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1<br />

<strong>ECR</strong> <strong>AP</strong> - The need for collaboration<br />

Quarterly Newsletter of <strong>ECR</strong> Asia Pacific<br />

2 nd ISSUE 2012 Summer<br />

On the picture from left to right: Nick Lee, Tack Wai Wong , Bred Kim, Maximilian Musselius,<br />

Ivett Katalin Nagy, Anna Lin, Heidi Ho, Michael Haas, Chris Cave Jones, Alex von Behr, Francois<br />

Gay-Bellile, Apolonia Kersh, Ah Yiam Tng, Alain Ong, Nancy Quek, Anthony Rose<br />

“As a new participant on the <strong>ECR</strong> Asia Pacific council<br />

I was quite impressed with the content of the agenda<br />

and the discussions. I believe the agenda items are<br />

topical and can deliver significant benefits to the industry”<br />

Claude Ringuet S<strong>AP</strong> Page 2-3<br />

“I do not want people sitting in China thinking global.<br />

I want them to think local. Consumer in China won’t<br />

say that I am a global consumer. So you have to<br />

THINK LOCAL and at the same time ACT GLOB-<br />

AL. It is very important to build talent with local<br />

insight. “ Harish Manwani Unilever Page 27<br />

After this Programme, I can now be a Strategic<br />

Change Agent in my company, developing<br />

differentiating policies, becoming consumer-<br />

led every day!” Paolo from Barilla in<br />

Italy Page 4<br />

“We have converted and enhanced the content, we<br />

have closed the deal and continue to drive customer<br />

loyalty. But this is still the very beginning. A lot is<br />

still coming.” Liu Jun Ling Page 29<br />

60 seconds with Alex von Behr P.2<br />

<strong>ECR</strong> <strong>AP</strong> Council Meeting May 2012 P.2-3<br />

<strong>ECR</strong> <strong>AP</strong> Knowledge and People<br />

Excellence LaB P.4<br />

<strong>ECR</strong> <strong>AP</strong> Sustainability: Walmart Best<br />

Cases P.5<br />

<strong>ECR</strong> <strong>AP</strong> Operational Excellence -OSA P.6<br />

Introducing: Metro Group P.7<br />

<strong>ECR</strong> <strong>AP</strong> New Members BT, S<strong>AP</strong> P.8<br />

Introducing <strong>ECR</strong> <strong>Hong</strong> <strong>Kong</strong> P.9<br />

<strong>ECR</strong> Asia Country News P.10-13<br />

Outside of Asia—CGF P.14<br />

Outside of Asia– Europe P.15<br />

Outside of Asia– Australia P.16-17<br />

SUPPLEMENT: <strong>ECR</strong> <strong>AP</strong> 2012 Conference<br />

P.18-31<br />

<strong>ECR</strong> <strong>AP</strong> News P.32<br />

1


2<br />

60 Seconds with Alex von Behr -<br />

former Co-chair of <strong>ECR</strong> Asia Pacific<br />

Alex tell us<br />

more about<br />

yourself and<br />

your role at<br />

<strong>ECR</strong> <strong>AP</strong>.<br />

I have spent a<br />

fascinating two<br />

years as Manufacturer<br />

co-<br />

Chair for the<br />

<strong>ECR</strong> Asia Pacific<br />

Council.<br />

After a year on the Council representing Unilever I took on the cochair<br />

role as I wanted to play my part in building real collaboration<br />

between retailers and FMCG manufacturers in <strong>AP</strong>. I had also previously<br />

-in an earlier role- spent a year on the Operating Board on<br />

<strong>ECR</strong> Europe so had a pretty good idea of what could be possible if<br />

we could get things organized. In my first year I focused on agreeing<br />

a framework for operating with my fellow council members,<br />

and in my second year I have been focused with my retailer cochair<br />

Anthony Rose of Wal-Mart in, firstly, building representation<br />

on the council from retailers and manufacturers, and secondly<br />

on encouraging the undertaking of collaborative projects. Of<br />

course this was “topped off” with a successful execution of the<br />

recent <strong>ECR</strong> <strong>AP</strong> Conference in Singapore, which coincided with<br />

the ending of my two year term as co-chair…it would be remiss of<br />

me not to also mention the drive and passion brought to the <strong>ECR</strong><br />

<strong>AP</strong> movement by our Director Ivett Nagy who has been a close<br />

ally to Anthony and myself in taking things forward on all of these<br />

fronts, and to the <strong>ECR</strong> Singapore team for the very successful organization<br />

of the recent conference. And the advice and support of<br />

Jean- Marc Saubade, the Managing Director of our global umbrella<br />

organization Consumer Goods Forum (CGF) has really helped.<br />

What are your “legacies” as the out-going co-chair <br />

Over the last two years I do think we have made progress in establishing<br />

a clear way of working in line with our new charter and the<br />

strategic framework mirroring the CGs’ 5 pillars. As a council we<br />

have built additional participation for retailers and manufacturers<br />

but there is still some way to go and I would have liked to have<br />

seen more active participation from a couple of other major retailers<br />

operating in Asia Pacific. Big thanks in particular to Wal-Mart<br />

and Metro for the active and positive contributions, and the representatives<br />

from Coke and P&G have been particularly active,<br />

along with Unilever of course! It was a source of great pride to see<br />

much of our reason for being coming together over those few days<br />

in Singapore in May, with a vibrant Council Meeting reviewing<br />

good progress across a range of collaborative projects, followed by<br />

our two day conference attended by nearly 400 delegates, and<br />

showcasing keynote speeches by senior leaders from our members<br />

and the sharing of some terrific collaborative initiatives across the<br />

region, including awards for the best.<br />

What would be your advice for the person who will succeed<br />

you<br />

He will need, and I know he has, a passion for taking forward the<br />

<strong>ECR</strong> <strong>AP</strong> agenda, with plenty of patience in getting the best out of<br />

very busy council members. We have built a strong platform and I<br />

feel very confident that under new, refreshing leadership the <strong>ECR</strong><br />

<strong>AP</strong> movement will go on to even greater things!<br />

What are things you wished you had done differently<br />

The killer has always been time. All council members are doing<br />

their roles in addition to their very busy day jobs, so finding the<br />

time has always been the biggest challenge. I am proud of what we<br />

have achieved despite this huge constraint.<br />

I have loved the opportunity to interact in a collaborative way with<br />

manufacturers and retailers across the Asia Pacific region – <strong>ECR</strong><br />

<strong>AP</strong> Council is probably the unique forum in our part of the world<br />

for doing this, and has been an inspiring and enjoyable experience.<br />

I have always been keen to learn and build my experience and this<br />

role has really contributed to that. I am very grateful to have had<br />

the opportunity<br />

What are you most proud of <br />

Facilitating dynamic collaborative enjoyable <strong>ECR</strong> <strong>AP</strong> Council<br />

Meetings with good committed attendance<br />

How would sum up yourself <br />

strategic, considerate, driven<br />

What are your favorite places<br />

3 S’s of Singapore, Switzerland and Sydney<br />

Who is the person you most admire and why <br />

Charles Darwin as he worked out and explained the puzzle of life!<br />

What is your favorite quote <br />

“If it’s to be it’s up to me”<br />

What trait you most value in people <br />

Integrity<br />

<strong>ECR</strong> <strong>AP</strong> COUNCIL MEETING UPDATE<br />

In May 2012 <strong>ECR</strong> <strong>AP</strong> Council member attended in our 47 th<br />

council meeting. 30 participants were presented from 16 companies<br />

and from 10 different Country <strong>ECR</strong> organizations .Alex<br />

von Behr opened the meeting with a special welcome to our 2<br />

new <strong>ECR</strong> <strong>AP</strong> members– British Telecom and S<strong>AP</strong>. This meeting<br />

was the last for Alex as manufacturer co-chair. Francois<br />

Gay-Bellile, Coca-Cola Pacific’s Vice President Customer<br />

Leadership is to become <strong>ECR</strong> Asia-Pacific’s new manufacturers’<br />

cochair.<br />

2


3<br />

Council meeting update<br />

Actions from the meeting:<br />

Operational Excellence:<br />

Palett standardization: Finish the project plan and collect case<br />

studied by July.<br />

OSA: Set up tradeshows and discuss follow on initiatives.<br />

Sustainability: Collect service provider cases for <strong>ECR</strong> <strong>AP</strong> best<br />

practice booklet what will be launched September 2012.<br />

Emerging Trends: Endorsement of our plan to refresh<br />

identification of future trends and commitment to provide key<br />

resources to working sessions to gather and test ideas, then<br />

review and sign off new white paper. Set up 3 workshops .<br />

Help us establish the right mechanism for sharing best practice<br />

information and encourage member organisation participation in<br />

any forum we establish .<br />

People Excellence: Members to think of people who could benefit<br />

from a participation in the LaB program .<br />

<strong>ECR</strong> India: Assist in leveraging Asia Pacific contacts of CPG<br />

companies/retailers to re-engage with <strong>ECR</strong> India activities and<br />

take leadership role in driving same.<br />

Share global best practices.<br />

Provide guidance on accelerating <strong>ECR</strong> principles adoption thru<br />

relevant use cases.<br />

National Initiatives: Set up framework and engage <strong>AP</strong> country<br />

organization.<br />

AGENDA<br />

Topics<br />

Introduction<br />

Last meeting actions<br />

Operational Excellence Committee<br />

Update<br />

Sustainability Committee Update<br />

People Excellence Committee<br />

Update<br />

Emerging Trends Committee<br />

Update<br />

Who<br />

Alex von Behr<br />

Alex von Behr<br />

Chris Cave Jones, Paul Prendergast,<br />

Haas Michael, Nigel<br />

Branch<br />

Anthony Rose/Pat Conklin<br />

Francois Gay-Bellile/ Ivett<br />

Nagy<br />

Alex von Behr/ Apolonia<br />

Kersh/ James Layard<br />

“Despite everyone’s busy schedules, it’s encouraging to see<br />

the preparation and engagement around making a bigger<br />

difference as a leadership group.” Pat Conklin (P&G)<br />

“It is a very good networking time to gather<br />

the industry players together to share<br />

the industry needs as both a local perspectives<br />

and a regional perspectives.”<br />

Heidi Ho (<strong>ECR</strong> <strong>Hong</strong> <strong>Kong</strong>)<br />

“The Council Meeting was a great opportunity to work<br />

collaboratively with like-minded manufacturers and retailers<br />

in Asia Pacific on collaborative opportunities like<br />

OSA and emerging trends – the quality of debate is always<br />

fascinating and thought-provoking – it is the only forum I<br />

know of that can bring together these interests in <strong>AP</strong>”.<br />

Alex von Behr (Unilever)<br />

“As a new participant on the <strong>ECR</strong> Asia Pacific council I was<br />

quite impressed with the content of the agenda and the discussions.<br />

I believe the agenda items are topical and can deliver<br />

significant benefits to the industry.” Claude Ringuet (S<strong>AP</strong>)<br />

“The Council meeting was the best we have had. Great to see<br />

the progress being made across our 5 main topics.”<br />

James Layard (BT)<br />

“ The broad attendance at the Council Meeting was very good<br />

to see especially the representation from some countries who<br />

had not joined before. I agree completely with the sentiments<br />

expressed in Council that the organisation and structure which<br />

has now been set up around the Council makes the projects<br />

worthwhile with clear deliverables. Once again thankyou to<br />

Alex for playing such a key role in making this happen. “ Nigel<br />

Branch (CHEP)<br />

<strong>ECR</strong> India<br />

<strong>ECR</strong> Conference update<br />

National Initiatives Idea<br />

Next Manufacturer Co chair<br />

appointment<br />

Ravi Mathur<br />

Nick Lee<br />

Ivett Nagy<br />

Alex von Behr, Anthony Rose<br />

“well run meeting with efficient review of<br />

current projects and ideas for future initiatives<br />

“ Apolonia Kersh<br />

3


<strong>ECR</strong> <strong>AP</strong> Knowledge and People Excellence - Learning across<br />

Boundaries - The Consumer Goods Sector Executive Development Programme<br />

4<br />

New dates for the 2012-2013 session<br />

26-30 November 2012: First Module at INSEAD Campus,<br />

Singapore<br />

Academic Research / Case Studies & Industry Speakers, Discussion,<br />

Simulations, Workshops & Field Trips (Field Trips<br />

focusing on Store Visits exploring the peculiarities of mature<br />

European markets)<br />

18-22 March 2013: Second Module at INSEAD Campus,<br />

France<br />

Academic Research / Case Studies & Industry Speakers, Discussion,<br />

Simulations, Workshops & Field Trips (Field Trips<br />

focusing on Asian <strong>Supply</strong> <strong>Chain</strong> processes and Store Visits of<br />

Asian markets)<br />

My name is Stephanie Penning and I have been working with the<br />

<strong>ECR</strong> EU Learning & Development Initiatives for over eight<br />

years – firstly developing the framework for the national learning<br />

programmes; then becoming the manager (now development director)<br />

for the global executive development programme.<br />

Over the years, this programme has developed into the “<strong>ECR</strong><br />

LaB: Leading across Boundaries Programme” that we know<br />

today. <strong>ECR</strong> <strong>AP</strong> People Excellence Committee is an integral part<br />

of the Steering Committee that stewards the development of a<br />

relevant curriculum and it will be the first time in 2012 that one<br />

week of the program will be held in Asia in Singapore.<br />

Its predecessor (the “Progressive <strong>Management</strong> Programme”)<br />

hosted 100 delegates from the Consumer Goods Sector through<br />

interactive modules focusing on subjects relating to the whole<br />

Consumer Value <strong>Chain</strong>. These delegates now form the <strong>ECR</strong><br />

Alumni, who, in their turn, assist the development team to shape<br />

the <strong>ECR</strong> LaB Programme of today.<br />

As with all <strong>ECR</strong> initiatives, the <strong>ECR</strong> LaB Programme is itself a<br />

collaboration – between the <strong>ECR</strong> Executive Board and LaB<br />

Team, with the world-renowned INSEAD Business School, plus<br />

leading companies in the Consumer Goods Sector.<br />

The <strong>ECR</strong> LaB Programme is...<br />

<br />

<br />

<br />

<br />

for high-potential executives in Consumer Goods companies;<br />

for crossing new boundaries: within companies; with<br />

trading partners - globally<br />

a ‘LaBoratory’: an exploratory environment – to discover<br />

& try out new ideas<br />

an analysis of the Key Leadership Duality – change what<br />

needs to change; keep what works<br />

<br />

<br />

a transition towards delegates’ own visions – from studying<br />

ideas of others’<br />

complements company leadership programmes – a joint<br />

experience for delegates from different companies, forging<br />

strong relationships during (and after) the Programme<br />

I continue to work with this Programme as I believe it is fundamental<br />

in supporting Consumer Goods companies to prepare their<br />

high-potential executives to become their Leaders of the Future –<br />

placing their companies at the top of the Sector.<br />

Previous delegates have gained many, many benefits<br />

and have become strong ambassadors of the<br />

Programme, commenting:<br />

“I am creating a step-change in Category <strong>Management</strong><br />

in Central Europe, using Consumer Insights<br />

and Fair Process concepts learned during<br />

the Programme - in collaboration with a Supplier<br />

met on the Programme, then with other Suppliers.”<br />

Anna from Tesco in Poland<br />

“Having already created a collaborative Task<br />

Force with a Retailer during the Programme, use<br />

our insights and time in store, then work on ranges,<br />

planograms, etc. Implement this elsewhere,<br />

creating a pool of global experts to work with our<br />

customers.” Jon from Coca-Cola in Great<br />

Britain<br />

“After this Programme, I can now be a Strategic<br />

Change Agent in my company, developing differentiating<br />

policies, becoming consumer- led every<br />

day!” Paolo from Barilla in Italy<br />

For more information, or to book yourself, a colleague<br />

or a member of your team on this unique Programme,<br />

please contact Ivett Katalin Nagy on ivett@ecr-all.org<br />

or directly to me, Stephanie Penning, on Stephanie.penning@ecreurope.com<br />

or +39 349 243 3706.<br />

4


5<br />

<strong>ECR</strong> <strong>AP</strong> Sustainability - Walmart Best Practices<br />

