working together to fulfil consumers wishes better, faster and at less cost
ECR INSIGHT
Web-site: www.ecr-all.org/russia
Enabling technologies
What are the results of PRICAT
implementation? page 10
Address: 15/18, build. 4, Solyanka st., Moscow
On Shelf Availability
What solutions does
Auchan use? page 8
Zero paper by 2020
When mobile digital signature
becomes legal? page 11
2014
SEPTEMBER
Тel.: +7 (495) 735 4378
ECR Award
Who has won the prise
in 2014? page 12
THE 10th ECR
FORUM REPORT:
ON PAGE 3
ECR CONFERENCE CALENDAR
There will be plenty of remarkable events in October and November 2014:
ECR organizes three conferences and a big shopper simulation workshop . We have designed an attractive agenda, invited
experienced speakers and are going to provide you with many professional insights and useful networking. Register and
invite your colleagues and partners!
ECR SHOPPER MANIA
ZERO PAPER BY 2020
•
Shopper marketing, shopper insight, loyalty programs, category management;
• Actual trends and original methods of shopper
insights;
• Foreign experience and global best practice.
Keynote speakers: Marcel Corstjens, Unilever Chaired
Professor at INSEAD; Jean-Jacques Vandenheede, Retail
Insights Director Europe, Nielsen;
•
Best practice of implementation of invoicies, acts
and delivery note in electronic form.
- Investments
- Involvement of contactors
- Results: estimation of project efficiency
• State officials invited: Ministry of telecommunications, Federal Tax Service, Ministry of Finance
• Digital Signature – legislation changes
RETAIL SECURITY.
STRATEGY AND TACTICS OF
LOSS PREVENTION
BUILDING TRUST BETWEEN
SUPPLY CHAIN PARTNERS
OCTOBER 21, 2014
NOVEMBER 20, 2014
•
•
•
Russian best practices and European experience
in loss prevention
Fraud investigation in the retail sector
Security equipment: new products and interesting
solutions
OCTOBER 23, 2014
FEBRUARY 19, 2015
•
•
•
How to build trust between supply chain partners
and work together to improve the efficiency of Supply Chain?
How to improve logistics efficiency through collaboration?
How to reduce Out-Of-Stock and Out-Of-Shelf and
increase the on-shelf availability?
PREVIOUS EVENTS
1
MAR-PRO.
The unique business simulation
for retailers and manufacturers
OCTOBER 22-23-24, 2014
Be the first to take part in an open session with the author – the creator
of Storewars, Unilever Chaired Professor at INSEAD, Marcel Corstjens!
•
•
•
get knowledge and exercise in an exciting practical game;
work out a joint platform for collaboration with business partners;
devote 2,5 days to gaining intensive practical experience!
The official distributor of Mar-Pro in Russia is Innovate Retail.
To apply for the game send your request to: info@inrex.ru
www.ecr-all.org/marpro
ECR COMMITTEES AND WORKING GROUPS CALENDAR - 2014
October
8/10 Shelf ready packaging
15/10 Loss prevention
15/10 On shelf availability
30/10 Enabling technologies
December
3/12 Demand management
16/12 Enabling technologies
16/12 Electronic source documents
November
12/11 Shelf ready packaging
18/11 Enabling technologies
24/11 Master data synchronization
26/11 Electronic source documents
NEW MEMBERS OF ECR RUSSIA
Neva Cheeses LLC is a
cheese and butter producer. Production capacity for cheese is more than
1500 tons/month and for
butter is about 1000 tons/
month. Company Neva
Cheeses LLC rates 3d
place and has 4% share
of the cheese market
in Russia (the second
after Valio). Products are
presented in more than
2000 cities in Russia, USA,
Finland, Estonia and Israel.
2
SUN InBev - the Russian
division of the world’s
largest brewing company
“Anheuser-Busch InBev.”
The company works on
the Russian beer market
for 15 years and holds a
leading position. “SUN
InBev” owns a network of
modern breweries in six
Russian cities. The main
brands of beer in Russia
- BUD, “Klinskoe”, Sibirskaya Korona, Stella Artois,
Lowenbrau, Brahma, Staropramen, Hoegaarden,
Tolstyak and Bagbier.
