ECR Baltic General Meeting 10Th of June 2013 at 12:00

ECR Baltic General Meeting 10th of June 2013 at 12:00

TALLINK HOTEL RIGA ELIZABETES 24 Anti-trust caution and Competition Law Compliance

ECR Baltic will not enter into any discussion, activity or conduct that may infringe, on its part or on the part of its members and participants, any applicable competition laws. By way of example, members and participants shall not discuss, communicate or exchange any commercially sensitive information, including non-public information relating to prices, marketing and advertisement strategy, costs and revenues, trading terms and conditions and conditions with third parties, including purchasing strategy, terms of supply, trade programs or distribution strategy. This applies not only to discussion in formal meetings but also to informal discussions before, during or after meetings.

Message to new members, participants and/or people taking part for the first time: Please note that taking part in ECR Europe’s and ECR Baltic activities is subject to having read and understood ECR Europe’s EC Competition Law Compliance Program. If you have not done so, please do so now. http://www.ecr-baltic.org/f/docs/clcp.pdf

AGENDA (1) :

11:30 – 12:00 Welcome coffee and registration ======12:00 – 12:15 Welcome message ECR Baltic 12:15 – 12:45 Supply Chain block started with guest speaker: Jaroslaw Bogusz, Global Account Manager, Nielsen Italy

 OSA (On Shelf Availability) solution. How to minimize Out of Stocks and increase sales? o Out of Stocks – unresolved issue? o Shoppers reactions on Out of Stocks. Loss of potential sales. o How to measure OSA, improve products availability and sales? o OSA case studies & illustrations 12:45 – 13:00 Introduction to voluntary fair trading initiative in food chain 13:00 – 13:30 ECR Baltic SC working streams (Pallets and RTIs) ======13:30 – 14:00 Coffee/Lunch break

AGENDA (2) :

13:30 – 14:00 Coffee/Lunch break ======14:00 – 14:30 Business Information and Technology (EDI, master data management); Master Data Management Edisoft solution (15 mins) Master Data Management (Baltic data pool pilot with 1WorldSync 15 mins) by Zane Siliņa, RIMI Baltic

14:30 – 15:00 Demand side and people development 15:00 – 15:30 ECR Baltic annual report 2012 (Annual report: GP2012_ECR_English_Latvian.pdf , Audit_report_2012_english.pdf ) and ECR Baltic Board election

15:30 – 16:00 Discussion and Closure

Efficient Consumer Response fundamental believe is that manufacturers and retailers can work together for the benefit of consumer! www.ecr-europe.org ECR Baltic members:

The space reserved for you to shape our Industry future Together! What ECR is all about? Supply Chain block started with guest speaker: Jaroslaw Bogusz, Global Account Manager, Nielsen Italy

OSA (On Shelf Availability) solution. How to minimize Out of Stocks and increase sales? Out of Stocks – unresolved issue? Shoppers reactions on Out of Stocks. Loss of potential sales. How to measure OSA, improve products availability and sales? OSA case studies & illustrations Good practice in B2B relationships

• The European Institutions and several Member States raised the existence of problems associated with the food supply chain and agreed that solutions to these problems should be found • The outcomes of the multi-stakeholder dialogue are in the form of a set of principles of good practice and a list of examples of unfair and fair practices in vertical trading relationships. • Framework for the implementation and enforcement of the principles of good practice in vertical relations in the food supply chain.

www.kaupmeesteliit.eeSource: www.kaupmeesteliit.ee Objectives of the framework

• Integrate the principles in daily business practice • Ensure compliance • Report on compliance

Industry Retail Wholesale

SMEs & Big companies

Source: www.kaupmeesteliit.ee Food supply chain & multistakeholder dialogue

• What are we trying to achieve? – Fight unnecessary EU regulation, if not help shape regulation

• Key aspects of the initiative: – Voluntary but based on commitments – Company web-based registration – Quick, efficient and cheap dispute resolution options – Encouragement to set up national dialogues – System is governed by EU level dialogue

Source: www.kaupmeesteliit.ee ECR Europe and ECR Baltic role in dissemination of fair trade code

• Dissemination, 1 of the KPI in 10 for 20 (Nr. of ECR members signed the code), localized trainings and workshops for SMEs. Eurocommerce (retail) and AIM (manufacturers) founders of ECR Europe.

