trade round table magazinul progresiv 20 october 2005 martina kastler
TRANSCRIPT
Our mission
Add Vitality to Life.
We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.
Unilever co-operates within the ECR movement with trade partners around the world. We believe in constructive co-operation to the benefit of the consumer.
Unilever Romania established in 1995. We are marketing and producing Home & Personal care brands (Dero, Dove, Domestos, Cif, Rexona) and Food brands (Delma, Rama, Knorr, Delikat)
A new beginning: ECR RomaniaAn Association of Industry and Trade Established 15th June 2005 Members to date:
Supported by GS1 Romania (former EAN) Co-Chairmanship: Metro (Trade), Unilever (Industry)
INDUSTRYUNILEVER SOUTH CENTRAL EUROPENESTLE ROMANIAKRAFT FOODS ROMANIAPROCTER & GAMBLE MARKETINGHOCHLAND ROMANIADOBROGEA SAHENKEL ROMANIABRAU UNION ROMANIABIC (ROMANIA) MARKETING DISTRIBUTIONPHILIP MORRIS ROMANIAFRIESLAND-NAPOLACT
RETAIL TRADEMETRO CASH & CARRY ROMANIASELGROS CASH & CARRYBILLA ROMANIAPRAKTIKER ROMANIAKAUFLAND ROMANIAARTIMARODIPET
What is the category? What is the category structure?
How important is this category for us?
What do we want to achieve with this category? How do we measure category succes?
What are the strategies that we will use to ensure succes?
What are the tactics (pricing, promotions, assortment and shelf) to follow the strategy?
Where and how will we implement the category plan?
Example: 8 step Category Management1
Category Role2
Category Assessment3
Category Performance Measures
4
Category Strategies5
Category Tactics6
Plan Implementation7
Cat
egor
y R
evie
w
8
Category Definition
How does the shopper behave when buying this category?What is the competitor‘s status on the category?
ECR Vision
Trade and Industry Working Together to Fulfil Consumer Wishes
Better, Faster & at Less Cost
ECR History
Originated in the 1980s in USALeading retailers (i.e. Wal Mart) started co-operation with industry to improve Customer Service at reduced costs
Establishment of ECR Europe in 1995 at Geneva Conference
1st July 2005 ECR Romania accepted as member of ECR Europe
ECR EuropeNational Initiatives
ECR Austria ECR Belgium ECR Brazil ECR Czech Republic/SlovakiaECR Denmark ECR Finland ECR France ECR Germany ECR Greece ECR Hungary ECR Iceland ECR Ireland ECR Italy ECR Netherlands ECR Norway ECR Poland ECR Portugal ECR Russia ECR South Africa ECR Spain ECR Sweden ECR Switzerland ECR Turkey ECR United Kingdom
ECR Romania
Changing Market Environment
An increasingly Demanding Consumer
Choice Service Convenience Quality Freshness Safety
An increasingly Costly Supply Chain
Assortment Pack sizes Shelf Presentation Product Descriptors Chilled Logistics Traceability
ECR Ways of working New relationship between Industry and Trade
From Confrontation to Co-operation Breaking down non-productive barriers
to better serve the consumer Overcome:
Supply Chain Inefficiencies Non effective planning tools Inappropriate information along the Value Chain
ECR Europe Work over time 1994 ”Co-operation to fulfil consumer wishes better....
2000 .......to improve margins and competitiveness of all business partners, industry and retail,
along the value chain...
2004 ......and to provide a sustainable platform enabling all business partners to cope with new
entrepreneurial (market) challenges”
ECR Vision
Trade and Industry Working Together
to Fulfil Consumer Wishes
Better, Faster & at Less Cost
with a Shared Business Process
leading to
Shared Benefits across the Value Chain
ECR Pyramid
ConsumerRelationshipManagement
Category Management
Efficient Assortment
Efficient Product introduction
Efficient Promotion
Efficient Replenishment
Information Management
No Out of Stocks at efficient cost
Satisfied Shopper
Sufficient to work
Attractive POSWell chosen Promotions
Well defined, assortedCategory presentation
ECR Pyramide
Dem
and
Side
Supp
ly S
ideEfficient Replenisment
Information Management
ConsumerRelationshipManagement
Category Management
Efficient Assortment
Efficient Product introduction
Efficient Promotion
Proc
esse
s
Stan
dard
s
CRP, VMI, Cross Docking, EAN 128, EULEfficient Replenisment
EDI, Internet, Master Data, Identification
Information Management
ECR Demand Side“To Fulfil Consumer Wishes
Better, Faster & at Less Cost”
Understand consumer wishes and define shopper requirements Define product categories from a consumer/shopper point of view Combine and sell category assortments customised for target group
and shop
ECR has developed standardised processes
and generally accepted definitions and parameters
to support Trade and Industry.
