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ConsumerGoods
ShareUtility
Retailers
2.1TrillionEuros
GlobalPlatformKnowlege Sharing
EmergingTrends
KnowledgedSharing
IdeasExchangeThe Consumer Goods Forum
BetterLives
FriendsInHighPlaces
70Countries
BetterBusiness
StrategicInformation
BestPlactice1PlaceToNotMiss
SenseOfPlace
IndustryExcellence
BestMinds
Time&Place
CommonPositions
DrvenSucces
AGoodPlaceToVisit
TakePlace
AllBeginningsStartWith1Place
BetterLivesThroughBetterBusinessSeniorManagmentMembers
PersonSkilledlnTheArt
StrongFocus
ActiveParticipation
www.tcgfoperationalexcellence.com
marketing / supply chain / information technology
Executive Summary
1120
BBAARRCCCEEELLOONNAA
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.
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What is the Consumer Goods Forum?
2
Executive Summary produced by IGD on behalf of The Consumer Goods ForumIGD 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.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
Executive Summary produced by IGD on behalf of The Consumer Goods Forum
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
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.
our lovely personnel. Find out more at: www.fabradavies.com
Introduction
Operational Excellence
Highlights
Experience
Committees
Store Tour
Opening Plenary Sessions
Marketing Stream
IT Stream
Breakfast Sessions
Closing Plenary Sessions
Networking Moments
Supply Chain Stream
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Contents
4
SUST
AINA
BILI
TY
2
EMER
GIN
G T
REND
S
1
KNO
WLE
DGE
SHAR
ING
& PE
OPL
E DE
VELO
PMEN
T
5
OPE
RATI
ONA
L EX
CELL
ENCE
4
HEAL
TH &
SAF
ETY
3 THE CONSUMER GOODS FORUM
The Strategic Pillars & Forum Activities
Summit
Health & Wellness
PrinciplesCommitments
&
Health& WellnessInformation& Education
Global SocialCompliance
Programme
AgeingPopulation
FutureValue Chain
GlobalPackaging
CarbonMeasurement
Deforestation
RefrigerationEngagement
ConnectBusinessInformation
Prepare
Our
FutureLeaders
Focuson Consumers
& Shoppers
Supply ChainShare our
Food SafetyInitiative
Global
people
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.
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 ForumAt 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.
New Ways of Working Together
Eliminate supply chain disruptions, enable growth
Focus
Strategic Issues Between
Trading Partners
Best Practices/Standards
Common Goals,Common Measures
Documentation,Education,
Communication
c Measures& Priorities
GuidingPrincipes andFrameworks
Other DataSharing
Opportunities
ShareResults
Cons
umer
& S
hopp
er
Satis
fact
ion
*Note: Utilizations of Industry Standards
OPER
ATIO
NAL E
XCEL
LENC
E
2
businessinformation
COMMON GOALS &MEASURESINFORMATIONSHARING*
EPCDATA SYNC
KNOWLEDGE, SKILLS &CAPABILITIES
INCENTIVES & REWARDS
ORGANIZATION DESIGN
people forPrepare
new worldShare
supply chain
SUSTAINABILITYCROSS INDUSTRY INTEGRATIONINTEGRATEDSUPPLY CHAIN
ourFocus
onconsumer
STRATEGY ALIGNEMENT
JAG FRAMEWORK
Industry Track ( collaborate )
Trading Partner Track ( Competitive Advantage )
Creating and implementing change in industry collaboration
Operational ExcellenceThe key to growth
6
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:
Hear what the experts have to say about their experience...
The shopper and consumer at the heart …
“Turning Consumer and Shopper Insights into Growth” “The Consumerism of IT” “Delighting the Consumer. Acting as One.”
“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
Highlights
Experience
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.
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
Russell Zwanka, Senior Vice President Sales, Merchandising, and Marketing, Price Chopper, USA
Activating Shopper and Consumer InsightsMarketing Committee
10
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
Connecting Businesses for ConsumersIT Committee
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
Delighting the Consumer. Acting as One.Supply Chain Commitee
12
Tuesday 11th October
Participants were kindly welcomed by: 14
PROGRAMMEOGRAMME
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.
Managing Director, The Consumer Goods Forum
Jean-Marc Saubade,
The Consumer Goods Forum Managing Director Jean-Marc Saubade welcomed 300 delegates from 30 countries and 130 companies to Operational Excellence 2011
Wednesday 12th and Thursday 13th October
Opening Plenary Sessions
Welcome to OperationalExcellence
2011
16
Operational Excellence
Robert McDonaldChairman of the Board, President & CEO, The Procter & Gamble Company,USA
Jim FlanneryManaging Director, Customer Development, Procter & Gamble Global Operations, The Procter & 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.