• ECR Baltic multi stakeholder platform for issues with unfair practice for traditional associations. Benefits:

• Self regulation v unnecessary laws; • Competitive advantage to joined retailers (major retailers in Finland and Portugal signed already); • Protect SMEs • Multinationals join on European level (Nestle, GSK) • More info: http://www.ecr-baltic.org/en/working- groups/european-fair-trading-practice-initiative/

Thank you!

Edgars Pentjuss +371 26546645 [email protected] ECR Baltic SC working streams (Pallets and RTIs) 10th of June 2013 at 12:00

TALLINK HOTEL RIGA ELIZABETES 24 Even abbreviation of ECR remain right on the target through the times

• Before 2007/2008 the original meaning for Efficient Consumer Response

• Through 2007-2012 Efficient Crisis Response

• 2013 + the Chinese colleagues offered meaning for reading ECR backwards: Responsible Consumer Enjoyment

How does ECR work on supply side? Cutting Costs!

Whole Supply Chain Cost

Manufacturers part Retailers part

Manufacturers part Retailers part ECR win

Working collaboratively to remove unnecessary costs! ECR Baltic working streams 2012 - 2013

• SC KPIs, Scorecard group + service, reports (Global Scorecard / National KPIs / Interviews). • Call back Supply Chain Steering Committee and CatMan (demand side) committee, half year meetings. • Other topics with Europe NI

Supply Side Emerging Trends Speed Docking Connected Business Information Shared Logistics Demand Forecasting Shrinkage Roadshow Working together Responsibly Logistics Efficiency Sustainable Business Models Research People Development Demand Side Design an ECR Training Course that Develop a Shopper can be run by each NI Marketing Best Practice Develop an accredited ECR training CatMan Benchmark course Survey Welcome to globalscorecard.net EUR Pallets management Tallinn, 2013.05.22 ECR Baltic EUR Pallests assessment working group

Manufacturers/Suppliers/Distributors: Retailers: Jurgita Grebliauskiene, Coca-Cola Hellenic Baltic Saulius Reipšleger, Palink Jevgeni Rudkovski, Coca-Cola Hellenic Baltic Marek Aigro, Prisma Egidijus Skarelis, Coca-Cola HBC Lietuva Katrin Sormunen, Prisma Kaspars Davids, Aldaris Edgaras Gedeikis, Rimi Baltic Vaiva Najute, Svyturys-Utenos alus Eduardas Vareikis, Rimi Lietuva Kristo Sussen, Saku Brewery Ltd Vaida Salniene, Maxima Group Paulis Dalbergs, Royal Unibrew Vytautas Ilgevičius, Maxima Group Māris Rodins, Fazer maiznīcas Nerijus Balandis, Kraft Foods Lietuva Evaldas Ciukas, Kraft Foods Lietuva Sergejus Radionovas, Eugesta UAB Andrius Jurgelevičius, Baltic Logistic Solutions Others (Industry Associations & Solution Providers): Edgars Pentjuss, ECR Baltic Marta Górska, CHEP Polska Sp. z o.o. Tatyana Sargsyan, Ramundas Janas Likšo, EPAL National Committee in Baltic States Margus Ärm, Bepco Rita Rozentāle, Schoeller Arca Systems Igoris Kononovas, MPS Lithuania Deliverables:

• Common Baltic EUR pallets assessment cards v1.0 • Latvian temporary version with industry association LPUF and LPTA v2.1 • The best solution is a choice: EUR (UIC), EPAL, CHEP, One way pallets

Next challanges:

• Dissemination of EUR Pallet assesment cards in all Baltics as common tool to assess EUR pallets for exchange (exchange criteria) • EPAL and UIC (EUR) split. Two pallet systems? Are they exchangable 1:1 and of the same quality? Changes in Pallet assessment cards

Pallet is a valuable asset, please treat it with proper care!

http://www.ecr-baltic.org/en/working- groups/pallets-quality-assessment- working-group/

RETURNABLE – REUSABLE TRANSPORT ITEMS (Dairy crates standardisation and pooling initiative). Tallinn, 2013.05.22 INITIAL VISION RTI UNIFICATION

RTI recommendations (standard) Dairy crates Other AGENDA (2) :

15:30 – 16:00 Discussion and Closure

EDI (Electronic Data Interchange), Quality Master Data Management and Data Synchronization What is EDI?

