The Case for ECR
Update to ECR Board
12 November 2004
Implementation
Workstream
Key Messages for today
• Study will provide comprehensive understanding of
what ECR activity HAS and CAN STILL achieve for
your business
• Examines key linkage between business
performance and capabilities
• Individual business case studies and macroeconomic
analysis
• …. the ECR Board can make a strong contribution to
success!
Agenda
Review:
• Project Objectives
• Key Steps
• Deliverables & Status
• What we need from you
Objectives
To understand if the adoption of ECR practices leads to
greater efficiency, consumer value and growth in Europe
by:
(i) measuring the impact of ECR activity for 1994 - 2004
- Has 5.7% saving been realised/re-invested for growth?
- Has shopper/consumer benefited?
- Has industry benefited?
(ii) reviewing changes in culture, mindset, levels of collaboration
(iii) understanding future potential and recommending set of simple
KPI’s to track progress
Project Governance
Steering Committee
V Belcher, ECR Europe & Gillette
C Cave Jones, IBM
Prof D Corsten, ECREAP
Dr J Hofstetter, ECREAP
Project Leader : ECREAP
Project Leader : IBM
Dr J Hofstetter
C Cave Jones
St Gallen
Athens UEB
Cardiff
IULM
WHU
St Gallen
IBM
Prof Doukidis
Prof Jones
Prof Pellegrini
Prof Huchzermeier
Prof Corsten
Dr Pramatari
Simons
Colacchio
Burkhardt
Dr Hofstetter
C Cave
Jones
Zokaei
Angerer
IBM Team
Hamprecht
Cost Structure Analysis
Data verification & cases
Macroeconomic Analysis
Project Reporting
+ Project Coordination &
Conference
Preparation
Macroeconomic Analysis
Project Reporting
Key Steps
1. Scorecard data analysis
5. Results
- Blue Book report
- Paris Presentation
IBM & Acad. Partnership
Analysis of database
University of St Gallen
4. Macro-Economic Analysis
Case for
ECR
2. Data Verification & Cases
Interviews & Cases
Academic Partnership
Analysis of Databases
IBM & Acad. Partnership
3. Cost Structure Analysis
Analysis of Cases
IBM
Deliverables and Status
5. Results
- Blue Book report
- Paris Presentation
IBM & Acad. Partnership
1. Scorecard data analysis
Analysis of database
University of St Gallen
Case for
ECR
4. Macro-Economic Analysis
Analysis of Databases
IBM & Acad. Partnership
1. Scorecard Data Analysis : Uni of St Gallen
2. Data Verification & Cases
Interviews & Cases
Academic Partnership
3. Cost Structure Analysis
Analysis of Cases
IBM
• Content:
Analyze 150 scorecards. Elements:
- Capabilities : Demand, Supply, Enablers & Integrators
- KPI’s : Business Performance and Implementation Measures
•Deliverable:
Measure relational impact between ECR adoption and business performance over
time (2001 - 2004) and across geographies in EU
•Status:
Due to GCI Annual Survey, ECR Board members have already partially
completed 120 scorecards : please encourage local teams to complete in at
least 3 countries
Summary : Partially Complete Scorecards
Capabilities : Demand, Supply, Enablers & Implementors
KPI’s
Ahold
Mars/Masterfoods
Ahold
Coca-Cola
Metro
Colgate Palmolive
Colgate Palmolive
Nestle
Danone
Danone
Procter & Gamble
HJ Heinz
Douwe Egberts
Reckitt Benckiser
Henkel
Gillette
SC Johnson
ICA
HJ Heinz
Tesco
Johnson&Johnson
Henkel
Unilever
Mars/Masterfoods
ICA
Metro
Johnson&Johnson
Procter & Gamble
Kesa
Kesko
Kimberley Clark
Kraft
Please check missing
elements on handout, by
country, and follow up
for your company
Tesco
Unilever
Handouts
• We do not want to duplicate work that has already been
done….
• Handouts show which parts of the scorecard each company
has already filled out in 2004, by country
• Please could all ECR Europe member companies complete
all sections of the scorecard for at least 3 European
countries
• For an extract of all data held for your company on
www.globalscorecard.net, send an e-mail to
chris.cave.jones@sg.ibm.com
Deliverables and Status
5. Results
- Blue Book report
- Paris Presentation
IBM & Acad. Partnership
1. Scorecard data analysis
Analysis of database
University of St Gallen
Case for
ECR
4. Macro-Economic Analysis
Analysis of Databases
IBM & Acad. Partnership
2. Scorecard Data Verification & Mini-Case Studies :
(Academic Partnership)
2. Data Verification & Cases
Interviews & Cases
Academic Partnership
3. Cost Structure Analysis
Analysis of Cases
IBM
•Content
Academic Partnership supports in-depth scorecard completion and discussion with
30 mini case study companies
- Targeted mix of ECR adopters and “new to ECR” companies
- Mix of large and local : retailers & suppliers : geographies
•Deliverable:
In-depth understanding of ECR adoption, barriers, enablers & effect on category
performance
•Status:
Academic Partnership currently approaching companies, your support
requested!