Think big, dream bigThe risks and rewards of working togetherThe 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.
International Keynote Speaker and ArtistUSA
Erik Wahl
18
Key Takeaways
OGILVYACTION
Don’t underestimate importance of online story telling
Leverage connected networks
Have “Social by Design” strategies
Build brand utility alongside brand awareness
Turn content from social media into data you can use
Be mindful of this new empowered consumer
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.
Stories from the frontlines of consumerismBrands are the new publishers, “facilitating consumers’ own 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.
Stories from the frontlines of consumerism
Global Head of Social, OgilvyAction,United Kingdom
Matt Gierhart,
Brands are the new publishers, “facilitating consumers’ own stories”
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.
The new empowered consumer and the “stories” opportunity
European Market Development Lead (Global Customer Marketing), Facebook, United Kingdom
Matthew Doris
Brands need to adopt strategies that are “social by design”
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
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.
The importance of social media, loyalty programmes and other sources of data on consumer preferences and behaviour is not to be underestimated
Turning Consumer & Shopper Insights Into Growth
ice President Global Customer & Sales, Nestl , S it erland Co Chairman of the Marketing Committee Activating Shopper and Consumer Insights
Arnaud de elloy
marketingstream
22
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.
Jean-Jac ues andenheedeDirector etail Insights Europe, The Nielsen Company,Belgium
Building Brands 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.
European Market Development Lead (Global Customer Marketing), Facebook,United Kingdom
Matthew Doris
Key Takeaways
Build brands for equity growth
Use social media to harness growth
Build brands through social networks
Ensure user experience is as authentic on line as in real life
Use social apps to gain social insight
24
THE NIELSEN COMPANY
Key Takeaways
Be customer centric
Become a resource for your shopper
Understand the true insights
Implement tailored rewards for your loyalty programme
Build your brand through collaboration with consumers
Innovative packaging makes a difference
Build your brand from the “inside out”
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.”
Ruby AnikChief Marketing Officer, JCPenney, USA
JC PENNEY
MICHEL & AUGUSTIN
Building a Brand through Collaboration with ConsumersTaste 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.
Co founder and CEO, Michel & Augustin, rance
Michel de Rovira
26
The Consumer & Shopper Journey
Senior Advisor, Emnos,Belgium
uc Demeulenaere
Director Market esearch and Media est Europe,
enkel, Germany
Dieter Ebbers
Customer Centric Value Creation 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.”
Building a Brand that Symbolises Trust & Excellence at Symbolises Trust & Excellence Building a Brand th
A Revolution in Service
The most important part of any delivery journey is the last centimetre, according to Katsuhiko Umetsu. Focusing on the quality of the last centimetre has been a crucial factor in making Yamato Japan’s number 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.
Senior Manager Global Business Dpt, amato Transport Co. td.,apan
atsuhiko Umetsu
Key Takeaways
Insights driven
Segmentation based
Building co-equity in "sweet spots"
Continuous engagement
Enabled organisations
Build trust and excellence in customer service: First comes service, profit later.
Fulfill responsibilities as members of society: safety first, then profit.
Building a Brand that Symbolises Trust & Excellence
28
EMNOS & HENKEL
YAMOTO TRANSPORT
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:
The importance of social media, loyalty programmes and other sources of data on consumer preferences and behaviour is not to be underestimated
The Consumerism of IT
CIO, Coca-Cola Hellenic, Austria and Co Chairman of the IT Committee Connecting Businesses for Consumers
Clyde Pereira
ITreamIT
0
On-The-Go Snacking
meets digital innovation withKraft 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.
Director Information Systems, ra t Foods Europe, S it erland
Matthias er og,
From assisted service to customer self servicemobile technology, improves customer experience at Sonae
Back-office accuracy is essential to running a tight ship in retail, but
Director, Sonae, Portugal
Jo o G nther Amaral
Nuno Almeida,E Commerce Director, Sonae, Portugal
Key Takeaways
Understand business problems & position yourself in the future
Use an interoperable
protect your investments
Find your business’ killer app pilot in less than 2 monthsBe prepared for the pull: users will be demanding new functionality
Measure everything usage, speed, problems
Innovation is a process not a technology
Innovative digital solutions help drive sales
“Guerilla” tactics can help overcome internal bureaucracy and barriers
KRAFT FOODS
SONAE
2
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.