By definition: ‘Transfer of structured data, by agreed message standards, from one computer application to another, by electronic means, with a minimum of human intervention’ Classic EDI and XML Key learnings from previous EDI meetings

• Start using EDI like email or Internet – it’s here! • Quick win if well implemented • Governments (Public sector) in general is very similar to big retailer (GS1 Denmark case: all invoices addressed to the public sector should be only in EDI) • For retail and suppliers EDI is core enabler for efficient replenishment • Use ID standards (GTIN, GLN) for EDI routing and replacing product/party details on every message

Learn more: http://www.ecr-baltic.org/en/publications/edi- seminar-presentations/

EDI benefits (Invoic sample) outbound

Inbound paper vs eInvoice ECR EDI working group challanges: Telema sample EDI business model for CP&R

1. Product (GTIN) and Party 2. Electronic Orders (GLN) Masterdata: PRICAT, EDI: ORDERS and PARTIN ORDRSP

6. Planning and 3. EDI: DESADV Forecasting (Despatch advise) + messages corresponding Logistic Label (SSCC). 5. Invoicing. EDI: INVOIC (copy to bank in case of factoring). Wire 4. Receiving confirmation from Advise. EDI: retailer RECADV Definitions: Master Data

• Parties master data uniquely identifued by GLN (Global Location Numbers) • Prices • Item Master Data (products) is a set of data, which describes the specifications and structures of each item involved in Supply Chain Processes. Each set of data can uniquely be identified by a Global Trade Item Number (GTIN) by GS1 definition In other words what we are talking today is product cards: retailer sample!

Article name Article name BASIC UNIT PARAMETRES Article name LATVIAN Article name ENGLISH ESTONIAN LITHUANIAN Basic unit Basic Measureme Name of EAN of gross unit net nts of basic basic unit basic unit weight weight unit (cm)

Wi CAPITAL LETTERS, MAX CAPITAL LETTERS, CAPITAL LETTERS, CAPITAL LETTERS, MAX pick from Len Hei kg kg dt 40 SYMBOLS MAX 40 SYMBOLS MAX 40 SYMBOLS 40 SYMBOLS dropdown ght ght h

Basic unit Name of basic unit Unit that is used as determinator of consumer unit. Piece or kilogram Kilogram Vendor YES EAN of basic unit EAN code that is indicated on basic unit. Up to 13 digits 4751008570335 Vendor YES Gross weight of basic unit in kilograms. This field applies Basic unit gross also to drink items etc. Products that have different Number 13 Vendor YES weight comparison unit than kilogram. Net weight of basic unit in kilograms. This field applies Basic unit net weight also to drink items etc. Products that have different Number 12 Vendor YES comparison unit than kilogram. Measurements of Length, width and height of basic unit in centimeters. Number 1 Vendor YES basic units (cm) What is data synchronisation? Every company has a database filled with master data about the products they make, or sell, or buy

But when one company needs to change any bit of information in their database or add a new item to it, another database may not be up to date anymore…!

42 Does it cost to have synchronized quality master data!

• Yes, but it will cost you more without it! • And it is not just data pool fee,... Incorrect master data generate additional costs

An AT Kearney study revealed the following industry costs in connection with incorrect item master data: • Correcting catalog errors costs $60-$80 per error. • 30% of item data in retail catalogs is incorrect. • Each item requires appr. 30 minutes of manual cleansing per year. • Every invoice error costs $40-$400 to reconcile. • 60% of all invoices have errors, and 43% of all invoices result in deductions. • The average product roll-out takes six weeks. • Percent of sales lost due to inaccurate data is 3.5%. • The net result is $40B lost in supply chain inefficiencies each year.

Source: Action Plan to Accelerate Trading Partner Electronic Collaboration. Research and case analysis by AT Kearney Data synchronization is the basis for collaboration.

7. Collaborative Insight & Product Benefits Development 6. Collaborative Sales & Promotion Planning 5. Collaborative Supply Chain Management 4. Collaborative Transaction Management

3. Item Data Synchronization Data 2. Single Item Registry Sync

1. Common Data Standards Time/Degree of Trust and Complexity Source: AT KEARNEY

Master Data Management Edisoft solution (15 mins) Master Data Management (Baltic data pool pilot with 1WorldSync 15 mins) by Zane Siliņa, RIMI Baltic AGENDA (2) :

15:30 – 16:00 Discussion and Closure

How does ECR work on demand side? Growing Demand!

