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     Executive Summary
                                      ConsumerGoods
                                   DrvenSucces
                                                   EmergingTrends
                          Share 1PlaceToNotMiss AllBeginningsStartWith1Place
                                     PersonSkilledlnTheArt
                                                    AGoodPlaceToVisit
                        BestPlactice
                                         Utility SenseOfPlace BestMinds
                        BetterLives TakePlace                   BetterLivesThroughBetterBusiness
                  StrongFocus KnowledgedSharing                 SeniorManagmentMembers
         The Consumer Goods Forum                                  Time&Place2.1TrillionEuros
                                                             IndustryExcellence

                      IdeasExchange BetterBusiness
                FriendsInHighPlaces
             RetailersKnowlege GlobalPlatform
                                                                                  ActiveParticipation



                                          Sharing
                          70Countries StrategicInformation
                                             CommonPositions

                           www.tcgfoperationalexcellence.com




                                BARCELONA
the
                                                                   the
                                                                  consumer
                                                                      sumer
                                                                         e
                                                                                   goods
                                                                   forum

What is the Consumer Goods Forum?
The Consumer Goods Forum (CGF) is a global, parity-based industry network, driven
by its members. It brings together the CEOs and senior management of over 400
retailers, manufacturers, service providers and other stakeholders across 70
countries and reflects the diversity of the industry in geography, size, product
category and format. Forum member companies have combined sales of EUR 2.5
trillion. Their retailer and manufacturer members directly employ nearly 10 million
people with a further 90 million related jobs estimated along the value chain.


The Forum was created in June 2009 by the merger of CIES - The Food Business Forum, the Global
Commerce Initiative (GCI) and the Global CEO Forum. The Consumer Goods Forum is governed by its Board
of Directors, which includes 50 manufacturer and retailer CEOs and Chairmen.

The Forum provides a unique global platform for knowledge exchange and initiatives around five strategic
priorities – Emerging Trends, Sustainability, Safety & Health, Operational Excellence and Knowledge Sharing
& People Development – which are central to the advancement of today’s consumer goods industry.

The Forum’s vision is: “Better lives through better business”. To fulfil this, its members have given the Forum
a mandate to develop common positions on key strategic and operational issues affecting the consumer
goods business, with a strong focus on non-competitive process improvement. The Forum’s success is
driven by the active participation of the key players in the sector, who together develop and lead the
implementation of best practices along the value chain.

With its headquarters in Paris and its regional offices in Washington, D.C., and Tokyo, the CGF serves its
members throughout the world.




                                                                                                          2
Executive Summary produced by IGD on behalf of The Consumer Goods Forum
IGD is a leading international research organisation for the consumer goods industry worldwide. We offer
understanding and insight, developed from extensive analysis of global business issues and an ongoing dialogue
with shoppers. We help businesses to identify opportunities, improve performance and create a competitive edge.
Find out more at www.igd.com



Ideas. Content. Communication. Information designed for your business.
Find out more at: www.delevine.co
                  www.delevine.com


Fabra Davies is an established cloud organisation with a track record in design innovation and social media for
the consumer goods market. With a background in trends, architecture, marketing and contracts completed
worldwide, we can provide a unique range of services and skills.
Twenty successful years of consultancy is a reflection of our commitment to inovation, quality and the talent of
our lovely personnel. Find out more at: www.fabradavies.com
Contents
 2   Introduction

 6   Operational Excellence

 7   Highlights

 8   Experience

10   Committees

13   Store Tour

15   Opening Plenary Sessions

21   Marketing Stream

29   IT Stream

39   Supply Chain Stream

49   Breakfast Sessions

53   Closing Plenary Sessions

55   Networking Moments




                                4
The Strategic Pillars & Forum Activities
                                                                                 Ageing
                                                                                 Population



                                                                                                                                        Share our
                                                                           Health
                                                                                                                                        Supply Chain
 Global Social                                                          & Wellness
Compliance                                                              Information
                                                                        & Education
  Programme
                                                                                                                                     Prepare

                                                Health &                                                                           Our
                                                                                                                                    people
                 Carbon                           Wellness
          Measurement                             Principles
                                                                                                       Connect
            Deforestation                        Commitments                                         Business
           Refrigeration
                                                                                                     Information
                Engagement
                                                           Global
                                                     Food Safety                                                                    Future
                              Global
                                                        Initiative                                                                  Leaders
                              Packaging                                         Focus
                                                                            on Consumers
      Future                                                                 & Shoppers
     Value Chain                                                                                           Summit




       THE CONSUMER GOODS FORUM
                       1                 2                              3                            4                  5
                                                                                  OPERATIONAL EXCELLENCE




                                                                                                            & PEOPLE DEVELOPMENT
                                                                                                            KNOWLEDGE SHARING
            EMERGING TRENDS




                                                      HEALTH & SAFETY
                               SUSTAINABILITY
Operational Excellence
                                                                                                              The key to growth

   Creating and implementing change in industry collaboration
   Our objective is to enable trading partners and the Consumer Goods Industry to better serve our consumers
   and shoppers by driving Operational Excellence. Our aim is to do this through collaborative business practices
   of New Ways of Working Together.

   This includes four strategic priorities, which are also reflected in the four Operational Excellence Committees:




   The objectives will be accomplished through:


                                 retailers and other participants in the extended value chain to drive consumer benefits. This would
                                 include the adoption and implementation of best practices, GS1 Standards and Industry Utilities.




   New Ways of Working Together
   Eliminate supply chain disruptions, enable growth

                                  Industry Track ( collaborate )
                         2            Best Practices/
                                        Standards
                                                                   Documentation,
                                                                     Education,
                                                                   Communication
                                                                                             Guiding
                                                                                          Principes and
                                                                                          Frameworks
                                                                                                                      Share
                                                                                                                      Results
                                                                                                                                          Consumer & Shopper
        OPERATIONAL EXCELLENCE




                                                                                                                                              Satisfaction
                                       Focus
                                         on                         business
                                                                                        Prepare
                                                                                    people for new world
                                                                                                                  Share
                                                                                                                   our
                                        consumer                  information                                  supply chain
                                                                  COMMON GOALS &      KNOWLEDGE, SKILLS &
                                     STRATEGY ALIGNEMENT          MEASURES            CAPABILITIES           SUSTAINABILITY
                                     JAG FRAMEWORK                INFORMATION                                CROSS INDUSTRY INTEGRATION
                                                                                      INCENTIVES & REWARDS
                                                                  SHARING*                                   INTEGRATED SUPPLY CHAIN
                                                                  EPC                 ORGANIZATION DESIGN
                                                                  DATA SYNC



                                     Strategic Issues          Common Goals,                 c Measures              Other Data
                                         Between                                          & Priorities                Sharing
                                                              Common Measures                                       Opportunities
Focus                                Trading Partners

                                  Trading Partner Track ( Competitive Advantage )
                                  *Note: Utilizations of Industry Standards

   The Operational Excellence – New Ways of Working Together Core Team is charged with creating and
   implementing change in the way our industry collaborates (in bi-lateral trading relationships and on
   non-competitive Industry issues) to better serve our consumers and shoppers. It also serves as the Integration
   Platform and Steering Group for the pillar and its work.

   The Marketing, IT and Supply Chain Knowledge Exchange & Networking Forum
   At the annual member event, we bring together our members to focus on the consumer and shopper. In
   bringing retailers and manufacturers together, we look at how we can work together to ensure continuous
   improvement throughout the value chain by focusing on the needs of the consumer and optimizing processes
   and collaborative action along the way. It’s all about excellence in execution … and how Marketing, IT and
   Supply Chain can work together to bring operational excellence to their business.
                                                                                                                                                               6
Highlights
The shopper and consumer at the heart …

The “Shopper & Consumer” is what this gathering was all about. And how we can work together to meet
the needs of today’s empowered consumer.

We brought together our members to exchange knowledge, network with peers, pick up new ideas and
learn from practical experiences.

At this knowledge exchange & networking event, Marketing, IT and Supply Chain executives took a
deep dive at how we can better serve the consumer by concentrating on the following Marketing, IT
and Supply Chain themes:

“Turning Consumer and Shopper Insights into Growth”
“The Consumerism of IT”
“Delighting the Consumer. Acting as One.”

Experience
Hear what the experts have to say about their experience...

“CGF has proven to me to be a fantastic platform to gain valuable insights into how leading industry players
address trends that shape our mid to long term future. Networking with peer executives from
manufacturers, retail partners and strategic vendors opens many doors for collaboration.”
Clyde Pereira, CIO, Coca-Cola Hellenic, Austria


“The Marketing Forum exercises and expands your mind like no other marketing event in the world. It is the
marketing event of the year for me. We stimulate your left and right brain with an intentional mix of
successful case study presentations and relevant experiences, outside of the box, inspirational speakers to
stretch your mind.”
Stephen Smith, Chief Marketing Officer, Asda Stores Ltd, United Kingdom


“Excellent event to get new inputs, to meet inspiring colleagues, to exchange information and to
benchmark own ideas!”
Andreas Münch, Member of the Executive Board, Head of Department Logistics & IT, Migros,
Switzerland


“The store and DC tours also provide great insights on how individuals can improve their own operations
and leverage new technologies.”
John S. Phillips, Senior Vice President, Customer Supply Chain & Logistics, PepsiCo, USA


 “The CGF Marketing Forum is an excellent blend of manufacturers, retailers, and select suppliers coming
together to discuss new ways of working together to deliver improved shopping experiences. The speakers
are dynamic and the forum is candid in terms of interaction and discussion – a great mix!”
Kristen Nostrand, Marketing Director, Procter & Gamble, USA
                                                                                                               8
The Consumer Goods Forum is your association
By the members, for the members

This year’s conference was developed by the Operational Excellence Committees for the members
of the Forum. Here are the industry experts who have been working behind the scenes throughout
the year.
Marketing Committee
Activating Shopper and Consumer Insights

Arnaud de Belloy, Vice President Global Customer & Sales, Nestlé Group, Switzerland (Co-Chairman of the Marketing
Committee - Activating Shopper and Consumer Insights)
Stephen Smith, Chief Marketing Officer, Asda Stores Ltd, United Kingdom (Co-Chairman of the Marketing Committee -
Activating Shopper and Consumer Insights)
Jonathan Ackerman, Customer Director, Pick N Pay Retailers, South Africa
Adam Balon, Founder & International Director, Innocent Drinks, United Kingdom
Carolyn Bradley, UK Marketing Director, Tesco, United Kingdom
Jeff Burt, Group Vice President Perishable Merchandising and Procurement, The Kroger Co., USA
Guy Elewaut, Senior Vice President Strategy, Marketing and Communications, Delhaize, Belgium
Bernard Fevry, Director of Operational Marketing Europe, The Coca-Cola Company, France
Angela Francolini, Vice President, International Marketing & Innovation, Mc Cormick & Co, Inc., USA
Markus Gisiger, Head of Marketing Food, Migros, Switzerland
Sharon Jeske, Director, Operational Excellence, The Consumer Goods Forum
Robert Kitching, Vice President Consumer Marketing Insights Western Europe, Unilever, The Netherlands
Meg Levene, Vice President, Field Sales Organization, Johnson & Johnson, USA
Satoshi Nakashima, General. Manager, Strategic Trade Marketing Department., Marketing Integration Division,
Meiji Co., Ltd.,Japan
Kristen Nostrand, Marketing Director, Procter & Gamble, USA
Simon Potts, Director - Business Development Health & Beauty Division, Alliance Boots, United Kingdom
Patrick Rouvillois, Chief Marketing Officer, Carrefour Group, France
Jean Rubens, Executive Managing Director, Casino Supermarches, France
Yuji Shimizu, Director, Business Planning & Coordination, Global Consumer Product, Kao, Japan
Vanessa Silva, Marketing Director, Jeronimo Martins, Portugal
André Tordjman, Chairman and Founder, Little-Extra & Affiliate Professor, EDHEC, France
Jean-Jacques Vandenheede, Director Retailer Insights Europe, The Nielsen Company, Belgium
Tim Welch, Director International Shopper Marketing, PepsiCo, USA
Paolo Zazzi, Europe and Export Customer Marketing Responsible, Barilla, Italy
                                                                                                              10
Russell Zwanka, Senior Vice President Sales, Merchandising, and Marketing, Price Chopper, USA
IT Committee
Connecting Businesses for Consumers

August Harder, Chief Information Officer, Coop, Switzerland (Co-Chairman of the IT Committee - Connecting
Businesses for Consumers)
Clyde Pereira, Chief Information Officer, Coca-Cola Hellenic, Austria ( Co-Chairman of the IT Committee -
Connecting Businesses for Consumers)
Masayuki Abe, Vice President, Information System Strategic Planning, Kao Corporation, Japan
João Günther Amaral, Director, Sonae Portugal
Greg Buckley, Senior Director, Customer Supply Chain, PepsiCo, USA
Guy Chambers, Chief Operations Officer (Greater China), Swire Beverages, China
Andrija Derezic, Executive Director of IT and Telecommunications, Mercator Group, Slovenia
Martin Haas, Chief Information Officer, Migros, Switzerland
Rod Hefford, Vice President IT - Global Customer Development and Supply Chain, Unilever, United Kingdom
Sharon Jeske, Director, Operational Excellence, The Consumer Goods Forum
Clinton Keay, Senior Vice President , Chief Information Officer, Sobeys Inc., Canada
Espen Kjonsberg, Chief Information Officer, Norgesgruppen, General Manager, Norgesgruppen Data, Norway
Andreas Kranabitl, Managing Director, Spar, Austria
Kevin Puppe, Senior Director of IT, Johnson and Johnson Consumer Group, USA
Marco Rossi, IT Business Process Support Director, Barilla, Italy
Jens Siebenhaar, Chief Information Officer, Rewe Informations Systeme GmbH, Germany
Franck Suykens, Senior Vice President & Chief Information Officer, Europe and Asia, Delhaize Group, Belgium
Joseph Taylor, Director of IT Strategy and Innovation, Wal-Mart Stores, Inc., USA
Francesco Tinto, Vice President - IS Americas, Kraft Foods, Inc., USA
Milan Turk, Managing Director, Global Customer Business Development, Procter & Gamble, USA
Wim Van Herwijnen, Chief Information Officer – Real-hypermarkets, Metro Group, Germany
Jerry Wolfe, Vice President, Global Supply Chain Strategy and Chief Information Officer, Mc Cormick & Co., Inc, USA
Mike Yorwerth, Group Technology and Architecture Director, Tesco, United Kingdom
Supply Chain Commitee
Delighting the Consumer. Acting as One.