Supermarket network
“Avoska” - one of the
largest retailers of Moscow, the Moscow region,
Nizhny Novgorod and
Novosibirsk. Avoska
was founded in 1999. At
present the trademark
Avoska unites more than
70 supermarkets. More
than 350 well-known
companies are the regular
suppliers of this retailer.
The group of companies Gradient – is one of
the leading companies
in Russia in the field of
distribution of fast moving consumer goods
(FMCG), it offers a wide
range of production of
more than 50 foreign
and home producers;
Schwarzkopf, Beiersdorf, Johnson&Johnson,
Procter&Gamble, Unilever,
Gillette, Colgate-Palmolive, SC Johnson, Kao
Corporation, SSL International, Bourjois, COTY.
THE 10TH ANNUAL
ECR FORUM
1,186 professionals in the retail and FMCGindustry visited the Jubilee ECR Forum,
which was held in Moscow on June 3-4, 2014.
The motto of the 10th Forum – Growing the cake
together – reflects the main idea of our community:
to reduce costs and improve customer service quality together.
Partnership is a key tool for retailers and suppliers
to achieve growth in the market as a whole and in
the framework of their business in particular. It is
important to collaborate inside the company too,
the partnership between different functional units
is essential as well, because each department makes
an important contribution to the success of the
whole business.
The program of the Forum included three streams
of breakout sessions devoted to the best collaborative projects in the field of shopper insights, supply
chain management and enabling technologies.
- This year the professional level of collaborative projects appeared to increase significantly.
This was noted by many Forum attendees. Finally we entered the era of real partnership between retailers and suppliers, – said ECR Russia
Executive director Maximilian Musselius.
3
PLENARY SESSION
The discussion about the high priority
areas of FMCG business and retail was
held with participation of top representatives of the largest companies
- members of ECR:
(from left to right)
Pieter Boone (Metro Cash & Carry),
Ilya Yakubson (Dixy Group),
Mark Johnson (Mars Petcare),
Laurent Kleitman (Unilever RUB),
Silviu Popovici (PepsiCo Russia).
PRESENTATIONS OF THE SESSION
The plenary session was opened by ECR executive director Maximilian Musselius, who made a remarkable
presentation in augmented reality format: the delegates
could see his figure on a screen augmented by a three-dimensional pie chart, symbolising the three key activities
of ECR and on the other hand – an anniversary cake.
Pieter Boone,
Managing Director,
Metro Cash&Carry
Russia:
Any solutions aimed at
increasing the efficiency of
FMCG business are useless
without cooperation and
building trust between
manufacturers and retailers. The Forum is an excellent platform to establish
such a relationship, share
best practice and ideas,
and to develop the strategy of this partnership.
4
Maximilian Musseius,
Executive Director, ECR Russia:
The industry will move from mass marketing to
customised offers.
Just imagine: though all 500 passengers fly in one
aircraft, each one pays his own price for the ticket.
Therefore Big data technology will become a common thread in all the advanced projects in the
near future.
Ilya Yakubson, President, Dixy Group:
We are ready to sign five-year contracts with suppliers
who need to invest in their assets in order to produce
private label for us. Because we understand that companies need to get loans and invest in their re. We are
ready to take such a long-term commitment, though we
never did this before - we usually signed contracts for a
maximum of three years. I think it’s a significant change
in our corporate mentality.
Silviu Popovici,
President,
PepsiCo Russia:
It’s normal that retailer demands
more, and supplier responds “no.”
One will surrender as long as it is
economically feasible. But then
the companies will focus on other
things. It is important that the
interaction is based on the win-win
principle, not just win-loose.
Laurent Kleitman,
President, Unilever RUB:
We have created a collaboration center for
our customers, which provides everything
for modeling consumer behavior, testing
new shelf displays, and creating a new shelf
space management.
Usually pilot projects require time and money, and this center allows us to test quickly
different programs aimed at investigation of
consumers’ behaviour.
Mark Johnson, Regional President, Mars Petcare:
The principle of mutuality - the first of the five basic principles of Mars. Working together with suppliers and customers, we achieve mutual benefits and
increase our profits. We have selected three areas for such cooperation: supply chain optimisation, insights for category growth and tailored customer
marketing solutions.