Working collaboratively to focus on consumer/shopper needs

Manufacturers part ECR WIN Retailers part

Manufacturers part Retailers part

Current business value What ECR is all about? ECR Europe: since 1994, a consumer goods platform promoting a better way to meet consumer needs

Strong network Leadership Learning Conferences of 23 national in developing Unique learning & ECR Europe Conference associations Best Practices training programme (ICI) & Marketplace www.ecr-institute.org

• To help implement ECR • Over 30 European •International Commerce •The premier annual best practices “blue books” Review (ICR) and web portal event for our to keep abreast of leading- industry, since 1996 • To inspire new ways of edge thinking • 250 national best working together based practices •Progressive Management on practical local Programme (PMP) for experience tomorrow’s leaders STRATEGY & SOLUTIONS STANDARDS ECR processes jointly & defined by FMCG Retailers IMPLEMENTATION Consumer Goods and manufacturers at Forum ECR Baltic: Telema, Edisoft Itella, BPO

1WorldSync, EDI 4Doc ECR Europe Edisoft, GS1, Saphety GDS Datapool Nielsen, Analyse2 ECR Baltic Shopper Solutions CatMan EPAL RTIs Chep & Pallets Global Standards Bepco (GS1) and local MPS legislation CC

ECR Baltic work streams

Category Management, OSA, Shopper engagement, Shooper insights Supply Chain Committee: Pallets and Focus on consumer secondary packaging unification, DataSync EDI – Electonic Data Interchange Networking and working group Efficient Supply people Chain Trainings and Education development Academic partnership with Industry Annual ECR Baltic Forum Publications and bluebooks: ECR Baltic, ECR Europe: http://www.ecr-europe.org/ecr-library

ECR Baltic Student Award (Education and Training Committee)

1st Place (17.0 points) Consumer Response to Unethical Corporate Behavior: A Stage Approach by David Manuel Brückmann (SSE Riga)

2nd Place (16.5 points) The Influence of Ethnic Identity Primes on Responses to Targeted Advertising: The Case of Latvians and Russians in Latvia by Kristiāna Pavlova and Marta Tomase (SSE Riga)

3rd Place (16.0 points) Optimal Location Problem: Mathematical Model and Fuzzy Approach to Solution by Olga Montvida (University of Latvia) Annual ECR Baltic Forum:

ECR INFO DAY TALLINN: Q: Shall we call similar Info Days in Riga/Vilnius?

TESTIMONIALS: Good to have a neutral meeting point with many clients and competitors under ECR "roof". Thank you for the seminar: your initiative, organisation and professional presentations.

Presentations: http://www.ecr-baltic.org/en/trainings--seminars/20130522-ecr-info-day- with-estonian-retail-association/#presentations

ECR EUROPE FORUM + Retail Tour:

Business model was 30% rebate from participation fees above previous years as from 3rd participant. 5 participants. Our costs marketing + shuttle bus

What about next year (20th anniversary ECR Europe Forum)?

Laser research center, Paris? trends and experiences around digital retailing, displaying many examples of what is going on or being tested in several countries / sectors, in relation with the digital shopper? http://www.echangeur.fr/echangeur/ ECR Baltic Forum 2013, Tallinn: 13, 14, 15 November Sokos Viru Hotel

13 NOV 14 NOV 15 NOV 10:30 – 12:00 Plenary (160-200 pax) • Co-Chairs message (‘15) • Economy observer tbc (‘15) • ECR Europe, Vincent (‘15) 10:00 – 15:30 (36 pax) • Shopper Marketing (‘45) • Retail tour? • Manufacturer tour? 13:30 – 14:55 SC and Tech Breakout 13:30 – 14:55 Demand • ? (‘15) 10:00 – 16:15 Shopper Breakout (100 pax) • ? (‘15) Marketing Master Class • Neuromarceting- • ? (‘15) (25 pax) Biometrics. 1h 25m • ? (‘15) • ? (‘20) + (‘5 Q&A) 15:20 – 16:50 SC and Tech 15:20 – 16:50 Demand Breakout Breakout • Chep (‘15) • CM case Prisma (‘30) • ? (‘15) • ? (‘20) • ? (‘15) • ? (‘20) • ? (‘15) • ? (‘20) 19:30 (50 pax) • ? (‘20) + (‘10 Q&A) • Networking dinner (Board, Speakers, 17:15 – 18:25 Plenary + Reception Sponsors) • Consumer goods forum future trends or global scorecard (’20) • ? (’20) • ? (’20) • Summary of the Forum (Panel?) Join ECR Baltic Forum Management Team?