Deliverables and Status
5. Results
- Blue Book report
- Paris Presentation
IBM & Acad. Partnership
1. Scorecard data analysis
Analysis of database
University of St Gallen
Case for
ECR
4. Macro-Economic Analysis
Analysis of Databases
IBM & Acad. Partnership
2. Scorecard Data Verification & Mini-Case Studies :
Academic Partnership
3. Cost Structure Analysis
Analysis of Cases
IBM
• Targeted Suppliers :
- Dr Oetker (D) , Elgeka (GR), Gillette, Procter & Gamble, Rivella (CH),
Unilever
- Coca-Cola, Kraft, Marie (F), Bonduelle (F)
•Targeted Retailers :
- France : Auchan, Carrefour, Casino
- Germany : Metro, dm, Globus
- Greece : Veropoulos, Metro (local), Carrefour
- Italy : Interdis, Co-op, GS
- Spain : Carrefour, Metro
- Switzerland : Manor, Co-op, Spar
- UK/Ireland : Asda, Tesco, Superquinn
Note: Identifying resources for Sweden to join
Red = Confirmed/Completed, Green = Invited to participate
2. Data Verification & Cases
Interviews & Cases
Academic Partnership
Deliverables and Status
3. Cost Structure Analysis : IBM
5. Results
- Blue Book report
- Paris Presentation
IBM & Acad. Partnership
1. Scorecard data analysis
Analysis of database
University of St Gallen
Case for
ECR
4. Macro-Economic Analysis
Analysis of Databases
IBM & Acad. Partnership
3. Cost Structure Analysis
Analysis of Cases
IBM
• Content:
Updated Value Chain Analysis Model
- 6 companies complete new cost structure analysis and compare with IBM
Industry Model : one week of financial analysis in company
•Deliverable:
Quantified size of opportunity for 3 retailers, 3 manufacturers via Value
Chain Analysis model
- Industry level report based on typical cost structures & capability levels
•Status:
- Companies currently being targeted in France, Germany and UK
aligning to original 1994 study parameters
2. Data Verification & Cases
Interviews & Cases
Academic Partnership
Deliverables and Status
4. Macroeconomic Analysis :
Academic Partnership & IBM
5. Results
- Blue Book report
- Paris Presentation
IBM & Acad. Partnership
1. Scorecard data analysis
Analysis of database
University of St Gallen
Case for
ECR
4. Macro-Economic Analysis
Analysis of Databases
IBM & Acad. Partnership
2. Data Verification & Cases
Interviews & Cases
Academic Partnership
3. Cost Structure Analysis
Analysis of Cases
IBM
•Content:
- Review of individual product and category performance via 30 mini case studies
- Consumer satisfaction indices
- Government statistics/Industry data analysis eg Shopping Basket reports
•Deliverable:
- Growth : Interpretation of economic indices and company data 1994 - 2004
- Collaboration : Interpretation of correlations of business performance to ECR
activity
•Status:
- Initial framework under design
Project Strategy
Interviews
150 companies
30 companies
6 companies
Step 5 :
Results
Step 3 : Cost
Structure
Analysis
Step 2 : Scorecard
Verification
Step 1 : GCI Scorecard
Step 4 : Macro
Economic Analysis
Project Schedule
Step 1 : GCI
Scorecard
Data Collection
Pre-Analysis
Data Analysis
Reporting
Case Identification
Step 2 :
Scorecard
Verification
Case Studies
Reporting
Case Identification
Step 3 : Cost
Structure
Analysis
Case Studies
Reporting
Data Analysis
Step 4 :
Macroeconomic
Analysis
Reporting
Report & Presentation
Step 5 : Reporting
SEPT
OCT
NOV
DEC
JAN
FEB
Summary : How you can help!
• Step 1 : GCI Scorecard (Entire ECR Board)
Please encourage local teams in at least 3 countries to complete all
scorecard elements and submit to database:
- Capabilities : Demand, Supply, Enablers & Integrators
- KPI’s : Business Performance & Implementation Measures
• Step 2 : Mini-case study (Target companies)
Assign a point person/lead team : 4 hour workshop
- informants from demand and supply side
- for one business partner and one category