Implementation Workstream : Update to ECR Board 28 November 2003

Implementation Workstream : Update to ECR Board 28 November 2003

Implementation Workstream Objectives - Championroll-out of ECR practices -Drive implementation of global standards Deliverables 1. Validate benefits of ECR engagement : ‘TheBusiness Case for ECR’ 2. Develop KPI’s and measureroll-out of ECR practices and global standards 3. Make recommendations to tackle non-implementationCo-Chairs : Andre Tordjman, Auchan Ed Lonergan & Vicki Belcher, GilletteCo-ordinator : Marianne Dehousse, AIM

Key Messages for today 1. Proposed business benefits for practising ECR:- Accelerating growth- Reducing costs 2. Proposed measurement of benefits:- Levels and activities- KPI’s 3. Initial “Healthcheck”. Need to improve: - Co-ordination- Communication 4. Developing Solutions

Benefits and Measures “What do I get from ECR?” Level Benefit? EuropeIndustry Health By CountryIndustry Health By CompanyComp Advtge

Benefits and Measures “What measures can we use?” Measures Level Benefit? 1.Engagement 2.Capability 3.Business Benefits Cost SavingGrowth EuropeIndustry Health By CountryIndustry Health By CompanyComp Advtge

Benefits and Measures “How can we measure?” Measures Level Benefit? 1.Engagement 2.Capability 3.Business Benefits Cost SavingGrowth EuropeIndustry Health Projects By CountryIndustry Health Projects By CompanyComp AdvtgeProject with Partner - No’s involved- Stage reached - No’s involved- Stage reached KPI’s

Benefits and Measures “How can we measure?” Measures Level Benefit? 1.Engagement 2.Capability 3.Business Benefits Cost SavingGrowth EuropeIndustry Health Projects Scorecard By CountryIndustry Health Projects Scorecard By CompanyComp AdvtgeProject with Partner Scorecard - No’s involved- Stage reached - No. completed - Scores achieved - No’s involved- Stage reached - No. completed - Scores achieved - No. completed KPI’s

Benefits and Measures “How can we measure?” Measures Level Benefit? 1.Engagement 2.Capability 3.Business Benefits Cost SavingGrowth EuropeIndustry Health Projects Scorecard %€ %€ By CountryIndustry Health Projects Scorecard %€ %€ By CompanyComp AdvtgeProject with Partner Scorecard %€ %€ - No’s involved- Stage reached - No. completed - Scores achieved - No’s involved- Stage reached - No. completed - Scores achieved - No. completed KPI’s

Benefits and Measures Proposed Measurement of Business Benefits Cost Saving : Operating Costs % variance, last 3 years Turnover % Growth : % Sales Growth (like-for-like) average, last 3 years Sample GroupvsUniverse Europe Top 5 ECR active participants, Retail Total Europe, Retail Top 5 ECR active participants, Supplier Total Europe, FMCG By Country Top 5 ECR active participants, Retail Total Country, Retail Top 5 ECR active participants, Supplier Total Country, FMCG Company Own results Appropriate Universe from above Source of data : Published Company Results vs Industry averages (MVI, M&MPlanetRetail…)

Benefits and Measures Measures Level Benefit? 1.Engagement 2.Capability 3.Business Benefits Cost SavingGrowth EuropeIndustry Health Projects Scorecard %€ %€ By CountryIndustry Health Projects Scorecard %€ %€ By CompanyComp AdvtgeProject with Partner Scorecard %€ %€ - No’s involved- Stage reached - No. completed - Scores achieved - No’s involved- Stage reached - No. completed - Scores achieved - No. completed KPI’s

ECR European Projects : Completed/ongoing Steady support for EU Projects, trend towards Supply side

ECR European Projects : Company Participation 185 companies have participated to date. Some companies support multiple projects

ECR European Projects Issues to address/2004 workplan :- Process for deciding which topics are best tackled by an EU project?- How many projects at any one time?- “Recruitment” of companies to EU projects? Call for volunteers vs targeted recruitment - Measuring roll-out : “Beyond the Blue Book”

ECR Nationals status on EU project areas 120 Project Teams across 20 countries “Adoption rate” of European projects is 5 - 65% 65% 50% 40% 30% Cost 30% 15% 15% 5% 55% 40% 40% Growth 30% 25% 10% Finished Ongoing Considered

Further ECR National Projects 29 National Project Teams working on additional topics • Enabling technologies (6) • ECR scorecard (6) • EDI (5) • Coupon Optimisation (3) • RFID (2) • Cross docking (1) • Packaging Damage (1) • Packaging items (1) • Pre-packaging merchandising Units (1) • Social Responsibility (1) • Fresh Food (1) • Textiles - terms & processes (1)

Initial Report on Implementation : ECR Nationals Projects Issues to address/2004 workplan :Continue to improve dialogue/communication to: - Avoid duplication of effort - Co-ordinate projects to accelerate learning eg a “buddy system” - Establish what we tackle at a European vs national level - Roll out the “basics” as well as initiate more “advanced work” EuropeNational

Scorecard completion : European companies European companies account for c50% of scorecard completion worldwide Some companies complete multiple entries ECR Scorecard : Capabilities GCI Compliance

ECR Scorecard : Measuring implementation We can measure implementation rates via ECR scorecard

ECR Scorecard : Measuring implementation We can measure implementation rates via ECR scorecard EU Companies 2003 score • Average score = 2.32 • c40% of companies are at roll-out or full implementation

ECR Capability : use of scorecards Issues to address/2004 workplan :- Global Standards/Compliance scorecard : Need to increase the pace - Target setting for completion rates and scores achieved- Understanding why companies don’t use Scorecards

Improving visibility & communication www.ecrnet.org lists all activity by country initiative

Tracking & measurement tools Matrix highlights topic and status by country...

Improving visibility & communication ….or you can access by topic

Tracking & measurement tools …with a simple “who to contact” list

Implementation Workstream : Update to ECR Board 28 November 2003