What we expect? Your benefit:

• Industry know how and suggesting • Free pass to forum main events actual topics, speakers and dinner; (AGENDA)? • Learn from evaluating suggested • Deciding on and approving topics and speakers; submited business cases? • Networking and setting agenda • Setting forum communication relevant to market and your startegy and tactics for (Speakers, company needs/trends Sponsors, Participants). • 3 Progress meetings and brainstorming sessions (can be distance: Skype).

All ECR Baltic members are welcome? We target group of 6 people, contact: [email protected] The first meeting by the end of June! ECR Baltic Forum in Tallinn, plan your participation?

• Submit your business case (demand, shopper, supply chain, technologies, sustainability, people development). The highest priority given to retailers and manufacturers cooperation business cases!!! • Investment opportunities (sponsorship), different levels-benefits, 50% refund opportunities if your company based in Latvia! • Extra (optional) pay events : Retail-Manufacturer tour, Board dinner, workshops ...

• Volume discounts: send 4 pay participants the 5th goes for free! ECR Baltic Forum in Vilnius:

• Presentations: http://www.ecr-baltic.org/en/ecr-baltic-forum/ecr-baltic- forum-2012/presentations-2012/ and http://issuu.com/ecrbaltic • Pictures: http://www.flickr.com/photos/ecrbaltic/sets/72157631794862198/ • Agenda: http://issuu.com/ecrbaltic/docs/forum2012 • Feedbacks:

ECR Baltic Forum in Tallinn 14th November and Events calendar 16 May 2013 ECR Baltic organized Future Store visit for ECR Europe Forum participants, Germany 22 May 2013 ECR info day in Tallinn with Estonian Traders Association (Free of Charge) 10 Jun 2013 ECR Baltic General meeting (for ECR Baltic members) with special OSA session by Nielsen 12 Sep 2013 Customer Relationship Management training, Jurmala, Latvia 13 Nov 2013 ECR Baltic Forum pre-events: Retail-Manufacturer Tour, Estonia details tbc 14 Nov 2013 ECR Baltic Forum in Tallinn 15 Nov 2013 Shopper Marketing masterclass, Tallinn, Estonia more information [email protected] or call +37126546645 Join ECR Baltic Tallinn forum management team?

12 Sep 2013 Collaborative Relationship Management training, Jūrmala, Latvia

How do you view your Customers today? A “means to an end”? A “necessary evil”? Someone to transact business with? Or, a genuine partnership seeking shared beneficial results for both parties?

Facilitator Kevin Hawkins 35 yrs. Experience with P&G More details: http://bit.ly/crmjurmala

15 Nov 2013 Shopper Marketing master class program, Tallinn, Estonia

What is Shopper Marketing? History of grocery, retail evolution, differences from CM practice, Shopper v Consumer Marketing The forces shaping global retail today – a changing retail landscape The habitual shopper. An introduction to auto-routine and operational retailing and the opportunities that exist in shifting to an Emotive focus The 5 senses of retailing: Illustrating how using each of the 5 senses the shopper can be engaged and encouraged to impulse buy. A blend of case study work is used from across the globe to illustrate in-store success (see attached detail) An introduction to Behavioural Economics and how understanding the science of decision making can be used in retail to influence sales. Ultimately Shopper Marketing is a behavioural science and so this consumer psychology element is essential to understand Shopper Insight Research Approaches: How the fields of experimentation, ethnography (observation) and biometrics (neuro-marketing) are becoming the key growth areas for shopper insight. Case studies and approaches The impact of Big Data & Predictive Analysis on shopper marketing The way forward? Key structures and barriers to effective Shopper Marketing Audience Q&A (including Client panel discussion if appropriate)

http://bit.ly/kenhudges Shopper marketing on ECR Baltic Forum and master class teaser video http://bit.ly/kenhudges AGENDA (2) :

15:30 – 16:00 Discussion and Closure

2012 ECR Baltic annual report

• Income (EUR): 86’514 (incl. membership fees: 34’112) • Costs (EUR): 84’770 • Result (EUR): 1’744 (reserves: 884) ======Total result (EUR): 2’627

NEW for 2013. LIAA co-funding for Vilnius Forum. ECR Baltic governance:

Jorma Rautanen, Prisma Peremarket (Co-Chair, retailer) Jonas Paulauskas, Nestlé Baltics (Co-Chair, manufacturer)