John S. Phillips, Senior Vice President, Customer Supply Chain & Logistics, PepsiCo, USA (Co-Chairman of the Supply Chain
Committee - Delighting the Consumer. Acting as One.)
Tony Vendrig, Executive Vice President Business Development, Ahold Europe, The Netherlands (Co-Chairman of the Supply Chain
Committee - Delighting the Consumer. Acting as One.)
Petra Albuschus, Senior Vice President Logistics, ICA Sverige AB, Sweden
Tony Borg, Vice President - Head of Corporate Supply Chain, Nestlé Group, Switzerland
Frank Bruni, Vice President Logistic Operations, The Kroger Co., USA
Roberto Canevari, Group Supply Chain Executive Director, Carrefour, France
Nuno Cardoso, Supply Chain Director, Jeronimo Martins, Portugal
Geoff Fulford, Group Vice President Customer Service Excellence, Unilever, United Kingdom
Martin Gleiss, Supply Chain & Logistics Manager, Spar, Austria
Cenk Gurol, Chief Executive Officer, Æon Global SCM Co. Ltd., Japan
Sharon Jeske, Director, Operational Excellence, The Consumer Goods Forum
David Jones, Supply Chain Director, Waitrose Ltd., United Kingdom
Herbert Kueng, Vice President Customer Service & Logistics CEEMA, Kraft Foods CEEMA GmbH, Austria
Kieron Low, Supply Chain Director, L’Oréal Consumer Product Division, L’Oréal, France
Kerry McNair, Director, Global Supply Chain, Walmart Group, The Coca-Cola Company, USA
Andreas Münch, Member of the Executive Board, Head of Department Logistics & IT, Migros, Switzerland
Stefano Pietroni, Network Design Planning & Sourcing Director, Barilla, Italy
Jim Radin, Vice President – Global Supply Chain Operations, Mc Cormick & Co., Inc., USA
Joze Sadar, Senior Vice President, Mercator D.D., Mercator Operations Slovenia, FMCG Retail, Slovenia
Yannis Skoufalos, Global Product Supply Officer, Procter & Gamble, USA
Xavier Ury, Vice President Procurement Support, Quality and Supply Chain, Delhaize Group, Belgium
Naoto Takahashi, Managing Director, Representative Director, President of Production Division, President of Supply Chain
Management Division, Kirin Brewery, Japan
Special Advisor to the Committee:
Valentin Elistratov, Vice President Business Development International Supply Chain, EMEA, DHL Global Forwarding, France
                                                                                                                        12
Tuesday 11th October
PROGRAMME
  OGRAMME




  Participants were kindly welcomed by:   14
Jean-Marc Saubade,
Managing Director,
The Consumer Goods Forum




              Opening Plenary
              Sessions
              Wednesday 12th and Thursday 13th October


              The Consumer Goods Forum
              Managing Director Jean-Marc
              Saubade welcomed 300
              delegates from 30 countries
              and 130 companies to
              Operational Excellence 2011
              Saubade stressed that, in an uncertain economic
              environment, the basic need for consumer goods
              companies to better serve their consumers and
              shoppers through enhancing operational capabilities
              was greater than ever.

              For 2011, the Forum’s Supply Chain, IT and Marketing
              conferences had come together for the first time
              under one roof. Saubade took the opportunity of the
              first plenary session to remind delegates of the
              principal areas of focus for the Forum. The Forum’s
              five strategic pillars are: sustainability; safety & health;
              emerging trends; operational excellence; knowledge
              sharing & people development.
Welcome to Operational
            Excellence
                  2011




                    16
Robert McDonald
Chairman of the Board,
President & CEO,
The Procter & Gamble Company,
USA

Jim Flannery
Managing Director, Customer
Development, Procter & Gamble
Global Operations, The Procter &
                                                                   Operational Excellence
Gamble Company, USA
                                                              New ways of working together
         “The only strategy consumers and shoppers see is our ability to execute,” Jim Flannery told delegates.
         Speaking with Robert McDonald, who joined the conference by video, Flannery introduced delegates to the
         Forum’s New Ways of Working Together framework, which provides a common language for collaborative
         action. A “game-changing enabler,” the common approach leads to consumer-focused business plans and
         helps companies create operational synergies

         McDonald and Flannery urged delegates to take advantage of the networking facilities offered by the
         enlarged conference to share expertise and gain inspiration from one another: “The Operational Excellence
         pillar at the Forum is all about making a real difference in the industry and we should all take our work to the
         next level,” Flannery said.
Erik Wahl
                                                                                                    International Keynote
                                                                                                    Speaker and Artist
                                                                                                    USA


Think big, dream big
The risks and rewards of working together
The corporate world can be risk-averse, artist and motivational speaker Erik Wahl told the conference in his
keynote address. This is logical, since companies have to manage the interests of shareholders and financial
backers. But if innovation is vital in a fast-changing consumer climate, then surely “creativity is the new corporate
capital”.

This kind of capital is abundant and free, but requires a risk and a shift of focus from the logical left side of the
brain to the creative and collaborative right. Wahl encouraged delegates to look for ways to work together, put
fear to one side and embrace new ideas. “See the world through different eyes,” he urged the conference.

To illustrate his point, quite literally, Wahl painted a picture to music and invited a volunteer on stage. He
rewarded the volunteer for taking this potentially humiliating venture into the unknown by making a gift of the
painting: “Sometimes it pays to take a risk.” Wahl also painted a portrait of inspirational footballer Lionel Messi.



                                                                                                                   18
Key
Takeaways
OGILVYACTION
Build brand utility
alongside brand
awareness

Turn content from
social media into data
you can use

Be mindful of this new
empowered consumer



FACEBOOK
Don’t underestimate
importance of online
story telling

Leverage connected
networks

Have “Social by
Design” strategies
Matt Gierhart,
                                                                                                   Global Head of Social,
Stories from the frontlines of                                                                     OgilvyAction,
                                                                                                   United Kingdom

consumerism
Brands are the new publishers, “facilitating consumers’ own
stories”.
stories”
Social media has increased brand awareness for those that have embraced it. But awareness is not enough: more
utility is needed. Consumers are developing increasingly personal relationships with their favourite brands. In
this context, brands are the new publishers, “facilitating consumers’ own stories”.

“Consumers are taking the brand and making it their own experience,” Gierhart said. The Smirnoff Ice viral
drinking game — in which the victim, presented with a bottle of Smirnoff Ice, must get down on one knee and
down it in one, no matter where they are — encouraged consumers to “ice” their friends and post the evidence
to Facebook. Similarly, Levi Jeans ran a campaign in which consumers hid cameras in their back pockets and
recorded the looks their jeans got from passers by.

Content is the point of entry, but companies need to convert this consumer interaction into sales. US fast food
brand In-N-Out Burger, for example, used social media to propagate a “secret menu” alongside its limited
published menu. Only consumers in the know can access this, via a series of coded keywords. Concluding his
presentation, Gierhart affirmed that consumers are using social media as vast collaborative network to help
them make decisions. Effective strategies for success will take into account this new, empowered consumer.




                                                                                                   Matthew Doris
                                                                                                   European Market
                                                                                                   Development Lead (Global
                                                                                                   Customer Marketing),
The new empowered consumer                                                                         Facebook, United Kingdom


and the “stories” opportunity
Brands need to adopt strategies that are “social by design”
The days of the nameless, faceless web are over, Facebook’s Matthew Doris told delegates. Social media has
played a key role in empowering consumers to tell their own stories online and recommendations among users
are becoming increasingly important. Consumers are now discovering information and knowledge in a different
way, based on who they are and who they are connected with. Brand owners should be aware of this growing
activity: social apps can help people to tell their own stories more easily.

We are also more mobile online, creating “villages” via our connections with multiple social networks. Marketers
need to understand the scope of these linked networks and appreciate that brands are now centre-stage via
social media. Given this, brands need to adopt strategies that are “social by design” and which put people at the
core.




                                                                                                                  20
Arnaud de elloy
 ice President Global Customer
& Sales, Nestl , S it erland
Co Chairman of the Marketing
Committee Activating Shopper
and Consumer Insights




               Turning Consumer &
               Shopper Insights Into
               Growth
               The importance of social
               media, loyalty programmes
               and other sources of data on
               consumer preferences and
               behaviour is not to be
               underestimated
               As co-chair of the Marketing Committee, Arnaud de
               Belloy introduced the start of the event’s individual
               stream on marketing. The importance of social media,
               loyalty programmes and other sources of data on
               consumer preferences and behaviour is not to be
               underestimated, he said. But what has been missing is
               a clear roadmap for converting such data into
               intelligence. Insights are valueless unless we can turn
               them into growth. The marketing stream will attempt
               to provide this roadmap, de Belloy said.
marketing
   stream




        22
Matthew Doris
European Market Development
Lead (Global Customer                                                   Building Brands
Marketing), Facebook,
United Kingdom                                                  through Social Networks
                                                       Marketing that is Social by Design
              Personal recommendations are crucial to driving brand awareness and this now rivals communication by
              traditional media. Following from his presentation in the plenary session, Matthew Doris demonstrated the
              importance of “fans” and how this valuable group of consumers can advocate on behalf of your brand.

              Heavyweight brands such as TicketMaster, Nike and Diageo are using social apps, sponsored stories, and
              check-in deals to create excitement and drive awareness of their brands in highly competitive categories.
              These activities can help marketers to better understand their consumer segments and drive growth. Doris
              argued that, when measured through Facebook’s analytics, these activities can also help brands raise
              shoppers’ intent to purchase.

              Because of this, brands must make sure the consumer experience online is as authentic as “in real life”.
              Consumers don’t recognise any intrinsic difference between the way a brand’s physical business is operated
              and its activities online. Increasingly, online is real life.




  Jean-Jac ues andenheede
  Director etail Insights Europe,
  The Nielsen Company,
  Belgium
                                                           Building Brands for Brand
                                                                      Equity Growth
                                                Word of mouth is the new advertising
          “Socialomics” is here! Word of mouth and user recommendations are the new advertising. Social media
          is all about users sharing their experiences and “likes” and allowing them to be amplified across their
          networks, according to Nielsen Director of Retail Insights Europe Jean-Jacques Vandenheede.

          He coined the term “socialomics” to refer to the growing trend. Building your brand via social media is
          now an essential driver of equity growth. But because social is about sharing, the old megaphone
          technique is no longer valid: the spray gun approach to advertising fails in this environment.
          Vandenheede stressed that marketers need to prepare strategies that genuinely engage consumers, to
          ensure they can connect with users and consumers online in a meaningful way.
Key
Takeaways
FACEBOOK

Build brands through
social networks

Ensure user experience
is as authentic on line
as in real life

Use social apps to gain
social insight




THE NIELSEN COMPANY

Build brands for equity
growth

Use social media to
harness growth




                          24
Key Takeaways
                                                                                     JC PENNEY

                                                                                     Be customer centric

                                                                                     Become a resource for your shopper

                                                                                     Understand the true insights

                                                                                     Implement tailored rewards for your
                                                                                     loyalty programme




                                                                                     MICHEL & AUGUSTIN

                                                                                     Build your brand through
                                                                                     collaboration with consumers

                                                                                     Innovative packaging makes a
                                                                                     difference

                                                                                     Build your brand from the “inside
                                                                                     out”




Ruby Anik
Chief Marketing Officer,
JCPenney, USA
                                              The Customer Centric Retailer
                 Turning Shopper and Consumer Insights into Growth
          Shopping is not just about shopping, Ruby Anik said. “It’s about discovery and being a partner to your
          customers.” Retailers need to become a genuine resource to their shoppers, instead of just a store.
          Generating growth in your brand equity relies on this.

          “Shoppers shop the brand and not the channel,” Anik continued. It is therefore critical to have an integrated
          multi-channel strategy. JCPenney has recently invested heavily in its digital marketing plans and plans to
          develop its mobile channel. Social media is hugely important to the retailer: “It’s about generating viral, fluid
          conversations and targeting audiences that JCPenney doesn’t naturally have,” she said.
          JCPenney’s multi-channel plan uses digital marketing to build loyalty and trust amongst its shoppers. Being
          relevant to shoppers provides a point of difference with competitors, Anik argued.

          In order to achieve this, though, a retailer must first understand its customers. JCPenney’s own data has
          revealed a cultural shift with its shopper base, from which three main trends emerge:
          The New Savvy – People are shopping more judiciously, mixing new clothing purchases with existing
          wardrobe items. JCPenney is effectively competing against its customers’ wardrobes.
          A Sense of Discovery – Consumers are looking for creativity, innovation and fun despite working with a
          small amount of time and money. They will respond positively to the unexpected.
          Younger Oldsters – Today’s over-60s are the first generation to see old age as a time of opportunity, renewal
          and self actualisation.
          However, not all customers want the same from their loyalty programme, Anik said. “Tailoring rewards is
          essential in making these programmes meaningful.”
Building a Brand through                                                                         Michel de Rovira
                                                                                                 Co founder and CEO,

Collaboration with Consumers                                                                     Michel & Augustin, rance


Taste is the first promise to your consumers
Michel de Rovira built up French food brand Michel & Augustin over six years, along with childhood friend
Augustin Paluel-Marmont. Building on the idea of complicity with customers seen with Ben & Jerry’s or
Innocent Drinks, the brand now has such a strong following that it is promoted by its consumers, who have
become “fans”.

Building your brand through collaboration with consumers is essential, de Rovira said. The Michel & Augustin
brand aims to create a special connection with its customer base on a daily basis. “Tell, share and build. It’s a
daily real-time adventure using all media, but with packaging as the number one means through which to
do this,” de Rovira told the conference. “People connect with innovative packaging and this is key to
engaging with your consumers.”

Branding “from the inside out” is also an integral part of the Michel & Augustin strategy. But to make this
work, you must get the fundamentals right. “Taste is the first promise to your consumers,” de Rovira said. “You
have to get this right.” But it doesn’t end there: you must also keep your brand current and relevant to
consumers. At the end of each day, review what you have really shared with your consumer.




                                                                                                                26
uc Demeulenaere
Senior Advisor,
Emnos,
Belgium

Dieter Ebbers
                                            The Consumer & Shopper Journey
Director Market esearch
and Media est Europe,                               Customer Centric Value Creation
 enkel, Germany
                                                between Retailers and Manufacturers
     Successful retailers and consumer businesses ultimately create more value for shareholders and drive growth
     by taking a customer-centric approach, Luc Demeulenaere argued. He added that the industry is currently
     challenged to bring more focus to what the consumer and shopper really wants. Given the impact of digital
     media, online retailing and the rise of a new generation of consumers, the scope for winning new business is
     no longer limited to the store.
     But finding out what your customers really want just got simpler. The Consumer and Shopper Journey
     Framework merges traditional insights into manufacturers and retailers with a 360° shopper and consumer
     view, allowing the industry to build stronger value propositions and more effective marketing plans.
     Developed for ECR, it is a practical set of tools and processes, designed to allow retailers and manufacturers to
     gain a better understanding of consumer and shopper journeys.
     The framework offers a platform from which to develop commercial innovation, Demeulenaere said. The idea is
     to help companies to evolve from selling products to selling solutions and move from category management
     to shopper-driven marketing.

