View
29
Download
0
Category
Tags:
Preview:
DESCRIPTION
Implementation Workstream : Update to ECR Board 28 November 2003. Implementation Workstream. Objectives - Champion roll-out of ECR practices - Drive implementation of global standards Deliverables 1. Validate benefits of ECR engagement : ‘The Business Case for ECR’ - PowerPoint PPT Presentation
Citation preview
ImplementationImplementation Workstream : Workstream :
Update to ECR Board Update to ECR Board 28 November 2003 28 November 2003
Implementation Workstream
Objectives - Champion roll-out of ECR practices - Drive implementation of global standards
Deliverables 1. Validate benefits of ECR engagement :
‘The Business Case for ECR’
2. Develop KPI’s and measure roll-out of ECR practices and global standards
3. Make recommendations to tackle non-implementation
Co-Chairs : Andre Tordjman, Auchan Ed Lonergan & Vicki Belcher, GilletteCo-ordinator : Marianne Dehousse, AIM
Key Messages for today
1. Proposed business benefits for practising ECR:- Accelerating growth- Reducing costs
2. Proposed measurement of benefits:- Levels and activities- KPI’s
3. Initial “Healthcheck”. Need to improve: - Co-ordination- Communication
4. Developing Solutions
Benefits and Measures
Level Benefit?
Europe Industry Health
By Country Industry Health
By Company Comp Advtge
“What do I get from ECR?”
Benefits and Measures
Level Benefit? 1.Engagement 2.Capability 3.Business Benefits
Cost Saving Growth
Europe Industry Health
By Country Industry Health
By Company Comp Advtge
Measures“What measures can we use?”
Benefits and Measures
Level Benefit? 1.Engagement 2.Capability 3.Business Benefits
Cost Saving Growth
Europe Industry Health Projects
By Country Industry Health Projects
By Company Comp Advtge Project with Partner
KPI’s
- No’s involved- Stage reached
- No’s involved- Stage reached
Measures“How can we measure?”
Benefits and Measures
Level Benefit? 1.Engagement 2.Capability 3.Business Benefits
Cost Saving Growth
Europe Industry Health Projects Scorecard
By Country Industry Health Projects Scorecard
By Company Comp Advtge Project with Partner Scorecard
Measures
KPI’s
- No’s involved- Stage reached
- No’s involved- Stage reached
- No. completed
- Scores achieved
- No. completed
- Scores achieved
- No. completed
“How can we measure?”
Benefits and Measures
Level Benefit? 1.Engagement 2.Capability 3.Business Benefits
Cost Saving Growth
Europe Industry Health Projects Scorecard %€ %€
By Country Industry Health Projects Scorecard %€ %€
By Company Comp Advtge Project with Partner Scorecard %€ %€
Measures
KPI’s
- No’s involved- Stage reached
- No’s involved- Stage reached
- No. completed
- Scores achieved
- No. completed
- Scores achieved
- No. completed
“How can we measure?”
Benefits and Measures Proposed Measurement of Business Benefits
Europe Top 5 ECR active participants, Retail Total Europe, Retail
Top 5 ECR active participants, Supplier Total Europe, FMCG
By Country Top 5 ECR active participants, Retail Total Country, Retail
Top 5 ECR active participants, Supplier Total Country, FMCG
Company Own results Appropriate Universe from above
Source of data : Published Company Results vs Industry averages (MVI, M&MPlanetRetail…)
Cost Saving : Operating Costs % variance, last 3 years
Turnover%
Growth : % Sales Growth (like-for-like) average, last 3 years
Sample Group vs Universe
Benefits and Measures
Level Benefit? 1.Engagement 2.Capability 3.Business Benefits
Cost Saving Growth
Europe Industry Health Projects Scorecard %€ %€
By Country Industry Health Projects Scorecard %€ %€
By Company Comp Advtge Project with Partner Scorecard %€ %€
Measures
KPI’s
- No’s involved- Stage reached
- No’s involved- Stage reached
- No. completed
- Scores achieved
- No. completed
- Scores achieved
- No. completed
ECR European Projects : Completed/ongoing
0
1
2
3
4
5
6
7
1996 1997 1998 1999 2000 2001 2002 2003
Supply Demand General
Steady support for EU Projects,
trend towards Supply side
ECR European Projects : Company Participation
14
3517
57 51
1837
100
14
41
17
87
18
42
137
74
0
20
40
6080
100
120
140
160
1996 1997 1998 1999 2000 2001 2002 2003
No of Companies involved No of people involved
185 companies have participated to date.
Some companies support multiple projects
Issues to address/2004 workplan :
- Process for deciding which topics are best tackled by an EU project?
- How many projects at any one time?