Aiga Priede, Rimi Baltic (Board member, retailer) Rafal Trydenski, Unilever Baltic (Board member,manufacturer) Margus Rennel, Saarioinen Eesti OÜ (Board member, manufacturer) Paulis Dālbergs, Cido grupa (Board member, manufacturer)

Liene Šauriņa, GS1 Latvia, (Board member, association) Indre Lasioniene, GS1 Lithuania, (Board member, association) Antra Vītola-Gerharde, ACNielsen (Board member, solution provider) THANK YOU! 10th of June 2013 at 12:00

TALLINK HOTEL RIGA ELIZABETES 24 Backup slides 10th of June 2013 at 12:00

TALLINK HOTEL RIGA ELIZABETES 24 ECR from manufacturers perspective by Edwin Gielen, Unilever Tallinn, 2013.05.22 IMPORTANCE OF OUR INDUSTRY (fast moving consumer goods and retail)

• Biggest employer in Europe • 30% of the Worlds GDP • Biggest tax collector of VAT • Touching peoples every days lives: selling real Foto: PantherMedia/Scanpix products, solving real problems UNILEVER at ECR Baltic

• One of the founders of ECR Baltic • Participating working groups: Category management, EDI, Supply Chain and Master Data Management • ECR Baltic Forum management team Importance of collaboration and ECR role in it:

• ECR is the only platform for sharing the best practice in FMCG from Seed to Plate and even after plate (if we consider joint responsibility for food waste and sustainability). • ECR concept remain valid through all economic downturns: working together to fulfill consumer wishes better, faster and at less cost in a more sustainable way! • WIN for manufacturers, WIN for retail, WIN for consumers and shoppers and WIN for environment ECR benefits:

Benefits for consumers: Benefits for retailers: Greater selection and comfort Greater loyalty of consumers; Shopping according to the needs; Better market research; Limiting goods shortages; Better relations with suppliers; More fresh and cheaper products. Improvement in chain efficiency.

Benefits for manufacturers: Efficient production; Demand synchronization; Less goods shortages; Stronger brand position; Durable trade relations. UNILEVER priorities at ECR Baltic

• Supply chain efficiency • EDI and Quality Master Data management • People development • Sustainability • Joint business planning

Through ECR adoption in Europe substantial value has been created

Source: ECR Europe, ECR Academic Partnership and IBM Global Business Services (2005) Adopters of ECR practices show better business performance than non or slow adopters

6 Points - 5% -10 days Days of finished goods better service levels Less of out of stocks inventories

Source: ECR Europe, ECR Academic Partnership and IBM Global Business Services (2005) The differences between ECR and non- ECR Retailers are noticed by Shoppers

Store Attribute ECR Adopters ECR Non-Adopters Difference

Product Display 4.00 3.21 0.79

Store Deals & 3.79 3.62 0.16 Promotions Product Range & 3.99 3.29 0.70 Variety Everything I want 3.99 3.25 0.74

High Quality Brands 3.95 3.16 0.79

High Availability 3.88 3.39 0.49

Easy and Quick 3.87 3.60 0.28 Shopping SUM 27.48 23.53 3.95

Source: ECR Europe, ECR Academic Partnership and IBM Global Business Services (2005) Further potential for ECR adopters in Europe

Source: ECR Europe, ECR Academic Partnership and IBM Global Business Services (2005) PRISMA priorities at ECR Baltic

• Supply chain efficiency • EDI and Quality Master Data management • People development • Better understanding about consumers behaviour • Planning together how to improve about sustainability • Possibilty to influence (working groups) Even abbreviation of ECR remain right on the target through the times

• Before 2007/2008 the original meaning for Efficient Consumer Response

• Through 2007-2012 Efficient Crisis Response

• 2013 + the Chinese colleagues offered meaning for reading ECR backwards: Responsible Consumer Enjoyment

ECR Baltic working streams 2012 - 2013

• Finalize Latvian Pallets and Lithuanian RTI unification working groups; • Master data management and data synchronization working group • Start Score card working group for Baltics to define common KPIs and benchmark companies performance. • Join at least 1 cross National Initiatives working group with ECR Europe Welcome to globalscorecard.net ECR Baltic Forum in Tallinn 14th November and Events calendar 16 May 2013 ECR Baltic organized Future Store visit for ECR Europe Forum participants, Germany 22 May 2013 ECR info day in Tallinn with Estonian Traders Association (Free of Charge) 10 Jun 2013 ECR Baltic General meeting (for ECR Baltic members) with special OSA session by Nielsen 12 Sep 2013 Customer Relationship Management training, Jurmala, Latvia 13 Nov 2013 ECR Baltic Forum pre-events: Retail-Manufacturer Tour, Estonia details tbc 14 Nov 2013 ECR Baltic Forum in Tallinn 15 Nov 2013 Shopper Marketing masterclass, Tallinn, Estonia more information [email protected] or call +37126546645 Join ECR Baltic Tallinn forum management team?