     Dieter Ebbers explained how Henkel’s “GLOCAL Shoppers’ Perspective” study had applied the framework. The
     study identified three distinct international shopper clusters: economiser, value-seeker and carefree, all of
     which show different behavioural characteristics. “Shopper-centric activities are not a story for the future
     only,”Ebbers said. “They can be implemented today and we should seek to harness this approach as soon as
     possible.”
A Revolution in Service                                                                       atsuhiko Umetsu
                                                                                               Senior Manager Global Business
                                                                                               Dpt, amato Transport Co. td.,
  Building a Brand that Symbolises Trust                                                        apan

  & Excellence

Building a Brand the last centimetre hasisbeenlastcrucial factorExcellence Japan’s number
 The most important part of any delivery journey the
 Focusing on the quality of
                            that SymbolisesaTrust & according to Katsuhiko Umetsu.
                            that                     centimetre,
                                                                 in making Yamato
  one parcel delivery service, he claimed. The company based its business model on the belief that high
  quality service as a starting point will drive volume, leading to profitability and reinvestment in service
  quality.

  Yamato’s corporate philosophy is based on understanding the power of gemba, meaning “frontline”. If your
  company is only as good as the person who makes contact with your customer then this makes frontline
  employees the most powerful in the business. The company underpins this strategy by describing its staff
  as “employees of the customer”.

  The “revolution in service” is based on the idea that it is your quality of service that generates revenue, not
  your business activity. Everybody needs to send parcels. But they choose Yamato more often because of the
  service they receive, Umetsu argued.




 Key
 Takeaways
 EMNOS & HENKEL

 Insights driven

 Segmentation based

 Building co-equity in
 "sweet spots"

 Continuous
 engagement

 Enabled organisations




 YAMOTO TRANSPORT

 Build trust and
 excellence in customer
 service: First comes
 service, profit later.

 Fulfill responsibilities
 as members of society:
 safety first, then profit.



                                                                                                                    28
Clyde Pereira
CIO, Coca-Cola Hellenic,
Austria and Co Chairman of
the IT Committee Connecting
Businesses for Consumers




               The Consumerism of IT
                The importance of social
                media, loyalty programmes
                and other sources of data on
                consumer preferences and
                behaviour is not to be
                underestimated
                Information Technology is no longer just a back-office
                function. Increasingly, IT has a strategic and
                consumer-facing role to play in business and CIOs
                need to be aware of this trend. Introducing the
                individual stream on IT, Clyde Pereira encouraged
                delegates to think about what they can do collectively
                to help shape the industry and anticipate the latest
                trends. The Consumer Goods Forum IT Committee, he
                said, is currently working on five strategic priorities:
IT
ream




   0
Matthias er og,
 Director Information
 Systems, ra t Foods                                     On-The-Go Snacking
 Europe, S it erland
                                                         meets digital innovation with
                                                                           Kraft Foods
When Kraft Foods Europe looked for ways to increase sales by capitalising on in-store vending, it was
presented with three innovative digital schemes, Matthias Herzog said.


Facebook on their mobile device, to obtain a free sample and post a photo of themselves trying it. This



and download the recommendations to their phone. A sampling facility is also provided, while the


While the schemes are still being piloted, they show how social media and in-store activity can be

trials. The touch-screen enabled vending machine was so successful that restocking to meet demand
became a daily logistical challenge. Herzog said some useful learning points had emerged too — not
least that innovation is a process and not a technology. He also admitted the need for “guerrilla tactics”
at times to overcome internal bureaucracy and barriers.
Key
Takeaways
KRAFT FOODS

Innovation is a process not a
technology

Innovative digital solutions help
drive sales

“Guerilla” tactics can help
overcome internal bureaucracy and
barriers



SONAE

Understand business problems &
position yourself in the future

Use an interoperable

protect your investments

Find your business’ killer app
pilot in less than 2 months
Be prepared for the pull: users
will be demanding new
functionality

Measure everything usage,
speed, problems



 From assisted service to                                                                        Jo o G nther Amaral
 customer self service                                                                           Director,
                                                                                                 Sonae, Portugal
 mobile technology, improves customer
 experience at Sonae                                                                             Nuno Almeida,
                                                                                                 E Commerce Director,
 Back-office accuracy is essential to running a tight ship in retail, but                        Sonae, Portugal

 too much time on back-office processes and struggling to meet customer service needs on the shop floor.
 The solution was to bring the back-office onto the shop floor, by putting it in the store associates’ pocket. The

 printer technology where appropriate.


 customer. However, by incorporating feedback from users and adding additional functionality such as label

 have also started to add up, such as improved customer service, the ability to solve problems in front of the
 client and fewer stock-outs.
 The system’s architecture was based on interoperability, including mobile-ready components. This has been

 online picking and an internal mobile app to increase the information available to store managers. Future
 developments may include a consumer-facing app, but for now, the key learning points were the need to use
 an interoperable architecture and to be prepared for demands for increased functionality.
                                                                                                                     2
Matthew Doris
European Market Development
Lead (Global Customer
Marketing), Facebook,
United Kingdom
                                                Connect with your Consumers
                                  Build your business through social networks
                                  Build
        The new internet is based on identity. The connected consumer takes her identity with her across different
        sites and platforms. The starting point for this is the Facebook ‘like’ button, one of the building blocks of an

        using their Facebook identity.



        serves up live musical content, are just two sites that contain Facebook feeds, allowing users to make
        purchases based on recommendations and endorsements from friends — or friends of friends.
20




Key
Takeaways
FACEBOOK

Use personal identity to provide




GOOGLE




Cloud computing is not the future,
it’s already here




                                                                                              Didier Goibert
                                                                                              Mid Market Director, EMEA,
                                                                                              Google Enterprise,
The Future of IT – 100% Web                                                                   United Kingdom

Cloud computing is not the model of the future – it is already here.

a scalable and secure shared subscription model. Users only pay for what they use, they can access the cloud




According to Goibert, more than one million businesses, including grocery retailers, have already switched
to Google’s cloud computing services. The cloud offers “new capabilities in terms of mobility and
collaboration,” Goibert told delegates, all of which he said would help lower costs for businesses and provide
a more reliable and secure solution.
Google’s own cloud strategy relies on three main elements:


   video, Google cloud connect and Google Postini
   Google apps engine: A service through which businesses can run their own web applications on Google’s

   Google market place: A “new way of consuming IT for corporations”, providing apps for businesses which
   can be subscribed to and are immediately available                                                            4
Freiko aeyens                                                                                                IT Breakout Session
IT Director Infrastructure
Centre of E cellence,
Delhai e Group, Belgium


Paul French
 ice President, product and
Solution Marketing,
Axway, USA
                                                                                                   Integrated IT
                                           Delivers Superior Brick and Mortar Store Customer Experience
                                           De


           late or incomplete under the company’s “home-made” tool and this was hurting sales and supply chain functions.
           This in turn led to poor strategic decisions and unhappy customers.


           controlled using this system and, crucially, alerts were delivered in the event of failure. Following a pilot in four

           challenges, such as how to manage installation, rollout and maintenance across 800 stores. Ultimately, though, the

           far more rapidly than would have been possible under the old system.


           delivery of a file once it had been created. The retailer is now considering the feasibility of consolidating its data




Milan Turk                                                                                                 IT Breakout Session
Managing Director, Global
Customer Business Development,
Procter & Gamble, USA


Joe orwood
GS1 Mobile Com Manager,
                                                                                                 Data Integrity
GS1,Belgium                                                The Key to Connecting Business for the Consumer



            business-to-business functions.

            Pr

            American business. By standardising the process, the company was able to reduce 220 distinct tasks to just 10.


              imilarly, P&G’s eContent project looked at making improvements to content found on eCommerce websites
            like Amazon.com and Walmart.com.

            "Ba
            eCommerce websites.” He added: “For consumers this is a digital first moment of truth and it's critical to get it
            right."

            By
            In the past 12 months, more than 31 million items of eContent have been delivered via the solution for new
Key
Takeaways

DELHAIZE & AXWAY

Optimize file transfer
between store and
head office operations
for improved reliability,
visibility and
manageability of data

Back to basics - IT
drives efficiency in the
back office




PROCTER & GAMBLE
GS1

Improving data

e-commerce websites
is critical


service model helps
brands fully own their
product information
on line




                            6
Key
Takeaways
TESCO
GS1
By making product
information as rich as
possible products are
brought to life for
customers in the
virtual world of online
shopping




MICROSOFT

Improving data

e-commerce websites
is critical

Business benefits can
trump cost-saving
benefits in the cloud
20




IT Breakout Session
                                                                                               Richard Copperthwaite
                                                                                               IT Director, Tesco com,
                                                                                               Tesco, UK



Beyond the Label                                                                               Malcolm owden
                                                                                               President Global Solutions,
Providing Digital Product Information to Build Consumers Trust                                 GS1


How does a company the size of Tesco manage an ever increasing array of digital product information for
its stores, websites and mobile apps?


consumer is on a website, they cannot pick up a product, feel it in their hands and read the packaging. By
making the product information as rich as possible we bring products to life for customers in the virtual
world of online shopping."

Tesco manages product data centrally, with information feeding its various platforms. However, the system



product information and nutritional data available to power third-party internet and mobile applications


Copperthwaite urged companies to go beyond the label and take the same care with digital product
information as they do with information that is printed on the packaging.




IT Breakout Session                                                                            irk Carver
                                                                                              Senior Strategist, Enterprise
                                                                                              Strategy & Architecture,
Beyond the Hype                                                                               Microso t Corporation,USA

Pragmatic Pursuit of Cloud Computing Opportunities

Everybody is talking about “the cloud” — but beyond the buzz-word, cloud computing offers five concrete
benefits, Kirk Carver said. These are: billing based on measurable usage; on-demand self-service; broad
network access; resource pooling and rapid elasticity.
Bey
on-premises “private cloud” (where the service is fully managed by the client) to software as a service
(where the data is fully managed by the service provider).
The cloud is also elastic, to suit varied workload patterns. “Off and on” service suits processes that happen


peak.
Th

Many services have been operating within the cloud for years, while others are coming online through

and General Mills had already successfully tapped into the benefits of the cloud, Carver pointed out.

considering migration to the cloud should evaluate cloud investment opportunities alongside the rest of
their IT investment opportunities.                                                                              8
John S. Phillips
Senior ice President,
Customer Supply Chain &
Logistics, PepsiCo USA



Tony endrig
E ecutive ice President
Business Development,
Ahold, Europe




          Delighting The Consumer
          Acting As One.
          Help businesses collaborate in
          new ways to delight the
          consumer at the shelf, each and
          every day.
          Welcoming delegates to the individual stream on supply
          chain, John Phillips said that, in line with the wider goals
          of The Consumer Goods Forum, this year’s event was
          designed to “help businesses collaborate in new ways to
          delight the consumer at the shelf, each and every day”.

          The Supply Chain Committee is currently driving three
          core projects, he said. These are:

          *      define future supply chain best practices;
          *      use the global scorecard to improve performance;
          *      help upstream integration of raw materials
                 ingredients and packaging.
supply
                                 40


© Anton Balazh - Fotolia.com
Key
Takeaways
LEAN ENTERPRISE ACADEMY

Define value back from
the customer, not
forward from assets or
targets

Look at the whole
value stream, rather
than optimising points
along it

Focus on time: creating
flow makes waste
visible

Waste is a symptom of
forecast errors,
batching systems and
poor cooperation
along the stream




KRAFT FOODS

Multi modal transport
sharing platform - by
January 2013 creation of
an Independant Logistic
Optimiser to liaise
between manufacturers
and retailers for
collaboration
opportunities
Pro . Daniel T. Jones
Collaborative Lean Supply                                                                       ounding Chairman of
                                                                                                ean Enterprise Academy,

Chains for the Web Era                                                                         United Kingdom

Working Together with Informed and Impatient Consumers
                                       tient Consumers
                                          n
Daniel Jones introduced the concept of “lean” to the grocery industry in 1999 with a pilot project for Tesco. “Lean
thinking,” he said, “can be used to fundamentally rethink supply chains to make them more competitive.”

The key to making lean work, Jones argued, is to look at the whole supply chain rather than optimising parts of it.
“You need to dig down to root causes and look at the supply chain as a whole.”

While IT solutions can help resolve such issues when implementing lean, making the plan visible and establishing
good root-cause problem-solving are the only ways to optimise the horizontal value chain, Jones said.
Manufacturers need to “think differently about SKUs” in order to manage capacity more efficiently, he said.
Inventories, rather than production, should cover variation in demand.

Stressing that “there is no one way,” Jones said lean was not just a tool box for eliminating waste. It is more
properly the capability to respond to and solve problems. Lean solutions are particularly relevant today, since “we
are now in a world of multi-channel — even for a single customer”.




                                                                                                Jochen Rackebrandt
                                                                                                Director Customer Service
                                                                                                EMEA, ra t Foods,
                                                                                                Germany
Multi-Modal Transport Sharing
                                                                                                Dennis Wereldsma
Initiative for Consumer Goods and                                                               Global Sector Leader
                                                                                                Distribution & Transportation,
Retail Companies                                                                                Capgemini, The etherlands


Road transport used to be cheap, Jochen Rackebrandt said. No longer. Increasing congestion, coupled
                                                                        Increasing congestion coupled
                                                                             asing congestion, coupled
with a shortage of drivers and road capacity is beginning to make a strong case f t         t h i
                                                                                for transport sharing or
alternative modes. Indeed, optimising a shared supply chain is one of the four objectives of the
Consumer Goods Forum 2020 Future Supply Chain.

The Multi-Modal Transport Sharing Initiative is a trial collaboration between Kraft, Nestlé, Colgate,
Ahold, Tesco, SC Johnson and Bacardi. Opportunities for collaboration had been identified and a legal
entity is to be set up to perform the role of independent logistics optimiser (ILO) to liaise between the
manufacturers and logistics service providers. Among the key performance measures identified for the
trial were the decision to include KPIs such as being cost-neutral, ensuring cost-transparency, facilitating
carbon reduction and the decision to make no compromise in service levels.