5
PLENARY SESSION
Marcel Corstjens,
Unilever Chaired Professor at INSEAD:
During the last five years manufacturers
significantly outpaced retailers in terms
of correlation of profits and investment.
All retailers who have worked like maniacs generated such a capitalisation of
their companies, that one would prefer
bank deposit to investment in stocks of
their companies.
Retailers need to differentiate to be profitable. They need to be bad. Be worse
in some areas to be the best in others.
Suppliers have to focus on something
certain too.
Olexander Isaev,
National MT Key Account Manager, JTI:
The Russian tobacco market undergoes
now a radical change: the advertising and
promotion of tobacco were prohibited.
Tobacco sales in kiosks and open displays of
cigarettes in retail were restricted in June.
Now the consumer starts looking for new
places to purchase cigarettes, and this opens
up new opportunities for retailers. Proper
management of the tobacco category and
efficient arrangement of shelf space can
raise the traffic, increase the average check
and boost sales in adjacent categories.
X5 Retail Group has found an interesting
solution in this area.
Sergey Serkov,
Category Director,
X5 Retail Group:
We have noticed that cigarettes
had become the target purchase, which makes people go
to the store.
The category share was 4% in
2013, and we expect it to reach
6% by the end of 2014. This is
a significant indicator for any
shop. At the same time we realised that the average check of
the smoker is 27% higher than
the regular average check at the
store.
PRESENTATIONS OF THE SESSION
6
SHOPPER / DEMAND
Leonid Gutin,
Assortment Director,
Dixy Group:
Retailer has to understand
the role of the category, to
learn its customers, to know
the decision tree of consumers. And manufacturer has to
investigate the category, learn
the consumers’ behaviour, and
understand the laws which
influence the purchase within
the category.
«Happy people buy more».
Marina Erskova,
Performance Management Leader,
Nielsen:
Approximately 25% of buyers declare
that while shopping they have walked
along the whole store, but if we look at
the results of investigation we will find
out that only 2% passed a half of an
outlet.
Sonja Holzschuh,
Marketing Manager
GfK Consumer
Panel Services, GfK:
When you work with a
certain segment of buyers, rather than focus on
an average buyer, you
will get a clear understanding how to boost
sales.
Vadim Korsunskiy,
Commercial Director, O’Key:
Several years ago I couldn’t
recall any project that we had
developed in a collaboration
with supplier – leader of a
category.
And now there are plenty of
such projects, which enable
our company to realise the success, progress and real results,
and inspires us to start with
new projects.
Dr. Alexander Lauer,
Director of Shopper Marketing &
Category Management, Ferrero Germany.
Tatyana Taris,
Director of operational marketing, Eldorado:
During the next
10 years we will
intensively use
CRM-systems, loyalty programs,
big data, shopper
insights and apply
these knowledge
in category management.
Angelo Turati, Commercial Director,
Х5 Retail Group:
Our company used to develop assortment
management and shelf space management.
And we started to develop category management less than a year ago.
PRESENTATIONS OF THE SESSION
7
ON SHELF AVAILABILITY & LOSS PREVENTION
Vyacheslav Kryuchkov,
Head of Purchasing, Auchan:
Today it is typical that 40% of FMCG
turnover is generated on weekends.
That’s why we worked out a new tool,
being inspired by foreign experience
of ECR. We have implemented the report on POS data, which is provided by
Kimberly-Clark. As a result, a customer
always finds the goods on the shelf.
Stefan Winter, Partner,
James Bacos, Practice Leader,
Oliver Wyman:
We have always had the problem of
choosing between cost reduction and
increased product availability
on the shelf (Shrinkage vs On Shelf
Availability). And we decided to focus
on fresh goods: maintaining a high
level of freshness, we increased sales,
and in parallel our loss in fresh group
Maria Clara Esguerra,
Global Customer Service
Manager, Nestle:
We can get the optimal On
shelf Availability results
if retailer and the supplier
collaborate in three areas:
sales, demand planning and
enabling technologies.
