muller mcc

June 2010 | © METRO AG 2010

MADE TO TRADE.Annual ECR Russia Conference

четверг, 10 июня 2010 г.

MADE TO TRADE. Status: June 2010 | © METRO AG 20102

Self-Service Wholesale Food retail Department

stores Nonfood

specialty

METRO Cash & Carry – a core Division of METRO Group

Sales (bn): € 19.7Countries: 16Stores: 818

METRO Group sales 2009: € 65.5 bn

Cross functional companies



Sales (bn): €30.6Countries*:… . 30 Stores*: 670



Cash & Carry wholesale exclusively for professional customers

Up to 20,000 food and 30,000 nonfood products per store satisfying all core and complementary customer needs

Efficient store and merchandizing concept designed for professional needs (warehouse style, one-stop-shopping, just-in-time purchase)

The customer picks his merchandise, pays and transports the goods on his own

New distribution channel: delivery piloted in 6 countries in 2008



A History of Expansion

** FTE Status 2009, Source: Annual Report 2009



Reaching High Expansion Speed:Example Russia

2

2001

# Stores

2

RUSSIA




3

2002

3

RUSSIA

# Stores




5

2

2003

7

RUSSIA

# Stores




6

2

2004

14

RUSSIA

# Stores




7

3

2

2005

223

RUSSIA

# Stores




8

3

3

2006

3162

RUSSIA

# Stores




9

3

2

2

3

2

5

4

2007

401111

RUSSIA

# Stores

2




11

3

2

2

3

2

5

4

2009

521519

RUSSIA

# Stores

2

2



1993 Today Future

Direct delivery, much reworkSupply – Side Demand DrivenCRP, CPFR

First international processes Global processes (CGF, GS1)Still at the beginning

Buyer – Seller RelationshipCooperation Teams

Standards

Multi-functional teams

Cooperation 1993, Today and in the Future.

Data Warehouse, CMplus, CRM

Collaborative processes along the entire value chainCM (paper, pencil, calculator)Demand – Side

Communication Telefax, telephone, mailEDI (EANCOM), e-mail, Web-EDI, XML, Internet, joint platforms

EDI, e-mail, Web-EDI

Joint processes, organization, data and systems

Holistic and Shopper Driven

Logistics optimization and administrative downsizingFocus



ECR at METRO GROUP

We started to optimize our processes more than 10 years ago. The METRO GROUP supports national and international ECR initiatives by

active participation. Worldwide the METRO GROUP is involved in about 300 work groups and

committees, for example:

ECR Europe Executive Board Business Information Committee Consumer Shopper Committee Forum Group Shrinkage Supply Chain Committee

ECR Russia EDI Invoice Implementation Supply Chain and Supplier collaboration Category Management



International Examples of METRO GROUP Involvement

Anti theftprotection

Building Brands

Shrinkage

Food Safety

Couponing

Efficient Unit Loads Shelf ready

packaging

EPC Task Force

Category Management

GDS

RFID

Logistics

On ShelfAvailability

Enabling Technologies



SCRM is Metro Group’s approach to the “New Ways of Working together”

AdvancedSRCMPartner

Demand Side Projects

ProfitabilityAnalysis

Supplier Interest Projects

International Reporting & Quart. Business Reviews

DataAlignment

Supply Side Projects

Focus Collaboration AreasIntensified collaboration through sales

line and supplier specific projects prioritized out of all interaction areas due

to high impact and benefits

Setting up the Scene transparency in basic definitions,

turnover, profitability and frequent review of joint performances per country

International Collaboration Agreement (ICA)

Deg

ree

of C

olla

bora

tion

Low

High



Category Management Pilots, EDI, Supply Chain,Start of the ECR Cooperation

Collaborative CM, CPFRCollaborative Systems & Processes

Cross Docking, Web EDI, XML-TestsCM Projects, CRP, EDI-Classic, Best Practices

Shop-in-Shop SolutionsCross Category CM, Electronic Exchanges

1994

2002 Demand Driven Supply ChainConsumer Relationship Management

1996

1998

2000

2004 RFID, RFID Laboratories, EDIINT, GDSFuture Store Initiative

Integrated Category ManagementAdvanced Retailing2005

Example of Collaborative Activities with a Supplier

2007+Cross-Category Management,Process Optimization with RFID



Example Russia

Aim of the project: Implement EDI invoice with suppliers. As soon as necessary law changes are adopted immediately switch to EDI invoice without paper.

Current status: 63 suppliers are in production, another 600 suppliers are in test including Kraft foods, Nestle WBD.

Target 2010: receive 5% of the invoices by EDI

EDI process into paperless

Paper invoice

Supplier

Reconciliation of EDIand paper invoice

Retail chain

Invoice payment

Input of total data

Goods receiving data

Store

Archive

EDI invoice

Paper invoice



The Global Scorecard helps us to track the implementation

We use The Consumer Goods Forum’s Global Scorecard to measure progress of ECR implementation.

Since 2004 all our sales lines across the world have participated. Every year the Compliance Scorecard (Implementation Measures,

Business Measures, Enabler) is used by all countries. Our Approach:

- Top Management Support- Trainings- Coordinated Approach (Project Champion)

In 2010 we will shift more responsibility to the countries.



Implementation of the measures has a measurable impact on the performance

73

103107108

0

122121122

158

Implementation Measures

Business Measures



Implementation of the measures has a measurable impact on the performance

73

103107108

0

122121122

158

Implementing the Global Scorecard helps us to

- gain a clear view on where we stand,- set the right priorities,- increase standards implementation

throughout our business and- improve business measures.

It was the right approach- to implement the GSC step by step,- to develop and do trainings,- to have top management support and- to set up a multi-layer network of colleagues

involved.

Implementation Measures

Business Measures



Wrap-up

ECR processes enable us:

- to increase our efficiency,

- to focus on our customers and that way

- to stay competitive.

Implementation of ECR concepts has to be measured.

To really benefit from ECR concepts they need to be implemented across the industry.

We consider ourselves as a multiplying factor.

The ECR initiatives provide the platform to exchange knowledge.

Continue to provide a unique platform for knowledge exchange within our industry.

Adapt globally developed best practices to the local/regional market.

Drive the implementation of existing best practices.

Regularly measure the status of implementation in the market.

Continuously seek and drive the knowledge exchange with other ECR initiatives and global bodies.

Metrogroup’s Expectations towards ECR Initiatives

Summary


1