Denis Wereldsma said the ILO would be created in 2012 and a start-up plan will be agreed by January
2013.

In an interactive poll, the audience identified the two best collaboration opportunities as the east-west
corridors within Europe (62%) and in-bound from China into Europe (40%).


                                                                                                                  42
Key
                                                                                           Takeaways
                                                                                           PROCTER & GAMBLE
                                                                                           IBM

                                                                                           Use GS1 standards to
                                                                                           deliver better results
                                                                                           Scorecard data helps you
                                                                                           set priorities
                                                                                           The scorecard is of no use
                                                                                           if you do not have data in
                                                                                           it



                                                                                           BARILLA

                                                                                           Healthy food drives
                                                                                           sustainability
                                                                                           Reduce carbon emissions
                                                                                           & energy consumptions
                                                                                           Optimising transport &
                                                                                           distribution
                                                                                           Sustainable sourcing
                                                                                           More environmentally
                                                                                           friendly products
                                                                                           Customer communication
                                                                                           Reducing packaging and
                                                                                           waste


Jim Flannery
Managing Director, Customer
Business Development,
The Procter & Gamble Company,
USA
                                                  How to Create Value for You and
                                                         Cre
Steve rown
                                                       Comp
                                                  Your Company Using the Global
General Manager,
Global Consumer Products
Industry, I M, USA
                                                                        Scorecard

        Using the Global Scorecard across businesses brings concrete benefits, Jim Flannery said. The Consumer
                                           b                            b
        Goods Forum’s Annual Compliance Survey has run since 2000, trac
                                                                     tracking the implementation of GS1 standards
                                                                       “Us
        and processes (like GDSN) and the resulting business benefits. “Using data standards is beneficial,” Flannery
        said, adding: “There is a positive correlation between the u     usage of GS1 standards and improved
        performance ”
        performance.”

        Among the benefits revealed by the Compliance Survey were: 61 hours reduction in lead time; 5.8% points
        of reduced out-of-stocks; 5.2% points saving of distribution costs and invoice accuracy was up 1.5%.

        Procter & Gamble had used the Global Scorecard effectively to compare performance of different clusters
        and countries and to establish priorities and choices, Flannery told the conference. In addition, using the
        scorecard with trading partners had helped P&G improve the opportunity gap for specific customers and
        provided a chance for them to further their relationship. “If you have a benchmark, you can begin making
        choices on what to improve, and help understand the cost of investment,” Flannery said.
*




                                                                                             Ste ano Pietroni
                                                                                               et ork Design, Planning &
Food that’s Good for You, is                                                                 Sourcing Director, arilla Group,
                                                                                             Italy

Good for the Planet!
How consumers' diet choices drive planet sustainability & products
supply chain

Sustainability initiatives and credentials are no longer an optional extra, Stefano Pietroni said. They are a
“must-have” for retailers and shoppers alike.

“Shoppers’ choice of healthy food is driving sustainability,” Pietroni said. The Barilla Center for Food &
Nutrition (BCFN) has developed a double pyramid (food and environmental), using a life cycle assessment
(LCA) to consider the water, carbon and ecological footprint of different food groups. This has driven supply
chain action in the field, in production, packaging, planning and logistics as well as in how shoppers cook
their products, Pietroni said.

In addition to identifying key food and nutrition priorities, BCFN aims to collect and analyse advanced
experience and knowledge from around the world and develop proposals and recommendations for opinion
leaders and decision makers. Green growth, food security, food for health and food for culture are among the
top priorities for BCFN, Pietroni told the conference. BCFN’s work has also helped businesses set
manufacturing KPIs in energy use, waste, recycling and water consumption.




                                                                                                               44
Midori amaguchi
General Manager, Supply Chain
 e engineering Department,
Supply Chain Division,
AEON Global SCM Co Ltd apan                   H
                                              How Aeon Rebuilt its Supply Chain
                                                          People giving more of themselves
          In March 2011, Japan suffered a devastating earthquake and tsunami, both of which left a litany of
          destruction in their wake. For those that survived the double disaster, access to food and supplies was
          critical. But Aeon, Japan’s leading retailer, had also been drawn into the chaos.

          Of the 443 Aeon stores in Tohoku, northern Japan, that were affected, 65% could not operate at all, Midori
          Yamaguchi told the conference. But Aeon had prepared. Its business recovery process ensured that 95% of
          these stores could reopen within two weeks.

          With 30% of total supply chain capacity gone, Aeon’s network had to move up a gear: by the second week,
          130% of regular capacity was being shipped. In this first stage of recovery, DCs in western Japan were
          supporting the effort by operating at more than twice their capacity. Supply chain and logistics, private
          brand supply networks and product sourcing were three important elements of the recovery. In addition,
          close collaboration with business partners was an essential factor.

          Technology and the ability to get real time information from the field were important to the success of the
          recovery, Yamaguchi said. But above all it was down to people giving more of themselves. Yamaguchi
          commended his colleagues’ resourcefulness and teamwork.




 Alberto Madariaga
 Supply Chain Director,
 Grupo Eroski, Spain

                                                        Collaboration, Innovation and
Imanol Alberdi
Logistics Operations Director,                             Sustainability Means More
Grupo Eroski, Spain
                                                                          Profitability
          Spanish consumer co-operative Eros reduced costs by 20% and CO2 emissions by 18 tons by centralising
                                             Eroski
          its supply chain management in partnership with Europol Systems. The change in flow strategy also allowed
          the retailer to reduce inventory, since the new system required on 0.3 days of stock. The rethink also included
          the installation of an automated order-picking system, which improved quality and freshness as well as
          shaving off cost.

          Alberto Madariaga said logistics professionals were like midfielders in a football match: “Our role as a
          midfielder means having a wide operational vision and we must play an active part in the value chain
          processes.”

          Imanol Alberdi led a live opinion poll among delegates, with 78% agreeing with the statement: “We talk a lot
          about collaboration, but we have difficulty in making it a reality.”
Key Takeaways
AEON
Recovery would have been
impossible without:

      Partnership

      Responsibility

      Leadership

      People power


EROSKI

Simplification, innovation and
sustainability improve quality
and profits

Optimizing transport across
“logistics platforms” resulted in
20% reduction of costs and 18
tons less of CO2 emissions


ICA

Open dialogue with customers

Improvement became part of
everyone’s responsibility

Worth investing in automation
competence



                                                                                                Michael Johansson

 How Change Management Turned                                                                   Head of Logistics Operations,
                                                                                                 arehouse and Transport
                                                                                                Management, ICA, S eden
 ICA’s Warehouse Operation &
 Automation from Disruption to Best
 in the Class
ICA had experienced poor service levels to store, following the implementation of an automation process
at its Helsingborg warehouse. The poor service had been caused by a lack of automation experience,
non-standard demands, everyday “fire fighting” and a lack of leadership attention, Johannes Åverling said.
Lack of clear priorities and responsibilities created internal challenges, while a complex structure, differing
cultures and frustration among employees had mixed with varying perceptions of IT priorities among
colleagues to contribute to the problem.

Effective change management, then, was the key to the project’s success. ICA identified the need to have
open dialogues with customers, involve local teams and set up cross-functional teams to make the change
happen. Furthermore, “improvements became part of everyone’s responsibility,” Åverling said. Following
the change management programme the automation system began to deliver measurable benefits to the
business.

Åverling advised delegates that the investment in automation competence is well worth making, but
recommended that businesses start working on managing the change at least two years before the
automation.
                                                                                                                  46
Key
                                                                                                Takeaways
                                                                                                IGD
                                                                                                Get started on collaboration

                                                                                                Be aware of the supply chain
                                                                                                initiatives coming up in your
                                                                                                market
                                                                                                Walk the chain with your
                                                                                                supply chain partner to
                                                                                                challenge the status quo

                                                                                                Execute on the basics to
                                                                                                sustain momentum in your
                                                                                                collaboration journey


                                                                                                COCA-COLA

                                                                                                Define the brand and pack
                                                                                                set – keep it simple and
                                                                                                standard

                                                                                                Disconnect product supply
                                                                                                from daily operations to
                                                                                                reduce the risk

                                                                                                Deal with every eventuality in
                                                                                                such an event

                                                                                                Build speed and capacity




Tarun Patel
Head of Supply Chain,
IGD,
United Kingdom
                                                        Taking a Supply Chain Gamble
                                                        Collaboration has a key role to play
          The message of collaboration is not new, Tarun Patel told the conference. Indeed our industry is already one
          of the most progressively transparent, he argued. However, the need to secure competitive advantages via
          collaboration is more urgent today than ever, since the pressures and challenges we face due to a changing
          world are far greater than they used to be.
          The UN Index of food commodity prices is up by 39% on last year, Patel said. Meanwhile, an increase in
          temperature for grain of a single degree Celsius can reduce the yield by much as 10%. “With an increasingly
          volatile environment, companies must navigate their way through fluctuating supply,” Patel said.
          With the current economic climate, companies are seeking levers to drive growth. Patel said that recent
          research from IGD had identified that one in three manufacturers globally say promotions account for 50%
          or more of their sales. It is therefore no surprise that understanding price and promotions, the shopper, and
          supply chain have been the clearest commercial priorities for the past three years. “The resulting volatility in
          demand and supply means that there is an even greater need to build responsiveness. Collaboration has a
          key role to play here.”

          IGD has defined six levels of collaboration and measures performance against 15 criteria. Internationally,
          21% of suppliers now have a strategic supply chain partnership with their key customers, a significant
          increase on last year.

          It’s never too late to begin. “Get started on collaboration,” Patel told delegates. “Be aware of the supply chain
          initiatives coming into your market, walk the chain with your supply chain partner to challenge the status
          quo, develop the skills of your people and execute on the basics to sustain momentum in your collaboration
          journey.”
Frank van der ei den
                                                                                              Commercial Director,
Delivering the “Perfect Serve”                                                                Coca-Cola ellenic,
                                                                                              Austria
The Coca-Cola Company’s Supply Chain
                                                                                              Peter atham
Learnings from FIFA World Cup and London                                                       ice President Logistics,
                                                                                              Coca-Cola Enterprises,
Olympics                                                                                      United Kingdom


When it comes to managing supply during special events such as the FIFA World Cup, the oppo tunity to
                                                                               orld Cup, the opportunity to
                                                                                  d Cup,      ppor   ity
excel is just 15 minutes during the half-time break, Frank van der Heijden of Coca-Cola Hellenic said.
Building speed and capacity is essential to success, as is reducing risk by disconnecting supply from
everyday operations.

When it comes to an event on the scale of the Olympics, effective preparation is critical, Peter Latham said.
In addition to managing all aspects of operations in the venues for the 2012 games, collaboration, building
the in-store experience and developing shared supply chain concepts were very important considerations.
Latham emphasised the importance of gaining credentials in sustainable supply. “Doing so can put supply
chains in the top tier,” he told delegates




                                                                                                                48
OPERATIONA
E CE ENCE
 REA FAST
SESSIONS


             Key
             Takeaways
             MONOPRIX
             TRACE ONE
             Innovative product
             packaging brings value to
             brands
             Set up of a collaborative
             workspace to accelerate
             product development

             Private workplace in the
             cloud for everybody

             Secured collaborative
             architecture allows
             certain activities to be
             performed in real time

             Get started on
             collaboration

             Be aware of the supply
             chain initiatives coming
             up in your market
Stephane Ma uaire
                                                                                      CEO, Monoprix,
                                                                                       rance



 Packaging Innovation Beyond                                                            ubert     mard
                                                                                      Deputy Chief E ecutive,
                                                                                      Monoprix, rance
 Customer Expectation
French retailer Monoprix used innovative product packaging to bring value             J r me Malavoy
                                                                                      CEO,
to its brands, creating a more satisfying shopper experience. Faced with the          Trace One, rance
challenge of designing new packaging that stood out, the business used an
Andy Warhol style design and plenty of colours on 2,000 Monoprix products.

Implementing such a change within the private label management process, however, was and
operational challenge. To manage the project, Monoprix set up a collaborative workspace to
accelerate product development, which could be shared by printers, designers, laboratories and
auditors in real time.

Everybody using the system had a private workspace in the cloud and, with the help of a secured
collaborative architecture, activities such as document management and web proofing could be
performed in real time. This created time savings of between 20% and 30% in new product
development, a process which would normally take between six and twelve months.




                                                                                                            0
Key
                                                                                                Takeaways
                                                                                                DELOITTE

                                                                                                Look for growth
                                                                                                opportunities in markets
                                                                                                with changing
                                                                                                demographics

                                                                                                Brands need to harness
                                                                                                connections with
                                                                                                consumers to drive
                                                                                                growth
                                                                                                Find creative, relevant
                                                                                                and legitimate ways to
                                                                                                interact
                                                                                                Link bricks and mortar
                                                                                                businesses with online
                                                                                                opportunities




 awrence utter
Global Leader Consumer Business,
Deloitte, United Kingdom
                                              The Mobile Consumer 2020+:
                                              Communicating, Connecting,
Fernando Sou a
Director, Deloitte Spain                      Socializing, and Shopping

          Economic and demographic change are changing shopper preferences, according to Lawrence Hutter and
                                   changes
          Fernando Souza. Markets undergoing demographic change offer important growth opportunities.
                                   underg
          Consumers’ changing menus and the sustainability imperative also play their part in changing shopping
          habits.

          At the same time, mobile technology is revolutionising the way we access and share information. Deloitte’s
          report “Consumer 2020 - Reading The Signs” highlights the                  increasingly “obsessive” nature of
          communication and socialising online. Brands must harness this to nurture connections with consumers, as
          online influencers drive growth. But consumer engagement is not a given. Marketers must earn their
          dialogues with consumers by finding creative, relevant and legitimate ways to interact in a positive and
          visible way. As digital behaviour becomes mainstream, it is critical to link bricks and mortar businesses with
          online opportunities.
Key
 Takeaways
 IBM

 Start using information
 across the business
 Prioritise investment far
 more towards digital
 Plan and prepare now for
 the five year horizon




The Future of Marketing                                                                               Patrick Medley
                                                                                                      Consumer Product Industry
                                                                                                      Leader, I M, Australia
The Global Chief Marketing Officer
Study 2011
 “Stop telling and start talking,” Patrick Medley warned. The “omni-consumer” is coming. These
 technology-enabled consumers will see everything and know everything — and the future of marketing
 depends on establishing a true dialogue with them.

 While devices such as the smart phone, kiosks, gaming and interactive outdoor advertising, can help, the
 digital era will also see new challenges emerge for CMOs. There will be more data and more clarity when it
 comes to analysing real results from campaigns, so senior marketers are likely to be increasingly held to
 account.