Walmart is a pioneer in the area of responsible sourcing with a strong focus on the Asian markets from where it sources 80% of its<br />

merchandise.<br />

Walmart’s Supplier Development Program is a first of its kind initiative to<br />

encourage suppliers to adopt best practices. The program goes beyond simple<br />

audits by teaching suppliers hands on methods to bring their operations to a<br />

world-class level. Benefits include a decrease in workplace injuries, lower<br />

employee turnover rate, enhanced energy efficiency, improved recruitment<br />

practices and better internal communications practices.<br />

54 suppliers have already graduated from the program and 127 suppliers are<br />

currently enrolled. .<br />

Walmart puts a great deal of emphasis on encouraging its suppliers to adhere<br />

to global best practices in areas ranging from sustainability to safety. The best<br />

case practice in this area is Walmart China’s Energy Efficiency Program<br />

that involved more than 300 factories in China.<br />

By January 2011, 143 factories have achieved 20% energy efficiency improvement with totally saved energy consumption by 514<br />

million KWh, equivalent to reducing CO2 411,000 tons.<br />

Walmart Supplier Diversity program was launched in 1994 to help bring minority and women-owned businesses into our vast network<br />

of suppliers with an initial spend of US$2 million. Today, our procurement from diverse suppliers’ accounts for more than<br />

US$10.5 billion in direct and second-tier spend.<br />

Walmart and Unilever HUL recycling initiative in India<br />

In 2011, Bharti Walmart and Unilever<br />

India launched “HUL”, a first-ofits<br />

kind recycling initiative in India<br />

promoting plastic waste recycling<br />

and educating consumers on responsible<br />

consumption. The program ran<br />

for three months across 30 stores.<br />

Throughout the campaign period,<br />

customers were encouraged to bring<br />

empty plastic bottles and pouches in<br />

exchange for store coupons<br />

Walmart and SC Johnson Sustainability partnership<br />

Walmart U.S. publically announced the desire to<br />

phase-out of products containing the following three<br />

chemicals: permethrin, propoxur, dichlorvos.<br />

Walmart’s announcement focused on having suppliers<br />

deliver a plan to achieve this goal.<br />

SCJ put together a plan based on product development<br />

and regulatory timelines to move from Permethrin<br />

to other active ingredients with the imperative<br />

of maintaining product performance.<br />

Walmart and P&G Value Stream Mapping<br />

(VSM) project<br />

Bangladesh – Walmart WHEEL program for garment workers<br />

In Bangladesh, more than 80 percent of garment workers are women,<br />

and nearly all of them live in poverty. These women often lack a formal<br />

education and the skills necessary to improve their quality of life.<br />

With our assistance, the WHEEL program has set up 100 learning centers<br />

where women can gain workplace skills and receive literacy training.<br />

The initiative will benefit 2,500 workers and their families, positively<br />

impacting an estimated 12,500 to 15,000 people in their communities.<br />

VSM project aimed to eliminate the waste where it<br />

exists along the value stream process in between of<br />

P&G and Walmart. It was done by process optimization,<br />

technology application and operation innovation.<br />

As a result Lead time (time involved from receiving<br />

time to shipping time) improved by 54% and receiving<br />

time improved by 49% in 2011.<br />

5


6<br />

<strong>ECR</strong> <strong>AP</strong> Operational Excellence – On Shelf Availability Press Release<br />

<strong>ECR</strong> Asia Pacific launch On<br />

Shelf Availability in Asia Pacific<br />

22 nd May 2012<br />

<strong>ECR</strong> Asia Pacific and Accenture<br />

are excited to announce the publication<br />

of the first Asia Pacific<br />

wide report into On Shelf Availability<br />

(OSA). The report was<br />

created by an OSA working<br />

group setup in 2011 between<br />

Accenture, Unilever and Diageo.<br />

Retailers and Manufacturers in<br />

<strong>AP</strong>AC are realizing the importance<br />

of OSA in an industry<br />

where vertical integration is<br />

limited, and parties have to rely<br />

on each other to achieve their respective goals. This goal is now a<br />

common one: shopper and consumer satisfaction, which can only<br />

be achieved by ensuring high levels of collaboration and adopting<br />

a common methodology to approaching issues.<br />

Over 2011 and 2012, 51 manufacturers and retailers from 14<br />

different countries participated in the first <strong>ECR</strong> <strong>AP</strong>AC wide On-<br />

Shelf Availability survey, investigating the perception of OSA<br />

within <strong>AP</strong>AC as well as the critical success factors and key barriers<br />

to reducing out of stocks. The outcomes of the survey combined<br />

with insights from a series of 1on1 interviews were the<br />

basis of the <strong>ECR</strong> <strong>AP</strong>AC OSA report - outlining the key findings<br />

and the future agenda for change.<br />

The report can be accessed through the following link: http://<br />

www.ecr-all.org/upload/blogfiles/0c7/<strong>AP</strong>AC%20<strong>ECR</strong>%<br />

20OSA%20Report%202012.pdf<br />

Efficient Consumer Response Asia Pacific (<strong>ECR</strong> <strong>AP</strong>) is an<br />

independent joint trade and industry body, which is co-chaired by<br />

representatives from the retail sector and the manufacturing sector.<br />

It promotes the use of Efficient Consumer Response techniques<br />

in Fast Moving Consumer Good (FMCG) retailing to remove<br />

unnecessary costs from the supply chain and make the sector,<br />

as a whole, more responsive to consumer demand.<br />

Accenture is a global management consulting, technology services<br />

and outsourcing company. Combining unparalleled experience,<br />

comprehensive capabilities across all industries and business<br />

functions, and extensive research on the world’s most successful<br />

companies, Accenture collaborates with clients<br />

to help them become high-performance businesses and governments.<br />

With more than 247,000 people in 49 countries, the company<br />

generated net revenues of US$25 billion for the fiscal year<br />

ended 31 August 2011.<br />

For more details please contact Ivett Nagy (<strong>ECR</strong> Asia Pacific) at<br />

ivett@ecr-all.org or Paul Prendergast (Accenture) at<br />

paul.d.prendergast@accenture.com<br />

Future Agenda<br />

Based on this report and its key findings, a set of follow on initiatives<br />

have been proposed –see them below-, aimed at leveraging<br />

the momentum that has been created in <strong>ECR</strong> <strong>AP</strong>AC around<br />

OSA. These initiatives will set the stage that will allow <strong>ECR</strong><br />

members to successfully kick start their OSA improvement journey<br />

and will require industry wide commitment.<br />

Standards, measures and definitions<br />

The inconsistent method and frequency of measuring of OSA<br />

and the lack of <strong>AP</strong>AC wide benchmarks is high priority in the<br />

future agenda for change.<br />

Consumer behavior Response to OOS Survey<br />

Given the current widely used benchmark is based on a Consumer<br />

Behaviour Study conducted in 2004, a more relevant study<br />

would bring new insights and allow <strong>AP</strong>AC initiatives to respond<br />

more accurately to customer preferences.<br />

Periodical monitoring of OSA levels in <strong>AP</strong>AC<br />

To collect OSA data points from manufacturers and retailers on a<br />

periodic basis, bringing all data centrally to conduct and provide<br />

basic analytics. The output of this initiative would be an analysis<br />

based on a large volume of POS, stock on hand and order data<br />

from a breadth of contributors that would allow all parties access<br />

to OSA improvement insights.<br />

Global OSA Survey based on <strong>ECR</strong> <strong>AP</strong>AC Survey template<br />

A global survey, using the <strong>ECR</strong> <strong>AP</strong>AC survey as a template will<br />

provide consistent results across geographies and bring forward a<br />

greater collaboration of best practices and ideas.<br />

A future <strong>ECR</strong> <strong>AP</strong>AC report on OSA could also focus on traditional<br />

(mom-and-pop) distribution.<br />

6


Michael Haas is<br />

introducing:<br />

7<br />

METRO<br />

in Asia<br />

GROUP<br />

As a pioneer<br />

among international<br />

trading companies,<br />

METRO<br />

GROUP entered<br />

the Asian market as<br />

early as in 1996<br />

with its first Metro Cash & Carry outlet opened in China,<br />

Shanghai. Today the group generates more than 60 percent of<br />

its turnover outside of Germany with Asia being one of the<br />

most important growth regions. With its sales division Metro<br />

Cash & Carry the group is already present in five Asian countries<br />

with around 100 outlets in China, India, Japan, Pakistan<br />

and Vietnam. In 2010 the group entered Asia with its consumer<br />

electronics division Media Markt which operated until end of<br />

2011 7 outlets in Shanghai.<br />

compete in increasingly challenging markets. By establishing<br />

our business we create a modern trade infrastructure with fewer<br />

middlemen and establish e.g. an unbroken cooling chain or<br />

distribution platforms for fresh produce. Production can be<br />

better aligned with market demands and distribution efficiency<br />

for local products increases. This leads to lower wastage and<br />

lower costs and in turn results in lower food prices and enhanced<br />

domestic consumption. Metro also trains farmers and<br />

suppliers in applying international quality standards and create<br />

access for them to our network in 33 countries – thus fostering<br />

the agricultural sector in general.<br />

Metro Cash & Carry – a unique business-to-business concept<br />

Metro Cash & Carry is the top selling sales brand of METRO<br />

GROUP and operates over 700 outlets in 30 countries. The<br />

unique wholesale business-to-business model of Metro Cash &<br />

Carry is focused on professional customers such as hotels, restaurants,<br />

caterers, small and mid-sized retailers as well as other<br />

companies and offices. One of the cornerstones of the concept<br />

of Metro Cash & Carry is to establish direct procurement from<br />

local suppliers and to offer an “all under one roof” concept<br />

with 90 percent locally sourced products to its professional<br />

customers.<br />

Michael Haas<br />

Head of <strong>Supply</strong> <strong>Chain</strong> <strong>Management</strong><br />

MCC Asia . He has joined to the <strong>ECR</strong> <strong>AP</strong><br />

Council in 2012. He is co -chairing the<br />

Operational Excellence Committee and<br />

also lead of the Pallet Standardization<br />

working group.<br />

Metro’s aim is to<br />

contribute to the<br />

sustainable development<br />

of the emerging<br />

markets in Asia:<br />

With our unique<br />

B2B concept we link<br />

local farmers and<br />

producers to the<br />

market and offer<br />

small businesses a<br />

reliable supply<br />

source of high quality goods at competitive prices. Together<br />

with tailored support programs for example for small traders or<br />

trainings for local restaurants and caterers, we enable SMEs to<br />

7


New Members: British Telecom, S<strong>AP</strong><br />

8<br />

Operating globally, delivering locally –<br />

BT continues to grow in Asia Pacific<br />

In September 2010, BT Global Services<br />

announced an ambitious, 3 year investment<br />

programme for Asia Pacific which<br />

outlined several goals – to support our customers, double the size<br />

of our business and to win new customers. Half way through the<br />

rollout, BT has delivered on its promises.<br />

With a major increase in headcount, the setting up of new customer<br />

technology showcases, and a new portfolio of products and value-added<br />

services, the company is showing solid growth. As they<br />

embark on the second phase, Kevin Taylor, President Asia Pacific<br />

BT Global Services, explains.<br />

“We are halfway into our investment programme and have a<br />

strong foundation from which to further accelerate our growth.<br />

Winning Telecom Asia’s ‘Best Managed Service Provider’ for the<br />

third year running is a fantastic achievement for BT – and we intend<br />

to put that leadership into practice in our ongoing support, not<br />

only for global multinational organisations expanding into the<br />

region, but for local multinationals going global.<br />

We have hired 300 new staff across Asia Pacific – especially in<br />

the key markets of China, India, Australia, Singapore, <strong>Hong</strong> <strong>Kong</strong><br />

and Japan –to ensure we have the right talent and respected local<br />

leadership to strengthen how we engage with our customers.<br />

We have rolled out a portfolio of 20 new products and services in<br />

Asia Pacific, which means that our customers can now access the<br />

same standardised portfolio whether they are in Shanghai, Sydney<br />

or Sao Paulo. In addition we have continued to expand our professional<br />

services arm in region to offer business led solutions.<br />

Six customer technology showcases have been launched in Beijing,<br />

New Delhi, <strong>Hong</strong> <strong>Kong</strong>, Singapore, Shanghai and Sydney,<br />

enabling our customers to experience and interact with our innovative<br />

solutions and capabilities firsthand.<br />

We outlined our business sector growth plan in the areas of: global<br />

banking and financial services; government and health; consumer<br />

packaged goods; and global commerce. And we’ve made great<br />

progress against that commitment with several major deals signed<br />

over the last 12 months.<br />

In the CPG and Retail industry we are proud to be a Council<br />

Member of <strong>ECR</strong> <strong>AP</strong>AC, and commit to help drive the Collaboration<br />

and Visibility agendas through the Thought Leadership and<br />

Solutions we bring. At the heart of this is helping organisations to<br />

get more from their Networks in solving real business issues.<br />

2011 has been a year of transformation for BT in Asia Pacific.<br />

Against a challenging business backdrop, we listened to our customers<br />

and we delivered against a clear set of goals.<br />

As we embark on the second half of our three year journey, it remains<br />

clear that companies are continuing to seek growth into -<br />

and out of - Asia. At BT we are learning a lot from our own experiences<br />

as well as those of our customers, and looking forward to<br />

strengthening our reputation as a networked IT services leader.”<br />

As market leader in enterprise application<br />

software, S<strong>AP</strong> (NYSE: S<strong>AP</strong>) helps companies<br />

of all sizes and industries run better.<br />

From back office to boardroom, warehouse<br />

to storefront, desktop to mobile device –<br />

S<strong>AP</strong> empowers people and organizations to<br />

work together more efficiently and use<br />

business insight more effectively to stay<br />

ahead of the competition. S<strong>AP</strong> applications<br />

and services enable more than 183,000 customers (includes customers<br />

from the acquisition of Sybase) to operate profitably, adapt<br />

continuously, and grow sustainably. For more information, visit<br />

www.sap.com.<br />

As market leader in enterprise application software, S<strong>AP</strong> (NYSE:<br />

S<strong>AP</strong>) helps companies of all sizes and industries run better.<br />

Founded in 1972, S<strong>AP</strong> (which stands for "Systems, Applications,<br />

and Products in Data Processing") has a rich history of innovation<br />

and growth as a true industry leader. Today, S<strong>AP</strong> has sales and<br />

development locations in more than 50 countries worldwide. S<strong>AP</strong><br />

applications and services enable more than 183,000 customers<br />

worldwide to operate profitably, adapt continuously, and grow<br />

sustainably.<br />

From back office to boardroom, warehouse to storefront, desktop<br />

to mobile device, S<strong>AP</strong> empowers people and organizations to<br />

work together more efficiently and use business insight more effectively<br />

to stay ahead of the competition. We do this by extending<br />

the availability of software across on-premise installations, ondemand<br />

deployments and mobile devices.<br />

We believe that the power of our people, products, and partners<br />

unleashes growth and creates significant new value for our customers,<br />

S<strong>AP</strong>, and ultimately, entire industries and the economy at<br />

large.<br />

Our mission is to help companies of all sizes and industries to run<br />

better. Our vision is to help the world run better.<br />

In Asia Pacific, S<strong>AP</strong> is a market leading provider of business software<br />

to the consumer products and retail industries. With over<br />

90% of the leading global consumer products companies leveraging<br />

S<strong>AP</strong> technology we are extremely well placed to drive value<br />

for <strong>ECR</strong> Asia member organisations. With 5 market categories<br />

covering Applications, Database and Technology, Cloud, Mobility<br />

and Analytics, S<strong>AP</strong> can support businesses to not only grow but to<br />

innovate.<br />

Claude Ringuet is the Vice President for <strong>AP</strong>J for Consumer Industries.<br />

This portfolio covers consumer products, retail and wholesale<br />

industries. Claude has a background in management consulting<br />

and working directly in industry as a CIO for a global 3PL as<br />

well as business strategy leader at The Campbell Soup Co.<br />

8


9<br />

Introducing <strong>ECR</strong> <strong>Hong</strong> <strong>Kong</strong><br />

MILESTONES<br />

<strong>ECR</strong> <strong>Hong</strong> <strong>Kong</strong>’s OBJECTIVES are:<br />