Baltic RTI standardisation

II step I step & history 2008-2012

• First attempt on 2008 with no result. Not common understanding between suppliers. No suitable solution for dairies. • New RTI unification initiative formulated by ECR 2010 together with retail, suppliers and service providers. • 2012 November after deep analyses, tests and negotiations between Baltic suppliers and retailers the RTI dimesions for the Baltic market was agreed. • 6 service providers have offered its solutions. One solution provider offer is suitable and accepted by all retailers. II step 2013 -2014

• Common working process between retail and suppliers: – Data exchange and tare saldo keeping – Keeping balance of tare and returning right amounts – Cleaning the crates. Washing possibility for producers who do not have washing machine – Rent/pooled tare is never for sale to avoid “black market” • Training people to get max efficiency of loading process • RFID possibilities for supply chain • Further supply chain improvement according to best practice How to get the best out of it?!

• Calculate you everyday direct and indirect cost in detail • Challenge current system and partners (ie. transport companies) • Discussion with retail (products in different crate types, circle times etc.) • Reduce circle time • Start to use RFID

Example of producer savings 300 pallets delivered daily

Annual savings (€) Increased efficiency More efficient pallet utilization 108 000 Loading and truck time reduced 2 200 hours then delivering goods to DC by Less pallet movements in return 357 000 Less driving kilometers 73 000 km logistics Less pallets then returning 32 000 Better space utilization and less 97 000 empties pallets handlings in producer warehouse Warehouse internal pallet 16 000 Less wooden pallets required 26 000 movement time reduced by manhours Cost of carton and carton box 693 000 Total annual pallet purchase 3 700 assembly reduced by pallets No investment into own crates vs. 83 000 Less warehouse space for 2 500 sqm cost of pooling services empties TOTAL ANNUAL SAVINGS 1 281 No manhours for carton box 15 000 000 assembly manhours Income from selling old crates (0.45 €/crate, total 85 000 €) equals amount of necessary investments into production Source: BEPCO Baltic PRODUCERS benefits 700 000 pallets monthly

Annual savings (€) Increased efficiency More efficient pallet utilization 11 300 Loading and truck time reduced 200 000 then delivering goods to DC 000 by hours Less pallets in return logistics 13 300 Less driving kilometers 7 700 000 000 km Better space utilization and less 15 900 Less pallets then returning 5 100 000 handlings in producer warehouse 000 empties pallets Less wooden pallets required for 5 500 000 Warehouse internal pallet 2 600 000 delivery movement time reduced by manhours No investment into own crates vs. 32 500 Total annual pallet purchase 800 000 cost of pooling services 000 reduced by pallets TOTAL ANNUAL SAVINGS 78 500 Less warehouse space for 100 000 000 empties sqm

Source: BEPCO Baltic RETAILERS benefits 700 000 pallets monthly

Annual savings (€) Increased efficiency Increased crate handling 2 700 000 Handling time reduced by 400 000 efficiency in DC manhours Less empties pallets handling in 10 000 Pallets less handled then 5 100 000 pallet stores 000 returning empties movements Decreased loadings of empties 1 900 000 Loading time reduced by 300 000 pallets in store and unloadings in manhours DC Sorting & handling time 100 000 Less sorting and handling of 440 000 reduced by manhours empties in DC Less warehouse space for 20 000 sqm Less warehouse space is required 2 200 000 empties for empties in DC TOTAL ANNUAL SAVINGS 17 300 000

Source: BEPCO Sustainability & Corporate Social Responsibilty in the Baltics

24 000 000 less drived km 6 600 000 litres less petrol 2 000 000 Less truck deliveries on the Baltic roads 780 000 less wooden pallets 7 000 tonnes less cardboard

Significantly smaller carbon footprint will be achieved with short period of time and excellent Corporate Social Responsibility activity will be achieved by local companies Source: BEPCO ECR members and practitioniers helping to invent

Logistics

Retailers

Suppliers

Source: BEPCO