The Case for ECR
A joint project conducted by:
ECR Europe Academic Partnership and IBM for ECR Europe
Plenary 1 Storyboard Draft
(Revised)
Vicki Belcher, Gillette
Dave Woodward, Gillette - (champion from 4.2)
Prof. Daniel Corsten, U St.Gallen, Switzerland
Dr. Joerg S. Hofstetter, U St.Gallen, Switzerland
Chris Cave Jones, IBM, Singapore
VB
 2005
Key Messages
•
This conference session will contain some “new” news - what
you see today is work in progress, subject to revision based
on yesterday’s feedback
•
We have already amassed a wealth of :
- Quantitative research from a wide range of resources
- Exciting case studies
•
We believe we have powerful material - for the plenary, a
breakout and possible class-room event
•
There are still opportunities for companies to join the study
VB
 2005
Key elements of the project and
status
1. Scorecard data analysisOn track : November
5. Results
- Blue Book report
- Paris Presentation
Analysis of database
University of St Gallen
2004 database being
analysed
IBM & Acad. Partnership
Case for
ECR
4. Macro-Economic Analysis
Analysis of Databases
2. Data Verification &
30 Interviews & Cases
Academic Partnership
Acad. Partnership (& IBM)
On track : data from
cases, Nielsen MVI,
PlanetRetail...
On track : approx. 40
cases reviewed and
shortlisted
3. Value Chain Analysis
Analysis of 6 Cases
IBM
4/6 scheduled. Need to
secure 2 additions
VB
 2005
Conference Session : The Case for ECR
09:00-09:05
Opening remarks, Nathalie Mesny & Daniel Tieman
09:05-09:15
Introduction: Hans-Joachim Körber & Thony Ruys
09:15-09:35
ECR Perspective from Carrefour & Danone
Daniel Bernard (tbc) & Franck Riboud
09:35-10:05
The Case for ECR, IBM / Academic P‘ship
10:05-10:25
Case study from L‘Oreal / Asda
10:25-10:30
Summary & Wrap-Up, Ed Lonergan & Richard Holmes
10:30-...
Break
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ECR Perspective
Speakers: Daniel Bernard (tbc) & Franck Riboud
Time:
20 mins
Messages: -To be self-prepared
- Finish on a Challenge... what is the case for ECR?
Format :
Dialogue and charts
VB
 2005
Plenary 1: The Case for ECR
Message
Material
Format
Time
Speaker
1.EU Market Environment Macroeconomics
Opening video &
Charts
5 min
Corsten
2.Cost as Fuel for Growth VCA study
Charts
10 min Gilmour
Charts &
8-10 Voxpop
15 min Hofstetter
3.Collaboration
-Implementation levels
-Examples
Scorecard
Case studies
-Link to L‘Oreal/Asda
VB
 2005
The Case for ECR: 1) EU Market Environment
Speakers: Daniel Corsten, St.Gallen
Time:
5 mins
Messages: - Economic environment.….mature / flat / ltd. growth
- Planning restrictions / legal constraints
- Emerging channels
- Price deflation - value erosion
- Relevant macro-economic analysis & data
- Question: so what can retailers / manufacturers do in
this environment?….cost as fuel for growth
- Summarise flow of remaining session
Format :
Opening video, dialogue and charts
JH/CCJ
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The Case for ECR: 2) Cost as Fuel for Growth
Speakers: Bill Gilmour, IBM
Time:
10 min
Messages: 10 years ago = 5.7% of retail sales (opportunity for optimum supply
chain)
There is X billion Euros worth of benefit to be realised from ECR
across Europe. TO BE FINALISED BY 18/3
- inventories / operating costs / sales
Format :
Charts covering summary of VCA results:
- Current state of ECR development based on scorecard results
- Current industry performance based on KPI values
- Size of opportunity overall and built up from the different ECR improvements areas
(as defined by the scorecard footprint)
- Comparison with 10 years ago
CCJ
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The Case for ECR: 3) Collaboration – How Have
We Done?
Speakers: Joerg S Hofstetter, ECR Europe Academic Partnership
Time:
15 min
Messages: - General ECR implementation patterns - show differences by
country
- Achievements on supply & demand side & enabler/integrators
- ECR did not undermine competition / negotiation
- Implementation experiences (overcoming barriers)
- ECR-adopters‘ benefits versus general trends
- Opportunities (incentive systems/reporting, differentiation, growth)
- Checklist: What needs to be done now? = implementation
Format:
Charts & 8-10 Voxpox
VB
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Summary / Closing Comments
Speakers: Co-Chairmen of the Implementation Workstream:
Ed Lonergan, President, Gillette Europe
Richard Holmes, Commercial Director, Boots
Time:
5 min
Messages: - Next 10 years of ECR implementation
- Where are are today - reminder
- Patterns for success
- Potential barriers, and ways to overcome them
- Current opportunity from ECR
- For more info - follow up in relevant breakout sessions
- Key Actions 5 to Drive
Format :
Dialogue and charts
VB
 2005
Conference Session : The Case for ECR
09:00-09:05
Opening remarks, Nathalie Mesny & Daniel Tieman
09:05-09:15
Introduction: Hans-Joachim Körber & Thony Ruys
09:15-09:35
ECR Perspective from Carrefour & Danone
Daniel Bernard (tbc) & Franck Riboud
09:35-10:05
The Case for ECR, IBM / Academic P‘ship
10:05-10:25
Case study from L‘Oreal / Asda
10:25-10:30
Summary & Wrap-Up, Ed Lonergan & Richard Holmes
10:30-...
