ECR INFO Day with Estonian Traders’ Association Tallinn, 2013.05.22 Thanks to our sponsors:
Anti-trust caution and Competition Law Compliance ECR Baltic will not enter into any discussion, activity or conduct that may infringe, on its part or on the part of its members and participants, any applicable competition laws. By way of example, members and participants shall not discuss, communicate or exchange any commercially sensitive information, including non-public information relating to prices, marketing and advertisement strategy, costs and revenues, trading terms and conditions and conditions with third parties, including purchasing strategy, terms of supply, trade programs or distribution strategy. This applies not only to discussion in formal meetings but also to informal discussions before, during or after meetings. Message to new members, participants and/or people taking part for the first time: Please note that taking part in ECR Europe’s and ECR Baltic activities is subject to having read and understood ECR Europe’s EC Competition Law Compliance Program. If you have not done so, please do so now. http://www.ecr-baltic.org/f/docs/clcp.pdf
AGENDA IN A NUTSHELL: 10:30 – 11:00 Registration – welcome coffee 11:00 – 12:15 Introduction block: what is efficient consumer response and importance of collaboration? 12:15 – 13:00 Coffee/Lunch break 13:00 – 14:00 Business information, technology block 14:00 – 14:30 Supply Chain block: pallets management 14:30 – 15:00 Coffee break 15:00 – 15:45 Supply Chain block continued: RTIs – Returnable Transport Items (dairy crates) unification and pooling initiative. 15:45 – 16:30 Demand side block: “Consumer demand – shopper behavior” 16:30 – 16:45 Q&A discussion and summary of the meeting 17:00 Closure
PARTICIPANTS: Jürgen Staeder Margus Ärm Aurimas Draugelis Margit Veber Edgars Pentjuss Niina Štšetnikova Monika Loune Gerly Roosmets Kaspar Hioväin Sirje Potisepp Tiina Saron Signe Uustal Katrin Kuldkepp Marika Merilai Janis Lublinskis Indre Lasioniene Jani Peltonen Maarit Eerme Alo Koop Villem Massur Viljar Suits Ardi Vigur Margo Kurisoo
1WorldSync GmbH BEPCO Coca-Cola HBC Baltics EBM Grupp AS ECR Baltic Edisoft Baltic OÜ Edisoft Baltic OÜ Eesti Tarbijateühistute Keskühistu Eesti Tarbijateühistute Keskühistu Eesti Toiduainetööstuse Liit Estonian Dairy Association Estonian Tax and Customs Board Estonian Traders Association Estonian Traders' Association GS1 Latvia GS1 Lithuania K. Hartwall Oy Kaubandus.ee / Äripäev AS Krypton Group OÜ Metrosystem OÜ Mobec AS Mobec AS Nielsen
Oliver Rist Renat Djomin Jorma Rautanen Robert Viira Tõnis Hintsov Zane Silina Edgaras Gedeikis Allar Kahju Valentas Šulskis Aleksei Kolobov Nuno Fernandes Rita Rozentale Ott Sarv Eve Veermets Allar Lauring Kristina Uus Erge Kalbus Mati Maasik Eva Laane Tarmo Tamm Edwin Gielen Ille Sepp Audrius Švedas Rišardas Bedulskis Marianna Drozdova
Nielsen Point Transaction Systems Eesti Prisma Prisma Peremarket AS PROLOG RIMI Baltic RIMI Baltic Rimi Eesti Food AS Sanitex Estonia Sanitex Estonia Saphety Level - Trusted Services S.A. Schoeller Allibert SIA Selver Tallink Duty Free AS Tallink Duty Free AS Telema AS Telema AS Telema AS Tere AS Tere AS Unilever Eesti AS Unilever Eesti AS Žemaitijos Pienas UAB Sistemų integracijos sprendimai UAB Sistemų integracijos sprendimai
11:00 – 12:15 Introduction block: what is efficient consumer response and importance of collaboration? • Welcoming by Marika Merilai and Edgars Pentjuss • Good practice in B2B relationships: The European Voluntary Initiative by Marika Merilai • What is Efficient Consumer Response and ECR Baltic (in associations framework, values, mission, operating principles, key competence areas, working streams) by Edgars Pentjuss • ECR from manufacturers perspective by Edwin Gielen, Unilever • ECR from retailers perspective by Jorma Rautanen, Prisma, ECR Baltic Co-Chair • ECR Baltic events 2013 (General Meeting, Forum in Tallinn – join forum steering group, CRM & Shopper marketing masterclass). • Next steps (Estonian companies feedbacks)? Discussion by All
ECR
& Good practice in B2B relationships: The European Voluntary Initiative Marika Merilai Tallinn, 22 May 2013
www.kaupmeesteliit.ee