 Medley’s remarks drew on the findings of IBM’s Global Chief Marketing Officer Study 2011, which brings
 together conversations with more than 1000 CMOs. “CMOs have just three to four years to get ready,” Medley
 said. Many are unprepared for the data explosion, however. Some 85% are concerned about this, the study
 shows.

 But there is a roadmap, Medley claimed. The solution to solving such data problems lies in closer internal
 collaboration between IT and marketing functions, rather than relying on marketing agencies for support.
 “CMOs will also need to foster lasting connections with consumers if they are to empower them.” Many are
 currently using traditional sources of insight to achieve this, but it will be new sources of insight in the future
 that make a difference. Now is the time to experiment, Medley advised the conference, to ensure CMOs get
 the best out of consumer relationships in the future.
                                                                                                                    2
John S. Phillips
Senior ice President, Customer
Supply Chain and Logistics,
PepsiCo, USA
                                                              Future Value Chain 2020

         “Plan now for a radically different world,” John Phillips told the closing plenary session. Twelve mega trends
         will shape our supply chains, systems and brands in the future, according to the findings of the Consumer
         Goods Forum’s “2020 Future Value Chain” report. While some of these trends point to a greater need for
         efficiency, Phillips said that others would mean changes to entire business models and “new ways of
         working, both within companies and with trading partners”. Transparency and collaboration with shoppers
         and other businesses will become increasingly important too.

         The trends are: increased urbanisation; aging population; increasing middle class; adoption of consumer
         technology; increased consumer service demands; increased importance of health and wellbeing; growing
         concern about sustainability; shift of economic power; scarcity of natural resources; increase in regulatory
         pressures; rapid adoption of supply chain capabilities; the impact of next generation technologies.

         The aims of the Future Value Chain project are to make the consumer goods business more sustainable, to
         optimise a shared supply chain, to engage with technology-enabled consumers and to serve the health and
         wellbeing of consumers.

         A full copy of the report can be accessed at www.futurevaluechain.com.
Caroline Mc ugh
                                                                                                 Chief IDologist,
                                                                                                 IDology, United Kingdom

Cherry on the Cake
The Art of Being You – Releasing Human Potential to its Fullest
Who are you really? What is the message of your life? These are the basic questions Caroline McHugh
suggests we ask ourselves. “People who are truly successful have a signature, a voice – one true note they are
destined to sing,” McHugh said. “Each one of us is different and none of us knows how long we have on this
planet – so we need to be clear on what we as individuals expect from life.”

Learning to be the authentic version of ourselves is the key to manifesting our expectations, McHugh said,
although we are generally better at being authentic when we are children than in adulthood. This is partly
due to the need to manage the way we are perceived: as a parent, an executive and so on. “But why let
someone else decide who you are?” McHugh asked. “You cannot master others until you have mastered
yourself,” she argued. The key here is to understand your own “interiority”. According to the IDology model, a
personality is made up for four elements, expressed as concentric circles: perception, persona, ego and id,
the centre of your subconscious universe. The trick is to “pick one thing that you know you want to find in
yourself” and focus on that.

One thing is certain for McHugh: a life without risk is a life that will never reach its true potential. “You have
to live life on the edge.” Or, at the very least, we owe ourselves a serious reflection on why we have made the
choices we have so far in life and what comes next.

                                                                                                                     4
Networking Moments
Marketing, IT and Supply Chain Con erence 2011




                                           6
Networking Moments 2011
The Consumer Goods Forum
                                              Join us in Paris
                                                6 - 8 November 2012




                        Marketing Forum
                        IT Conference
                        Supply Chain Conference



                             www.tcgfoperationalexcellence.com
                                                                      6



© Beboy - Fotolia.com
The Consumer Goods Forum would like to thank the companies below for their valuable support:




                             www.tcgfoperationalexcellence.com

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Operational Excellence 2011 Executive Summary