Provide an industry platform for retailers and suppliers to improve<br />

and collaborate on supply chain related matters<br />

Facilitate FMCG industry to increase business efficiency and<br />

customer services via <strong>ECR</strong>/SCM best practices and enabling<br />

technologies for better management of demand and supply<br />

chains<br />

Promote and support <strong>ECR</strong>/SCM activities locally, regionally<br />

and globally, and establish linkage to <strong>ECR</strong> Asia, Consumer<br />

Goods Forum and <strong>GS1</strong><br />

The MISSION<br />

“Collaborative<br />

Efforts to Win<br />

Customers”<br />

KEY FOCUS IN 2012<br />

SCOPE OF WORK:<br />

1.Promotion & Education<br />

To promote SCM concept, best practices and technologies to the<br />

local industry and Asia Pacific region for greater awareness on the<br />

benefits of SCM implementation through key events, website, information<br />

dissemination through media and website, and educate practitioners<br />

2.Industry Collaboration<br />

To study new <strong>ECR</strong> initiatives or practices and align work of members<br />

towards same goal and definitions<br />

3.Industry Benchmark<br />

To facilitate wide-spread use of <strong>ECR</strong> capability assessment tool and<br />

standard compliance tracking tool in HK for on-going measurement<br />

of company and industry progress on SCM/<strong>ECR</strong> through pilots,<br />

benchmarking exercise and tracking usage and improvement capabilities<br />

4.Industry Infrastructure<br />

To establish common physical &<br />

informational infrastructure based<br />

on international standards to support<br />

ongoing development and<br />

alignment with regional & global<br />

users<br />

5.Industry Network<br />

To maintain regular communications<br />

& updates on regional and<br />

global trends among <strong>ECR</strong> HK<br />

members and between <strong>ECR</strong> HK<br />

and regional <strong>ECR</strong> members<br />

MOVING FORWARD<br />

•Efficient Consumer Response (<strong>ECR</strong>) <strong>Hong</strong> <strong>Kong</strong> will continuous<br />

drive supply chain management excellence through<br />

industry collaboration and global standards adaptation<br />

•Efficient Consumer Response (<strong>ECR</strong>) <strong>Hong</strong> <strong>Kong</strong> will continuous<br />

drive industry<br />

common practices based<br />

on international standards<br />

to support on-going development<br />

and alignment<br />

with regional & global<br />

consumers<br />

•Efficient Consumer Response<br />

(<strong>ECR</strong>) <strong>Hong</strong> <strong>Kong</strong><br />

will continuous explore<br />

new tools for the industry<br />

in order to response consumer<br />

efficiently.<br />

Member companies<br />

9


10<br />

<strong>ECR</strong> Asia Country News-<strong>Hong</strong> <strong>Kong</strong><br />

The 12th <strong>GS1</strong> <strong>Hong</strong> <strong>Kong</strong> <strong>Supply</strong> <strong>Chain</strong> <strong>Management</strong> Excellence<br />

Summit is an annual executive forum, bringing together<br />

business, technology and supply chain leaders and professionals<br />

from around the world to share and discuss the industry trends,<br />

issues, challenges and opportunities facing all stakeholders<br />

along the supply chain.<br />

Programme Theme with Topic Highlight - Champion Business<br />

Success Through Value Creation<br />

Distinguished Keynote and Plenary Session<br />

<br />

Industry Case Sharing<br />

Technological Innovation with HK RFID Awards 2012<br />

<br />

SCM Solutions Showcase with Networking Opportunity<br />

An affiliated event to Asian Logistics and Maritime Conference<br />

(ALMC) organized by HKTDC on 8 November<br />

(with special offer to ALM Conference delegate)<br />

Enquiry:<br />

Ms Cecilia Wong, tel : 2863 9753, email : ceciliawong@gs1hk.org,<br />

Website : www.gs1hksummit.com<br />

Programme Agenda<br />

1) Registration-<strong>GS1</strong>HK SCM Excellence Summit<br />

2) Registration-Delegate of Asian Logistics & Maritime Conference<br />

to SCM Excellence Summit<br />

Organizer :<br />

<strong>GS1</strong> <strong>Hong</strong> <strong>Kong</strong><br />

Date : 9 Nov 2012<br />

Time :<br />

Venue :<br />

09:00am – 4:00pm<br />

<strong>Hong</strong> <strong>Kong</strong> Convention and Exhibition Centre, 1 Expo<br />

Drive, Wanchai, <strong>Hong</strong> <strong>Kong</strong><br />

10


11<br />

<strong>ECR</strong> Asia Country News-Thailand<br />

DAY 1 Opening<br />

Mr. Payungsak Chartsuthipol (The President of the Federation of Thai Industries)<br />

Mr. Joe Dybell (<strong>Supply</strong> <strong>Chain</strong> Director of Ek-Chai Distribution System Co., Ltd.)<br />

Co-Chairman of <strong>ECR</strong> Thailand<br />

Dr. Viwat Krisdhasima (VP-<strong>Supply</strong> <strong>Chain</strong> Unilever Thai Trading Ltd.)<br />

Co-Chairman of <strong>ECR</strong> Thailand<br />

Keynote Speaker : Economic and Industry Outlook<br />

Mr. Payungsak Chartsuthipol (The President of the Federation of Thai Industries)<br />

Coffee Break : Visit Exhibition Booths<br />

Topic: Consumers Insight<br />

Speaker: Mr. Yongyut Ongwattanpat (Director in Retail <strong>Management</strong> Science<br />

(RMS) of Nielsen Company)<br />

Topic: Shopping Trend<br />

Speaker: Mr. Charkrit Direkwattanachai (Function Head of Corporate Affairs of Ek<br />

-Chai Distribution System Co., Ltd.)<br />

Lunch Break & Visit Exhibition Booths<br />

Topic: Fulfilling Consumers’ Needs during Natural Catastrophe<br />

Speakers: Mr. Kraisar Gilitwala (Operations Director of L’Oreal Thailand Ltd.) and<br />

Mr. Chakkaphob Nuangchamnong (<strong>Supply</strong> <strong>Chain</strong> <strong>Management</strong> of Charoen Pokphand<br />

Foods PCL.)<br />

<strong>ECR</strong> Projects<br />

1. On Shelf Availability (30 minutes)<br />

Speaker : Project Team (Unilever)<br />

2. Returnable Packaging (30 minutes)<br />

Speakers : Mr. Peter Hubbard (Country General Manager of Loscam Thailand Ltd.)<br />

and Mr. Richard Volle (Business Director for Whole Sale of Big C Supercenter<br />

Thailand)<br />

Coffee Break : Visit Exhibition Booths<br />

<strong>ECR</strong> Projects<br />

3. Pallet Height (30 minutes)<br />

Speaker : Mr. Ekachai Kanjanavanich (Customer Services & Distribution Group<br />

Manager of Nestle Thailand Ltd.)<br />

4. Sell More, Lose Less (30 minutes)<br />

Speaker : Mr. Bob Travers (Associate Director, Physical Distribution & Customer<br />

Logistics of P&G Singapore)<br />

5. Green Transportation (30 minutes)<br />

Speaker : Dr. Nutthanakrizz Chantjiraporn (CEO of SCM Executive Education<br />

Institute)<br />

DAY 2 Opening<br />

Mr. Joe Dybell (<strong>Supply</strong> <strong>Chain</strong> Director of Ek-Chai Distribution System Co., Ltd.)<br />

Co-Chairman of <strong>ECR</strong> Thailand<br />

Dr. Viwat Krisdhasima (VP-<strong>Supply</strong> <strong>Chain</strong> Unilever Thai Trading Ltd.)<br />

Co-Chairman of <strong>ECR</strong> Thailand<br />

Keynote Speaker<br />

Topic : AEC (ASEAN Economic Community) Crisis or Opportunity<br />

Speaker : Ms. Kobkarn Wattanavrangkul (Chairperson of Toshiba Thailand Co.,<br />

Ltd.)<br />

Topic : The Preparation to Cope with Natural Disaster<br />

Speaker : Asst. Prof Dr. Seree Supharatid (Director of Natural Disasters Research<br />

Centre, Rangsit University)<br />

Coffee Break : Visit Exhibition Booths<br />

Topic: Future Trend in Labor <strong>Supply</strong><br />

Speaker: Mr. Sanan Angubolkul (Chairman of Srithai Superware Public Company<br />

Ltd.)<br />

Topic: <strong>Supply</strong> <strong>Chain</strong> Academy<br />

Speaker: Dr. Sompong Sirisoponsilp (Director of Transportation Institute<br />

Chulalongkorn University) and<br />

Dr. Pongchai Athikomrattanakul (Director of Centre for Logistics Excellence,<br />

King<br />

Mongkut's University of Technology Thonburi)<br />

Lunch Break & Visit Exhibition Booths<br />

Topic: <strong>Supply</strong> <strong>Chain</strong> In Action - New Technology & Warehouse <strong>Management</strong><br />

Speaker: Mr. Kanok Juthamanee (Logistics Center Manager of Boonthavorn<br />

Ceramic Co., Ltd.) and<br />

Mr. Sarawut Laoprasert (Country Manager of SSI Schaefer Thailand)<br />

Topic: <strong>Supply</strong> <strong>Chain</strong> In Action - Enhancing Consumers’ Intimacy<br />

Speaker: (Guest Speaker)<br />

Coffee Break : Visit Exhibition Booths<br />

Topic: Senior Executive Forum “Winning Consumers’ Hearts & Minds”<br />

Speakers :<br />

Mr. Chanin Archjananun ( Managing Director of Friesland Campina (Thailand))<br />

Mr. Andrew Shepard (Managing Director of Colgate-Palmolive (Thailand))<br />

Mr. Kurt Kamp (Chief Marketing Officer of Ek-Chai Distribution System Co.,<br />

Ltd.)<br />

Mr. Neil McCann (Vice President <strong>Supply</strong> <strong>Chain</strong> of Big C Supercente )<br />

Moderator : Dr. Karndee Leopairote (Assistant Professor of Department of Industrial<br />

and Operations <strong>Management</strong>, Thammasat University)<br />

Closing Speech<br />

11


12<br />

<strong>ECR</strong> Asia Country News-Russia<br />

The 8 th <strong>ECR</strong> Forum –the most significant event in Russian retail<br />

attracted 1045 delegates!<br />

Leading retailers and suppliers shared best practices of cooperation in the field of demand management, supply chain development and<br />

shrinkage reduction during 18 breakout sessions and 2 plenary sessions of <strong>ECR</strong> Forum, which took place 5-6 June, 2012 in Moscow.<br />

The CoChairs of <strong>ECR</strong> Russia BoD – CEO of Metro C&C Russia Pieter Boone and President of Kraft Foods Russia David Steer announced<br />

the major goals of retail and industry for the next years:<br />

Reduce OOS 3 times in 3 years (from 14% to 5%)<br />

Increase the share of e-invoices up to 30% by the end of 2013<br />

<br />

Make CatMan a "basic hygiene" of Russian retail and move to Jointly Agreed Growth Initiatives<br />

Within the framework of <strong>ECR</strong> Forum The Third Conference "Electronic Documents - Sustainable Economy" took place. It<br />

was dedicated to the prospects of implementing electronic document management in Russia. Representatives of The Federal Tax Service,<br />

Ministry of Finance, Ministry of Economy Development, Ministry of Communications and other State Institutions took part in the<br />

event.<br />

At the Evening Reception of the Forum took place <strong>ECR</strong> Award - the most recognized award of the industry best practice cases.<br />

More than 250 guests congratulated the winners:<br />

1. Unilever and Magnit, "Winning together with new technologies in Health and Beauty" - The best case in Shopper Research and<br />

Category <strong>Management</strong>.<br />

2. Arla Foods - Billa, the first case in Russia of completely legal paperless e-invoice interchange (project, made with the involvement<br />

of The Federal Tax Service) - The best case in Technological innovations.<br />

3. Diageo, was nominated as The best case in <strong>Supply</strong> <strong>Chain</strong> for their innovations and improvement of shipment logistics management.<br />

In additional, Metro C&C Russia awarded with a special Diploma for their consistent work in e-invoice implementation in Russia.<br />

And Lenta and Baltika were also awarded for realization of <strong>ECR</strong> principles in collaboration.<br />

Know more about the Forum:<br />

<strong>ECR</strong> Forum presentations,<br />

Photos of the event<br />

Next <strong>ECR</strong> Russia Forum & Marketplace will take place on 4 - 5 June 2013 in Moscow. Save the date!<br />

12


13<br />

Russia is on the way<br />

to Electronic Documents<br />

Interchange<br />

Russia has long been the only European country in which the law<br />

did not allow the creation of legally significant invoices in electronic<br />

form.<br />

May 23, 2012 - the date of formal entry into force of the last document<br />

necessary for the exchange of legally significant electronic<br />

invoices (Order of the Federal Tax Service of Russia from March<br />

5, 2012 № MMV-7-6/138), which adopts the format of electronic<br />

invoices, book of purchases and sales as well as the log book of<br />

issued and received invoices.<br />

The electronic exchange of invoices between parties via telecommunication<br />

channels should be carried out through the Operators<br />

of electronic documents interchange in compliance with all provisions<br />

of the Order, i.e. contractors can not exchange electronic<br />

invoices by regular e-mail.<br />

Operators of electronic documents interchange - these are organizations<br />

that provide open and confidential information via telecommunication<br />

channels.<br />

Currently, on the territory of the Russian Federation are issued<br />

about 13 billion primary paper accounting documents per year.<br />

Given that the estimated cost of processing each paper document<br />

is 40 rubles ($ 1.25), the total amount spent on paper documents<br />

is 520 billion rubles ($ 16.25 billion).<br />

The cost of the electronic document will be initially by a few<br />

times lower than the cost of the paper document, and most likely<br />

will further decrease with time.<br />

Nowadays sending and receiving electronic invoices costs 4-10<br />

rubles ($ 0.22) per document.<br />

Experts estimate that by 2015 the number of electronic primary<br />

documents will be 25-30% of the total number of primary accounting<br />

documents (that will lead to about 130 billion RUB/$<br />

4.06 billion of savings).<br />

The next step in the development of electronic documents interchange<br />

in Russia, is the transfer to electronic format of the trade<br />

bill and the act for accomplished work and services (Federal Tax<br />

Service approved the format of the two most commonly used in<br />

the accounting work documents in the Order № MMV 6-7/172@<br />

on 23/03/2012.)<br />

The system of traceability<br />

in Russia<br />

The food traceability system is being developed<br />

in Russia by Expert Council “Electronic Documents<br />

- Sustainable Economy”, which was<br />

founded on a base of <strong>ECR</strong> Russia.<br />

This project is supported by Russian Ministry of<br />

Economy Development. It will guarantee the<br />

involvement of other state institutions, responsible<br />

for quality and safety control, and will ensure<br />

making the amendments to the relevant legislatives<br />

acts.<br />

The main idea of the project is to move from control<br />

of paper compliance documents, which are<br />

usually delivered with goods, to control of data,<br />

collected in traceability systems of state institutions<br />

and companies.<br />

It is assumed that a bar-code and a manufacturing<br />

date are enough to identify a product and trace it<br />

throughout the supply chain - from row materials<br />

to the grocery store and even consumers’ fridge.<br />

The working group of business and government<br />

representatives has been created. By the end of<br />

2012 it will work out the main principles of<br />

goods and manufacturers identification, collecting,<br />

recording and publishing data. Will determine<br />

the rules of access of different parties to this<br />

data and making this information relevant in law.<br />

The first pilot project will include meat, milk and<br />

alcohol traceability.<br />

The new system will enable retailers and suppliers<br />

to recall goods very quickly, government will<br />

reduce costs for quality and safety control, and<br />

consumers will be more informed of the products<br />

they persuade.<br />

<strong>ECR</strong> Russia is non-commercial partnership, within the scope of which the leading<br />

food retailers and FMCG manufacturers work together to grow the common business<br />

by generating Demand and enhancing the <strong>Supply</strong> chain efficiency. More than 50<br />

leading companies work actively together in breaking down the barriers to business<br />

efficiency.<br />

<strong>ECR</strong> mission is working together to fulfill consumer wishes better, faster and at less<br />