Valentina Zolotareva, Head of client collaboration, «Perecrestok» and
«Carousel», X5 Retail Group:
We strive to configure up the system so
that it would reveal the problem zones
of all our suppliers. This work should be
collaborative. Suppliers need to observe
the data on a daily basis and ask questions concerning their alert zones. Only
in this case we can quickly achieve high
level results in OSA projects.
IIvan Kanaev,
NKA Customer Service Manager, Baltika:
Manufacturer must be the
source of best practice and react rapidly to all the requests
of retailer. There are not so
many unusual requests for
Customer Care service - approximately 15%.
Our response to the request
usually takes two hours.
Stanislav Gerasimov,
On-Shelf Availability Manager,
Procter & Gamble:
About 20% of hot products make up
80% of loss, so if we focus on these
hot products, it is possible to reduce
the loss in general.
PRESENTATIONS OF THE SESSION
8
EDI & MASTER DATA SYNCHRONIZATION
Marcus Pannier,
Vice President Informatica, PIM (Product
Information Management), EMEA & APJ,
Informatica:
The data and the way you connect different sources and different types of data will
become very important in the future. If you
are able to link the information about your
product with all the necessary parameters
and bring this information to consumer, it
will ensure your success in the business and
improve the quality of your work. This is
exactly what you need - to deliver the right
product at the right time in the right place
and to the proper buyer.
Lubov Konoplina,
Head of Master Data
Management, O’Key:
The use of the electronic
catalog will make the fail
in compliance with global
standards for assigning bar
codes impossible and it
will improve the situation
on the Russian market in
general.
Andrey Lukyanenko,
Specialist of the Supply Chain
Technologies department,
Metro Cash&Carry:
The keystone of successful
cooperation between the
companies is the confidence of
master data and 100% identity
of data in contractors’ information systems.
Elena Zhukova, Customer
Service Manager, Baltika:
During the last few months
more than 75 SKU of “Baltika” have been activated in
Metro Cash & Carry due to
the catalogue. As a result, the
number of errors in the EDI
messages decreased by 20%.
Ivan Kanaev,
NKA Customer Service Manager,
Baltika:
Implementing SLSRPT and INVRPT enabled us to monitor out-of-shelf on a daily
basis and identify the reason of OOS. We
can even find the person who is responsible for the problem. Thus, we remove 50%
of the factors causing Out-of-Stock.
Vladimir Chernega, Analytic and
development department head,
Dixy Group:
Observing the statistics on sales we can
build up a model to make forecasts with high
probability. We can reveal the virtual stock or
out-of-shelf, or find goods which are expired,
but not written off the inventory. According to
the results of the project it turned out that we
have one of the best results of OSA in Europe.
PRESENTATIONS OF THE SESSION
9
EDI & MASTER DATA SYNCHRONIZATION
Iliya Chernov, Project Manager, IT
department, X5 Retail Group:
Every year we spend about 8 million rubles on
approval of price specifications. We have eliminated these costs by implementing PRICAT and
accumulating all information in SAP.
Victor Zhilyaev, KA relations & Project
manager, L’Oreal:
Usually the procedure of price coordination
takes from two weeks to two months; Thanks to
the introduction of PRICAT we have significantly
reduced this time limit. The message passes
through our system in 10 minutes.
Elena Davletbaeva,
Credit Control Lead,
Wimm-Bill-Dann:
As a result of electronic invoices
implementation with one of
our largest customers - X5 Retai
Group, we were able to eliminate
paper in processing the source
documents. Human mistakes have
been reduced to zero. Delivery
time is now 11 minutes instead of
three days, as it was before.
And the most important thing is
that we achieved up-to-date payment, because the number of incorrect documents reduced three
times. Past due debt reduced to
almost zero.
10
PRESENTATIONS OF THE SESSION
Vyacheslav Polikarpov,
IT Business Partner,
X5 Retail Group:
After we implemented electronic
invoices with “Wimm-Bill-Dann”, the
problem of correct price became a
top priority for us. Electronic invoices
are very useful for automation, but
if the price is not correct they don’t
work. That’s why we have set up the
project “Price-catalogue”.
We can reduce by 40% the number
of incorrect documents by synchronising prices in our system and the
systems of our suppliers.