  • 1. 20 marketing / supply chain / information technology 11 Executive Summary ConsumerGoods DrvenSucces EmergingTrends Share 1PlaceToNotMiss AllBeginningsStartWith1Place PersonSkilledlnTheArt AGoodPlaceToVisit BestPlactice Utility SenseOfPlace BestMinds BetterLives TakePlace BetterLivesThroughBetterBusiness StrongFocus KnowledgedSharing SeniorManagmentMembers The Consumer Goods Forum Time&Place2.1TrillionEuros IndustryExcellence IdeasExchange BetterBusiness FriendsInHighPlaces RetailersKnowlege GlobalPlatform ActiveParticipation Sharing 70Countries StrategicInformation CommonPositions www.tcgfoperationalexcellence.com BARCELONA
  • 2.
  • 3. the the consumer sumer e goods forum What is the Consumer Goods Forum? The Consumer Goods Forum (CGF) is a global, parity-based industry network, driven by its members. It brings together the CEOs and senior management of over 400 retailers, manufacturers, service providers and other stakeholders across 70 countries and reflects the diversity of the industry in geography, size, product category and format. Forum member companies have combined sales of EUR 2.5 trillion. Their retailer and manufacturer members directly employ nearly 10 million people with a further 90 million related jobs estimated along the value chain. The Forum was created in June 2009 by the merger of CIES - The Food Business Forum, the Global Commerce Initiative (GCI) and the Global CEO Forum. The Consumer Goods Forum is governed by its Board of Directors, which includes 50 manufacturer and retailer CEOs and Chairmen. The Forum provides a unique global platform for knowledge exchange and initiatives around five strategic priorities – Emerging Trends, Sustainability, Safety & Health, Operational Excellence and Knowledge Sharing & People Development – which are central to the advancement of today’s consumer goods industry. The Forum’s vision is: “Better lives through better business”. To fulfil this, its members have given the Forum a mandate to develop common positions on key strategic and operational issues affecting the consumer goods business, with a strong focus on non-competitive process improvement. The Forum’s success is driven by the active participation of the key players in the sector, who together develop and lead the implementation of best practices along the value chain. With its headquarters in Paris and its regional offices in Washington, D.C., and Tokyo, the CGF serves its members throughout the world. 2
  • 4. Executive Summary produced by IGD on behalf of The Consumer Goods Forum IGD is a leading international research organisation for the consumer goods industry worldwide. We offer understanding and insight, developed from extensive analysis of global business issues and an ongoing dialogue with shoppers. We help businesses to identify opportunities, improve performance and create a competitive edge. Find out more at www.igd.com Ideas. Content. Communication. Information designed for your business. Find out more at: www.delevine.co www.delevine.com Fabra Davies is an established cloud organisation with a track record in design innovation and social media for the consumer goods market. With a background in trends, architecture, marketing and contracts completed worldwide, we can provide a unique range of services and skills. Twenty successful years of consultancy is a reflection of our commitment to inovation, quality and the talent of our lovely personnel. Find out more at: www.fabradavies.com
  • 5. Contents 2 Introduction 6 Operational Excellence 7 Highlights 8 Experience 10 Committees 13 Store Tour 15 Opening Plenary Sessions 21 Marketing Stream 29 IT Stream 39 Supply Chain Stream 49 Breakfast Sessions 53 Closing Plenary Sessions 55 Networking Moments 4
  • 6. The Strategic Pillars & Forum Activities Ageing Population Share our Health Supply Chain Global Social & Wellness Compliance Information & Education Programme Prepare Health & Our people Carbon Wellness Measurement Principles Connect Deforestation Commitments Business Refrigeration Information Engagement Global Food Safety Future Global Initiative Leaders Packaging Focus on Consumers Future & Shoppers Value Chain Summit THE CONSUMER GOODS FORUM 1 2 3 4 5 OPERATIONAL EXCELLENCE & PEOPLE DEVELOPMENT KNOWLEDGE SHARING EMERGING TRENDS HEALTH & SAFETY SUSTAINABILITY
  • 7. Operational Excellence The key to growth Creating and implementing change in industry collaboration Our objective is to enable trading partners and the Consumer Goods Industry to better serve our consumers and shoppers by driving Operational Excellence. Our aim is to do this through collaborative business practices of New Ways of Working Together. This includes four strategic priorities, which are also reflected in the four Operational Excellence Committees: The objectives will be accomplished through: retailers and other participants in the extended value chain to drive consumer benefits. This would include the adoption and implementation of best practices, GS1 Standards and Industry Utilities. New Ways of Working Together Eliminate supply chain disruptions, enable growth Industry Track ( collaborate ) 2 Best Practices/ Standards Documentation, Education, Communication Guiding Principes and Frameworks Share Results Consumer & Shopper OPERATIONAL EXCELLENCE Satisfaction Focus on business Prepare people for new world Share our consumer information supply chain COMMON GOALS & KNOWLEDGE, SKILLS & STRATEGY ALIGNEMENT MEASURES CAPABILITIES SUSTAINABILITY JAG FRAMEWORK INFORMATION CROSS INDUSTRY INTEGRATION INCENTIVES & REWARDS SHARING* INTEGRATED SUPPLY CHAIN EPC ORGANIZATION DESIGN DATA SYNC Strategic Issues Common Goals, c Measures Other Data Between & Priorities Sharing Common Measures Opportunities Focus Trading Partners Trading Partner Track ( Competitive Advantage ) *Note: Utilizations of Industry Standards The Operational Excellence – New Ways of Working Together Core Team is charged with creating and implementing change in the way our industry collaborates (in bi-lateral trading relationships and on non-competitive Industry issues) to better serve our consumers and shoppers. It also serves as the Integration Platform and Steering Group for the pillar and its work. The Marketing, IT and Supply Chain Knowledge Exchange & Networking Forum At the annual member event, we bring together our members to focus on the consumer and shopper. In bringing retailers and manufacturers together, we look at how we can work together to ensure continuous improvement throughout the value chain by focusing on the needs of the consumer and optimizing processes and collaborative action along the way. It’s all about excellence in execution … and how Marketing, IT and Supply Chain can work together to bring operational excellence to their business. 6
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  • 9. Highlights The shopper and consumer at the heart … The “Shopper & Consumer” is what this gathering was all about. And how we can work together to meet the needs of today’s empowered consumer. We brought together our members to exchange knowledge, network with peers, pick up new ideas and learn from practical experiences. At this knowledge exchange & networking event, Marketing, IT and Supply Chain executives took a deep dive at how we can better serve the consumer by concentrating on the following Marketing, IT and Supply Chain themes: “Turning Consumer and Shopper Insights into Growth” “The Consumerism of IT” “Delighting the Consumer. Acting as One.” Experience Hear what the experts have to say about their experience... “CGF has proven to me to be a fantastic platform to gain valuable insights into how leading industry players address trends that shape our mid to long term future. Networking with peer executives from manufacturers, retail partners and strategic vendors opens many doors for collaboration.” Clyde Pereira, CIO, Coca-Cola Hellenic, Austria “The Marketing Forum exercises and expands your mind like no other marketing event in the world. It is the marketing event of the year for me. We stimulate your left and right brain with an intentional mix of successful case study presentations and relevant experiences, outside of the box, inspirational speakers to stretch your mind.” Stephen Smith, Chief Marketing Officer, Asda Stores Ltd, United Kingdom “Excellent event to get new inputs, to meet inspiring colleagues, to exchange information and to benchmark own ideas!” Andreas Münch, Member of the Executive Board, Head of Department Logistics & IT, Migros, Switzerland “The store and DC tours also provide great insights on how individuals can improve their own operations and leverage new technologies.” John S. Phillips, Senior Vice President, Customer Supply Chain & Logistics, PepsiCo, USA “The CGF Marketing Forum is an excellent blend of manufacturers, retailers, and select suppliers coming together to discuss new ways of working together to deliver improved shopping experiences. The speakers are dynamic and the forum is candid in terms of interaction and discussion – a great mix!” Kristen Nostrand, Marketing Director, Procter & Gamble, USA 8
  • 10. The Consumer Goods Forum is your association By the members, for the members This year’s conference was developed by the Operational Excellence Committees for the members of the Forum. Here are the industry experts who have been working behind the scenes throughout the year.
  • 11. Marketing Committee Activating Shopper and Consumer Insights Arnaud de Belloy, Vice President Global Customer & Sales, Nestlé Group, Switzerland (Co-Chairman of the Marketing Committee - Activating Shopper and Consumer Insights) Stephen Smith, Chief Marketing Officer, Asda Stores Ltd, United Kingdom (Co-Chairman of the Marketing Committee - Activating Shopper and Consumer Insights) Jonathan Ackerman, Customer Director, Pick N Pay Retailers, South Africa Adam Balon, Founder & International Director, Innocent Drinks, United Kingdom Carolyn Bradley, UK Marketing Director, Tesco, United Kingdom Jeff Burt, Group Vice President Perishable Merchandising and Procurement, The Kroger Co., USA Guy Elewaut, Senior Vice President Strategy, Marketing and Communications, Delhaize, Belgium Bernard Fevry, Director of Operational Marketing Europe, The Coca-Cola Company, France Angela Francolini, Vice President, International Marketing & Innovation, Mc Cormick & Co, Inc., USA Markus Gisiger, Head of Marketing Food, Migros, Switzerland Sharon Jeske, Director, Operational Excellence, The Consumer Goods Forum Robert Kitching, Vice President Consumer Marketing Insights Western Europe, Unilever, The Netherlands Meg Levene, Vice President, Field Sales Organization, Johnson & Johnson, USA Satoshi Nakashima, General. Manager, Strategic Trade Marketing Department., Marketing Integration Division, Meiji Co., Ltd.,Japan Kristen Nostrand, Marketing Director, Procter & Gamble, USA Simon Potts, Director - Business Development Health & Beauty Division, Alliance Boots, United Kingdom Patrick Rouvillois, Chief Marketing Officer, Carrefour Group, France Jean Rubens, Executive Managing Director, Casino Supermarches, France Yuji Shimizu, Director, Business Planning & Coordination, Global Consumer Product, Kao, Japan Vanessa Silva, Marketing Director, Jeronimo Martins, Portugal André Tordjman, Chairman and Founder, Little-Extra & Affiliate Professor, EDHEC, France Jean-Jacques Vandenheede, Director Retailer Insights Europe, The Nielsen Company, Belgium Tim Welch, Director International Shopper Marketing, PepsiCo, USA Paolo Zazzi, Europe and Export Customer Marketing Responsible, Barilla, Italy 10 Russell Zwanka, Senior Vice President Sales, Merchandising, and Marketing, Price Chopper, USA
  • 12. IT Committee Connecting Businesses for Consumers August Harder, Chief Information Officer, Coop, Switzerland (Co-Chairman of the IT Committee - Connecting Businesses for Consumers) Clyde Pereira, Chief Information Officer, Coca-Cola Hellenic, Austria ( Co-Chairman of the IT Committee - Connecting Businesses for Consumers) Masayuki Abe, Vice President, Information System Strategic Planning, Kao Corporation, Japan João Günther Amaral, Director, Sonae Portugal Greg Buckley, Senior Director, Customer Supply Chain, PepsiCo, USA Guy Chambers, Chief Operations Officer (Greater China), Swire Beverages, China Andrija Derezic, Executive Director of IT and Telecommunications, Mercator Group, Slovenia Martin Haas, Chief Information Officer, Migros, Switzerland Rod Hefford, Vice President IT - Global Customer Development and Supply Chain, Unilever, United Kingdom Sharon Jeske, Director, Operational Excellence, The Consumer Goods Forum Clinton Keay, Senior Vice President , Chief Information Officer, Sobeys Inc., Canada Espen Kjonsberg, Chief Information Officer, Norgesgruppen, General Manager, Norgesgruppen Data, Norway Andreas Kranabitl, Managing Director, Spar, Austria Kevin Puppe, Senior Director of IT, Johnson and Johnson Consumer Group, USA Marco Rossi, IT Business Process Support Director, Barilla, Italy Jens Siebenhaar, Chief Information Officer, Rewe Informations Systeme GmbH, Germany Franck Suykens, Senior Vice President & Chief Information Officer, Europe and Asia, Delhaize Group, Belgium Joseph Taylor, Director of IT Strategy and Innovation, Wal-Mart Stores, Inc., USA Francesco Tinto, Vice President - IS Americas, Kraft Foods, Inc., USA Milan Turk, Managing Director, Global Customer Business Development, Procter & Gamble, USA Wim Van Herwijnen, Chief Information Officer – Real-hypermarkets, Metro Group, Germany Jerry Wolfe, Vice President, Global Supply Chain Strategy and Chief Information Officer, Mc Cormick & Co., Inc, USA Mike Yorwerth, Group Technology and Architecture Director, Tesco, United Kingdom
  • 13. Supply Chain Commitee Delighting the Consumer. Acting as One. John S. Phillips, Senior Vice President, Customer Supply Chain & Logistics, PepsiCo, USA (Co-Chairman of the Supply Chain Committee - Delighting the Consumer. Acting as One.) Tony Vendrig, Executive Vice President Business Development, Ahold Europe, The Netherlands (Co-Chairman of the Supply Chain Committee - Delighting the Consumer. Acting as One.) Petra Albuschus, Senior Vice President Logistics, ICA Sverige AB, Sweden Tony Borg, Vice President - Head of Corporate Supply Chain, Nestlé Group, Switzerland Frank Bruni, Vice President Logistic Operations, The Kroger Co., USA Roberto Canevari, Group Supply Chain Executive Director, Carrefour, France Nuno Cardoso, Supply Chain Director, Jeronimo Martins, Portugal Geoff Fulford, Group Vice President Customer Service Excellence, Unilever, United Kingdom Martin Gleiss, Supply Chain & Logistics Manager, Spar, Austria Cenk Gurol, Chief Executive Officer, Æon Global SCM Co. Ltd., Japan Sharon Jeske, Director, Operational Excellence, The Consumer Goods Forum David Jones, Supply Chain Director, Waitrose Ltd., United Kingdom Herbert Kueng, Vice President Customer Service & Logistics CEEMA, Kraft Foods CEEMA GmbH, Austria Kieron Low, Supply Chain Director, L’Oréal Consumer Product Division, L’Oréal, France Kerry McNair, Director, Global Supply Chain, Walmart Group, The Coca-Cola Company, USA Andreas Münch, Member of the Executive Board, Head of Department Logistics & IT, Migros, Switzerland Stefano Pietroni, Network Design Planning & Sourcing Director, Barilla, Italy Jim Radin, Vice President – Global Supply Chain Operations, Mc Cormick & Co., Inc., USA Joze Sadar, Senior Vice President, Mercator D.D., Mercator Operations Slovenia, FMCG Retail, Slovenia Yannis Skoufalos, Global Product Supply Officer, Procter & Gamble, USA Xavier Ury, Vice President Procurement Support, Quality and Supply Chain, Delhaize Group, Belgium Naoto Takahashi, Managing Director, Representative Director, President of Production Division, President of Supply Chain Management Division, Kirin Brewery, Japan Special Advisor to the Committee: Valentin Elistratov, Vice President Business Development International Supply Chain, EMEA, DHL Global Forwarding, France 12
  • 15. PROGRAMME OGRAMME Participants were kindly welcomed by: 14
  • 16. Jean-Marc Saubade, Managing Director, The Consumer Goods Forum Opening Plenary Sessions Wednesday 12th and Thursday 13th October The Consumer Goods Forum Managing Director Jean-Marc Saubade welcomed 300 delegates from 30 countries and 130 companies to Operational Excellence 2011 Saubade stressed that, in an uncertain economic environment, the basic need for consumer goods companies to better serve their consumers and shoppers through enhancing operational capabilities was greater than ever. For 2011, the Forum’s Supply Chain, IT and Marketing conferences had come together for the first time under one roof. Saubade took the opportunity of the first plenary session to remind delegates of the principal areas of focus for the Forum. The Forum’s five strategic pillars are: sustainability; safety & health; emerging trends; operational excellence; knowledge sharing & people development.
  • 17. Welcome to Operational Excellence 2011 16
  • 18. Robert McDonald Chairman of the Board, President & CEO, The Procter & Gamble Company, USA Jim Flannery Managing Director, Customer Development, Procter & Gamble Global Operations, The Procter & Operational Excellence Gamble Company, USA New ways of working together “The only strategy consumers and shoppers see is our ability to execute,” Jim Flannery told delegates. Speaking with Robert McDonald, who joined the conference by video, Flannery introduced delegates to the Forum’s New Ways of Working Together framework, which provides a common language for collaborative action. A “game-changing enabler,” the common approach leads to consumer-focused business plans and helps companies create operational synergies McDonald and Flannery urged delegates to take advantage of the networking facilities offered by the enlarged conference to share expertise and gain inspiration from one another: “The Operational Excellence pillar at the Forum is all about making a real difference in the industry and we should all take our work to the next level,” Flannery said.
  • 19. Erik Wahl International Keynote Speaker and Artist USA Think big, dream big The risks and rewards of working together The corporate world can be risk-averse, artist and motivational speaker Erik Wahl told the conference in his keynote address. This is logical, since companies have to manage the interests of shareholders and financial backers. But if innovation is vital in a fast-changing consumer climate, then surely “creativity is the new corporate capital”. This kind of capital is abundant and free, but requires a risk and a shift of focus from the logical left side of the brain to the creative and collaborative right. Wahl encouraged delegates to look for ways to work together, put fear to one side and embrace new ideas. “See the world through different eyes,” he urged the conference. To illustrate his point, quite literally, Wahl painted a picture to music and invited a volunteer on stage. He rewarded the volunteer for taking this potentially humiliating venture into the unknown by making a gift of the painting: “Sometimes it pays to take a risk.” Wahl also painted a portrait of inspirational footballer Lionel Messi. 18
  • 20. Key Takeaways OGILVYACTION Build brand utility alongside brand awareness Turn content from social media into data you can use Be mindful of this new empowered consumer FACEBOOK Don’t underestimate importance of online story telling Leverage connected networks Have “Social by Design” strategies
  • 21. Matt Gierhart, Global Head of Social, Stories from the frontlines of OgilvyAction, United Kingdom consumerism Brands are the new publishers, “facilitating consumers’ own stories”. stories” Social media has increased brand awareness for those that have embraced it. But awareness is not enough: more utility is needed. Consumers are developing increasingly personal relationships with their favourite brands. In this context, brands are the new publishers, “facilitating consumers’ own stories”. “Consumers are taking the brand and making it their own experience,” Gierhart said. The Smirnoff Ice viral drinking game — in which the victim, presented with a bottle of Smirnoff Ice, must get down on one knee and down it in one, no matter where they are — encouraged consumers to “ice” their friends and post the evidence to Facebook. Similarly, Levi Jeans ran a campaign in which consumers hid cameras in their back pockets and recorded the looks their jeans got from passers by. Content is the point of entry, but companies need to convert this consumer interaction into sales. US fast food brand In-N-Out Burger, for example, used social media to propagate a “secret menu” alongside its limited published menu. Only consumers in the know can access this, via a series of coded keywords. Concluding his presentation, Gierhart affirmed that consumers are using social media as vast collaborative network to help them make decisions. Effective strategies for success will take into account this new, empowered consumer. Matthew Doris European Market Development Lead (Global Customer Marketing), The new empowered consumer Facebook, United Kingdom and the “stories” opportunity Brands need to adopt strategies that are “social by design” The days of the nameless, faceless web are over, Facebook’s Matthew Doris told delegates. Social media has played a key role in empowering consumers to tell their own stories online and recommendations among users are becoming increasingly important. Consumers are now discovering information and knowledge in a different way, based on who they are and who they are connected with. Brand owners should be aware of this growing activity: social apps can help people to tell their own stories more easily. We are also more mobile online, creating “villages” via our connections with multiple social networks. Marketers need to understand the scope of these linked networks and appreciate that brands are now centre-stage via social media. Given this, brands need to adopt strategies that are “social by design” and which put people at the core. 20