cost<br />

13


14<br />

Global Food Safety Initiative (GFSI): Facilitating<br />

Cross-Industry Collaboration on a<br />

Global Scale<br />

The Global Food Safety Initiative unites global and local food<br />

companies to collaborate on food safety issues that have relevance<br />

for the entire industry. Food safety experts from retailer,<br />

manufacturer and food service companies, service providers, international<br />

organizations, academia and government who truly<br />

believe that food safety is a non-competitive issue meet together<br />

throughout the year. Their joint vision is to effectively manage<br />

food safety to ultimately ensure confidence in the delivery of safe<br />

food to consumers worldwide.<br />

The GFSI Board of Directors, whose companies represent €1200<br />

billion of turnover annually, is responsible for defining the strategic<br />

direction of the initiative. Under their leadership, GFSI has<br />

become a globally recognized initiative whose approach to managing<br />

food safety is accepted by regulatory authorities in numerous<br />

countries and supported by companies the world over. GFSI<br />

works to bridge the gap between the public and private sector,<br />

convening multi-stakeholder Technical Working Groups so that<br />

approaches taken to industry-wide food safety issues incorporate<br />

all stakeholder standpoints.<br />

Collaboration across sectors and geographies is key to the success<br />

of the Global Food Safety Initiative, and collaboration between<br />

regulatory bodies and the agribusiness sector has been particularly<br />

strengthened over the past few years. The GFSI Guidance Document,<br />

steeped in the science-based principles of Codex, provides<br />

a consistent foundation upon which to develop documentation<br />

that raises the bar among food safety management schemes and<br />

drives harmonisation in their requirements. GFSI is currently<br />

engaging government bodies in its work on auditor competence,<br />

driving improvement in the third party certification process to<br />

provide reliable audits that a global industry can rely on. The<br />

GFSI Global Markets Programme, aimed at small and/or less<br />

developed businesses, helps them in developing effective food<br />

safety management systems through a systematic continuous improvement<br />

process. The programme has been particularly effective<br />

in demonstrating the private sector’s commitment to smaller<br />

suppliers, applauded by international organisations who in the<br />

past have seen the food industry’s stringent requirements as a<br />

barrier to market entry for these businesses.<br />

The GFSI Board is composed of companies from all over the<br />

world, and is fortunate to have the representation of two eminent<br />

Chinese companies, China Resources Vanguard and COFCO.<br />

These companies, as well as numerous other Chinese companies<br />

and organisations, are also represented on the GFSI Technical<br />

Working Groups. The Certification and Accreditation Administration<br />

of the People's Republic of China (CNCA) is an honoured<br />

member of the GFSI Advisory Council, a body of experts<br />

providing perspectives on the implementation of GFSI’s strategic<br />

objectives.<br />

GFSI is further collaborating with China on its benchmarking<br />

process, has recently signed a Memorandum of Understanding<br />

with CNCA on collaboration on food safety and will sign a second<br />

MoU with the China Certification & Accreditation Institute<br />

(CCAI) so that GFSI can proceed with the benchmarking of the<br />

Chinese Food Safety HACCP scheme.<br />

GFSI has been developing awareness among local industry players<br />

through the GFSI Roadshow in partnership with CCFA’s<br />

(China <strong>Chain</strong> Store & Franchise Association) annual Food Safety<br />

Conference since 2008. GFSI is also represented at leading food<br />

safety events in China such as the China International Food Safety<br />

& Quality (CIFSQ) Conference and the Food Safety Peak Forum<br />

among others. Representatives from AQSIQ, CNCA,<br />

COFCO and China Resources Vanguard attend the annual Global<br />

Food Safety Conference on a regular basis, where the interest of<br />

Chinese companies in the GFSI activities is growing.<br />

A GFSI Food Safety workshop taking place on 28th March during<br />

the 18th Franco-Chinese Economic Forum (organised by<br />

CCPIT, CFC and DRC) and co-hosted with the Danone Group,<br />

will highlight that a modern food supply network in a global<br />

economy requires further collaboration by all food safety stakeholders.<br />

This is particularly pertinent to the Chinese marketplace<br />

in light of the fact that China is one of the world’s most important<br />

countries in terms of food consumption, as well as one of the<br />

worldwide leaders in food imports and exports. Feeding a growing<br />

population whilst maintaining a safe food supply chain will<br />

be a challenge, but a united food industry can meet this challenge<br />

head on.<br />

Aiming to strengthen communication and coordination with top<br />

food safety regulators and key industry players in China, GFSI is<br />

looking to work together with all Chinese stakeholders to improve<br />

Chinese consumer confidence in food safety.<br />

GLOBAL FOOD SAFETY INITIATIVE<br />

The GFSI, managed by The Consumer Goods Forum, was set up<br />

in 2000 to pursue continuous improvement in food safety management<br />

systems, cost efficiency in the supply chain and, above<br />

all, safe food for consumers worldwide.<br />

For more information, please visit www.mygfsi.com<br />

14


15<br />

THE CONSUMER GOODS FORUM<br />

The Consumer Goods Forum (CGF) is a global, parity based industry<br />

network, driven by its members. It brings together the<br />

CEOs and senior management of over 650 retailers, manufacturers,<br />

service providers and other stakeholders across 70 countries<br />

and reflects the diversity of the industry in geography, size, product<br />

category and format. Forum member companies have combined<br />

sales of EUR 2.5 trillion.<br />

The Forum’s vision is: “Better lives through better business”. To<br />

fulfill this, its members have given the Forum a mandate to develop<br />

common positions on key strategic and operational issues affecting<br />

the consumer goods business, with a strong focus on non<br />

competitive process improvement. The Forum’s success is driven<br />

by the active participation of the key players in the sector, who<br />

together develop and lead the implementation of best practices<br />

along the value chain.<br />

With its headquarters in Paris and its regional offices in Washington,<br />

D.C., and Tokyo, the CGF serves its members throughout the<br />

world. For more information, please visit:<br />

www.theconsumergoodsforum.com<br />

CONTACT DETAILS<br />

Claudine Musitelli<br />

VP, Ethical Sourcing and Food Safety Initiatives<br />

The Consumer Goods Forum<br />

c.musitelli@ theconsumergoodsforum.com<br />

For GFSI in China:Yangying XU<br />

GFSI China Chief Representative<br />

Food Safety Programs<br />

The Consumer Goods Forum<br />

y.xu@theconsumergoodsforum.com<br />

<strong>ECR</strong> Europe News<br />

<strong>ECR</strong> Europe has new co-chairs<br />

Mr Thomas Hübner, Executive Director for Europe for the Carrefour<br />

Group, and Mr Jan Zijderveld, President Europe of Unilever,<br />

have been designated as new co-chairs of <strong>ECR</strong> Europe during the<br />

last General Assembly which took place on 8 May in Brussels.<br />

To kick-off their new role, Thomas and Jan opened the 2012 <strong>ECR</strong><br />

Europe Conference by setting out the new strategic vision for<br />

<strong>ECR</strong> – ‘The Next Generation’.<br />

Jan Zijderveld started in the FMCG-industry as brand manager at<br />

Unilever New Zealand in 1987. After that he held various senior<br />

management positions from Sydney to Dubai and Rotterdam. In<br />

2008, Jan moved to Singapore, as Executive Vice President of<br />

Unilever South East Asia and Australasia. In 2011, he was appointed<br />

to his current role: President, Unilever Europe.<br />

Thomas Hübner has extensive experience in the food and retail<br />

industry, holding senior executive positions with McDonald’s and<br />

Metro Cash & Carry. He joined Carrefour on July 2011 as the<br />

Executive Director for Europe (excluding France) and he is member<br />

of the Executive Board of Carrefour.<br />

New <strong>ECR</strong> Europe website<br />

<strong>ECR</strong> Europe has launched its new corporate website. http://www.ecr-europe.org/<br />

<strong>ECR</strong> Europe conference and Marketplace 2012<br />

Nearly 600 participants attended the last <strong>ECR</strong> Europe conference<br />

and Marketplace 2012 which took place in Brussels on 9 and 10<br />

May.<br />

The theme of this year’s conference was Digital, <strong>ECR</strong>: The Next<br />

Generation.<br />

New <strong>ECR</strong> Europe co-chairs Thomas Hübner and Jan Zijderveld<br />

shared the results of a survey conducted throughout Europe by<br />

McKinsey on the adoption, use and benefits of <strong>ECR</strong> practices in<br />

the opening plenary session.<br />

Second plenary was focused on how retail is reaching the consumer<br />

in the digital arena: What principal trends are driving<br />

change How will new technologies and social networking impact<br />

the shopping experience Peter Hinssen concluded this session<br />

presenting his vision of “The New Normal”.<br />

Third plenary was focused on Growth and Sustainability: how<br />

sustainability can stimulate innovation, and how top retailers and<br />

manufacturers are integrating sustainability in their daily business<br />

Four sets of four breakout sessions gave a concrete view and real<br />

life examples of successful collaboration in 5 areas: Shopper, Sustainability,<br />

<strong>Supply</strong>-<strong>Chain</strong>, Enabling technologies and Business<br />

Strategies.<br />

For the first time at an <strong>ECR</strong> Europe conference, delegates were<br />

able to put questions to the main speakers, before or on the day,<br />

thanks to new interactive facility. Discover all answers from<br />

speakers: http://www.ecreuropeforum.net/Programme<br />

To get more information, view presentations and videos, please<br />

go to :<br />

http://www.ecreuropeforum.net/Programme<br />

15


<strong>ECR</strong> Australia News<br />

16<br />

We all know that the pace of change within our industry and society<br />

is speeding up, driven by rapid advances in communications, technology<br />

and an increasingly volatile trading environment. Increased<br />

agility and flexibility have become must-have factors in 2012,<br />

while efficiency, responsiveness and collaboration are also seen as<br />

critical.<br />

This year the fourth <strong>ECR</strong>A Annual Supplier and Retailer Convention<br />

examines the explosion of data, including how companies are<br />

starting to use large-scale data gathering and analytics to shape<br />

strategy.<br />

Technological advances are part of a wider societal trend in which<br />

shoppers and consumers demand inclusion. Both manufacturers<br />

and retailers are tapping into this trend, understanding that growing<br />

social media usage will accelerate engagement, transform product<br />

Loss Prevention Seminars prove a great success<br />

<strong>ECR</strong>A hosted two extremely successful Loss Prevention seminars in<br />

Melbourne and Sydney entitled “Sell More, Lose Less: Introducing<br />

New Loss Prevention”. Both events completely sold out prior meaning<br />

over 200 delegates were on hand to engage in collaborative discussion<br />

and interaction and bring a broad view of the underlying<br />

issues behind shrinkage and waste to the seminars.<br />

Generous sponsorship commitment from Checkpoint and Asset Security<br />

Concepts, along with administrative support from the Australian<br />

Food and Grocery Council provided the opportunity to bring<br />

excellent international speakers to the event, including Adrian Beck,<br />

Head of Department of Criminology at University of Leicester<br />

(UK); Colin Peacock, Director of Global In Store Execution at<br />

Procter & Gamble; and Neil Matthews, Vice President Europe from<br />

Checkpoint.<br />

development, reinvent shopper marketing processes and supply<br />

chains.<br />

Businesses will need to be prepared to increase supply chain flexibility<br />

ensuring their supply chains are fit for the future!<br />

The 2012 <strong>ECR</strong>A Convention will share, thought leadership, case<br />

studies, and targeted sessions:<br />

Global Outlook - Understand how global trends will affect Australia/New<br />

Zealand food and grocery businesses.<br />

Retail Strategies - Understand retail strategies and what they mean<br />

for your business.<br />

Supplier and Manufacturer Case Studies - Harness ideas from leading<br />

innovative manufacturers and suppliers.<br />

Consumer Insights - Obtain a vision of tomorrow’s consumer<br />

trends and the impacts on your business.<br />

For further information and to register click here.<br />

The major Australian retailers, Coles and Woolworths also provided<br />

great levels of commitment to ensuring the success of the seminars.<br />

Senior executives Andy Coleman (Coles) and Craig Partridge<br />

(Woolworths) opened the Melbourne and Sydney seminars respectively,<br />

with executives overseeing loss prevention at the retailers<br />

Martin Sayer (Coles) and Danny Baldwin (Woolworths) presenting<br />

their companies’ perspectives, plans and objectives at both seminars.<br />

The seminars provided delegates the opportunity to benchmark<br />

their own businesses against the ‘Loss Prevention Pyramid’ and to<br />

use the <strong>ECR</strong> Loss Prevention Road Map, a tool designed to help<br />

retailers and suppliers identify operational failures and develop new<br />

ways to sell more and lose less. The New Loss Prevention concept<br />

looked at why existing approaches are failing, the challenges presented<br />

by new trends and technologies in retailing and why operational<br />

failures are the root cause of most retail loss. In addition,<br />

international examples of engagement between suppliers, retailers<br />

and solution providers were explored.<br />

The <strong>ECR</strong>A Loss Prevention<br />

Group now has the opportunity<br />

to consider the key<br />

learning's from the seminars<br />

as it formulates a platform<br />

for driving success in loss<br />

prevention in Australasia and<br />

defines a structure best suited<br />

to progressing the program.<br />

<strong>ECR</strong>A thanks Checkpoint,<br />

ASC and all those involved<br />

in driving the success of the<br />

Sell More, Lose seminars.<br />

16


17<br />

<strong>ECR</strong> Australia News<br />

Winning at the Shelf – New <strong>ECR</strong>A On-shelf Availability Project – update<br />

<strong>ECR</strong>A is currently undertaking a new On-shelf Availability (OSA) project entitled Winning at the Shelf. The project is focused on<br />

improving the execution of fixture (shelf and display) replenishment when stock is available in the store building but not on show to<br />

the shopper. For example, stock may be physically available in the storeroom or on the capping, but not on display to the shopper.<br />

Winning at the Shelf is part of <strong>ECR</strong>A’s ongoing commitment to OSA through its Winning programs which include<br />

Winning in January<br />

Winning with Promotions.<br />

Information on the Winning programs is available at the website http://www.ecraustralasia.org.au/<br />

Winning in January - 2012 REPORT NOW<br />

AVAILABLE<br />

Improving availability through the supply chain in January represents<br />

a great opportunity to increase sales for suppliers and their<br />

retail trading partners, and ultimately to provide better service to<br />

shoppers.<br />

Over the past three years the industry has come together through<br />

<strong>ECR</strong>A's Winning in January program to understand specific pressure<br />

points particular to January, consider root causes, establish<br />

joint improvement opportunities and collectively work towards<br />

improving service levels. Many tools have been developed and are<br />

freely available to the industry.<br />

Within our market there is a major focus on planning and operational<br />

execution throughout December and over the Christmas<br />

period, however January has suffered by comparison. Historically<br />

and repeatedly we have seen a significant decline in product availability,<br />

reflected in a decline in service levels to retail distribution<br />

centres and stores of approximately 4 to 5% across the industry.<br />

<strong>ECR</strong>A has again this year undertaken a data based approach to<br />

reviewing service performance levels from retailer distribution<br />

centres to stores for the period over Christmas and New Year and<br />

the month of January 2012. The data set detailed in the recently<br />

released Winning in January 2012 report provides a unique opportunity<br />

to review whole of industry data since 2009. The report<br />

can be downloaded by clicking here.<br />

<strong>ECR</strong>A encourages trading partners<br />

to review the report, consider<br />

their business' performance<br />

and engage with trade<br />

partners to deliver further improvements<br />

for 2013. By now<br />

several categories are showing<br />

clear trends which should motivate<br />

and facilitate collaborative<br />

efforts to engage and address.<br />

17


18<br />

Summary Page 18<br />

Opening Address by the<br />

Minister of<br />

State Page 18<br />

CEOs’ Panel Session Page<br />

Page 25-27<br />

Joint Keynote Address by Scott<br />

Price, CEO Walmart Asia and<br />

Harish Manwani ,COO Unilever<br />

Page 20-24<br />

<strong>ECR</strong> <strong>AP</strong> Award Page 28-31<br />

Exhibitors<br />

18


19<br />

With over 400 delegates from across the region <strong>ECR</strong> Singapore<br />

hosted the 13 th <strong>ECR</strong> Asia Pacific Conference in May 2012. The<br />

theme this year was Touching Lives and Improving Value.<br />

“Touching lives and improving value is an extension of the Vision<br />

of <strong>ECR</strong> <strong>AP</strong>. We want to improve consumer satisfaction<br />

while reducing total cost, inventory and environmental impact in<br />

Asia. We want to make a difference in our consumer’s lives<br />

through our leverage of scale as an industry.” -said Alex von<br />

Behr former Co-chair of <strong>ECR</strong> <strong>AP</strong><br />

“<strong>ECR</strong> <strong>AP</strong> has three basic objectives – understanding future<br />

trends, sharing industry best practices and networking between<br />

manufacturers and retailers in Asia. This Conference is an important<br />

means of meeting these objectives. A time to listen, a time<br />

to share, a time to inspire and be inspired.” Anthony Rose Co -<br />

chair <strong>ECR</strong> <strong>AP</strong><br />

We had a rich agenda for the participants including our opening<br />

session from the Global COO of Unilever and the Asia CEO of<br />

Walmart; CEOs’ Panel session and learning's around 5 different<br />

topics:<br />

Customer Value from Paul Galagher Diageo, Claude Ringuet<br />

S<strong>AP</strong> and Dr Ahn Jae-Myung RetailTech.<br />

Consumer Trends from Seah Kian Peng NTUC FairPrice and<br />

Lies Ellison-Davis Kantar Retail Asia, Patrick Medley IBM, Terence<br />

Foo Accenture.<br />

Sustainability from Paul Prendergast Accenture, Nigel Bagley<br />

Unilever, Rene T. o P&G.<br />

<strong>Supply</strong> <strong>Chain</strong> from Ampy Cheung-Aswin Unilever, Toby Black<br />