Roman Tarasov, Director,
Legal practice, Deloitte:
Electronic invoices started
to be used recently. Therefore, in the next one or two
years, we are unlikely to see
some bright jurisprudence
regarding e-invoices, which
would disclose all the issues
and would be responsible for
them. The formation of the
judicial practice is influenced
by two factors. Firstly, the test
pass on a certain schedule
and the documents which are
issued now will be checked
in about two years. Secondly,
the tax process itself is a long
process that includes request
of documents, organization of
counter checks, etc.
Maximilian Musselius,
Executive director, ECR Russia:
Working out the road map “Improving the
quality of the regulatory environment for
business,” we have laid important “umbrella” principles of transition to electronic
document flow that will enable us to fulfil
the ambitious task - to eliminate paper
bureaucracy across the whole country.
This is ban on the use of only paper documents, the unlimited use of electronic
signature, the right to keep any documents
in electronic archives, etc.
Olga Lapina, State Advisor of the
Russian Federation of the 3 class:
At the request of the business we have
made several changes in a draft format
for the electronic Universal Transmission Document. For example, we have
added the ability to use multiple signatures, changed the structure of the
information field - removed limitation
on its scope. In addition, it was decided
that the Universal Transmission Document can be a deed pool, which is very
important for the services sector.
Alexander Ivlev,
Managing Partner,
Ernst & Young:
The Agency for Strategic Initiatives developed eleven road maps,
which are observed by the President’s Administration. We feel a
well-marked control of the state.
And so far, fortunately, we did not
have a single item that we failed
to align with the authorities.
Electronic document flow is one
of the most important aspects of
the roadmap - approximately 40%
of its content is dedicated to this
topic.
If we realise at least a part of these
plans, it will become much easier
to run the business in Russia.
Estonia is a good example of
us. 100% of the population has
electronic identity cards, 99.9%
of interaction between government and citizens is implemented
through a variety of electronic
services, all voting in the country
is realised in the Internet, 95%
of schools are connected to the
e-learning programs, and the
registration of new enterprises in
Estonia takes 18 minutes!
ZERO PAPER BY 2020
Alexander Kuznetsov,
Head of the Russian
Ministry of Communications
and Mass Media:
We have worked out a number
of approaches that enable us use
the reinforced qualified signature on mobile devices without
changing the law (which is very
important).
I hope that next year it will be
available to all of us. A breakthrough will be very serious.
The use of digital signature in
a cloud is very tempting. But
according to the law, the environment in which the signing
is performed, must be protected. Signing in the cloud is
not recognized as a signing in a
secure environment - this is the
position of the Federal Security
Service as a regulator.
At the same time in the B2B
filed documents can be signed
with enhanced but not qualified signature in the cloud upon
condition of signing agreement
of parties.
PRESENTATIONS OF THE SESSION
11
ECR AWARD 2014
ECR Award 2014 traditionally took place on June 3 at the
evening reception of the 10th ECR Forum. This is the annual
ceremony which is aimed at supporting and promoting
examples of successful cooperation between retailer and
supplier.
The best case in demand management:
Professional Shopper in Cash&Carry.
Ekaterina Serebryakova, National Category Manger,
Danone;
Egor Shurukhin, Head of Research and
Complementary Marketing, Metro Cash&Carry.
The best case in supply chain management:
Project «Auchan-transit»: 24 hours from
the order to the shelves.
Vyacheslav Kryuchkov, Head of Purchasing, Auchan;
Ruslan Akhmetzhanov, Customer Logistics & Distribution
Manager, Kimberly Clark.
The best case in enabling technologies:
SLSRPT и INVRPT. OSA - the first steps
and first benefits.
Ivan Kanaev, NKA Customer Service Manager,
Baltika; Vladimir Chernega, Analytic and
development department head, Dixy Group.
Pricing specifications exchange
automatistation with EDI technology.
Victor Zhilyaev, KA relations & Project manager,
L’Oreal; Iliya Chernov, Project Manager, IT
department, X5 Retail Group.
WINNERS’ PRESENTATIONS
12
SAVE THE DATE!
THE 11-th ANNUAL ECR FORUM
JUNE 2-3, 2015
MOSCOW
www.ecr-all.org/russia