Connect with your Consumers
Build your business through social networks
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.
BBuild
European Market Development Lead (Global Customer Marketing), Facebook,United Kingdom
Matthew Doris
The Future of IT – 100% WebCloud 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
Mid Market Director, EMEA,Google Enterprise,United Kingdom
Didier Goibert
20
KeyTakeaways
Use personal identity to provide
Cloud computing is not the future, it’s already here
4
IT Breakout Session
Data Integrity
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.
"BaeCommerce 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
IT Breakout Session
Delivers Superior Brick and Mortar Store Customer Experience
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
IT Director Infrastructure Centre of E cellence, Delhai e Group, Belgium
Freiko aeyens
De
ice President, product and Solution Marketing, Axway, USA
Paul French
Managing Director, Global Customer Business Development, Procter & Gamble, USA
Milan Turk
GS1 Mobile Com Manager,GS1,Belgium
Joe orwood
The Key to Connecting Business for the Consumer
Integrated IT
Key Takeaways
Improving data
e-commerce websites is critical
service model helps brands fully own their product information on line
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
6
DELHAIZE & AXWAY
PROCTER & GAMBLE
GS1
Key Takeaways
Improving data
e-commerce websites is critical
Business benefits can trump cost-saving benefits in the cloud
By making product information as rich as possible products are brought to life for customers in the virtual world of online shopping
TESCO
MICROSOFT
GS1
Beyond the Hype 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.
Beyon-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.
Senior Strategist, EnterpriseStrategy & Architecture, Microso t Corporation,USA
irk Carver
Beyond the Label Providing Digital Product Information to Build Consumers Trust
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 Director, Tesco com, Tesco, UK
Richard Copperthwaite
President Global Solutions, GS1
Malcolm owden
20
IT Breakout Session
IT Breakout Session
8
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:
Help businesses collaborate in new ways to delight the consumer at the shelf, each and every day.
Delighting The Consumer Acting As One.
Senior ice President, Customer Supply Chain & Logistics, PepsiCo USA
John S. PhillipsSenior ice President, Customer Supply Chain & Logistics, PepsiCo USA
John S. Phillips
E ecutive ice President Business Development, Ahold, Europe
Tony endrig
define future supply chain best practices;
use the global scorecard to improve performance;
help upstream integration of raw materials
ingredients and packaging.
***
supplysupply40
© Anton Balazh - Fotolia.com
Key Takeaways
Define value back from the customer, not forward from assets or targets
Waste is a symptom of forecast errors, batching systems and poor cooperation along the stream
Multi modal transport sharing platform - by January 2013 creation of an Independant Logistic Optimiser to liaise between manufacturers and retailers for collaboration opportunities
Look at the whole value stream, rather than optimising points along it
Focus on time: creating flow makes waste visible
LEAN ENTERPRISE ACADEMY
KRAFT FOODS
Multi-Modal Transport Sharing Initiative for Consumer Goods andRetail Companies
Road transport used to be cheap, Jochen Rackebrandt said. No longer. Increasing congestion, coupled with a shortage of drivers and road capacity is beginning to make a strong case 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%).
Collaborative Lean Supply Chains for the Web Era
Working Together with Informed and Impatient Consumers
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”.
tienntt CCCCoonnssuummeerrss
ounding Chairman of ean Enterprise Academy,
United Kingdom
Pro . Daniel T. Jones
Director Customer Service EMEA, ra t Foods,Germany
Jochen Rackebrandt
Increasasiningg cocongngesestitionon, cocoupupleleddf t t h i
Global Sector Leader Distribution & Transportation, Capgemini, The etherlands
Dennis Wereldsma
42
Key Takeaways
Use GS1 standards to deliver better results
Healthy food drives sustainability
Reduce carbon emissions & energy consumptions
Optimising transport & distribution
Sustainable sourcing
More environmentally friendly products
Customer communication
Reducing packaging and waste
Scorecard data helps you set priorities
The scorecard is of no use if you do not have data in it
How to Create Value for You and Your Company Using the Global
Scorecard
Using the Global Scorecard across businesses brings concrete benefits, Jim Flannery said. The Consumer Goods Forum’s Annual Compliance Survey has run since 2000, tracking the implementation of GS1 standards and processes (like GDSN) and the resulting business benefits. “Using data standards is beneficial,” Flannery said, adding: “There is a positive correlation between the usage of GS1 standards and improved 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.