Chep, Denny Yang Metro China.<br />

<strong>ECR</strong> Projects from Ian Williamson Accenture, Alfons Van-<br />

Woerkom Unilever, Jeffrey Jotie Diageo, Lawrence Low, Chris<br />

Cave Jones IBM.<br />

<strong>ECR</strong> <strong>AP</strong> would like to say Thanks for all of the sponsors , for the<br />

co-organiser <strong>ECR</strong> Singapore and for everybody who attended in<br />

How did you see the conference<br />

“Very good venue, content, organisation and ,as always a pleasure<br />

to meet so many business colleagues in the same place. Congratulations<br />

to <strong>ECR</strong> Singapore for the strong attendance and all<br />

those involved in putting this together. Both CHEP guests and<br />

ourselves enjoyed the event very much.” Nigel Branch (Chep)<br />

“The conference exceeded expectations in many ways but we<br />

need to focus on continuous improvement. To that end, I look<br />

forward to our driving hard to better attract increased retailer<br />

participation and attendance in <strong>Hong</strong> <strong>Kong</strong>. I think we are seeing<br />

that the difference between good and GREAT is working<br />

WITH our retail partners!” Pat Conklin (P&G)<br />

“It is a very comprehensive and fruitful conference to meet industry<br />

players and see the uptrends from the exhibitions. It is a<br />

mega event that the industry should not be missed out.”<br />

Heidi Ho (<strong>ECR</strong> HK)<br />

“The Conference just gets better and better each time. The quality<br />

of the presenters and content was a step up again this year “<br />

James Layard (BT)<br />

“As diamond sponsor for this event, S<strong>AP</strong> was delighted with the<br />

caliber of attendees and speakers. The industry perspectives and<br />

content were well communicated and insightful. As the leading<br />

provider of software business solutions to the industry, it was a<br />

valuable event for S<strong>AP</strong> to participate in and we will certainly<br />

continue our involvement moving forward”.<br />

Claude Ringuet (S<strong>AP</strong>)<br />

“ The Conference gave members of <strong>ECR</strong> <strong>AP</strong> the chance to hear<br />

and learn about the future direction of the FMCG industry in<br />

Asia Pacific from the leaders themselves, provoking much discussion<br />

and debate, as well as to explore specific aspects of the<br />

<strong>ECR</strong> <strong>AP</strong> collaborative agenda in more detail, listening and engaging<br />

with experts in their respective fields.”<br />

Alex von Behr (Unilever)<br />

the conference. And we would like to invite you to <strong>Hong</strong> <strong>Kong</strong> to<br />

our next host country of the <strong>ECR</strong> <strong>AP</strong> Conference in 2014.<br />

Conference related materials can be downloaded from : http://<br />

www.ecr-all.org/content/category/detail/13939<br />

EFFECTIVE CONSUMER<br />

RESPONSE IS IM-<br />

PORTANT IN REDUCING<br />

WASTAGE<br />

Minister of State for National<br />

Development and Manpower<br />

Tan Chuan-Jin has stressed<br />

the importance of Efficient<br />

Consumer Response (<strong>ECR</strong>) towards raising productivity, by reducing<br />

wastage throughout the supply chain.<br />

He was speaking at the opening of the 13th Efficient Consumer Response<br />

Asia-Pacific Conference and Exhibition.<br />

Mr Tan cited the example of implementing Cold <strong>Chain</strong> <strong>Management</strong><br />

Standards to help lengthen the shelf life of perishable products.<br />

Adoption of the standards have enabled suppliers to save more than<br />

S$260,000 per year. The lower operating costs has, in turn, benefitted<br />

consumers in the form of lower prices.<br />

Speaking after the opening ceremony, NTUC FairPrice CEO Seah<br />

Kian Peng stressed the need for increased efficiency, especially in<br />

the face of manpower constraints.<br />

"In the current context, it's becoming even more important because<br />

manpower is indeed, a constraint and if we don't try to adopt some<br />

of these best practices, it will impact operations," he said.<br />

"But if we do, and we're able to up the productivity, become more<br />

efficient, we can actually keep costs down, and these costs can eventually<br />

be passed down to consumers." source: channelnewsasia.com<br />

19


20<br />

Joint Keynote Address<br />

Collaboration between manufacturers<br />

and retailers to touch<br />

lives and improve value<br />

HARISH MANWANI, COO, UNILEVER<br />

Scott Price: I like the theme of this year’s conference – Touching<br />

lives, Improving value. Because whether retailer or manufacturer,<br />

that is ultimately the purpose of what we do. We touch people’s<br />

lives.<br />

Given challenges the world faces today – of exploding population,<br />

higher consumption, unemployment etc. no one company<br />

or organization can create change all by itself. We have to collaborate<br />

with each other where possible to amplify the manner in<br />

which we can touch and improve the lives of our customers and<br />

consumers.<br />

We thought it would be appropriate to share with you four key<br />

areas where our working together can be very productive. These<br />

areas are:<br />

Products, Consumer Value, People and Planet<br />

Examples we share are primarily examples from Walmart and<br />

Unilever, but we hope this provokes fresh thoughts on how to<br />

better collaborate and leverage the <strong>ECR</strong> Asia Pacific association<br />

for us to make even greater impact both as individual companies<br />

and as an Industry.<br />

Harish Manwani: PRODUCT<br />

Unilever was founded over 100 years ago in 1885, when William<br />

Hesketh Lever launched the world’s first branded and packaged<br />

laundry soap, called Sunlight. In doing so he created not just one<br />

of the world’s first consumer brands, but also a company with<br />

strong social values with a mission to have our brands act as an<br />

agent of social change. He also set out a vision for his new company<br />

: It was:<br />

… to make cleanliness commonplace, to lessen work for women,<br />

to foster health and contribute to personal attractiveness,<br />

that life may be enjoyable and rewarding for the people who<br />

use our products.<br />

All this from a bar of soap.<br />

That mission has not changed to this day and I’ll come on to that<br />

in a moment. Everyday products that we make and our business<br />

practices are more important than ever in helping tackle some of<br />

the big issues we face as a global community .<br />

The<br />

world<br />

needs<br />

growth<br />

By<br />

2020,<br />

there<br />

will be<br />

7.6 bn<br />

people<br />

SCOTT PRICE, PRESIDENT AND CEO, WALMART ASIA<br />

in the world. 1.8 bn consumers will move up to the socioeconomic<br />

ladder, but there will still be 2bn consumers at the bottom<br />

of the pyramid. Many people across the world today still lack<br />

access to basic everyday needs such as clean drinking water, good<br />

nutrition and basic hygiene. Simple products like soup, shampoo,<br />

tea can provide a better quality of life that these consumers deserve.<br />

This is an opportunity to improve everyday lives of billions,<br />

and at the same time it is an attractive business proposition.<br />

However, growth at this scale is not without its consequences.<br />

We need to grow differently We are today consuming resources<br />

at a rate greater than the earth’s ability to replenish them. If the<br />

whole world consumed at the rate that Europe does, we would<br />

need two more planets. If we consumed at the rate of the US, we<br />

would need five.<br />

But we cannot wish away consumption. We cannot deny billions<br />

of people the opportunity to improve the quality of their lives.<br />

However, our shared vision has to be to create a future in which<br />

people improve the quality of their lives without increasing their<br />

environmental impact. Hence we need to grow differently. We<br />

need to find a way to grow within the limited resources of one<br />

planet.<br />

No. 1 in Dow Jones sustainability Index for 14 years consecutively<br />

Last year, we set a new vision for Unilever, it’s expressed<br />

through our Unilever Sustainable Living Plan, which just a few<br />

weeks ago celebrated its first anniversary and published an inaugural<br />

annual report.<br />

Our vision is to double our business while reducing our environmental<br />

impact and increasing our positive social impact. We<br />

strongly believe that our brands and the way we do the business<br />

has to be at the heart of the social change that we wish to see<br />

around us.<br />

Three key features distinguish the plan<br />

First, it covers all our activities. It spans our entire portfolio of<br />

brands and all 170 countries in which we sell our products.<br />

Second, when it comes to the environment, the plan covers not<br />

just the direct impacts of our factories, offices, lorries and laboratories.<br />