Break
VB
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Proposal: Breakout Session „The Case for
ECR“
Speakers: All team members, ECR Europe Academic
Partnership
3 Retailers, Senior Managers
3 Suppliers, Senior Managers
Time:
60 min
Messages: 15min: General Results (with more details than in the
plenary speech)
30min: 3 cases each of 10 min (to be selected from
case study shortlist)
15min: Q&A
TBC - 2 weeks from 3.2
JH
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Proposal : ECR Class-Room
Idea:
Opportunity to conduct ongoing classes during the
conference
Location:
Part of Academic Partnership's booth in the
marketplace
“Classroom” with 50 places, audio, video screen
Concept:
Each of the 7 investigated countries can present the
ECR story and national cases during 1 hour
Not during plenary session
Speakers: Academics, National ECR Initiatives, Retailers &
Suppliers
Agenda:
5min: General Results
10 min: ECR story (history, markets...)
30min: 3 cases @ 10 min (to be selected out of the
cases)
15min: Q&A
JH
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General: Project Report
•
•
•
•
•
•
We propose distribution of the „ECR Business Case“ blue book
separately, after the conference
People appreciate information they receive in their office more
than material in conference packages (weight to be carried
home)
We can mail the blue book together with the next issue of ECR
Journal (June 2005?)
More time allows more in-depth analysis of our very rich set of
data from approx. 40 ECR adoption cases
Maximum of 90 pages (reading comfort and weight)
Production by Reed Business Information (contract with ECR
Europe)
JH
 2005
General: 18th March Presentation
•
•
Update on Business Case for ECR
Update Conference Plenary:
- Financial evaluation complete - VCA analysis
- All sections effectively complete re. flow & content
•
•
2005 Implementation Workplan - initial priorities
Co-chair & facilitator representation
JH
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How the results are derived
Interviews and Workshops by Academic Partnership > 30 companies
• Validated Scorecard results
• Key Performance Indicators
• Analysis of progress and barriers
Interviews &
workshops with
>30 companies
Value Chain Analysis by IBM (6 companies)
Company
CategorySpecific P&L
Conversion
based on
interviews
with
company
managers
IBM standard
activitybased cost
structure
Company CategorySpecific P&L
expressed in
standard activity
costs
Value
Chain
Analysis
Model
Company potential benefits: cost
reduction, inventory reduction &
sales increase by ECR
improvement area. Estimate of
benefits for trading partner
Industry level benefits from ECR
for manufacturers and retailers, by
ECR improvement area in terms of
cost reduction, inventory
reduction, growth
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Research Results – Trends & Cases
Introduction
Speakers: ECR Europe Academic Partnership & IBM:
Bill Gilmour, IBM
Joerg S Hofstetter, University of St.Gallen
Time:
3 min
Messages: What‘s next?
Dissemination of ECR
Integration of ECR into corporate business processes
Integration of ECR into companies‘ incentive systems
New ECR strategies to win against discounters &
private label
Introduction of the 3 cases and 6 speakers
Format :
Charts
JH/CCJ
 2005
Opening Comments to be included into CEOs
speach
Speakers: Daniel Bernard (tbc), Carrefour
Franck Riboud, Danone
Time:
20 min
Messages: At the end of their speech, they ask the following questions:
10 years of ECR implementation
Where are we today?
What and how have we succeeded?
What barriers have we faced, and overcome?
What‘s still in it for our industry?
What is tomorrow‘s agenda?
Introduce speakers
Format :
Dialogue
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 2005
Structure for Case Studies
Speakers: Retailer, Senior Manager
Supplier, Senior Manager
Academic Partnership, head of national research team
Time:
10 min for each case
Messages: Key learning from the case
What did we want to accomplish?
What did we achieve?
How did we do it?
What comes next?
What have we learned for ECR implementation?
JH
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Overview Case Studies
France:
3 retailers; 6 suppliers (interviews completed)
Germany: 2 retailers; 4 suppliers (interviews completed)
Greece:
3 retailers; 4 suppliers (interviews completed)
Italy:
2 retailers; 4 suppliers (interviews ongoing)
Spain:
1 retailer; 1 supplier (interviews completed)
Switzerland:
UK:
2 retailers; 2 suppliers (interviews completed)
2 retailers; 4 suppliers (interviews ongoing)
- L‘Oreal-ASDA case : optimsing Health & Beauty
European: 1 multinational retailer, 3 multinational suppliers
JH
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Potential Case Studies for Presentation
France:
From ECR-Laggards to ECR-Winners : experiences
from two mid-size companies (branded, cooled chain)
Germany: Driving ECR : From scratch into the future (branded,
big size companies)
Greece:
Retailer-driven ECR adoption: experiences from a
mid-size retailer on motivating suppliers to collaborate
Italy:
ECR by negotiation: experiences in a price-negotiation
dominated business environment (mid-size
companies)
UK:
- Efficient Product Flow: experiences from a leading
retailer and a national beverages supplier
- L‘Oreal-ASDA case : optimsing Health & Beauty
European: A multinational‘s experiences
JH
 2005
ECR Visions – Daniel Bernard & Franck
Riboud
Speakers: French CEOs:
Daniel Bernard, CEO, Carrefour
Franck Riboud, CEO, Group Danone
Time:
15 min
Messages: Forward looking - what does this mean for my
company‘s future direction?
Results from case studies are available for both
Detailed content tbc with N Mesny & A Tapie
VB
 2005