  • 22. Arnaud de elloy ice President Global Customer & Sales, Nestl , S it erland Co Chairman of the Marketing Committee Activating Shopper and Consumer Insights Turning Consumer & Shopper Insights Into Growth The importance of social media, loyalty programmes and other sources of data on consumer preferences and behaviour is not to be underestimated As co-chair of the Marketing Committee, Arnaud de Belloy introduced the start of the event’s individual stream on marketing. The importance of social media, loyalty programmes and other sources of data on consumer preferences and behaviour is not to be underestimated, he said. But what has been missing is a clear roadmap for converting such data into intelligence. Insights are valueless unless we can turn them into growth. The marketing stream will attempt to provide this roadmap, de Belloy said.
  • 23. marketing stream 22
  • 24. Matthew Doris European Market Development Lead (Global Customer Building Brands Marketing), Facebook, United Kingdom through Social Networks Marketing that is Social by Design Personal recommendations are crucial to driving brand awareness and this now rivals communication by traditional media. Following from his presentation in the plenary session, Matthew Doris demonstrated the importance of “fans” and how this valuable group of consumers can advocate on behalf of your brand. Heavyweight brands such as TicketMaster, Nike and Diageo are using social apps, sponsored stories, and check-in deals to create excitement and drive awareness of their brands in highly competitive categories. These activities can help marketers to better understand their consumer segments and drive growth. Doris argued that, when measured through Facebook’s analytics, these activities can also help brands raise shoppers’ intent to purchase. Because of this, brands must make sure the consumer experience online is as authentic as “in real life”. Consumers don’t recognise any intrinsic difference between the way a brand’s physical business is operated and its activities online. Increasingly, online is real life. Jean-Jac ues andenheede Director etail Insights Europe, The Nielsen Company, Belgium Building Brands for Brand Equity Growth Word of mouth is the new advertising “Socialomics” is here! Word of mouth and user recommendations are the new advertising. Social media is all about users sharing their experiences and “likes” and allowing them to be amplified across their networks, according to Nielsen Director of Retail Insights Europe Jean-Jacques Vandenheede. He coined the term “socialomics” to refer to the growing trend. Building your brand via social media is now an essential driver of equity growth. But because social is about sharing, the old megaphone technique is no longer valid: the spray gun approach to advertising fails in this environment. Vandenheede stressed that marketers need to prepare strategies that genuinely engage consumers, to ensure they can connect with users and consumers online in a meaningful way.
  • 25. Key Takeaways FACEBOOK Build brands through social networks Ensure user experience is as authentic on line as in real life Use social apps to gain social insight THE NIELSEN COMPANY Build brands for equity growth Use social media to harness growth 24
  • 26. Key Takeaways JC PENNEY Be customer centric Become a resource for your shopper Understand the true insights Implement tailored rewards for your loyalty programme MICHEL & AUGUSTIN Build your brand through collaboration with consumers Innovative packaging makes a difference Build your brand from the “inside out” Ruby Anik Chief Marketing Officer, JCPenney, USA The Customer Centric Retailer Turning Shopper and Consumer Insights into Growth Shopping is not just about shopping, Ruby Anik said. “It’s about discovery and being a partner to your customers.” Retailers need to become a genuine resource to their shoppers, instead of just a store. Generating growth in your brand equity relies on this. “Shoppers shop the brand and not the channel,” Anik continued. It is therefore critical to have an integrated multi-channel strategy. JCPenney has recently invested heavily in its digital marketing plans and plans to develop its mobile channel. Social media is hugely important to the retailer: “It’s about generating viral, fluid conversations and targeting audiences that JCPenney doesn’t naturally have,” she said. JCPenney’s multi-channel plan uses digital marketing to build loyalty and trust amongst its shoppers. Being relevant to shoppers provides a point of difference with competitors, Anik argued. In order to achieve this, though, a retailer must first understand its customers. JCPenney’s own data has revealed a cultural shift with its shopper base, from which three main trends emerge: The New Savvy – People are shopping more judiciously, mixing new clothing purchases with existing wardrobe items. JCPenney is effectively competing against its customers’ wardrobes. A Sense of Discovery – Consumers are looking for creativity, innovation and fun despite working with a small amount of time and money. They will respond positively to the unexpected. Younger Oldsters – Today’s over-60s are the first generation to see old age as a time of opportunity, renewal and self actualisation. However, not all customers want the same from their loyalty programme, Anik said. “Tailoring rewards is essential in making these programmes meaningful.”
  • 27. Building a Brand through Michel de Rovira Co founder and CEO, Collaboration with Consumers Michel & Augustin, rance Taste is the first promise to your consumers Michel de Rovira built up French food brand Michel & Augustin over six years, along with childhood friend Augustin Paluel-Marmont. Building on the idea of complicity with customers seen with Ben & Jerry’s or Innocent Drinks, the brand now has such a strong following that it is promoted by its consumers, who have become “fans”. Building your brand through collaboration with consumers is essential, de Rovira said. The Michel & Augustin brand aims to create a special connection with its customer base on a daily basis. “Tell, share and build. It’s a daily real-time adventure using all media, but with packaging as the number one means through which to do this,” de Rovira told the conference. “People connect with innovative packaging and this is key to engaging with your consumers.” Branding “from the inside out” is also an integral part of the Michel & Augustin strategy. But to make this work, you must get the fundamentals right. “Taste is the first promise to your consumers,” de Rovira said. “You have to get this right.” But it doesn’t end there: you must also keep your brand current and relevant to consumers. At the end of each day, review what you have really shared with your consumer. 26
  • 28. uc Demeulenaere Senior Advisor, Emnos, Belgium Dieter Ebbers The Consumer & Shopper Journey Director Market esearch and Media est Europe, Customer Centric Value Creation enkel, Germany between Retailers and Manufacturers Successful retailers and consumer businesses ultimately create more value for shareholders and drive growth by taking a customer-centric approach, Luc Demeulenaere argued. He added that the industry is currently challenged to bring more focus to what the consumer and shopper really wants. Given the impact of digital media, online retailing and the rise of a new generation of consumers, the scope for winning new business is no longer limited to the store. But finding out what your customers really want just got simpler. The Consumer and Shopper Journey Framework merges traditional insights into manufacturers and retailers with a 360° shopper and consumer view, allowing the industry to build stronger value propositions and more effective marketing plans. Developed for ECR, it is a practical set of tools and processes, designed to allow retailers and manufacturers to gain a better understanding of consumer and shopper journeys. The framework offers a platform from which to develop commercial innovation, Demeulenaere said. The idea is to help companies to evolve from selling products to selling solutions and move from category management to shopper-driven marketing. Dieter Ebbers explained how Henkel’s “GLOCAL Shoppers’ Perspective” study had applied the framework. The study identified three distinct international shopper clusters: economiser, value-seeker and carefree, all of which show different behavioural characteristics. “Shopper-centric activities are not a story for the future only,”Ebbers said. “They can be implemented today and we should seek to harness this approach as soon as possible.”
  • 29. A Revolution in Service atsuhiko Umetsu Senior Manager Global Business Dpt, amato Transport Co. td., Building a Brand that Symbolises Trust apan & Excellence Building a Brand the last centimetre hasisbeenlastcrucial factorExcellence Japan’s number The most important part of any delivery journey the Focusing on the quality of that SymbolisesaTrust & according to Katsuhiko Umetsu. that centimetre, in making Yamato one parcel delivery service, he claimed. The company based its business model on the belief that high quality service as a starting point will drive volume, leading to profitability and reinvestment in service quality. Yamato’s corporate philosophy is based on understanding the power of gemba, meaning “frontline”. If your company is only as good as the person who makes contact with your customer then this makes frontline employees the most powerful in the business. The company underpins this strategy by describing its staff as “employees of the customer”. The “revolution in service” is based on the idea that it is your quality of service that generates revenue, not your business activity. Everybody needs to send parcels. But they choose Yamato more often because of the service they receive, Umetsu argued. Key Takeaways EMNOS & HENKEL Insights driven Segmentation based Building co-equity in "sweet spots" Continuous engagement Enabled organisations YAMOTO TRANSPORT Build trust and excellence in customer service: First comes service, profit later. Fulfill responsibilities as members of society: safety first, then profit. 28
  • 30. Clyde Pereira CIO, Coca-Cola Hellenic, Austria and Co Chairman of the IT Committee Connecting Businesses for Consumers The Consumerism of IT The importance of social media, loyalty programmes and other sources of data on consumer preferences and behaviour is not to be underestimated Information Technology is no longer just a back-office function. Increasingly, IT has a strategic and consumer-facing role to play in business and CIOs need to be aware of this trend. Introducing the individual stream on IT, Clyde Pereira encouraged delegates to think about what they can do collectively to help shape the industry and anticipate the latest trends. The Consumer Goods Forum IT Committee, he said, is currently working on five strategic priorities:
  • 31. IT ream 0
  • 32. Matthias er og, Director Information Systems, ra t Foods On-The-Go Snacking Europe, S it erland meets digital innovation with Kraft Foods When Kraft Foods Europe looked for ways to increase sales by capitalising on in-store vending, it was presented with three innovative digital schemes, Matthias Herzog said. Facebook on their mobile device, to obtain a free sample and post a photo of themselves trying it. This and download the recommendations to their phone. A sampling facility is also provided, while the While the schemes are still being piloted, they show how social media and in-store activity can be trials. The touch-screen enabled vending machine was so successful that restocking to meet demand became a daily logistical challenge. Herzog said some useful learning points had emerged too — not least that innovation is a process and not a technology. He also admitted the need for “guerrilla tactics” at times to overcome internal bureaucracy and barriers.
  • 33. Key Takeaways KRAFT FOODS Innovation is a process not a technology Innovative digital solutions help drive sales “Guerilla” tactics can help overcome internal bureaucracy and barriers SONAE Understand business problems & position yourself in the future Use an interoperable protect your investments Find your business’ killer app pilot in less than 2 months Be prepared for the pull: users will be demanding new functionality Measure everything usage, speed, problems From assisted service to Jo o G nther Amaral customer self service Director, Sonae, Portugal mobile technology, improves customer experience at Sonae Nuno Almeida, E Commerce Director, Back-office accuracy is essential to running a tight ship in retail, but Sonae, Portugal too much time on back-office processes and struggling to meet customer service needs on the shop floor. The solution was to bring the back-office onto the shop floor, by putting it in the store associates’ pocket. The printer technology where appropriate. customer. However, by incorporating feedback from users and adding additional functionality such as label have also started to add up, such as improved customer service, the ability to solve problems in front of the client and fewer stock-outs. The system’s architecture was based on interoperability, including mobile-ready components. This has been online picking and an internal mobile app to increase the information available to store managers. Future developments may include a consumer-facing app, but for now, the key learning points were the need to use an interoperable architecture and to be prepared for demands for increased functionality. 2
  • 34. Matthew Doris European Market Development Lead (Global Customer Marketing), Facebook, United Kingdom Connect with your Consumers Build your business through social networks Build The new internet is based on identity. The connected consumer takes her identity with her across different sites and platforms. The starting point for this is the Facebook ‘like’ button, one of the building blocks of an using their Facebook identity. serves up live musical content, are just two sites that contain Facebook feeds, allowing users to make purchases based on recommendations and endorsements from friends — or friends of friends.
  • 35. 20 Key Takeaways FACEBOOK Use personal identity to provide GOOGLE Cloud computing is not the future, it’s already here Didier Goibert Mid Market Director, EMEA, Google Enterprise, The Future of IT – 100% Web United Kingdom Cloud computing is not the model of the future – it is already here. a scalable and secure shared subscription model. Users only pay for what they use, they can access the cloud According to Goibert, more than one million businesses, including grocery retailers, have already switched to Google’s cloud computing services. The cloud offers “new capabilities in terms of mobility and collaboration,” Goibert told delegates, all of which he said would help lower costs for businesses and provide a more reliable and secure solution. Google’s own cloud strategy relies on three main elements: video, Google cloud connect and Google Postini Google apps engine: A service through which businesses can run their own web applications on Google’s Google market place: A “new way of consuming IT for corporations”, providing apps for businesses which can be subscribed to and are immediately available 4
  • 36. Freiko aeyens IT Breakout Session IT Director Infrastructure Centre of E cellence, Delhai e Group, Belgium Paul French ice President, product and Solution Marketing, Axway, USA Integrated IT Delivers Superior Brick and Mortar Store Customer Experience De late or incomplete under the company’s “home-made” tool and this was hurting sales and supply chain functions. This in turn led to poor strategic decisions and unhappy customers. controlled using this system and, crucially, alerts were delivered in the event of failure. Following a pilot in four challenges, such as how to manage installation, rollout and maintenance across 800 stores. Ultimately, though, the far more rapidly than would have been possible under the old system. delivery of a file once it had been created. The retailer is now considering the feasibility of consolidating its data Milan Turk IT Breakout Session Managing Director, Global Customer Business Development, Procter & Gamble, USA Joe orwood GS1 Mobile Com Manager, Data Integrity GS1,Belgium The Key to Connecting Business for the Consumer business-to-business functions. Pr American business. By standardising the process, the company was able to reduce 220 distinct tasks to just 10. imilarly, P&G’s eContent project looked at making improvements to content found on eCommerce websites like Amazon.com and Walmart.com. "Ba eCommerce websites.” He added: “For consumers this is a digital first moment of truth and it's critical to get it right." By In the past 12 months, more than 31 million items of eContent have been delivered via the solution for new
  • 37. Key Takeaways DELHAIZE & AXWAY Optimize file transfer between store and head office operations for improved reliability, visibility and manageability of data Back to basics - IT drives efficiency in the back office PROCTER & GAMBLE GS1 Improving data e-commerce websites is critical service model helps brands fully own their product information on line 6
  • 38. Key Takeaways TESCO GS1 By making product information as rich as possible products are brought to life for customers in the virtual world of online shopping MICROSOFT Improving data e-commerce websites is critical Business benefits can trump cost-saving benefits in the cloud
  • 39. 20 IT Breakout Session Richard Copperthwaite IT Director, Tesco com, Tesco, UK Beyond the Label Malcolm owden President Global Solutions, Providing Digital Product Information to Build Consumers Trust GS1 How does a company the size of Tesco manage an ever increasing array of digital product information for its stores, websites and mobile apps? consumer is on a website, they cannot pick up a product, feel it in their hands and read the packaging. By making the product information as rich as possible we bring products to life for customers in the virtual world of online shopping." Tesco manages product data centrally, with information feeding its various platforms. However, the system product information and nutritional data available to power third-party internet and mobile applications Copperthwaite urged companies to go beyond the label and take the same care with digital product information as they do with information that is printed on the packaging. IT Breakout Session irk Carver Senior Strategist, Enterprise Strategy & Architecture, Beyond the Hype Microso t Corporation,USA Pragmatic Pursuit of Cloud Computing Opportunities Everybody is talking about “the cloud” — but beyond the buzz-word, cloud computing offers five concrete benefits, Kirk Carver said. These are: billing based on measurable usage; on-demand self-service; broad network access; resource pooling and rapid elasticity. Bey on-premises “private cloud” (where the service is fully managed by the client) to software as a service (where the data is fully managed by the service provider). The cloud is also elastic, to suit varied workload patterns. “Off and on” service suits processes that happen peak. Th Many services have been operating within the cloud for years, while others are coming online through and General Mills had already successfully tapped into the benefits of the cloud, Carver pointed out. considering migration to the cloud should evaluate cloud investment opportunities alongside the rest of their IT investment opportunities. 8
  • 40. John S. Phillips Senior ice President, Customer Supply Chain & Logistics, PepsiCo USA Tony endrig E ecutive ice President Business Development, Ahold, Europe Delighting The Consumer Acting As One. Help businesses collaborate in new ways to delight the consumer at the shelf, each and every day. Welcoming delegates to the individual stream on supply chain, John Phillips said that, in line with the wider goals of The Consumer Goods Forum, this year’s event was designed to “help businesses collaborate in new ways to delight the consumer at the shelf, each and every day”. The Supply Chain Committee is currently driving three core projects, he said. These are: * define future supply chain best practices; * use the global scorecard to improve performance; * help upstream integration of raw materials ingredients and packaging.
  • 41. supply 40 © Anton Balazh - Fotolia.com
  • 42. Key Takeaways LEAN ENTERPRISE ACADEMY Define value back from the customer, not forward from assets or targets Look at the whole value stream, rather than optimising points along it Focus on time: creating flow makes waste visible Waste is a symptom of forecast errors, batching systems and poor cooperation along the stream KRAFT FOODS Multi modal transport sharing platform - by January 2013 creation of an Independant Logistic Optimiser to liaise between manufacturers and retailers for collaboration opportunities