It accepts that Unilever has a responsibility across the<br />

lifecycle – from the sourcing of raw materials all the way through<br />

to the energy and water needed by people to cook, clean and wash<br />

with our products. We have reviewed our overall value chain so<br />

see how we can achieve sustainability end-to-end across the value<br />

chain. This analysis shows that our own impacts are small. 68%<br />

of environmental impact is through people who use our brands.<br />

This means we have to design products which allow consumers to<br />

get the results they want with less energy and water. Changing<br />

consumer behavior can make a big difference to global environmental<br />

agenda.<br />

20


Third, for us, sustainability isn’t just about the environment.<br />

There is a social and economic dimension. Our products can make<br />

a big difference to people’s health and well-being and our supply<br />

chain supports the livelihoods of millions of people.<br />

The Sustainable Living Plan has three overarching goals. By<br />

2020 it aims to:<br />

<br />

<br />

<br />

Halve the environmental footprint of our products<br />

Source 100% of our agricultural raw materials sustainably.<br />

Help more than one billion people take action to improve<br />

their health and well-being<br />

And at the same time whilst doubling the size of our business.<br />

Our direct environmental impact<br />

Of course, sustainability begins at home. Over the past 15 years,<br />

in our network of 250 factories, we have reduced greenhouse gases<br />

by almost half, water by two thirds and waste by nearly three<br />

quarters. It’s a good start. But it is not enough just to put our own<br />

house in order.<br />

The “Big Difference”<br />

The big prize comes from changing consumer habits and behaviors.<br />

We know that consumers will not compromise on price,<br />

quality or convenience for “greenness”. So sustainability has to<br />

be built in to the design of the product. The good news is that<br />

many consumers recognise they have a role to play in tackling<br />

climate change. And the motivations for wanting to do so are the<br />

same around the world – concern for family; a desire to make the<br />

world better place for children and grandchildren; a desire to be a<br />

good citizen.<br />

This is where everyday consumer brands can play a role. They are<br />

an ideal vehicle through which to help people take action and feel<br />

that their collective efforts really do add up to make a big difference.<br />

2bln people use a UL brad everyday. If our brands can trigger a<br />

small sustainability action that multiplied by 2 bln will make a big<br />

difference in the world. In our experience, brands that embrace a<br />

social mission also grow faster. Let me give you some examples.<br />

Comfort One Rinse is a fabric conditioner that enables people to<br />

rinse clothes in one bucket of water instead of three, saving up to<br />

30 liters of water a wash. At the moment it is only available in<br />

parts of South East Asia, but if all our laundry brand users in Asia<br />

and Africa used Comfort One Rinse it would save over 500 billion<br />

liters of water a year.<br />

Small and Mighty: If everyone used concentrated liquid detergents<br />

we would save over 4 million tones of CO 2 per year, equivalent<br />

to taking 1 million cars off the road annually.<br />

Pureit: When we look at innovation through sustainability lense it<br />

opens up new opportunities. We know that 1 billion people worldwide<br />

are without access to clean drinking water. Our Pureit was<br />

an innovation born out of this insight and we created a unique<br />

water appliance that kills all harmful viruses, parasites and pesticide<br />

impurities without the use of electricity or running water.<br />

This is now a huge business proposition for us and we are committed<br />

to reaching half a billion people by 2020. Business growth<br />

& sustainability … hand in hand ….doing well by doing good…<br />

Working with partners<br />

We also recognize that we cannot change the world alone. We<br />

need to work collaboratively with other like minded partners, like<br />

yourselves. In this agenda, there are no competitors, only peers<br />

and partners…<br />

Here are example s of what we are doing together with Walmart.<br />

<strong>Supply</strong> <strong>Chain</strong><br />

We’ve engaged on supply chain initiatives in many different markets.<br />

For example in Mexico we worked with you on project<br />

Tetris, like the video game. In addition to reducing the CO2 emissions<br />

from the fuel saved, we also halved the number of pallets we<br />

were using. And these were wooden pallets made from Chilean<br />

timber. That was 18 months ago but it’s quite relevant as I saw<br />

recent statistics that in Europe 30% of our industry’s truck miles<br />

are shipping air. In the US that is 50%.<br />

Suave: turn-off-the-top is a more recent US example… With<br />

Walmart and our US brand Suave shampoo, we encouraged people<br />

to turn off the tap while they lathered their hair, and save up to<br />

€150 a year on their utility bills<br />

A house with a message “Casa do Bem”<br />

Another example is the project “Casa do Bem” which means sustainable<br />

housing. Unilever's sustainable house shows Wal-Mart<br />

customers how to live in an environmentally friendly way. As<br />

part of the campaign, sustainable show houses have been installed<br />

in the supermarket's Brazilian stores. Customers who step inside<br />

hear messages and tips on how to lead a more environmentallyfriendly<br />

life. The houses are built from recycled and environmentally-friendly<br />

materials.<br />

I started this presentation with our brand Sunlight ,and the vision<br />

of Lord Lever to change the lives in Victorian Britain with a mere<br />

bar of soap. It is ultimately the power of brands which triggers the<br />

small actions that can make a difference to the world. 100 years<br />

later, we still have a brand called Lifebuoy, which is one of our<br />

biggest brands, and at the same time runs the biggest Hand washing<br />

Campaign (140 million consumers across the world) . Hand<br />

washing ( and therefore Lifebuoy) prevents more diseases and<br />

deaths than many more sophisticated medicines.<br />

Similarly, 100 years later our vision is still the same :<br />

“ …help people feel good, look good and get more out of life<br />

with brands and services which are good for them and good<br />

for others”.<br />

“brands have to be at the forefront of the social change”<br />

21<br />

21


22<br />

Scott Price : CONSUMER VALUES<br />

“ If we work together, we’ll lower the cost of living for everyone…<br />

we’ll give the world an opportunity to see what it’s like to<br />

save and have a better life.” Sam Walton<br />

50 years ago Sam Walton opened our first store. His vision was<br />

clear – to take quality products to the people in the USA who did<br />

not have access to them (people not necessarily in tier one towns)<br />

at the lowest possible price and provide the best value. Sam<br />

Walton believed in saving people money so that they could live<br />

better.<br />

So Sam went from State to State in the USA replicating his model<br />

of quality products at great prices. Over the last 50 years the<br />

challenges have changed. Today’s global scenario is even more<br />

daunting. Sam Walton’s vision of delivering value to the common<br />

man and Every day Low Prices (EDLP) is even more relevant.<br />

Poverty:<br />

<br />

<br />

900 million people in Asia are living in absolute poverty.<br />

This group of people is currently spending about two<br />

thirds of their annual income on food.<br />

Asia has 60% of world’s population but only 34% of world’s<br />

cultivatable land<br />

Inflation:<br />

<br />

<br />

Food inflation is already up in China and in India.<br />

In China food inflation rose by 11.5% in 2011 and in India<br />

the food price index rose by 8.55% in 2011.<br />

Purchasing Decision:<br />

In Asia value and price are the biggest drivers for the purchasing<br />

decisions of customers<br />

79% of customers in China and 72% in India are making<br />

their choice based on price competitiveness of products<br />

Customers are putting ‘rising food prices’ at the top of their<br />

list of worries (13% vs. 8% for ‘Job Security’ and 6% for<br />

‘Children’s education and welfare’).<br />

So clearly price and value are very important.<br />

PRODICTIVITY LOOP:<br />

Co-operation and joint business<br />

planning with key supplier partners<br />

such as Unilever ensure we<br />

can operate for less, buy for less,<br />

sell for less and Grow sales. We<br />

call this the Productivity Loop.<br />

This simple mission is responsible<br />

for making Walmart the success<br />

we are today - a 444 Billion<br />

dollar Company with over 10,100 stores across the world.<br />

In Asia we currently have operations in China, Japan and India,<br />

with close to 150,000 associates.<br />

I want to share with you a few examples of how our work in<br />

providing the best prices to our customers is touching their lives.<br />

In Japan when the tsunami struck on March 2011, we<br />

had 24 stores in Sendai. Within a few hours of the tsunami, our<br />

store managers had already started giving away items of daily<br />

necessity from the parking lots of our stores. Within a few days<br />

they were back full time to serve the communities that needed<br />

help. Many of you in this room played a key role in supplying us<br />

with the products most needed in Japan at the time. Water, noodles,<br />

candles, soap. In total we donated 5 million US $, tones of<br />

water and thousands of our employee volunteer hours to re building<br />

the community. Post tsunami did research on the items that<br />

were most important to customers. We then dropped prices on<br />

the top 1000 items. Customers responded sincerely by posting<br />

“Thank you” notes in the hundreds on the doors of ours stores in<br />

Sendai and other parts of Japan. Most recently customers are<br />

able to vote further via twitter for items they need price reductions<br />

on.<br />

<br />

<br />

<br />

In the UK, as part<br />

of its concerted drive to improve<br />

product quality and<br />

value, at no extra cost to<br />

customers, ASDA has unveiled<br />

a New Quality Mark<br />

Across 3,500 Products -<br />

'Chosen By You‘<br />

New ‘Chosen By You’<br />

range with annual sales of £8<br />

-£9bn is largest, single, own brand re-launch in UK retailing<br />

history<br />

£100m invested by retailer benchmarking, testing and reformulating<br />

products to improve quality<br />

3,500 individual products independently tested by Cambridge<br />

Market Research in just nine months<br />

40,000 consumers took part in 200,000 blind taste tests<br />

across the UK<br />

In India our Best Price wholesale stores are serving<br />

small businesses and helping them delight their own customers.<br />

Best Price stores help our customers (in this case small stores)<br />

become more efficient through increased savings, more reliable<br />

fill rates and higher quality produce. We have even set up a<br />

“kirana” in our Best Price stores where we educate small shop<br />

owners on how best to display, stock and sell their wares. We<br />

are only able to delight our customers thanks to the very strong<br />

partnerships we have with all of our multiple suppliers including<br />

Unilever . So I must thank all of you. Some examples:<br />

Sugar Loose, Fresh Chicken and other fresh produce<br />

Over 90% of goods and services sold are locally sourced. This is<br />

an important first step to eliminating waste in fresh supply<br />

chains.<br />

22


Harish Manwani : PEOPLE<br />

“The future ain’t what it used to be!” And we live in a VUCA<br />

world – volatile, uncertain, complex and ambiguous . As the<br />

business folks I am sure all of you recognize this. Behind this<br />

dark scenarios of economic crisis lie some fundamental shifts that<br />

will alter the future and the way business will need to be managed.<br />

..And the people who manage the businesses<br />

3 big seismic shifts<br />

D&E : By 2020 more than half of consumption will be in D&E,<br />

probably faster. Asia will be the largest consumer market in the<br />

world, overtaking US.<br />

Urbanisation : 60% of worlds GDP is in 600 urban centres. In<br />

China, more than 200m people moved into Urban in the last decade,<br />

the ever fastest urbanization in human history<br />

Digitalisation: More than 2 bln internet users, and growing fast.<br />

And digitalisation already changes the way we live, operate and<br />

do business.<br />

Sustainability: We have spoken about sustainability and how<br />

this will shape the future. In a resource-constrained world, sustainability<br />

will be the license to operate.<br />

And ..War for Talent<br />

Growth, particularly in D&E world is not without its challenges,<br />

notably the war for talent – both quantity and quality. In a world<br />

obsessed with economic capital, we have to remind ourselves that<br />

human/intellectual capital will drive the future of our businesses.<br />

Attracting, developing, retaining top talent (that can operate in<br />

new reality) is therefore key to future success.<br />

Unilever is in Top3 employer in FMCG in 27 markets – Employer<br />

brand is key. Our brands are key, but perhaps more important<br />

is the employer brand which decides our ability to attract the<br />

right talent. For Unilever, brand share is important. But our employer<br />

brand ranking is equally important. We are proud, particularly<br />

in the fast growing emerging markets, we enjoy a reputation<br />

as an employer of choice. This is key to attracting top talent.<br />

Developing / Retaining top talent<br />

Attracting top talent is important, but so is retaining/developing<br />

top talent and leadership in the organisation. This new world requires<br />

new capabilities and also implies a new context for the<br />

role of leadership. Hardware of leadership- ORGANISATIONAL<br />

READINESS- is about sustaining competitive advantage through<br />

strategic clarity and executional capabilities of the organization.<br />

Its about delivering exceptional business results. Software of<br />

LEADERSHIP is about building organization character. Quite<br />

simply this is about commitment to values and living them.<br />

Good times or bad times.<br />

Let’s pick up the “ORGANISATIONAL READINESS” .Is your<br />

organisation ready for this new world The key question we<br />

have to ask ourselves is . Do we have the Talent/ skills/ organisation/<br />

culture to match our growth ambition<br />

Celebrating diversity<br />

Unilever Brazil signed an agreement with Wal-Mart and 50 other<br />

companies to support and accelerate women’s development specifically<br />

for:<br />

Development of women inside their organizations<br />

Development of women in supply chain<br />

Social inclusion of women<br />

Valuing the image of women in society<br />

Global Leadership Development<br />

– Four Acres Singapore<br />

Developing leadership in emerging<br />

markets ( both for D&E and<br />

the D) is indeed an integral element<br />

of raising a diverse organisation.<br />

With that in mind, we are setting up a 2nd worldwide<br />

4Acres Leadership Development Centre in Singapore. Aiming to<br />

be operational in 2013 and investment amounting to E44m.<br />

THE SOFTWARE-LEADERSHIP<br />

Now, let me talk about even more important agenda - developing<br />

the right leaders-the leaders that build organization's character…<br />

the leaders that commit to values and live them. Good times or<br />

bad times.<br />

Abraham Lincoln once said<br />

“ Nearly all men can stand adversity, but if you want to test a<br />

man’s character, give him power. “<br />

The Software – the 4th dimension of growth<br />

In today’s world where business leaders are much maligned there<br />

is a dimension of growth that is emerging critical. Consistent/<br />

competitive/profitable growth was always seen the key driver of<br />

business and share holder value. More than ever, this will differentiate<br />

companies where people will work and companies which<br />

people/consumers will reject.<br />

True North<br />

Business needs leaders that recognise that there are some nonnegotiable.<br />

They recognise that the “True North” of organisations<br />

never changes.<br />

Ultimately, an organisation like ours that offers products in 190+<br />

countries cannot be policed on the basis of good processes and<br />

audits. The glue that holds the organisation together are these non<br />

-negotiable and the shared values.<br />

Unilever values<br />

These are the values Unilever committed<br />

to…From Nigeria to Netherlands…<br />

from Uganda to United States.. This is<br />

the Ying&Yang of developing people<br />

which create powerful sustainable businesses – building organisational<br />

capabilities and creating a “purpose driven values led”<br />

organisation. Organisations are about people but it is good leaders<br />

that grows good people.<br />

23<br />

23


Scott Price PLANET<br />

PLANET is extremely important to Walmart.<br />

Every single one of us in this room has a role to play in saving<br />

our planet. I was delighted when I heard that the <strong>ECR</strong> Asia Pacific<br />

team has set up a sustainability committee to share best<br />

practices in this important area because I believe this is one area<br />

in which we can collaborate far more than some other areas.<br />

And if manufacturers and retailers can collaborate on sustainability<br />

and share best practices, what an impact we can have on saving<br />

our planet.<br />

Hunger:<br />

<br />

<br />

<br />

Asia will have over 2 Billion Middle class by 2020. We will<br />

be the largest consumption population region in the world.<br />

542 Million or over 50% of the global population suffering<br />

from hunger will come from Asia Pacific region<br />

By 2025 the demand for energy will increase by 50%, food<br />

demand will be up 48%.<br />

Pollution:<br />

<br />

<br />

<br />

75% of Southeast Asia’s original forest cover has been destroyed<br />

500 million people in China lack clean drinking water<br />

The total number of cars, trucks and buses in Asia is doubling<br />

every seven years.<br />

We have a holistic approach to sustainability involving operations,<br />

associates, customers, communities and operations.<br />

Amidst all of these challenges. Walmart has been pursuing a path<br />

of sustainable growth. In 2005, Walmart set forward three broad,<br />

long term sustainability goals.<br />

1. To be supplied 100% by renewable energy<br />

2. To create zero waste and<br />

3. To sell products that sustain people and the environment<br />

Suppliers:<br />

We have four major areas of work with our supplier partners on<br />

sustainability.<br />

1. Joint programs on sustainability<br />

2. Supplier development programs<br />

3. MSP sharing<br />

4. Our sustainability index.<br />

Joint programs wit Unilever in Asia on sustainability:<br />

We’ve made it a priority to stock and sell items that are more<br />

sustainability focused. With Unilever, in addition to the programs<br />

that Harish talked about, we’ve done key sustainability<br />

programs including the “Green Lux” program in Asia. This<br />

campaign is to encourage customers to recycle old shower cream<br />

bottles India Recycling of plastic bottles and pouches in 30 cities<br />

Supplier development programs: In China we’ve<br />

worked with over 300 supplier factories to improve their energy<br />

efficiency. 143 of these factories have already achieved a 20%<br />

energy efficiency improvement. This translated to an energy<br />

savings of 514 Million Kwh equivalent to reducing CO2 of<br />

411,000 tons.<br />

MSP sharing:<br />

Another area of<br />

best practice is<br />

our “My Sustainability<br />

Program<br />

(MSP). MSP places<br />

ownership on every individual to have a personal plan to help<br />

the environment. Given the fact that Walmart employs over 2<br />

million associates worldwide, this has considerable impact. Japan<br />

organization is a great example. Over 75 % of our employees<br />

have a MSP More important however is how our extended<br />

Walmart family of supplier partners now is being provided access<br />

to MSP. We now provide a royalty-free license to organizations<br />

interested in adapting MSP for its employees or stakeholders.<br />

To date, 35 organizations, including UPS, Unilever, J.B.<br />

Hunt, United Healthcare and others, have taken advantage of this<br />

licensing opportunity since its release in September 2011.We are<br />

always looking for the next big opportunity to partner with Companies<br />

like Unilever with whom we have a very active sustainability<br />

partnership. Together we can do more.<br />

Our sustainability index: Finally, in 2011, we began to<br />

integrate a Sustainability Index into our business. This new retail<br />

tool will assess and improve the sustainability of our products.<br />

We have worked alongside The Sustainability Consortium and<br />

its more than 90 members – including suppliers, academics,<br />

NGOs and other retailers – to develop the research and metrics<br />

behind the index. Over the last year, we used these metrics to<br />

develop our first category scorecards to help our buyers evaluate<br />

products, and we expect to develop scorecards in up to 100 major<br />

categories by the end of 2012. We hope over the next few<br />

years we continue to partner with you in the area of sustainability.<br />

We believe this is one of our most important responsibilities<br />

– to protect the planet we live on.<br />

Harish Manwani<br />

“In the next two days you will be hearing about and discussing a<br />

wide range of ways in which we, as <strong>ECR</strong> <strong>AP</strong> members, and as<br />

manufacturers and retailers, can work together collaboratively to<br />

improve the lives of our consumers in Asia Pacific. We can do<br />

this by working both on the supply side of our businesses and by<br />

creating improved services for our mutual customers, whether<br />

from improved logistics solutions to On Shelf Availability. Scott<br />

and I wish you an interesting and fruitful conference in the hope<br />

and expectation that we can all make a difference in touching the<br />

lives of our consumers and consistently improving the value we<br />

give them”<br />

24<br />

24


CEOs’ Panel Session with<br />

Scott Price, CEO Walmart Asia<br />

Harish Manwani, COO Unilever<br />

Seah Kian Peng, CEO, NTUC FairPrice<br />

Glenn Jordan, President, Pacific Group, The Coca-Cola Company<br />

Moderator :Chris Cave Jones IBM Global Business Services<br />

Chris: We often hear Asia being described as the growth engine for<br />

consumer products manufacturers and retailers. How much further<br />

does this growth engine have to go<br />

Scott Price: I am not macroeconomist but I think yes there are areas<br />

globally where GDP is uncertain but in relative terms, Asia continues<br />

to have far greater growth than any other continent. I think there<br />

are even more commitments in Asia: many companies have moved<br />

their research facilities here; offices are moving to Asia; global<br />

products, global brands are managed from the region. I think the<br />

opportunities are still there but the challenges are very similar to the<br />

ones we had many years ago. They are:<br />

Relevant products- everybody tries to customise their portfolio<br />

to meet the Asian taste<br />

Asia is the economy of the largest middle class in the world, the<br />

highest level poor in the world. It means that the required price<br />

point is very different from any other region in the world.<br />

The impact on the planet. As demand grows how do we ensure<br />

that it is sustainable to the environment<br />

Overall we are very optimistic about Asia. Asia will be the engine<br />

of growth. I do not think it will change any time soon.<br />

Chris : Harish, how it is from your perspective You are doing a<br />

global role. How important Asia is from your point of view<br />

Harish Manwani: It is mission critical. If you look at the developing<br />

markets it gives 55% of Unilever growth. Unilever is an emerging<br />

market company even if its roots go back to Europe. The important<br />

point is: we tend to treat Asian countries as one market, but they are<br />

all different markets. You have the ability to segment markets and<br />

the ability to serve consumer at the mass end, middle end and top<br />

end. This is the winning strategy. The only other thing to add is:<br />

talent. I do believe it is the major challenge in this growth: you do<br />

not have the talent base who will take this business where it needs to<br />

be.<br />

Chris: I am hearing there is still optimism towards growth in Asia<br />

but it is complicated. Kian Peng you run a business here in Singapore.<br />

Could you characterise Singapore as a high growth market<br />

Seah Kian Peng: Singapore is a market where customers are very<br />

sophisticated, very well-travelled and they like to see new products.<br />

Singapore is a good market for companies like Unilever and Coca-<br />

Cola to try their products here and then introduce them in different<br />

countries. But every market is different, different customer segments,<br />

cultures. Singapore continues to grow, the purchasing power<br />

is strong therefore I think there is still room to grow further together<br />

with business partners. We are optimistic about the future.<br />

Chris: We are in an <strong>ECR</strong> conference in Singapore, but is <strong>ECR</strong> relevant<br />

in Singapore<br />

Seah Kian Peng: It is relevant in every market because in the end<br />

<strong>ECR</strong> is customer driven, getting the right products to the right<br />

place on the right time, and we need to do this in the most efficient<br />

manner possible. We have to eliminate cost and that is the interest<br />

of all parties. I was impressed with what I heard from Harish: Responsible<br />

growth; and from Scott: My sustainability plan. These<br />

are very important prerequisite to what will drive companies going<br />

forward. If we do it right everybody will win.<br />

Chris: We heard earlier from you Scott that <strong>ECR</strong> aims to provide<br />

better value and eliminate waste. Is it equally valid in this rapidly<br />

growing market as well<br />

Scott Price: Absolutely. We are much focused. It is part of every<br />

leader’s personal KPI’s and also part of their compensation is tied<br />

back to sustainability. In developing markets we have the greatest<br />

opportunity and the highest C<strong>AP</strong>EX. In India nearly 40% of produce<br />

is lost, in a country which has 3 time population of the USA<br />

and one third of the land mass, so there is very little room to have<br />

wastage. We hope that the Indian government will allow more investment<br />

in this back end. I think developing markets have huge<br />

opportunities but even developed markets have CO2 related challenges<br />

in transport. These are just as relevant as developing market<br />

challenges. They are different but equally important.<br />

Chris :We heard that 2 billion people use Unilever product every<br />

day. Coca-Cola must have a huge number of consumers who nearly<br />

every day touch its product somehow.<br />

Glenn Jordan: We believe that current trends in Asia are nonstoppable<br />

from demographics, economics point of view. We will see<br />

growth in the next 20 years. Our business in Asia, which includes<br />

mature markets like Japan, Singapore, Australia, <strong>Hong</strong> <strong>Kong</strong> they<br />

contribute a lot to total company growth. Asia as a whole is 20 % of<br />

the growth. If we take out those developed countries then it is more<br />

like 40-50% of the contribution. It is important that we all bring<br />

learning to the sustainability dimension. We all try to capture more<br />

income with the right products at lower cost. What is new that we<br />

need to do it in a sustainable way. Asia has great opportunity and<br />

the fact that we can do it in a sustainable way is fundamental. And<br />

you say Harish that is not only building capital but building talent.<br />

The<br />

only<br />

constraint<br />

we have<br />

at Coca<br />

-Cola is<br />

to build<br />

capabilities.<br />

Chris Cave Jones, Scott Price, Harish Manwani, Seah Kian Peng , Glenn Jordan<br />