Brand Loyalty „product-branding“
Consumer Loyalty Shopper Loyalty
CRM
Industry
Example: CRMExample: Consumer Relationship Management
Trade
Shop Loyalty „store-branding“
CRM: Focus on the individual shopper and shopper groups.
Specific offers to the target group.
- „Individual offers“ to shoppers- „Data warehouse“/Loyalty cards
personalised:1 for 1
- Marketing targets the most attractive and valuable groups
- Data management important
segmented:1 for some
- Mass marketing with limited effectstandardized:1 for all
CRM: Shopper Differentiation
ECR Supply side“To Fulfil Consumer Wishes
Better, Faster & at Less Cost”
Optimise physical flow of goods from supplier warehouse to shelf Co-ordinate data - and information flow Co-operate to identify cost saving potential
ECR has developed standardised processes
and commonly agreed identification and parameters to:
- Reduce stocks- Optimise transport capacity- Reduce workload - Ensure On Shelf Availability
Example Supply Side: VMI
Vendor Management Inventory is a process when both Industry and Trade agree to share the data (sales and stocks) to create common KPI for replenisment
Unilever and Metro have started this process last year
Based on KPI established by Metro the order is now done by Unilever
Simplification for the department manager Improving the quality of the order (we have to manage 150
articles in Detergents and Cosmetics vs. 2000 articles in the category for Metro)
The stock days have been reduced by 7 days
ECR: POS Data exchangeDemand side Combining knowledge of POS Data (Shopper) and Market Research
(Consumer) provides better decision base Monitoring and Analysing agreed KPI accelerates learning curve Systematic measurement of OSA prevents out of stock and increases
consumer/shopper satisfaction
Supply side Reduction of logistic costs and stocks Improved service level, less OoS Cost savings in planning and ordering Less write-offs for residuals, obsoletes and expired goods
ECR standards - available already
Consumer Relationship Management Category Management Day To Day Category Management Web Enabled Category Management Category Management Online Retailing Efficient Promotions, Efficient Assortment Efficient Product Introduction Consumer Enthusiasm Promotion Analysis POS Data Exchange & Management Collaborative Planning Forecasting &
Replenishment Efficient Replenishment Continuous Replenishment Vendor Managed Inventory Cross Docking I & II EAN 128 Optimal Shelf Availability Shrinkage / Stock-Loss Track & Trace of Goods Recall of Goods RFID in the Supply Chain
22+ 9+ 5+ 6+
Global Trade Item Number Global Location Number Reduced Space Symbology EAN 128 / SSCC Composit EAN Barcode Radio Frequency Identification UPC Electronic Product Code Digital Signature etc.
EANCOM Messages / EDI GCI/EAN-XML Master Data Alignement Automated Data Capture Global Product Classification
Efficient Unit Loads EAN 128 Palette Standards for Containers Beverage Boxes etc.
Processes Identification Communication Logistics
ECR Standards - available already
ECR Results in Europe
Trade and Industry together realised the following
- Savings Supply Chain 1995 – 2005: 3,6% of total cost = Eur. 18 bn.- Increased Customer Service Level 1995–2005: + 5,7%- Reduction of stocks 10 days- Reduction of out of stock: - 4,9% of total inventory
Source: ECR EuropeCase Study
ECR Pyramide
Dem
and
Side
Supp
ly S
ideEfficient Replenisment
Information Management
ConsumerRelationshipManagement
Category Management
Efficient Assortment
Efficient Product introduction
Efficient Promotion
Proc
esse
s
Stan
dard
s
CRP, VMI, Cross Docking, EAN 128, EULEfficient Replenisment
Identification (EAN), Electronic Data Exchange
(EDI, Internet), Master Data Management
Information Management
ECR Universe
Business Model•Co-operation•Trade & Industry•Common Values and Principles• Consumer is Focus
Enablers:•Standards•Processes •Best Practice•Methodologies•Tools
Network: •Companies and Associations•Implementation and Experience•Communication Platform
ECR
ECR Romania: Main Tasks
Embrace the ECR culture
Come together to define common priorities between Trade and Industry to better serve the consumer
Use available ECR Europe description of processes and international identification standards
Establish common understanding and language
Develop, adapt, test
Teach, Train, Disseminate Information
Work in project groups and share learnings
Invitation
“Working together - building business”
Join ECR Romania!
www.ecr-romania.ro
Telephone: +4(021)3178031/2/3