ECR • Efficient Consumer Response (ECR) is a global movement in the consumer goods industry. • ECR vision is: "working together to fulfil consumer wishes better, faster and at less cost"
www.kaupmeesteliit.ee
Kaupmeeste Liit • The Estonian Traders’ Association • is a non-profit voluntary organisation, established in April 1996 • has 46 member - retail and wholesale enterprises • represents the common interests of the members on different levels of Estonian governmental institutions • promotes fair and balanced trade traditions and also to establish contacts with other associations in Estonia and abroad, including the European organizations (Estonian Employers Confederation, EuroCommerce etc)
www.kaupmeesteliit.ee
Good practice in B2B relationships • The European Institutions and several Member States raised the existence of problems associated with the food supply chain and agreed that solutions to these problems should be found • The outcomes of the multi-stakeholder dialogue are in the form of a set of principles of good practice and a list of examples of unfair and fair practices in vertical trading relationships. • Framework for the implementation and enforcement of the principles of good practice in vertical relations in the food supply chain.
www.kaupmeesteliit.ee
B2B Timeline 2013 January
February
March
April
May
June
July
August
September
October
November December
Green paper on unfair trading practices EP opinion on G.P.
Impact assessment
DG MARKT Study – mapping of legal systems DG MARKT consultation on trade secrets DG COMP study –consumer choice and innovation
Food Forum to monitor voluntary initiative implementation MSD approval
Cies signing
launch
System operational
survey
Other connected issues include: ADR/ODR, collective redress B2B, revision of the Misleading Comparative Advertising directive, CAP review, consultation on civil enforcement of intellectual property rights www.kaupmeesteliit.ee
Food supply chain & multistakeholder dialogue • What are we trying to achieve? – Fight unnecessary EU regulation, if not help shape regulation • Key aspects of the initiative: – Voluntary but based on commitments – Company web-based registration – Quick, efficient and cheap dispute resolution options – Encouragement to set up national dialogues – System is governed by EU level dialogue
www.kaupmeesteliit.ee
Objectives of the framework • Integrate the principles in daily business practice • Ensure compliance • Report on compliance Industry Retail Wholesale SMEs & Big companies
www.kaupmeesteliit.ee
10 principles of good practice for B2B relations 3 general principles • Consumer • Freedom of contract • Fair dealing
AND
7 specific principles • Written agreements • Pedictability • Compliance • Information • Confidentiality • Responsibility for risks • Justifiable request
www.kaupmeesteliit.ee
Calendar and next steps • Q1 2013: signatory organisations approve the framework + rules of procedures + performance indicators • March: joint letter of commitment by individual companies to be circulated • April / May: companies confirm their participation as early movers • 30 April: Commission consultation on unfair trading practices finishes • 14 May: ECR-EC conference + break-out session with AIM on the framework • Q2-3: web site operational • Sept/Oct: Commission reviews possible options, including functionning of the Voluntary initiative
www.kaupmeesteliit.ee
Thank you!
Estonian Traders Association Eesti Kaupmeeste Liit 2013
www.kaupmeesteliit.ee
Efficient Consumer Response fundamental believe is that manufacturers and retailers can work together for the benefit of consumer!
ECR Baltic members:
By the end of today:
The space reserved for you to shape our Industry future Together!
ECR Baltic governance Jorma Rautanen, Prisma Peremarket (Co-Chair, retailer) Jonas Paulauskas, Nestlé Baltics (Co-Chair, manufacturer) Aiga Priede, Rimi Baltic (Board member, retailer) Rafal Trydenski, Unilever Baltic (Board member,manufacturer) Margus Rennel, Saarioinen Eesti OÜ (Board member, manufacturer) Paulis Dālbergs, Cido grupa (Board member, manufacturer) Liene Šauriņa, GS1 Latvia, (Board member, association) Indre Lasioniene, GS1 Lithuania, (Board member, association) Antra Vītola-Gerharde, ACNielsen (Board member, solution provider)
ECR mission and objectives?
