The Case for ECR Update to ECR Board 12 November 2004 Implementation Workstream.

The Case for ECRThe Case for ECR

Update to ECR Board Update to ECR Board 12 November 200412 November 2004

Implementation Implementation

Workstream Workstream

Key Messages for today

• Study will provide comprehensive understanding of what ECR activity HAS and CAN STILL achieve for your business

• Examines key linkage between business performance and capabilities

• Individual business case studies and macroeconomic analysis

• …. the ECR Board can make a strong contribution to success!

Agenda

Review:

• Project Objectives

• Key Steps

• Deliverables & Status

• What we need from you

Objectives

To understand if the adoption of ECR practices leads to greater efficiency, consumer value and growth in Europe by:

(i) measuring the impact of ECR activity for 1994 - 2004- Has 5.7% saving been realised/re-invested for growth?- Has shopper/consumer benefited?- Has industry benefited?

(ii) reviewing changes in culture, mindset, levels of collaboration

(iii) understanding future potential and recommending set of simple KPI’s to track progress

Project Governance Steering Committee

V Belcher, ECR Europe & Gillette

C Cave Jones, IBM

Prof D Corsten, ECREAP

Dr J Hofstetter, ECREAP

Project Leader : ECREAP

Dr J Hofstetter

St Gallen

Project Leader : IBM

C Cave Jones

Athens UEB

Prof Doukidis

Dr Pramatari

Cardiff

Prof Jones

Simons

Zokaei

IULM

Prof Pellegrini

Colacchio

St Gallen

Prof Corsten

Dr Hofstetter

Angerer

Hamprecht

WHU

Prof Huchzermeier

Burkhardt

IBM

C Cave Jones

IBM Team

Data verification & cases

Macroeconomic Analysis

Project Reporting

+ Project Co-ordination &

Conference Preparation

Cost Structure Analysis

Macroeconomic Analysis

Project Reporting

Key Steps

1. Scorecard data analysis Analysis of databaseUniversity of St Gallen

2. Data Verification & CasesInterviews & CasesAcademic Partnership

3. Cost Structure AnalysisAnalysis of CasesIBM

4. Macro-Economic AnalysisAnalysis of DatabasesIBM & Acad. Partnership

Case for ECR

5. Results- Blue Book report- Paris PresentationIBM & Acad. Partnership

Deliverables and Status

1. Scorecard Data Analysis : Uni of St Gallen

• Content:Analyze 150 scorecards. Elements:- Capabilities : Demand, Supply, Enablers & Integrators- KPI’s : Business Performance and Implementation Measures

•Deliverable:Measure relational impact between ECR adoption and business performance over time (2001 - 2004) and across geographies in EU

•Status:Due to GCI Annual Survey, ECR Board members have already partially completed 120 scorecards : please encourage local teams to complete in at least 3 countries





Case for ECR


Summary : Partially Complete Scorecards

Capabilities : Demand, Supply, Enablers & Implementors KPI’s

Ahold

Coca-Cola

Colgate Palmolive

Danone

Douwe Egberts

Gillette

HJ Heinz

Henkel

ICA

Johnson&Johnson

Kesa

Kesko

Kimberley Clark

Kraft

Mars/Masterfoods

Metro

Nestle

Procter & Gamble

Reckitt Benckiser

SC Johnson

Tesco

Unilever

Ahold

Colgate Palmolive

Danone

HJ Heinz

Henkel

ICA

Johnson&Johnson

Mars/Masterfoods

Metro

Procter & Gamble

Tesco

UnileverPlease check missing

elements on handout, by country, and follow up for

your company

Handouts

• We do not want to duplicate work that has already been done….

• Handouts show which parts of the scorecard each company has already filled out in 2004, by country

• Please could all ECR Europe member companies complete all sections of the scorecard for at least 3 European countries

• For an extract of all data held for your company on www.globalscorecard.net, send an e-mail to [email protected]

2. Scorecard Data Verification & Mini-Case Studies : (Academic Partnership)

•ContentAcademic Partnership supports in-depth scorecard completion and discussion with 30 mini case study companies- Targeted mix of ECR adopters and “new to ECR” companies- Mix of large and local : retailers & suppliers : geographies

•Deliverable:In-depth understanding of ECR adoption, barriers, enablers & effect on category performance

•Status: Academic Partnership currently approaching companies, your support requested!





Case for ECR

5. Results- Blue Book report- Paris PresentationIBM & Acad. PartnershipDeliverables and Status

2. Scorecard Data Verification & Mini-Case Studies : Academic Partnership

• Targeted Suppliers :- Dr Oetker (D) , Elgeka (GR), Gillette, Procter & Gamble, Rivella (CH), Unilever

- Coca-Cola, Kraft, Marie (F), Bonduelle (F)

•Targeted Retailers :- France : Auchan, Carrefour, Casino- Germany : Metro, dm, Globus- Greece : Veropoulos, Metro (local), Carrefour- Italy : Interdis, Co-op, GS- Spain : Carrefour, Metro- Switzerland : Manor, Co-op, Spar- UK/Ireland : Asda, Tesco, Superquinn Note: Identifying resources for Sweden to join

Red = Confirmed/Completed, Green = Invited to participate

Deliverables and Status 1. Scorecard data analysis Analysis of databaseUniversity of St Gallen




Case for ECR


3. Cost Structure Analysis : IBM

• Content: Updated Value Chain Analysis Model- 6 companies complete new cost structure analysis and compare with IBM Industry Model : one week of financial analysis in company

•Deliverable:Quantified size of opportunity for 3 retailers, 3 manufacturers via Value Chain Analysis model- Industry level report based on typical cost structures & capability levels

•Status:- Companies currently being targeted in France, Germany and UK aligning to original 1994 study parameters





Case for ECR


4. Macroeconomic Analysis : Academic Partnership & IBM

•Content:- Review of individual product and category performance via 30 mini case studies- Consumer satisfaction indices - Government statistics/Industry data analysis eg Shopping Basket reports

•Deliverable:- Growth : Interpretation of economic indices and company data 1994 - 2004- Collaboration : Interpretation of correlations of business performance to ECR activity

•Status: - Initial framework under design





Case for ECR


Project Strategy

150 companies

30 companies

6 companies

Interviews

Step 1 : GCI Scorecard

Step 2 : Scorecard Verification

Step 3 : Cost Structure Analysis

Step 4 : Macro Economic Analysis

Step 5 :

Results

Project Schedule

Step 1 : GCI Scorecard

Step 2 : Scorecard Verification

Step 3 : Cost Structure Analysis

Step 4 : Macroeconomic Analysis

Step 5 : Reporting

SEPT OCT NOV DEC JAN FEB

Data Collection

Pre-Analysis

Case Identification

Case Studies

Data Analysis

Data Analysis

Reporting

Report & Presentation

Reporting

Case Identification

Case Studies

Reporting

Reporting

Summary : How you can help!

• Step 1 : GCI Scorecard (Entire ECR Board)

Please encourage local teams in at least 3 countries to complete all scorecard elements and submit to database:- Capabilities : Demand, Supply, Enablers & Integrators- KPI’s : Business Performance & Implementation Measures

• Step 2 : Mini-case study (Target companies)

Assign a point person/lead team : 4 hour workshop

- informants from demand and supply side

- for one business partner and one category

The Case for ECR Update to ECR Board 12 November 2004 Implementation Workstream.

Documents

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