  • 43. Pro . Daniel T. Jones Collaborative Lean Supply ounding Chairman of ean Enterprise Academy, Chains for the Web Era United Kingdom Working Together with Informed and Impatient Consumers tient Consumers n Daniel Jones introduced the concept of “lean” to the grocery industry in 1999 with a pilot project for Tesco. “Lean thinking,” he said, “can be used to fundamentally rethink supply chains to make them more competitive.” The key to making lean work, Jones argued, is to look at the whole supply chain rather than optimising parts of it. “You need to dig down to root causes and look at the supply chain as a whole.” While IT solutions can help resolve such issues when implementing lean, making the plan visible and establishing good root-cause problem-solving are the only ways to optimise the horizontal value chain, Jones said. Manufacturers need to “think differently about SKUs” in order to manage capacity more efficiently, he said. Inventories, rather than production, should cover variation in demand. Stressing that “there is no one way,” Jones said lean was not just a tool box for eliminating waste. It is more properly the capability to respond to and solve problems. Lean solutions are particularly relevant today, since “we are now in a world of multi-channel — even for a single customer”. Jochen Rackebrandt Director Customer Service EMEA, ra t Foods, Germany Multi-Modal Transport Sharing Dennis Wereldsma Initiative for Consumer Goods and Global Sector Leader Distribution & Transportation, Retail Companies Capgemini, The etherlands Road transport used to be cheap, Jochen Rackebrandt said. No longer. Increasing congestion, coupled Increasing congestion coupled asing congestion, coupled with a shortage of drivers and road capacity is beginning to make a strong case f t t h i for transport sharing or alternative modes. Indeed, optimising a shared supply chain is one of the four objectives of the Consumer Goods Forum 2020 Future Supply Chain. The Multi-Modal Transport Sharing Initiative is a trial collaboration between Kraft, Nestlé, Colgate, Ahold, Tesco, SC Johnson and Bacardi. Opportunities for collaboration had been identified and a legal entity is to be set up to perform the role of independent logistics optimiser (ILO) to liaise between the manufacturers and logistics service providers. Among the key performance measures identified for the trial were the decision to include KPIs such as being cost-neutral, ensuring cost-transparency, facilitating carbon reduction and the decision to make no compromise in service levels. Denis Wereldsma said the ILO would be created in 2012 and a start-up plan will be agreed by January 2013. In an interactive poll, the audience identified the two best collaboration opportunities as the east-west corridors within Europe (62%) and in-bound from China into Europe (40%). 42
  • 44. Key Takeaways PROCTER & GAMBLE IBM Use GS1 standards to deliver better results Scorecard data helps you set priorities The scorecard is of no use if you do not have data in it BARILLA Healthy food drives sustainability Reduce carbon emissions & energy consumptions Optimising transport & distribution Sustainable sourcing More environmentally friendly products Customer communication Reducing packaging and waste Jim Flannery Managing Director, Customer Business Development, The Procter & Gamble Company, USA How to Create Value for You and Cre Steve rown Comp Your Company Using the Global General Manager, Global Consumer Products Industry, I M, USA Scorecard Using the Global Scorecard across businesses brings concrete benefits, Jim Flannery said. The Consumer b b Goods Forum’s Annual Compliance Survey has run since 2000, trac tracking the implementation of GS1 standards “Us and processes (like GDSN) and the resulting business benefits. “Using data standards is beneficial,” Flannery said, adding: “There is a positive correlation between the u usage of GS1 standards and improved performance ” performance.” Among the benefits revealed by the Compliance Survey were: 61 hours reduction in lead time; 5.8% points of reduced out-of-stocks; 5.2% points saving of distribution costs and invoice accuracy was up 1.5%. Procter & Gamble had used the Global Scorecard effectively to compare performance of different clusters and countries and to establish priorities and choices, Flannery told the conference. In addition, using the scorecard with trading partners had helped P&G improve the opportunity gap for specific customers and provided a chance for them to further their relationship. “If you have a benchmark, you can begin making choices on what to improve, and help understand the cost of investment,” Flannery said.
  • 45. * Ste ano Pietroni et ork Design, Planning & Food that’s Good for You, is Sourcing Director, arilla Group, Italy Good for the Planet! How consumers' diet choices drive planet sustainability & products supply chain Sustainability initiatives and credentials are no longer an optional extra, Stefano Pietroni said. They are a “must-have” for retailers and shoppers alike. “Shoppers’ choice of healthy food is driving sustainability,” Pietroni said. The Barilla Center for Food & Nutrition (BCFN) has developed a double pyramid (food and environmental), using a life cycle assessment (LCA) to consider the water, carbon and ecological footprint of different food groups. This has driven supply chain action in the field, in production, packaging, planning and logistics as well as in how shoppers cook their products, Pietroni said. In addition to identifying key food and nutrition priorities, BCFN aims to collect and analyse advanced experience and knowledge from around the world and develop proposals and recommendations for opinion leaders and decision makers. Green growth, food security, food for health and food for culture are among the top priorities for BCFN, Pietroni told the conference. BCFN’s work has also helped businesses set manufacturing KPIs in energy use, waste, recycling and water consumption. 44
  • 46. Midori amaguchi General Manager, Supply Chain e engineering Department, Supply Chain Division, AEON Global SCM Co Ltd apan H How Aeon Rebuilt its Supply Chain People giving more of themselves In March 2011, Japan suffered a devastating earthquake and tsunami, both of which left a litany of destruction in their wake. For those that survived the double disaster, access to food and supplies was critical. But Aeon, Japan’s leading retailer, had also been drawn into the chaos. Of the 443 Aeon stores in Tohoku, northern Japan, that were affected, 65% could not operate at all, Midori Yamaguchi told the conference. But Aeon had prepared. Its business recovery process ensured that 95% of these stores could reopen within two weeks. With 30% of total supply chain capacity gone, Aeon’s network had to move up a gear: by the second week, 130% of regular capacity was being shipped. In this first stage of recovery, DCs in western Japan were supporting the effort by operating at more than twice their capacity. Supply chain and logistics, private brand supply networks and product sourcing were three important elements of the recovery. In addition, close collaboration with business partners was an essential factor. Technology and the ability to get real time information from the field were important to the success of the recovery, Yamaguchi said. But above all it was down to people giving more of themselves. Yamaguchi commended his colleagues’ resourcefulness and teamwork. Alberto Madariaga Supply Chain Director, Grupo Eroski, Spain Collaboration, Innovation and Imanol Alberdi Logistics Operations Director, Sustainability Means More Grupo Eroski, Spain Profitability Spanish consumer co-operative Eros reduced costs by 20% and CO2 emissions by 18 tons by centralising Eroski its supply chain management in partnership with Europol Systems. The change in flow strategy also allowed the retailer to reduce inventory, since the new system required on 0.3 days of stock. The rethink also included the installation of an automated order-picking system, which improved quality and freshness as well as shaving off cost. Alberto Madariaga said logistics professionals were like midfielders in a football match: “Our role as a midfielder means having a wide operational vision and we must play an active part in the value chain processes.” Imanol Alberdi led a live opinion poll among delegates, with 78% agreeing with the statement: “We talk a lot about collaboration, but we have difficulty in making it a reality.”
  • 47. Key Takeaways AEON Recovery would have been impossible without: Partnership Responsibility Leadership People power EROSKI Simplification, innovation and sustainability improve quality and profits Optimizing transport across “logistics platforms” resulted in 20% reduction of costs and 18 tons less of CO2 emissions ICA Open dialogue with customers Improvement became part of everyone’s responsibility Worth investing in automation competence Michael Johansson How Change Management Turned Head of Logistics Operations, arehouse and Transport Management, ICA, S eden ICA’s Warehouse Operation & Automation from Disruption to Best in the Class ICA had experienced poor service levels to store, following the implementation of an automation process at its Helsingborg warehouse. The poor service had been caused by a lack of automation experience, non-standard demands, everyday “fire fighting” and a lack of leadership attention, Johannes Åverling said. Lack of clear priorities and responsibilities created internal challenges, while a complex structure, differing cultures and frustration among employees had mixed with varying perceptions of IT priorities among colleagues to contribute to the problem. Effective change management, then, was the key to the project’s success. ICA identified the need to have open dialogues with customers, involve local teams and set up cross-functional teams to make the change happen. Furthermore, “improvements became part of everyone’s responsibility,” Åverling said. Following the change management programme the automation system began to deliver measurable benefits to the business. Åverling advised delegates that the investment in automation competence is well worth making, but recommended that businesses start working on managing the change at least two years before the automation. 46
  • 48. Key Takeaways IGD Get started on collaboration Be aware of the supply chain initiatives coming up in your market Walk the chain with your supply chain partner to challenge the status quo Execute on the basics to sustain momentum in your collaboration journey COCA-COLA Define the brand and pack set – keep it simple and standard Disconnect product supply from daily operations to reduce the risk Deal with every eventuality in such an event Build speed and capacity Tarun Patel Head of Supply Chain, IGD, United Kingdom Taking a Supply Chain Gamble Collaboration has a key role to play The message of collaboration is not new, Tarun Patel told the conference. Indeed our industry is already one of the most progressively transparent, he argued. However, the need to secure competitive advantages via collaboration is more urgent today than ever, since the pressures and challenges we face due to a changing world are far greater than they used to be. The UN Index of food commodity prices is up by 39% on last year, Patel said. Meanwhile, an increase in temperature for grain of a single degree Celsius can reduce the yield by much as 10%. “With an increasingly volatile environment, companies must navigate their way through fluctuating supply,” Patel said. With the current economic climate, companies are seeking levers to drive growth. Patel said that recent research from IGD had identified that one in three manufacturers globally say promotions account for 50% or more of their sales. It is therefore no surprise that understanding price and promotions, the shopper, and supply chain have been the clearest commercial priorities for the past three years. “The resulting volatility in demand and supply means that there is an even greater need to build responsiveness. Collaboration has a key role to play here.” IGD has defined six levels of collaboration and measures performance against 15 criteria. Internationally, 21% of suppliers now have a strategic supply chain partnership with their key customers, a significant increase on last year. It’s never too late to begin. “Get started on collaboration,” Patel told delegates. “Be aware of the supply chain initiatives coming into your market, walk the chain with your supply chain partner to challenge the status quo, develop the skills of your people and execute on the basics to sustain momentum in your collaboration journey.”
  • 49. Frank van der ei den Commercial Director, Delivering the “Perfect Serve” Coca-Cola ellenic, Austria The Coca-Cola Company’s Supply Chain Peter atham Learnings from FIFA World Cup and London ice President Logistics, Coca-Cola Enterprises, Olympics United Kingdom When it comes to managing supply during special events such as the FIFA World Cup, the oppo tunity to orld Cup, the opportunity to d Cup, ppor ity excel is just 15 minutes during the half-time break, Frank van der Heijden of Coca-Cola Hellenic said. Building speed and capacity is essential to success, as is reducing risk by disconnecting supply from everyday operations. When it comes to an event on the scale of the Olympics, effective preparation is critical, Peter Latham said. In addition to managing all aspects of operations in the venues for the 2012 games, collaboration, building the in-store experience and developing shared supply chain concepts were very important considerations. Latham emphasised the importance of gaining credentials in sustainable supply. “Doing so can put supply chains in the top tier,” he told delegates 48
  • 50. OPERATIONA E CE ENCE REA FAST SESSIONS Key Takeaways MONOPRIX TRACE ONE Innovative product packaging brings value to brands Set up of a collaborative workspace to accelerate product development Private workplace in the cloud for everybody Secured collaborative architecture allows certain activities to be performed in real time Get started on collaboration Be aware of the supply chain initiatives coming up in your market
  • 51. Stephane Ma uaire CEO, Monoprix, rance Packaging Innovation Beyond ubert mard Deputy Chief E ecutive, Monoprix, rance Customer Expectation French retailer Monoprix used innovative product packaging to bring value J r me Malavoy CEO, to its brands, creating a more satisfying shopper experience. Faced with the Trace One, rance challenge of designing new packaging that stood out, the business used an Andy Warhol style design and plenty of colours on 2,000 Monoprix products. Implementing such a change within the private label management process, however, was and operational challenge. To manage the project, Monoprix set up a collaborative workspace to accelerate product development, which could be shared by printers, designers, laboratories and auditors in real time. Everybody using the system had a private workspace in the cloud and, with the help of a secured collaborative architecture, activities such as document management and web proofing could be performed in real time. This created time savings of between 20% and 30% in new product development, a process which would normally take between six and twelve months. 0
  • 52. Key Takeaways DELOITTE Look for growth opportunities in markets with changing demographics Brands need to harness connections with consumers to drive growth Find creative, relevant and legitimate ways to interact Link bricks and mortar businesses with online opportunities awrence utter Global Leader Consumer Business, Deloitte, United Kingdom The Mobile Consumer 2020+: Communicating, Connecting, Fernando Sou a Director, Deloitte Spain Socializing, and Shopping Economic and demographic change are changing shopper preferences, according to Lawrence Hutter and changes Fernando Souza. Markets undergoing demographic change offer important growth opportunities. underg Consumers’ changing menus and the sustainability imperative also play their part in changing shopping habits. At the same time, mobile technology is revolutionising the way we access and share information. Deloitte’s report “Consumer 2020 - Reading The Signs” highlights the increasingly “obsessive” nature of communication and socialising online. Brands must harness this to nurture connections with consumers, as online influencers drive growth. But consumer engagement is not a given. Marketers must earn their dialogues with consumers by finding creative, relevant and legitimate ways to interact in a positive and visible way. As digital behaviour becomes mainstream, it is critical to link bricks and mortar businesses with online opportunities.
  • 53. Key Takeaways IBM Start using information across the business Prioritise investment far more towards digital Plan and prepare now for the five year horizon The Future of Marketing Patrick Medley Consumer Product Industry Leader, I M, Australia The Global Chief Marketing Officer Study 2011 “Stop telling and start talking,” Patrick Medley warned. The “omni-consumer” is coming. These technology-enabled consumers will see everything and know everything — and the future of marketing depends on establishing a true dialogue with them. While devices such as the smart phone, kiosks, gaming and interactive outdoor advertising, can help, the digital era will also see new challenges emerge for CMOs. There will be more data and more clarity when it comes to analysing real results from campaigns, so senior marketers are likely to be increasingly held to account. Medley’s remarks drew on the findings of IBM’s Global Chief Marketing Officer Study 2011, which brings together conversations with more than 1000 CMOs. “CMOs have just three to four years to get ready,” Medley said. Many are unprepared for the data explosion, however. Some 85% are concerned about this, the study shows. But there is a roadmap, Medley claimed. The solution to solving such data problems lies in closer internal collaboration between IT and marketing functions, rather than relying on marketing agencies for support. “CMOs will also need to foster lasting connections with consumers if they are to empower them.” Many are currently using traditional sources of insight to achieve this, but it will be new sources of insight in the future that make a difference. Now is the time to experiment, Medley advised the conference, to ensure CMOs get the best out of consumer relationships in the future. 2
  • 54. John S. Phillips Senior ice President, Customer Supply Chain and Logistics, PepsiCo, USA Future Value Chain 2020 “Plan now for a radically different world,” John Phillips told the closing plenary session. Twelve mega trends will shape our supply chains, systems and brands in the future, according to the findings of the Consumer Goods Forum’s “2020 Future Value Chain” report. While some of these trends point to a greater need for efficiency, Phillips said that others would mean changes to entire business models and “new ways of working, both within companies and with trading partners”. Transparency and collaboration with shoppers and other businesses will become increasingly important too. The trends are: increased urbanisation; aging population; increasing middle class; adoption of consumer technology; increased consumer service demands; increased importance of health and wellbeing; growing concern about sustainability; shift of economic power; scarcity of natural resources; increase in regulatory pressures; rapid adoption of supply chain capabilities; the impact of next generation technologies. The aims of the Future Value Chain project are to make the consumer goods business more sustainable, to optimise a shared supply chain, to engage with technology-enabled consumers and to serve the health and wellbeing of consumers. A full copy of the report can be accessed at www.futurevaluechain.com.
  • 55. Caroline Mc ugh Chief IDologist, IDology, United Kingdom Cherry on the Cake The Art of Being You – Releasing Human Potential to its Fullest Who are you really? What is the message of your life? These are the basic questions Caroline McHugh suggests we ask ourselves. “People who are truly successful have a signature, a voice – one true note they are destined to sing,” McHugh said. “Each one of us is different and none of us knows how long we have on this planet – so we need to be clear on what we as individuals expect from life.” Learning to be the authentic version of ourselves is the key to manifesting our expectations, McHugh said, although we are generally better at being authentic when we are children than in adulthood. This is partly due to the need to manage the way we are perceived: as a parent, an executive and so on. “But why let someone else decide who you are?” McHugh asked. “You cannot master others until you have mastered yourself,” she argued. The key here is to understand your own “interiority”. According to the IDology model, a personality is made up for four elements, expressed as concentric circles: perception, persona, ego and id, the centre of your subconscious universe. The trick is to “pick one thing that you know you want to find in yourself” and focus on that. One thing is certain for McHugh: a life without risk is a life that will never reach its true potential. “You have to live life on the edge.” Or, at the very least, we owe ourselves a serious reflection on why we have made the choices we have so far in life and what comes next. 4
  • 57. Marketing, IT and Supply Chain Con erence 2011 6
  • 59. The Consumer Goods Forum Join us in Paris 6 - 8 November 2012 Marketing Forum IT Conference Supply Chain Conference www.tcgfoperationalexcellence.com 6 © Beboy - Fotolia.com
  • 60. The Consumer Goods Forum would like to thank the companies below for their valuable support: www.tcgfoperationalexcellence.com