- “Recruitment” of companies to EU projects? Call for volunteers vs targeted recruitment
- Measuring roll-out : “Beyond the Blue Book”
ECR European Projects
Benefits and Measures
Level Benefit? 1.Engagement 2.Capability 3.Business Benefits
Cost Saving Growth
Europe Industry Health Projects Scorecard %€ %€
By Country Industry Health Projects Scorecard %€ %€
By Company Comp Advtge Project with Partner Scorecard %€ %€
Measures
KPI’s
- No’s involved- Stage reached
- No’s involved- Stage reached
- No. completed
- Scores achieved
- No. completed
- Scores achieved
- No. completed
ECR Nationals status on EU project areas
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Promotions
Product Introductions
CRM
POS
Traceability
Cat Man
Consumer Direct Logistic
3PL
Replenishment
CPFR
Transport Optimisation
Shrinkage
Data Synch
OSA
Finished Ongoing Considered
30%
30%
15%
15%
5%
65%
50%
40%
55%
40%
40%
30%
25%
10%
120 Project Teams across 20 countries
“Adoption rate” of European projects is 5 - 65%
Cost
Growth
• Enabling technologies (6) • ECR scorecard (6) • EDI (5) • Coupon Optimisation (3)• RFID (2)• Cross docking (1)• Packaging Damage (1)• Packaging items (1)• Pre-packaging merchandising Units (1)• Social Responsibility (1)• Fresh Food (1)• Textiles - terms & processes (1)
Further ECR National Projects
29 National Project Teams working on additional topics
Issues to address/2004 workplan :
Continue to improve dialogue/communication to:
- Avoid duplication of effort
- Co-ordinate projects to accelerate learning eg a “buddy system”
- Establish what we tackle at a European vs national level
- Roll out the “basics” as well as initiate more “advanced work”
Initial Report on Implementation : ECR Nationals Projects
EuropeNational
Benefits and Measures
Level Benefit? 1.Engagement 2.Capability 3.Business Benefits
Cost Saving Growth
Europe Industry Health Projects Scorecard %€ %€
By Country Industry Health Projects Scorecard %€ %€
By Company Comp Advtge Project with Partner Scorecard %€ %€
Measures
KPI’s
- No’s involved- Stage reached
- No’s involved- Stage reached
- No. completed
- Scores achieved
- No. completed
- Scores achieved
- No. completed
227
31
82
47
75
33
0
50
100
150
200
250
Worldwide Europe
2001 2002 2003
Scorecard completion : European companiesScorecard completion : European companies
ECR Scorecard : Capabilities GCI Compliance
205
29
249
129
186
98
0
50
100
150
200
250
300
Worldwide Europe
2001 2002 2003
European companies account for c50% of scorecard completion worldwide
Some companies complete multiple entries
Strategic Direction -Consumer ValueBusiness Models
ScoreGeneral Meaning
All plans and strategies derive from the principle that creating consumer value must be the primary driver for business decisions
and actions.
0 Nothing plannedThe current business model does not address
or measure how the business is creating value to the consumer.
1Plans agreed but
have not yet started implementation
General acceptance that the traditional business model may not be suff icient to deliver consumer value. Early plans to
challenge the model are in place.
2Pilot tests being
conductedParallel to the traditional model, new s w ays of
providing consumer value are being tested.
3Roll-out of
implementation started
Based on pilot-testing, alternative w ays of providing consumer value have been
identif ied and are evident by a signif icant increase in grow th rates.
4 Fully implemented
A portfolio of business models ensure that the organization exceeds consumer
expectations on value and delivers superior returns for the trading partners.
ECR Scorecard : Measuring implementationECR Scorecard : Measuring implementation
We can measure implementation rates via ECR scorecard
Strategic Direction -Consumer ValueBusiness Models
ScoreGeneral Meaning
All plans and strategies derive from the principle that creating consumer value must be the primary driver for business decisions
and actions.
0 Nothing plannedThe current business model does not address
or measure how the business is creating value to the consumer.
1Plans agreed but
have not yet started implementation
General acceptance that the traditional business model may not be suff icient to deliver consumer value. Early plans to
challenge the model are in place.
2Pilot tests being
conductedParallel to the traditional model, new s w ays of
providing consumer value are being tested.
3Roll-out of
implementation started
Based on pilot-testing, alternative w ays of providing consumer value have been
identif ied and are evident by a signif icant increase in grow th rates.
4 Fully implemented
A portfolio of business models ensure that the organization exceeds consumer
expectations on value and delivers superior returns for the trading partners.
ECR Scorecard : Measuring implementationECR Scorecard : Measuring implementation
4
37
30
29
0
•Average score = 2.32
•c40% of companies are at roll-out or full implementation
EU Companies 2003 score
We can measure implementation rates via ECR scorecard
Issues to address/2004 workplan :
- Global Standards/Compliance scorecard : Need to increase the pace
- Target setting for completion rates and scores achieved
- Understanding why companies don’t use Scorecards
ECR Capability : use of scorecards
Key Messages for today
1. Proposed business benefits for practising ECR:- Accelerating growth- Reducing costs
2. Proposed measurement of benefits:- Levels and activities- KPI’s
3. Initial “Healthcheck”. Need to improve: - Co-ordination- Communication
4. Developing Solutions
Improving visibility & communication
www.ecrnet.org lists all activity by country initiative
Tracking & measurement tools
Matrix highlights topic and status by country...
Improving visibility & communication
….or you can access by topic
Tracking & measurement tools
…with a simple “who to contact” list
Key Messages for today
1. Proposed business benefits for practising ECR:- Accelerating growth- Reducing costs
2. Proposed measurement of benefits:- Levels and activities- KPI’s
3. Initial “Healthcheck”. Need to improve: - Co-ordination- Communication
4. Developing Solutions
Recommended