How does ECR work on supply side? Cutting Costs! Whole Supply Chain Cost
Manufacturers part
Manufacturers part
Retailers part
Retailers part
ECR win
Working collaboratively to remove unnecessary costs!
How does ECR work on demand side? Growing Demand! Working collaboratively to focus on consumer/shopper needs
Manufacturers part
Retailers part
ECR WIN
Manufacturers part
Current business value
Retailers part
ECR is about efficiency and cost reduction of whole supply/value chain and not moving costs and profit part back and forth!
Manufacturers part
Retailers part
What ECR is all about?
What ECR is all about?
STRATEGY & STANDARDS Consumer Goods Forum
ECR processes jointly defined by FMCG Retailers and manufacturers at ECR Baltic:
EDI 4Doc
ECR Europe
GDS Datapool ECR Baltic
Global Standards (GS1) and local legislation
Shopper CatMan RTIs & Pallets
SOLUTIONS & IMPLEMENTATION Telema, Edisoft Itella, BPO
1WorldSync, Edisoft, GS1, Saphety Nielsen, Analyse2 Solutions EPAL Chep Bepco MPS CC
ECR in associations framework
Global level
Europe
26 national ECRs in Europe
ECR Europe: since 1994, a consumer goods platform promoting a better way to meet consumer needs Strong network
Leadership
Learning
of 23 national associations
in developing Best Practices
Unique learning & ECR Europe Conference training programme (ICI) & Marketplace
Conferences
www.ecr-institute.org
• To help implement ECR best practices • To inspire new ways of working together based on practical local experience
• Over 30 European “blue books” • 250 national best practices
•International Commerce Review (ICR) and web portal to keep abreast of leadingedge thinking •Progressive Management Programme (PMP) for tomorrow’s leaders
•The premier annual event for our industry, since 1996
www.ecr-europe.org
ECR Baltic work streams Category Management, OSA, Shopper engagement, Shooper insights
Supply Chain Committee: Pallets and
Focus on consumer
secondary packaging unification, DataSync
EDI – Electonic Data Interchange working group
Trainings and Education Academic partnership with Industry Annual ECR Baltic Forum
Efficient Supply Chain
Networking and people development
Publications and bluebooks: ECR Baltic, ECR Europe: http://www.ecr-europe.org/ecr-library
ECR Baltic Student Award (Education and Training Committee)
1st Place (17.0 points) Consumer Response to Unethical Corporate Behavior: A Stage Approach by David Manuel Brﾃｼckmann (SSE Riga) 2nd Place (16.5 points) The Influence of Ethnic Identity Primes on Responses to Targeted Advertising: The Case of Latvians and Russians in Latvia by Kristiﾄ］a Pavlova and Marta Tomase (SSE Riga) 3rd Place (16.0 points) Optimal Location Problem: Mathematical Model and Fuzzy Approach to Solution by Olga Montvida (University of Latvia)
Annual ECR Baltic Forum:
ECR from manufacturers perspective by Edwin Gielen, Unilever Tallinn, 2013.05.22 Thanks to our sponsors:
IMPORTANCE OF OUR INDUSTRY (fast moving consumer goods and retail) • Biggest employer in Europe • 30% of the Worlds GDP • Biggest tax collector of VAT • Touching peoples every days lives: selling real products, solving real problems
Foto: PantherMedia/Scanpix
UNILEVER at ECR Baltic • One of the founders of ECR Baltic • Participating working groups: Category management, EDI, Supply Chain and Master Data Management • ECR Baltic Forum management team
Importance of collaboration and ECR role in it: • ECR is the only platform for sharing the best practice in FMCG from Seed to Plate and even after plate (if we consider joint responsibility for food waste and sustainability). • ECR concept remain valid through all economic downturns: working together to fulfill consumer wishes better, faster and at less cost in a more sustainable way! • WIN for manufacturers, WIN for retail, WIN for consumers and shoppers and WIN for environment
ECR benefits: Benefits for consumers: Greater selection and comfort Shopping according to the needs; Limiting goods shortages; More fresh and cheaper products.