25<br />

25


Chris: Touching Live Improving Values: We often hear that branded<br />

goods companies try to form relationship with consumers and<br />

individuals recognising the uniqueness of all of us. How do you do<br />

that when there are billions of us<br />

Glenn Jordan: That is a wonderful<br />

question. We look at the current<br />

development of technology and<br />

digital marketing and that is the<br />

best ever opportunity for a business<br />

to do marketing. I have so<br />

many examples. One of our customers<br />

created a Facebook page<br />

for us. Our consumers are doing<br />

our marketing for us 10 to 20<br />

times over. It is the future. Now it<br />

is only the beginning.<br />

Chris: So it seems that digital<br />

Glenn Jordan<br />

channels are important and businesses<br />

have high expectations of<br />

the benefits from engaging digitally with consumers. So Harish how<br />

are digital channels treated in Unilever<br />

Harish Manwani: There is one single trend what will change the<br />

world: emergence of digitalization. Both in the way we do business<br />

and the way we market our brands and talk to consumers. If I take e-<br />

commerce this is unstoppable and these are trends which will<br />

change the way all of us do business. Of course it is not that simple<br />

and you still need fulfillment. The other bit is how we talk to people.<br />

It is fundamentally changing. It has completely changed comparing<br />

how we did marketing 3 years ago and how we do it today.<br />

The big change is the control. We all controlled our environment.<br />

Now it is all about earning media. Consumers are creating content.<br />

They take brands into their own hands. It is not in your hand anymore.<br />

What we are doing is to train people in the organisation who<br />

are comfortable with these trends and technologies. In the last one<br />

year we had the most extensive training in what is happening in the<br />

digital world. I have a mentor who just joined the company. Younger<br />

people are better in this. So the first important element is Awareness<br />

in partnering.<br />

Second: Work together and see whether we can bring some method<br />

into this fast growing viral environment. Both the way we talk to<br />

consumers and the way it moves from own to earn are important.<br />

Last bit is the impact of digital: The importance of organisation reputation<br />

and character. You do something wrong today the world<br />

knows it today. The idea of closed door and running business from<br />

offices are gone. Our business is not owned by us. The consumers<br />

own the business.<br />

Chris: I would like to have a retailer view. How can you maintain<br />

collaboration with suppliers when your goals are not aligned Isn’t<br />

conflict inevitable<br />

Seah Kian Peng<br />

26<br />

Seah Kian Peng: The<br />

key for parties is to sit<br />

down to talk and align<br />

the objectives. If you<br />

are open and honest<br />

enough then it is possible.<br />

It can be win-win<br />

situation. The key is to<br />

understand each others’<br />

objectives, find the commonalities, align some of these and work<br />

out the business plan accordingly. This is not new here. Many retailers<br />

do it. We would like to do even more. It has achieved results.<br />

With regard to digital, there is no way to get away from online<br />

trends. Running away from it won’t help. If you get into it you will<br />

learn from it. If you do good things, the customers will know it also.<br />

It’s not only about bad things. That is the power of social media.<br />

Glenn Jordan: Let me jump into potential conflicts between retailer<br />

and manufacturer: there is a different mental model we call it constructive<br />

tension. There are always going to be differences but if you<br />

have the same objectives in your mutual case of serving customers<br />

better then you always find areas to work on together. We should<br />

carry a different mental model: not conflict but constructive tension.<br />

Working together we will come out better.<br />

Chris: Do you think this has become how we normally do business<br />

Do you think that the collaborative model is embedded enough<br />

Glenn Jordan: We are all learning. It is happening faster here in<br />

Asia. Probably in 2 years’ time we will say yes we understand collaboration.<br />

Scott Price: All of the comments are very relevant. 8 years ago Facebook<br />

did not exist. The changing behavior is extraordinary. In<br />

Japan for example 50-60 year old customers are very comfortable to<br />

go on line. The challenge collaboratively is to manage the digital<br />

reputation. Trust becomes even more critical. There is huge daily<br />

vote on branded products whether you should select one product or<br />

another. There is a big challenge of things spreading very quickly<br />

even if they are not true. It can harm your reputation very quickly.<br />

So you have to much more proactively offset.<br />

Chris: I guess you have to monitor closely what people are saying<br />

online and be aware of what is being discussed.<br />

Scott Price: Most multinationals have an emerging social media<br />

strategy. We have a lot of work to do. Today I do not think that anyone<br />

is 100% confident that they understand and react properly.<br />

Glenn Jordan: Back to e-commerce: Asia is leapfrogging in technology.<br />

Asia is going to be bigger in e-commerce than any other<br />

continent. We have such a unique opportunity to shape the future. It<br />

is happening now.<br />

Chris: IBM surveys say that Asian consumers are far more willing<br />

to adapt this interaction method.<br />

26


Chris: Back to talent development. What do you think it is best<br />

practice What should companies do to attract the best talent and<br />

help them grow in this fast growing market<br />

Harish Manwani: I am sure there are many best practices in companies.<br />

From our point of view:<br />

1. Recruiting talent: we take 800<br />

management trainees each year and<br />

most of them are in emerging markets<br />

now. We believe that building<br />

local talents is critical. Also you have<br />

to understand the 80% of the population<br />

is here so there are a lot of talented<br />

people<br />

2. Making sure that you train people<br />

a. send them to training etc. b. you<br />

have to leverage the power of our<br />

presence in 170 markets.<br />

The good news is that 90% of our employees are local, but large<br />

numbers of them have worked outside.<br />

3. We have to change the way we look at talent: Earlier, multinational<br />

said Think Global Act Local. It has to change. I do not<br />

want people sitting in China thinking global. I want them to think<br />

local. Consumers in China won’t say that I am a global consumer.<br />

So you have to THINK LOCAL and at the same time ACT GLOB-<br />

AL. It is very important to build talent with local insight. The balance<br />

between local and global is absolutely critical. Building local<br />

insight and thinking local is critical. In India when you join as a<br />

management trainee from anywhere from the world you spend 2<br />

months living in a village, actually working on community projects<br />

in villages. Once trainees do it they love it. This is how you keep in<br />

touch. You cannot become a marketer unless you sell soap in the<br />

villages. This is a value system that makes good successful businesses<br />

and builds talent.<br />

Chris: I don’t think Harish knows this, but I started my career as<br />

Unilever <strong>Management</strong> trainee! How about you Scott How do you<br />

attract and retain talent<br />

Scott Price: I did not actually start as Unilever Trainee but as Coca-<br />

Cola trainee! The demographics of workforce and the demand dynamics<br />

has changed dramatically. You used to have time to develop<br />

people before they were tasked with financially huge brands. With<br />

the speed that the multinationals came to Asia they all built multibillion<br />

businesses. But the education processes was not able to keep<br />

up. We are all struggling and there is a race for talent. The demographics<br />

also change dramatically. You have markets where the<br />

aging of the population is significant. You have markets where females<br />

are not allowed to engage in the workforce. In Walmart we<br />

try to address these gaps. We have training programs for females.<br />

But the net at the end is eventually you need a more locally empowered<br />

talent pool. 99% of our employees are local but we have higher<br />

turnover rate. So we try to figure out programs to more engage talent<br />

in long terms careers. I think it will take 20 years until the<br />

education and the experience curve caches up with the demand.<br />

Chris Cave Jones Scott Price Harish Manwani<br />

Audience question (Ivett Nagy): I am very frustrated as a shopper<br />

when I do not find my product on the shelf. I know from <strong>ECR</strong> that<br />

you spend a lot of money on supply chain and somehow it still does<br />

not work properly. What are you going to do about it<br />

Scott Price: Oops! In fact I met several suppliers on this topic yesterday.<br />

I feel for them. It is not easy.<br />

Glenn Jordan: Vice Versa<br />

Harish Manwani: I think it is such as<br />

important point. We talk about strategy,<br />

but execution is strategy in our<br />

business. If you cannot deliver the<br />

right product to the right shelf in the<br />

right channel every day you won’t<br />

win. I am sure everybody in our business<br />

understands that our P/L is determined<br />

by the last mile of our business.<br />

I really believe that the work<br />

we do with partners to try to connect our supply chain is helping us<br />

doing this. I do not say that it is perfect. If it was than we would not<br />

have a job. This is an on-going thing. Expectation from service level<br />

is rising and honestly it is good for our businesses to have higher<br />

and higher expectations.<br />

Glenn Jordan: It has to be on the top of our agenda. It is an issue of<br />

capabilities, an issue of dislocation between the speed we are growing<br />

and the speed we build capabilities and it is a good reminder<br />

that we have to work collaboratively. It has to be at the top of our<br />

agenda.<br />

Seah Kian Peng: We still have to make sure that we do our basics<br />

better. Going back to Human Capital: It is key in everything. I<br />

would like to touch this point: we see that people join a workplace<br />

for a variety of reasons: remuneration, career aspects are important<br />

but other aspects are increasing: whether they believe in the values<br />

of the company, such as sustainability.<br />

Glenn Jordan: 20 years ago we never had this challenge with talent.<br />

The reality is that there will be a lot of rotation, mobility. So the<br />

companies that people will choose are the ones who can think differently.<br />

So companies have to build processes which allow that to<br />

happen without interrupting the business.<br />

Harish Manwani: In the past we always talked about loyalty as premium.<br />

It has to be shifted from loyalty to commitment.<br />

Glenn Jordan: We think about formation and not organisation.<br />

Scott: Price: One customer gave us this feedback in China:” We<br />

want you to have this cereal. This one but without the raisins.” Customers<br />

are becoming incredibly demanding. We used to think that<br />

50,000 SKUs in a store were enough to satisfy our customers. But<br />

that is why people rushing on-line. Because they can find 100,000 -<br />

1 million SKUs. So it is not only a supply chain challenge but also<br />

customers are demanding much more than a retailer could potentially<br />

provide. So it is an interesting dynamic. Customer demand is a<br />

very powerful engine of change.<br />

27<br />

27


28<br />

<strong>ECR</strong> Asia Pacific Award<br />

It is a recognized practice in <strong>ECR</strong> Asia Pacific to recognize<br />

the best cases around the region which shows exceptional level<br />

of collaboration and drives value for all of the parties.<br />

The beginning of 2012 we reached out our companies asking<br />

them to submit their case studies where they work collaboratively<br />

with their trading partners. We received 28 exceptional<br />

examples (see in table). Every of them met the criteria's which<br />

were:<br />

<br />

<br />

<br />

<br />

<br />

Contribution to the development of <strong>ECR</strong>.<br />

Degree of collaboration demonstrated.<br />

Value created for consumers.<br />

Benefits realized.<br />

Presentation style.<br />

The judges had a very tough job to reach the 3 finalist. The 3<br />

cases what we have invited to be presented in the conference<br />

are the best of the best.<br />

All 3 cases in their own way demonstrated the spirit of <strong>ECR</strong><br />

In line with our judges decision the <strong>ECR</strong> <strong>AP</strong> 2012 Award<br />

medalists are:<br />

GOLD medal: e-Commerce Innovation by Procter<br />

& Gamble China and Yihaodian.com– Page 29<br />

SILVER medal: Consumer Value Creation<br />

through Joint Promotion & Event Forecasting by<br />

Tesco India and HUL India—Page 30<br />

BRONZE medal: Logistic Distribution Integration<br />

Drives <strong>Supply</strong> <strong>Chain</strong> Optimization by Metro<br />

China, Procter & Gamble China, Unilever China– Page 31<br />

We would like to say thanks for all of the submissions and for<br />

the judges.: for Chris Cave Jones, Wong Tack Wai, Apolonia<br />

Kersh.<br />

Anthony Rose, Chris Cave Jones, Wong Tack Wai, Apolonia Kersh, Alex von Behr<br />

Project Country Companies<br />

Loss Prevention Program Australia 17 companies<br />

End to End Consumer Driven<br />

<strong>Supply</strong> <strong>Chain</strong> Philippines P&G, Puregold<br />

Joint Business Planning<br />

Creating VALUE to Customer by<br />

Maximizing<br />

On-Shelf Availability<br />

Singapore<br />

NTUC Fairprice,<br />

Nestle<br />

Watson, Colgate<br />

Philippines Palmolive<br />

Customer Implant Project Thailand<br />

Tesco, Colgate<br />

Palmolive<br />

Distributors Engagement Initiative:<br />

Good Warehouse Practice Malaysia Colgate Palmolive<br />

Global data synchronization network<br />

(GDSN)<br />

Vietnam<br />

Metro , Colgate<br />

Palmolive<br />

End-to-End <strong>Supply</strong> <strong>Chain</strong> Promotion<br />

<strong>Management</strong> - Win-Win Solution<br />

for Retailer & Supplier Business<br />

Growth China Unilever, Vanguard<br />

Shelf Ready Pack China Unilever, Metro<br />

OSA China Unilever, Tesco<br />

Palletization Delivery China Unilever, Watson<br />

Logistics Distribution Integration<br />

METRO,P&G, Unilever,<br />

Vinda, UPM,<br />

Supor, Sinotrans<br />

Drives <strong>Supply</strong> <strong>Chain</strong> Optimization China Logisitics<br />

Retailer/Supplier Synergic Process<br />

Integration for Joint Value Maximization<br />

China Vanguard P&G<br />

Standardized Goods Receiving China P&G Wal Mart<br />

E commerce innovation China P&G, Yihaodian<br />

Distributor <strong>Supply</strong> Network Reinvention<br />

China P&G<br />

A master data reinvention journey<br />

in China retail Industry China <strong>GS1</strong>, P&G<br />

BJHL <strong>Supply</strong> <strong>Chain</strong> Visibility<br />

within Collaborative Framework China P&G , BJHL<br />

Business collaboration & customer<br />

availability<br />

Pakistan<br />

Shrinkage Control - Gillette Safer<br />

Case Project<br />

Metro, P&G and<br />

AbuDawood<br />

Singapore P&G, Watson<br />

Strategic Partnership - Joint<br />

Business Planning<br />

Singapore<br />

P&G , NTUC Fairprice<br />

Guardian Next shopper based<br />

Store Design Project Singapore P&G , Guardian<br />

Collaboration- Driving Joint Value<br />

creation for Retailers and Manufacturers<br />

Thailand Tesco, Diageo<br />

Consumer value creation through<br />

joint promotion and event forecasting<br />

India Tesco, Unilever<br />

Palletization Delivery China Unilever, Watson<br />

1 Team India Unilever, Metro<br />

Homeplus world 1st virtual store Korea Homeplus<br />

Central Warehouse Project Vietnam Metro, P&G<br />

28


<strong>ECR</strong> <strong>AP</strong> Award WINNER<br />

E-commerce Innovation<br />

Serve more shoppers, in more part of China, more completely<br />

By Procter & Gamble China and Yihaodan.com<br />

29<br />

Eddie Hu-Emerging Channel General Manager Procter & Gamble<br />

The General status of e Commerce in China:<br />

China is big and fast growing in e commerce.<br />

1. Within next couple years e commerce will be 9% of total<br />

retail what is huge<br />

2. The potential is very big. 1/3 of Chinese people is using internet.<br />

1/3 of them are e shoppers.<br />

3. However if you compare it with USA or Korea we still have<br />

a huge room to grow.<br />

The conclusion is: the absolute number is big but the potential is<br />

even bigger. China is #1 Internet/eShopper Market, with huge<br />

potential.<br />

Understanding our shopper is basic. Why people shop online<br />

1. Convenience- To avoid going to the store costumer save<br />

time. To shop anytime :Our peak hours are 10-11 PM at<br />

night.<br />

2. Value– To compare prices and save money<br />

3. Selection- To buy things not available in your local area To<br />

buy things not available in China. For example in Tibet<br />

what is 5000 KM away- we sell Vidal Sassoon hair product<br />

on line what we can hardly see there in the shops.<br />

How P&G as a company works in the e-commerce<br />

Broader coverage- work with most of the e commerce retailers<br />

Model to fulfil the e-shoppers need: 4 C model Catch-<br />

Connect-Close-Continue<br />

4C MODEL:<br />

It is like a wheel. Integrated brand<br />

building plus sales model on line<br />

It is to talk to online shoppers in each<br />

critical moment:<br />

•When they generate purchasing intention<br />

•When the make up their mind<br />

•When they decide which brand they<br />

buy<br />

•Recommend anything else what they<br />

can buy<br />

•Hook them back to make them a loyal shopper<br />

SALES = Traffic (PV) * Conversion * Basket Size * Repeat<br />

This formula explains how this cycle generate sales<br />

Catch is to help to drive traffic in your website<br />

Connect is to drive the connection with the shoppers<br />

Close is to offer 360 degree offers to make sure they buy something<br />

at least 1 item. Beyond this 1 item we want to expand their<br />

basket.<br />

Continue: We do expect to come back and shop again<br />

Liu Jun<br />

Ling CEO<br />

Yihaodan.com<br />

Alex von Behr, Liu Jun Ling, Eddie Hu, Anthony Rose<br />

Yihaodian is an online supermarket that provides its customers<br />

with a superior customer experience, a vast selection of products<br />

and low prices. Yihaodian offers its 20 million-plus users more<br />

than 250,000 SKUs over 13 product lines.<br />

Yihaodian enjoys a reputation as the fastest growing e-commerce<br />

company in China.<br />

We are only 4 years old but having a complex model. Yihaodian<br />

sources product , develops system and even deliver goods itself<br />

with 6000 employees.<br />

How do we use 4 C model to make business better<br />

CATCH: Drive high quality traffic together. Website union:<br />

P&G and us did co branded campaign. In 2 months we managed<br />

10 million page view and doubled the sales<br />

We have EDM/SM/DM system. At the same time P&G had a<br />

huge campaign in a big show called China Got Talents. We integrated<br />

that campaign in our EDM system. As a result Head &<br />

Shoulders sales went up by 70 % and the whole haircare product<br />

category with 60 %.<br />

CONNECT: Provide Best e -Content to Shoppers<br />

Once you have traffic we have to make it attractive. First we<br />

focused to FMCG products. Initially we took pictures ourselves,<br />

put them to the website and started to sell them.<br />

But we had to do it better. It has to be more vivid with all information<br />

costumers might need.<br />

And now it comes the moment of true: CLOSE<br />

We have to close the deal. Trade in Trade Up and Trade Across<br />

During the Olympics where P&G was one of the major sponsor<br />

we had specific campaign and offered limited edition of product<br />

for a few weeks. The result was amazing. The sales was tripled.<br />

Customers can do DIY Virtual bundeling to save money and also<br />

Virtual Gift Packs<br />

We have to CONTINUE: the 2 team has to work together very<br />

closely share a lot of data together.<br />

75% of orders coming from old customers, 25% from new. That<br />

shows loyalty. We have driven the traffic, We have converted,<br />

we have enhanced the content. we have closed the deal and continue<br />

to drive customer loyalty. But this is still the very beginning.<br />

A lot is still coming.<br />

29


<strong>ECR</strong> <strong>AP</strong> Award Silver<br />

Consumer value creation through Joint Promotion & Event Forecasting (JPEF)<br />

“Being each others’ best business partner”<br />

Ganesh Ananthanarayanan General Manager Modern Trade<br />

HUL<br />

In 2011 when we started the project we said our common intent<br />

is to move to share of wallet to share the heart of the shoppers.<br />

That is what will give us value on the long run.<br />

Background In India:<br />

Modern Trade business in India has close to “TRIPLED” in the<br />

last 5 years. At the moment it is 8-9%. There are a lot of demand<br />

and supply drivers for this growth.<br />

Operational Complexity in India:<br />

MRP: India is amongst 3-4 countries in the world having<br />

MRP (maximum retail price) regime: none of the product<br />

can be sold above a maximum price. The band of operation<br />

is very narrow.<br />

Tax situation is different in every state which means both<br />

retailers and manufacturers have to have Distribution Centers<br />

in every state. Unilever have 42 DC s in India. Having<br />

over 1000 SKU we have 40 -45 thousand SKU DC combination<br />

to work with<br />

Challenging infrastructure<br />

All these factors make it a complex country to operate in.<br />

As a plus the Indian Consumer is a very demanding lot who<br />

wants the “Best Deals Everyday”<br />

Uday Varma (Commercial Director, TESCO India)<br />

From retailer point of view price and promotion are very important.<br />

Modern trade is still only 9 %. Driving the shift from<br />

traditional trade to modern trade is the value what costumers get<br />

in large stores like TESCO. This was fueled by macroeconomic<br />

factors also so consumers wants to save more and looking for<br />

promotions.<br />

Different research shows also :<br />

Customers are actively looking for promotions going from<br />

25% to 39%<br />

Customers shopping at 2 or more shops consistently is growing<br />

from 11% to 29%<br />

That leads us to the criticality of promotion planning and improved<br />

forecasting of major promotions/events These are the key<br />

to drive up :Service levels, Availability/ OSA, Customer satisfaction<br />

and Market share.<br />

Seeing all of the external and internal factors you can imagine<br />

that forecasting is extremely difficult. That forced us to see how<br />

we could do this part of the business collaboratively. Unilever<br />

and Tesco has decided to do joint promotion and event forecasting<br />

with the following objectives:<br />

<br />

<br />

<br />

By Hul India and Tesco India<br />

Reduce opportunity loss<br />

Reduce excess inventory<br />

Customer delight through high availability of promotions<br />

that have a unique value proposition<br />

Vijay Nehra Customer Service Director Modern Trade HUL<br />

We looked the promotion planning from technical and adaptive<br />

aspects. Technical aspect is easier. The adaptive part where you<br />

start to share information with transparency is more challenging.<br />

Joint Promo Plan – Guiding principals<br />

<br />

<br />

<br />

Common focus to grow specific categories, based on<br />

improved consumer and shopper satisfaction,<br />

greater volume<br />

greater turnover<br />

higher profits<br />

Common goals, objectives and decisions must be based on<br />

facts and data<br />

Parties must be committed to implement it & willing to<br />

spend the resources necessary<br />

Erika Vida (<strong>Supply</strong> <strong>Chain</strong> Director, TESCO India)<br />

As a result of our Joint Promotion and Event Forecasting:<br />

For Consumers:<br />

TESCO ranked No. 1 by shoppers in CQT Tests on Promotion<br />

/ Price perception<br />

Higher loyalty seen through better promotion purchase<br />

Better savings for the family in a volatile macroenvironment<br />

For TESCO<br />

TESCO gains market share – move up from 5.6% to 6.2%<br />

post execution of JPEF<br />

OSA & Service Level > 97%<br />

10% improvement in “days on hand” through forecast accuracy<br />

improvement of 2100 bps<br />

For UNLIVER:<br />

Unilever gains market share in TESCO – improvement of<br />

170 bps<br />

Higher brand loyalty / stickiness to Unilever brands<br />

2% sales growth through the collaboration<br />

30<br />

<br />

Minimalistic forecasting error<br />

Alex von Behr , Anthony Rose , Vijah Nehra , Erika Vida , Ganesh Ananthanarayanan<br />

30


31<br />

<strong>ECR</strong> <strong>AP</strong> Award Bronze<br />

Integration of Logistics Distribution Drives <strong>Supply</strong> <strong>Chain</strong><br />

Optimization - Collaboration among producer, retailer, and 3PL to drive change in FMCG & retail industry<br />

By Metro China, P&G China, Unilever China<br />

Denny Yang Head of <strong>Supply</strong> <strong>Chain</strong> and Logistics METRO China Alfons Van-Woerkom Customer Service Director Unilever<br />

In China, most big producers already have their distribution network,<br />

while recently many retail giants have started to build up<br />

their own distribution network.<br />

Is there any chance to integrate the distribution networks and<br />

build up the supply chain excellence for both parties<br />

Metro China raised a challenge: Can big producers’ existing<br />

distribution be integrated into retailer’s distribution network and<br />

change<br />

the existing<br />

model<br />

as below<br />

With logistics<br />

integration<br />

we<br />

could<br />

have continuous<br />

<strong>Supply</strong> <strong>Chain</strong> Performance Improvement like:<br />

Leaned supply chain & better chance for profitability for<br />

both parties: no need for distributor<br />

Simplified and efficient ordering, order processing, invoicing,<br />

payment & administration<br />

Efficient goods receiving at DC & store<br />

Backhaul sharing & pallet delivery<br />

Master Data and GDSN<br />

For This initiative Metro reached out several suppliers including<br />

big, medium and small sizes.<br />

Lin Hu METRO Customer team Director Procter & Gamble<br />

P&G is the pioneer and the first leading supplier to work on<br />

changing the distributions center system in China with Metro.<br />

Metro has 54 stores across 39 cities. This is already a mass distribution.<br />

But in 2-3 year Metro will open 100 stores in multiply<br />

cities . Can you imagine what type of mass supply chain would<br />

be needed<br />

That brings DC integration idea comes necessary.<br />

For P&G this is a<br />

learning journey<br />

rather than a project.<br />

In the last 3<br />

years we have<br />

been working together<br />

as a team.<br />

As a result of these<br />

3 year: we improved<br />

our supply<br />

chain KPI’s These<br />

KPI will become a joint scorecard of the 2 companies.<br />

What collaboration delivers It delivers sustainability. This is<br />

one of the key driver why Unilever want to collaborate.<br />

One of the<br />

component<br />

we consider<br />

in Sustainability<br />

is logistics<br />

In China<br />

we had a<br />

complex<br />

situation<br />

what we<br />

had to change:<br />

As a result:<br />

Increase of on-time delivery , order fulfillment,<br />

<br />

<br />

<br />

<br />

<br />

<br />

decreased quantities of order and invoice<br />

Better chance and flexibility (e.g. to consolidate goods via<br />

multiple DCs) to serve business of urgent orders, promotion,<br />

peak season and etc.<br />

Enable further supply chain optimization (e.g. palletized<br />

delivery, selective check, speed-up store goods receiving<br />

OSA etc.)<br />

Simplified and efficient OTC processing<br />

Shorter stock days<br />

Order scale increase helps to gain more discount from manufacturer.<br />

Metro has successfully implemented this approach with smaller<br />

suppliers also like Vinda, UPM and Supor.<br />

Summary:<br />

Building skills and capabilities: Skills might not be there<br />

yet. Unilever and Metro HR teams meet together to understand<br />

how we can develop people in their supply chain career.<br />

<strong>Supply</strong> chain is learning journey<br />

<strong>Supply</strong> chain is not only logistic work but a multifunctional<br />

effort<br />

Being partner we want to delight our end customer<br />

Strong support from supplier Metro is driving the change in<br />

China. We can create more value and change the life of<br />

customers.<br />

31


32<br />

Singapore, May 18 th , 2012<br />

On the occasion of the 13 th <strong>ECR</strong> Asia-Pacific conference held in Singapore this week, it was announced<br />

that Francois Gay-Bellile, Coca-Cola Pacific’s Vice President Customer Leadership is to become <strong>ECR</strong><br />

Asia-Pacific’s new manufacturers’ co-chair.<br />

Francois, who succeeds Alex von Behr, will work alongside Anthony Rose, <strong>ECR</strong> <strong>AP</strong>’s retailers’ co-chair,<br />

to continue to promote collaboration between retailers and manufacturers, in order to deliver improvements<br />

across the industry and ensure it delivers on the needs and growing expectations<br />

of the hundreds of millions of people it touches every day in Asia-<br />

Pacific.<br />

“I am honored to have been appointed to this role by my colleagues from<br />

<strong>ECR</strong> Asia-Pacific. Following the strategic alignment with the Consumer<br />

Goods Forum agreed last year, it has become clear that <strong>ECR</strong> <strong>AP</strong> is the perfect<br />

forum to accelerate the adoption of best practices across our industry, as<br />

demonstrated this week at the 13 th <strong>ECR</strong> <strong>AP</strong> conference. Our priorities for the<br />

future remain the same, to have a positive impact on the whole industry,<br />

whether on supply chain or on the fulfilling demand from consumers, by<br />

working better together and sharing more actively insights and knowledge.”<br />

“I am delighted to welcome Francois as co chairman. The focus of the <strong>ECR</strong><br />

<strong>AP</strong>. Council understands emerging trends, sharing best practices and encouraging<br />

productive collaboration between retailers and manufacturers. This will finally benefit our customers<br />

and consumers." said Anthony Rose, who is VP, Public Affairs at Wal Mart in addition to his<br />

<strong>ECR</strong> <strong>AP</strong> role.<br />

<strong>ECR</strong> ASIA PACIFIC NEWS<br />

Francois Gay-Bellile<br />

Anthony Rose<br />

<strong>ECR</strong> <strong>AP</strong> New Member: Fonterra has joined to <strong>ECR</strong> <strong>AP</strong> on the 1 st of June<br />

2012. Antony Moess-Regional <strong>Supply</strong> <strong>Chain</strong> Manager AMEA -will be the<br />

member of the Council. He has also joint to our Operational Excellence Committee<br />

If you have any topic, article, news what you would like to share in the next issue please do not<br />

hesitate and send it to us (Ivett@ecr-all.org) until the 1 st of October.<br />

Also we would like to make sure that this newsletter is<br />

useful for you therefore if you have any feedback please<br />

let us know.<br />

<strong>ECR</strong> <strong>AP</strong> News<br />

ISSUE 02 Summer 2012<br />

Efficient Consumer Response Asia Pacific<br />

(<strong>ECR</strong> <strong>AP</strong>) is an independent joint trade and<br />

industry body, which is co-chaired by representatives<br />

from the retail sector and the manufacturing<br />

sector. It promotes the use of Efficient<br />

Consumer Response techniques in Fast Moving Consumer Good (FMCG) retailing<br />

to remove unnecessary costs from the supply chain and make the sector, as a<br />

whole, more responsive to consumer demand.<br />

For more information please visit our website: www.ecr-all.org or contact us at<br />

Ivett@ecr-all.org<br />

Editorial:<br />

Editor: Ivett Katalin Nagy<br />

Contributors: Alex von Behr, Stephanie<br />

Penning, Chris Cave Jones, Heidi<br />

Ho, Marc Van Der Liet, Samantha<br />

Blake, Ringuet Claude, Michael Haas,<br />

James Layard, Nadjah Azimidini,<br />

Alina Goretskaya, Nigel Bagley, Ivett<br />

Katalin Nagy, Anthony Rose, Francois<br />

Gay-Bellile, Anna Vinogradova<br />

Designer: Ivett Katalin Nagy<br />

32

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