along the supply chain increasing out of stocks at the Border checks on movement of goods to/from NI remains likely. beginning of Brexit. There was disagreement amongst the group as to whether an New customs roles & duties will be required by most companies agreement will be reached on EU/UK Brexit negotiations by affected. October 19th (EU Summit), January 2019 (date for withdrawal treaty ratification), midnight on 29 March 2019 (withdrawal date) Most manufacturers are investigating their sourcing strategies at or not at all. 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 Quarterly ECR Pharma Workgroups For all trading partners along Pharmacy value chain. 1. Small, medium & large Pharmacy groups 2. Independent owners 3. Suppliers / distributors / manufacturers 4. Pharmacy service providers Purpose NEW FOR 2018! 1. Neutral platform to work together to advance the industry 2. Predict future changes in pharmacy consumer & shopper behaviour ECR PHARMA 3. Irish Pharmacy Shopper Insights. 4. Understand successful category management & shopper marketing in the Pharmacy sector. 5. Establish Best Practices for operations & collaboration 6. Examine data accuracy & 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 & digital developments SHOPPER SYMPOSIUM SERIES BY V360° & ECR IRELAND The ECR Ireland Shopper Engagement Conference is the major annual event highlighting the path to purchase & in-store activation for the FMCG retail & consumer packaged goods sector. Theme Format Awards – Entries Sep 21
ECR SHOPPER ENGAGEMENT CONFERENCE & AWARDS 08 NOV 2018
138 ECR UK
New ECR Community Projects & Proposals Workshop 12.30 – 13.30
ECR Community Brief Summary of ECR Projects 2019 ECR Community Shrink & OSA Group
ECR Community Update Presented by Eileen
167 Loss Prevention Challenge
• Retail Loss loses 230 Billion per annum to theft, damage and error • It is hard to measure, it’s hard to understand the true root causes, and it’s hard to design and execute an organisation wide approach that leads to prevention • We need new thinking, new ideas and new initiatives • The idea to Head Hunt start up businesses came about to challenge existing thinking. • The simple approach included - 5 retailers, 5 briefs, 200 start up’s • 20 Start ups went Speed Dating • 5 Finalists entered a Pitch Battle • Resulted in 19 Pilots that are committed to over the next 15 months • Aim is to see a step change for the Retailers • https://www.youtube.com/watch?v=HIrF3n4gd5U 2018 Work Plan Recap
• Publish Research Findings on RFID, Inventory Accuracy, Collaboration Model, Returns and Self Scan Research On Track except IRA • Webinars, Workshops, Press Releases • Execute 2018 Loss Prevention Innovation Challenge (Sharks Tank) Delivered
• Identify and align new research projects On Track • Engage more retailer and manufacturer participants • CEO Letter On Track • Bring a Friend • Organize and deliver working group meetings • Full Working Team – Feb 7th & 8th, June 20th & 21st and October 24th & 25th Delivered / On Track to be th rd th • Sell More, Waste Less – Jun 7 (Hamburg) and October 23 & 24 (Lisbon)Delivered • UK News & Magazines – March 22nd (London) and October 31st
169 New Research Studies
Feb / March November 2019 2018
170 We must disseminate better! Quote: Declan
Latest Thinking / Model • 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) • Plan a global webcast, with press releases, etc, to launch. • Deliver a webinar on study (more detail) • Deliver a round table workshop (face to face) • Seek to find case studies in success at follow up. For example, the Albert in Czech FCC case study
171 Work in Progress – What does it take?
172 15 New Research Ideas
• Understanding the Organisational Framework of Retail Loss • Locating Losses Throughout the Retail Supply Chain Prevention • Getting to Grips with Violence in Retailing • Building on the Self-scan Study • Information Sharing Best Practices to Manage Retail Loss • Building on the Inventory Accuracy Research • Reviewing the Loss and Management of Retail Assets • Building on the Online Returns Research • Assessing the Value and Impact of Store Exit/Entry Strategies • Utilising Central/Remote Monitoring Hubs • Predictive Modelling • Store Use of Video Technologies • Measuring the Impact of E-commerce Losses • Defining and Understanding ORC in Europe • Understanding the Impact of Trolley Pushouts on Retail Losses
Objective will be to commission for 2019, the three most popular ideas 173 2019 Plans
• Disseminate Returns and IRA research • Commission new research (members to vote for the 3-5 most relevant ideas from list of 15+ possible projects) • Launch the 2019 Waste Prevention Challenge • Deliver 5-6 working group meetings • Increase participation with retailers, especially in Germany
174 • 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. • • We were delighted to have ECR China present the work that their organization is involved in. ECR China
• 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.
• Structure
176 ECR China
• Co-chair organizations
Board Members
177 ECR China • Activities ➢ Annual conference：Host: 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 & elect: ✓ Objective: strength cooperation, commend excellent cases. ✓ Two directions: Supply chain & consumer requirements (platinum & gold) Others： ✓ International/national standard ✓ Training 178 ✓ Marketing research ECR China
Working Committees ➢ Supply chain optimization WC: ✓ Co-leaders: Bill Zhang( P&G), Wu An(CRV), Tang Haibin (SPAR) ✓ Content: OSA, logistics infrastructure standard ( pallet, size of track, packaging), CPFR. ➢ Information & solution WC ✓ Co-leaders: Guo Weihua (GS1 China) ✓ Content: GDSN, EDI standard. ➢ Customer requirement & innovation WC ✓ Co-leaders: Ella Feng (P&G), 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.
179 Working Committees
➢ Policy & 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 (P&G)
✓ Content: Solution service for SMEs. E.g. Supply Chain financial.
180 2018 Visiting: Yong Hui Xi Yong Logistics Park
Participants：120+ 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 Conference 2017 ECR Excellent Case Platinum Award 2018 ECR China Conference
2017 ECR Excellent Case Gold Award 2018 ECR China Conference 2018 ECR China Conference
Best Booth 2018 ECR China Conference
Supply Chain sub-forum 2018 ECR China Conference
Customer Requirements & Innovation sub-forum 2018 ECR China Conference
E-commerce sub-forum 2018 ECR China Conference 2018 ECR China Conference Projects in the past
1. Category management 2. CPFR guideline 3. Pallet guideline 4. Package guideline 5. OSA guideline
197 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
198 Thank You!