Benefits for retailers: Greater loyalty of consumers; Better market research; Better relations with suppliers; Improvement in chain efficiency.
Benefits for manufacturers: Efficient production; Demand synchronization; Less goods shortages; Stronger brand position; Durable trade relations.
UNILEVER priorities at ECR Baltic • • • • •
Supply chain efficiency EDI and Quality Master Data management People development Sustainability Joint business planning
ECR from retailers perspective by Jorma Rautanen, PRISMA Tallinn, 2013.05.22 Thanks to our sponsors:
Through ECR adoption in Europe substantial value has been created
Source: ECR Europe, ECR Academic Partnership and IBM Global Business Services (2005)
Adopters of ECR practices show better business performance than non or slow adopters
6 Points
- 5%
better service levels
Less of out of stocks
-10 days Days of finished goods inventories
Source: ECR Europe, ECR Academic Partnership and IBM Global Business Services (2005)
The differences between ECR and nonECR Retailers are noticed by Shoppers Store Attribute
ECR Adopters
ECR Non-Adopters
Difference
Product Display
4.00
3.21
0.79
Store Deals & Promotions
3.79
3.62
0.16
Product Range & Variety
3.99
3.29
0.70
Everything I want
3.99
3.25
0.74
High Quality Brands
3.95
3.16
0.79
High Availability
3.88
3.39
0.49
Easy and Quick Shopping
3.87
3.60
0.28
SUM
27.48
23.53
3.95
Source: ECR Europe, ECR Academic Partnership and IBM Global Business Services (2005)
Further potential for ECR adopters in Europe
Source: ECR Europe, ECR Academic Partnership and IBM Global Business Services (2005)
PRISMA priorities at ECR Baltic • • • • •
Supply chain efficiency EDI and Quality Master Data management People development Better understanding about consumers behaviour Planning together how to improve about sustainability • Possibilty to influence (working groups)
Even abbreviation of ECR remain right on the target through the times • Before 2007/2008 the original meaning for Efficient Consumer Response • Through 2007-2012 Efficient Crisis Response • 2013 + the Chinese colleagues offered meaning for reading ECR backwards: Responsible Consumer Enjoyment
ECR Baltic working streams 2012 - 2013 • Finalize Latvian Pallets and Lithuanian RTI unification working groups; • Master data management and data synchronization working group • Start Score card working group for Baltics to define common KPIs and benchmark companies performance. • Join at least 1 cross National Initiatives working group with ECR Europe
Welcome to globalscorecard.net
ECR Baltic Forum in Tallinn 14th November and Events calendar 16 May 2013 ECR Baltic organized Future Store visit for ECR Europe Forum participants, Germany 22 May 2013 ECR info day in Tallinn with Estonian Traders Association (Free of Charge) 10 Jun 2013 ECR Baltic General meeting (for ECR Baltic members) with special OSA session by Nielsen 12 Sep 2013 Customer Relationship Management training, Jurmala, Latvia 13 Nov 2013 ECR Baltic Forum pre-events: Retail-Manufacturer Tour, Estonia details tbc 14 Nov 2013 ECR Baltic Forum in Tallinn 15 Nov 2013 Shopper Marketing masterclass, Tallinn, Estonia more information info@ecr-baltic.org or call +37126546645
Join ECR Baltic Tallinn forum management team?
12 Sep 2013 Customer Relationship Management training, Jūrmala, Latvia How do you view your Customers today? A “means to an end”? A “necessary evil”? Someone to transact business with? Or, a genuine partnership seeking shared beneficial results for both parties? Facilitator Kevin Hawkins 35 yrs. Experience with P&G More details: http://bit.ly/crmjurmala
What we have already prepared for Tallinn Forum 14th November: • ECR Europe CEO, Vincent Carton on collaboration • Consumer Goods Forum on Global Scorecard and/or Emerging trends • Ken Hudges, major European Consumer Behavioralist with plenary session on using In-Store Technology to Drive Demand: A 5 Senses Approach (using experiential technology and how this supports Shopper Marketing) and breakout on biometrics. http://bit.ly/YXoJFJ
15 Nov 2013 Shopper Marketing master class program, Tallinn, Estonia What is Shopper Marketing? History of grocery, retail evolution, differences from CM practice, Shopper v Consumer Marketing The forces shaping global retail today – a changing retail landscape The habitual shopper. An introduction to auto-routine and operational retailing and the opportunities that exist in shifting to an Emotive focus The 5 senses of retailing: Illustrating how using each of the 5 senses the shopper can be engaged and encouraged to impulse buy. A blend of case study work is used from across the globe to illustrate in-store success (see attached detail) An introduction to Behavioural Economics and how understanding the science of decision making can be used in retail to influence sales. Ultimately Shopper Marketing is a behavioural science and so this consumer psychology element is essential to understand Shopper Insight Research Approaches: How the fields of experimentation, ethnography (observation) and biometrics (neuro-marketing) are becoming the key growth areas for shopper insight. Case studies and approaches The impact of Big Data & Predictive Analysis on shopper marketing The way forward? Key structures and barriers to effective Shopper Marketing Audience Q&A (including Client panel discussion if appropriate)
http://bit.ly/kenhudges
Shopper marketing on ECR Baltic Forum and master class teaser video http://bit.ly/kenhudges
Thank you! www.ecr-baltic.org www.ecr-europe.org
EDI (Electronic Data Interchange), Quality Master Data Management and Data Synchronization Thanks to our sponsors:
What is EDI? By definition: ‘Transfer of structured data, by agreed message standards, from one computer application to another, by electronic means, with a minimum of human intervention’
Classic EDI and XML
Key learnings from previous EDI meetings • Start using EDI like email or Internet – it’s here! • Quick win if well implemented • Governments (Public sector) in general is very similar to big retailer (GS1 Denmark case: all invoices addressed to the public sector should be only in EDI) • For retail and suppliers EDI is core enabler for efficient replenishment • Use ID standards (GTIN, GLN) for EDI routing and replacing product/party details on every message Learn more: http://www.ecr-baltic.org/en/publications/ediseminar-presentations/
EDI benefits (Invoic sample) outbound
Inbound paper vs eInvoice
ECR EDI working group challanges: Telema sample
EDI business model for CP&R 1. Product (GTIN) and Party (GLN) Masterdata: PRICAT, PARTIN
2. Electronic Orders EDI: ORDERS and ORDRSP
6. Planning and Forecasting messages
3. EDI: DESADV (Despatch advise) + corresponding Logistic Label (SSCC).
5. Invoicing. EDI: INVOIC (copy to bank in case of factoring). Wire confirmation from retailer
4. Receiving Advise. EDI: RECADV
Definitions: Master Data • Parties master data uniquely identifued by GLN (Global Location Numbers) • Prices • Item Master Data (products) is a set of data, which describes the specifications and structures of each item involved in Supply Chain Processes. Each set of data can uniquely be identified by a Global Trade Item Number (GTIN) by GS1 definition
In other words what we are talking today is product cards: retailer sample! Article name LATVIAN
Article name ESTONIAN
Article name LITHUANIAN
CAPITAL LETTERS, MAX CAPITAL LETTERS, CAPITAL LETTERS, 40 SYMBOLS MAX 40 SYMBOLS MAX 40 SYMBOLS
Name of basic unit EAN of basic unit Basic unit gross weight Basic unit net weight Measurements of basic units (cm)
Unit that is used as determinator of consumer unit. EAN code that is indicated on basic unit. Gross weight of basic unit in kilograms. This field applies also to drink items etc. Products that have different comparison unit than kilogram. Net weight of basic unit in kilograms. This field applies also to drink items etc. Products that have different comparison unit than kilogram. Length, width and height of basic unit in centimeters.
BASIC UNIT PARAMETRES
Article name ENGLISH Name of basic unit
CAPITAL LETTERS, MAX 40 SYMBOLS
Basic unit Piece or kilogram Up to 13 digits
EAN of basic unit
pick from dropdown
Basic unit Basic Measureme gross unit net nts of basic weight weight unit (cm)
kg
Wi Len Hei dt ght ght h
kg
Kilogram 4751008570335
Vendor Vendor
YES YES
Number
13
Vendor
YES
Number
12
Vendor
YES
Number
1
Vendor
YES
What is data synchronisation? Every company has a database filled with master data about the products they make, or sell, or buy But when one company needs to change any bit of information in their database or add a new item to it, another database may not be up to date anymore‌!
65
Does it cost to have synchronized quality master data! • Yes, but it will cost you more without it! • And it is not just data pool fee,...
Incorrect master data generate additional costs An AT Kearney study revealed the following industry costs in connection with incorrect item master data: • Correcting catalog errors costs $60-$80 per error. • 30% of item data in retail catalogs is incorrect. • Each item requires appr. 30 minutes of manual cleansing per year. • Every invoice error costs $40-$400 to reconcile. • 60% of all invoices have errors, and 43% of all invoices result in deductions. • The average product roll-out takes six weeks. • Percent of sales lost due to inaccurate data is 3.5%. • The net result is $40B lost in supply chain inefficiencies each year. Source: Action Plan to Accelerate Trading Partner Electronic Collaboration. Research and case analysis by AT Kearney
Data synchronization is the basis for collaboration. 7. Collaborative Insight & Product Development
Benefits
6. Collaborative Sales & Promotion Planning 5. Collaborative Supply Chain Management 4. Collaborative Transaction Management 3. Item Data Synchronization 2. Single Item Registry 1. Common Data Standards
Time/Degree of Trust and Complexity Source: AT KEARNEY
Data Sync
EUR Pallets management Tallinn, 2013.05.22 Thanks to our sponsors:
ECR Baltic EUR Pallests assessment working group Manufacturers/Suppliers/Distributors: Jurgita Grebliauskiene, Coca-Cola Hellenic Baltic Jevgeni Rudkovski, Coca-Cola Hellenic Baltic Egidijus Skarelis, Coca-Cola HBC Lietuva Kaspars Davids, Aldaris Vaiva Najute, Svyturys-Utenos alus Kristo Sussen, Saku Brewery Ltd Paulis Dalbergs, Royal Unibrew Māris Rodins, Fazer maiznīcas Nerijus Balandis, Kraft Foods Lietuva Evaldas Ciukas, Kraft Foods Lietuva Sergejus Radionovas, Eugesta UAB Andrius Jurgelevičius, Baltic Logistic Solutions Others (Industry Associations & Solution Providers): Edgars Pentjuss, ECR Baltic Marta Górska, CHEP Polska Sp. z o.o. Tatyana Sargsyan, Ramundas Janas Likšo, EPAL National Committee in Baltic States Margus Ärm, Bepco Rita Rozentāle, Schoeller Arca Systems Igoris Kononovas, MPS Lithuania
Retailers: Saulius Reipšleger, Palink Marek Aigro, Prisma Katrin Sormunen, Prisma Edgaras Gedeikis, Rimi Baltic Eduardas Vareikis, Rimi Lietuva Vaida Salniene, Maxima Group Vytautas Ilgevičius, Maxima Group
Deliverables:
• Common Baltic EUR pallets assessment cards v1.0 • Latvian temporary version with industry association LPUF and LPTA v2.1 • The best solution is a choice: EUR (UIC), EPAL, CHEP, One way pallets
Next challanges:
• Dissemination of EUR Pallet assesment cards in all Baltics as common tool to assess EUR pallets for exchange (exchange criteria) • EPAL and UIC (EUR) split. Two pallet systems? Are they exchangable 1:1 and of the same quality? Changes in Pallet assessment cards
Pallet is a valuable asset, please treat it with proper care! http://www.ecr-baltic.org/en/workinggroups/pallets-quality-assessmentworking-group/
RETURNABLE – REUSABLE TRANSPORT ITEMS (Dairy crates standardisation and pooling initiative). Tallinn, 2013.05.22 Thanks to our sponsors:
AGENDA IN A NUTSHELL: 10:30 – 11:00 Registration – welcome coffee 11:00 – 12:15 Introduction block: what is efficient consumer response and importance of collaboration? 12:15 – 13:00 Coffee/Lunch break 13:00 – 14:00 Business information, technology block 14:00 – 14:30 Supply Chain block: pallets management 14:30 – 15:00 Coffee break 15:00 – 15:45 Supply Chain block continued: RTIs – Returnable Transport Items (dairy crates) unification and pooling initiative. 15:45 – 16:30 Demand side block: “Consumer demand – shopper behavior” 16:30 – 16:45 Q&A discussion and summary of the meeting 17:00 Closure
INITIAL VISION
RTI recommendations (standard)
Dairy crates
Other
THANK YOU! Thanks to our sponsors:
Baltic RTI standardisation II step
I step & history 2008-2012 • First attempt on 2008 with no result. Not common understanding between suppliers. No suitable solution for dairies. • New RTI unification initiative formulated by ECR 2010 together with retail, suppliers and service providers. • 2012 November after deep analyses, tests and negotiations between Baltic suppliers and retailers the RTI dimesions for the Baltic market was agreed. • 6 service providers have offered its solutions. One solution provider offer is suitable and accepted by all retailers.
II step 2013 -2014 • Common working process between retail and suppliers: – Data exchange and tare saldo keeping – Keeping balance of tare and returning right amounts – Cleaning the crates. Washing possibility for producers who do not have washing machine – Rent/pooled tare is never for sale to avoid “black market”
• Training people to get max efficiency of loading process • RFID possibilities for supply chain • Further supply chain improvement according to best practice
How to get the best out of it?! • Calculate you everyday direct and indirect cost in detail • Challenge current system and partners (ie. transport companies) • Discussion with retail (products in different crate types, circle times etc.) • Reduce circle time • Start to use RFID
Example of producer savings 300 pallets delivered daily Annual savings (€)
Increased efficiency
More efficient pallet utilization then delivering goods to DC
108 000
Loading and truck time reduced by
2 200 hours
Less pallet movements in return logistics
357 000
Less driving kilometers
73 000 km
Better space utilization and less handlings in producer warehouse
97 000
Less pallets then returning empties
32 000 pallets
Less wooden pallets required
26 000
Warehouse internal pallet movement time reduced by
16 000 manhours
Cost of carton and carton box assembly
693 000
Total annual pallet purchase reduced by
3 700 pallets
No investment into own crates vs. cost of pooling services
83 000
Less warehouse space for empties
2 500 sqm
TOTAL ANNUAL SAVINGS
1 281 000
No manhours for carton box assembly
15 000 manhours
Income from selling old crates (0.45 €/crate, total 85 000 €) equals amount of necessary investments into production Source: BEPCO
Baltic PRODUCERS benefits 700 000 pallets monthly Increased efficiency
Annual savings (â‚Ź) More efficient pallet utilization then delivering goods to DC
11 300 000
Loading and truck time reduced 200 000 by hours
Less pallets in return logistics
13 300 000
Less driving kilometers
7 700 000 km
Better space utilization and less handlings in producer warehouse
15 900 000
Less pallets then returning empties
5 100 000 pallets
Less wooden pallets required for delivery
5 500 000
Warehouse internal pallet movement time reduced by
2 600 000 manhours
No investment into own crates vs. 32 500 cost of pooling services 000
Total annual pallet purchase reduced by
800 000 pallets
TOTAL ANNUAL SAVINGS
Less warehouse space for empties
100 000 sqm
78 500 000
Source: BEPCO
Baltic RETAILERS benefits 700 000 pallets monthly Annual savings (â‚Ź)
Increased efficiency
Increased crate handling efficiency in DC
2 700 000
Handling time reduced by
400 000 manhours
Less empties pallets handling in stores
10 000 000
Pallets less handled then returning empties
5 100 000 pallet movements
Decreased loadings of empties pallets in store and unloadings in DC
1 900 000
Loading time reduced by
300 000 manhours
Less sorting and handling of empties in DC
440 000
Sorting & handling time reduced by
100 000 manhours 20 000 sqm
Less warehouse space is required for empties in DC
2 200 000
Less warehouse space for empties
TOTAL ANNUAL SAVINGS
17 300 000
Source: BEPCO
Sustainability & Corporate Social Responsibilty in the Baltics
roads
24 000 000 less drived km 6 600 000 litres less petrol 2 000 000 Less truck deliveries on the Baltic 780 000 7 000
less wooden pallets tonnes less cardboard
Significantly smaller carbon footprint will be achieved with short period of time and excellent Corporate Social Responsibility activity will be achieved by local companies Source: BEPCO
ECR members and practitioniers helping to invent
Logistics
Retailers
Suppliers Source: BEPCO