ECR Baltic Info Day presentation in Tallinn with Estonian Traders Association

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