How to CreYour Comp
Using the Global Scorecard across businesses brings concrete bGoods Forum’s Annual Compliance Survey has run since 2000, tracand processes (like GDSN) and the resulting business benefits. “Ussaid, adding: “There is a positive correlation between the uperformance ”
Jim FlanneryManaging Director, Customer Business Development, The Procter & Gamble Company,USA
Using the Global Scorecard across b
USA
Steve rownGeneral Manager, Global Consumer Products Industry, I M, USA
BARILLA
PROCTER & GAMBLE
IBM
Food that’s Good for You, is Good for the Planet!
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.
*
Ste ano Pietroniet ork Design, Planning &
Sourcing Director, arilla Group,Italy
44
How consumers' diet choices drive planet sustainability & products supply chain
Collaboration, Innovation and Sustainability Means More
Profitability
Spanish consumer co-operative Eroski reduced costs by 20% and CO2 emissions by 18 tons by centralising 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.”
Alberto MadariagaSupply Chain Director, Grupo Eroski, Spain
Spanish consumer co-operative Eros
Imanol AlberdiLogistics Operations Director, Grupo Eroski, Spain
How Aeon Rebuilt its Supply Chain
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.
HH
Midori amaguchiGeneral Manager, Supply Chain
e engineering Department, Supply Chain Division, AEON Global SCM Co Ltd apan
People giving more of themselves
Key Takeaways
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
Open dialogue with customers
Improvement became part of everyone’s responsibility
Worth investing in automation competence
Recovery would have been impossible without:
Partnership
Responsibility
Leadership
People power
How Change Management Turned 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.
Michael JohanssonHead of Logistics Operations,
arehouse and Transport Management, ICA, S eden
46
AEON
EROSKI
ICA
Key Takeaways
Get started on collaboration
Execute on the basics to sustain momentum in your collaboration journey
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
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
Taking a Supply Chain Gamble
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.”
The message of collaboration is not
Tarun PatelHead of Supply Chain, IGD,United Kingdom
Collaboration has a key role to play
COCA-COLA
IGD
Delivering the “Perfect Serve”
When it comes to managing supply during special events such as the FIFA World Cup, the opportunity to 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
Frank van der ei denCommercial Director, Coca-Cola ellenic,Austria
orldd CuCCCup,p, tthhhee oopppporo tutu iinityty ttooCoca-Cola Hellenic said.
Peter athamice President Logistics,
Coca-Cola Enterprises,United Kingdom
The Coca-Cola Company’s Supply Chain Learnings from FIFA World Cup and London Olympics
48
Key Takeaways
Innovative product packaging brings value to brands
Private workplace in the cloud for everybody
Get started on collaboration
Secured collaborative architecture allows certain activities to be performed in real time
Be aware of the supply chain initiatives coming up in your market
Set up of a collaborative workspace to accelerate product development
OPERATIONA E CE ENCE
REA FAST SESSIONS
MONOPRIX TRACE ONE
Packaging Innovation Beyond Customer Expectation
French retailer Monoprix used innovative product packaging to bring value to its brands, creating a more satisfying shopper experience. Faced with the challenge of designing new packaging that stood out, the business used an
Stephane Ma uaireCEO, Monoprix,
rance
ubert mardDeputy Chief E ecutive, Monoprix, rance
J r me MalavoyCEO,Trace One, rance
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
The Mobile Consumer 2020+: Communicating, Connecting, Socializing, and Shopping
Economic and demographic changes are changing shopper preferences, according to Lawrence Hutter and Fernando Souza. Markets undergoing demographic change offer important growth opportunities. 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.
awrence utterGlobal Leader Consumer Business, Deloitte, United Kingdom
Economic and demographic changeFernando Souza. Markets underg
Fernando Sou aDirector, Deloitte Spain
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 interactLink bricks and mortar businesses with online opportunities
Key Takeaways
DELOITTE
The Future of Marketing 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.
Patrick MedleyConsumer Product Industry Leader, I M, Australia
Start using information across the business
Prioritise investment far more towards digital
Plan and prepare now for the five year horizon
Key Takeaways
2
IBM
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.
Senior ice President, Customer Supply Chain and Logistics, PepsiCo, USA
John S. Phillips
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.
Chief IDologist, IDology, United Kingdom
Caroline Mc ugh
4
Networking Moments
6
Marketing, IT and Supply Chain Con erence 2011
Networking Moments 2011
The Consumer Goods ForumJoin us in Paris
Marketing Forum IT Conference Supply Chain Conference
6 - 8 November 2012
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The Consumer Goods Forum would like to thank the companies below for their valuable support:
