ECR AP - GS1 Hong Kong Supply Chain Management

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22 Scott Price : CONSUMER VALUES “ If we work together, we’ll lower the cost of living for everyone… we’ll give the world an opportunity to see what it’s like to save and have a better life.” Sam Walton 50 years ago Sam Walton opened our first store. His vision was clear – to take quality products to the people in the USA who did not have access to them (people not necessarily in tier one towns) at the lowest possible price and provide the best value. Sam Walton believed in saving people money so that they could live better. So Sam went from State to State in the USA replicating his model of quality products at great prices. Over the last 50 years the challenges have changed. Today’s global scenario is even more daunting. Sam Walton’s vision of delivering value to the common man and Every day Low Prices (EDLP) is even more relevant. Poverty: 900 million people in Asia are living in absolute poverty. This group of people is currently spending about two thirds of their annual income on food. Asia has 60% of world’s population but only 34% of world’s cultivatable land Inflation: Food inflation is already up in China and in India. In China food inflation rose by 11.5% in 2011 and in India the food price index rose by 8.55% in 2011. Purchasing Decision: In Asia value and price are the biggest drivers for the purchasing decisions of customers 79% of customers in China and 72% in India are making their choice based on price competitiveness of products Customers are putting ‘rising food prices’ at the top of their list of worries (13% vs. 8% for ‘Job Security’ and 6% for ‘Children’s education and welfare’). So clearly price and value are very important. PRODICTIVITY LOOP: Co-operation and joint business planning with key supplier partners such as Unilever ensure we can operate for less, buy for less, sell for less and Grow sales. We call this the Productivity Loop. This simple mission is responsible for making Walmart the success we are today - a 444 Billion dollar Company with over 10,100 stores across the world. In Asia we currently have operations in China, Japan and India, with close to 150,000 associates. I want to share with you a few examples of how our work in providing the best prices to our customers is touching their lives. In Japan when the tsunami struck on March 2011, we had 24 stores in Sendai. Within a few hours of the tsunami, our store managers had already started giving away items of daily necessity from the parking lots of our stores. Within a few days they were back full time to serve the communities that needed help. Many of you in this room played a key role in supplying us with the products most needed in Japan at the time. Water, noodles, candles, soap. In total we donated 5 million US $, tones of water and thousands of our employee volunteer hours to re building the community. Post tsunami did research on the items that were most important to customers. We then dropped prices on the top 1000 items. Customers responded sincerely by posting “Thank you” notes in the hundreds on the doors of ours stores in Sendai and other parts of Japan. Most recently customers are able to vote further via twitter for items they need price reductions on. In the UK, as part of its concerted drive to improve product quality and value, at no extra cost to customers, ASDA has unveiled a New Quality Mark Across 3,500 Products - 'Chosen By You‘ New ‘Chosen By You’ range with annual sales of £8 -£9bn is largest, single, own brand re-launch in UK retailing history £100m invested by retailer benchmarking, testing and reformulating products to improve quality 3,500 individual products independently tested by Cambridge Market Research in just nine months 40,000 consumers took part in 200,000 blind taste tests across the UK In India our Best Price wholesale stores are serving small businesses and helping them delight their own customers. Best Price stores help our customers (in this case small stores) become more efficient through increased savings, more reliable fill rates and higher quality produce. We have even set up a “kirana” in our Best Price stores where we educate small shop owners on how best to display, stock and sell their wares. We are only able to delight our customers thanks to the very strong partnerships we have with all of our multiple suppliers including Unilever . So I must thank all of you. Some examples: Sugar Loose, Fresh Chicken and other fresh produce Over 90% of goods and services sold are locally sourced. This is an important first step to eliminating waste in fresh supply chains. 22
Harish Manwani : PEOPLE “The future ain’t what it used to be!” And we live in a VUCA world – volatile, uncertain, complex and ambiguous . As the business folks I am sure all of you recognize this. Behind this dark scenarios of economic crisis lie some fundamental shifts that will alter the future and the way business will need to be managed. ..And the people who manage the businesses 3 big seismic shifts D&E : By 2020 more than half of consumption will be in D&E, probably faster. Asia will be the largest consumer market in the world, overtaking US. Urbanisation : 60% of worlds GDP is in 600 urban centres. In China, more than 200m people moved into Urban in the last decade, the ever fastest urbanization in human history Digitalisation: More than 2 bln internet users, and growing fast. And digitalisation already changes the way we live, operate and do business. Sustainability: We have spoken about sustainability and how this will shape the future. In a resource-constrained world, sustainability will be the license to operate. And ..War for Talent Growth, particularly in D&E world is not without its challenges, notably the war for talent – both quantity and quality. In a world obsessed with economic capital, we have to remind ourselves that human/intellectual capital will drive the future of our businesses. Attracting, developing, retaining top talent (that can operate in new reality) is therefore key to future success. Unilever is in Top3 employer in FMCG in 27 markets – Employer brand is key. Our brands are key, but perhaps more important is the employer brand which decides our ability to attract the right talent. For Unilever, brand share is important. But our employer brand ranking is equally important. We are proud, particularly in the fast growing emerging markets, we enjoy a reputation as an employer of choice. This is key to attracting top talent. Developing / Retaining top talent Attracting top talent is important, but so is retaining/developing top talent and leadership in the organisation. This new world requires new capabilities and also implies a new context for the role of leadership. Hardware of leadership- ORGANISATIONAL READINESS- is about sustaining competitive advantage through strategic clarity and executional capabilities of the organization. Its about delivering exceptional business results. Software of LEADERSHIP is about building organization character. Quite simply this is about commitment to values and living them. Good times or bad times. Let’s pick up the “ORGANISATIONAL READINESS” .Is your organisation ready for this new world The key question we have to ask ourselves is . Do we have the Talent/ skills/ organisation/ culture to match our growth ambition Celebrating diversity Unilever Brazil signed an agreement with Wal-Mart and 50 other companies to support and accelerate women’s development specifically for: Development of women inside their organizations Development of women in supply chain Social inclusion of women Valuing the image of women in society Global Leadership Development – Four Acres Singapore Developing leadership in emerging markets ( both for D&E and the D) is indeed an integral element of raising a diverse organisation. With that in mind, we are setting up a 2nd worldwide 4Acres Leadership Development Centre in Singapore. Aiming to be operational in 2013 and investment amounting to E44m. THE SOFTWARE-LEADERSHIP Now, let me talk about even more important agenda - developing the right leaders-the leaders that build organization's character… the leaders that commit to values and live them. Good times or bad times. Abraham Lincoln once said “ Nearly all men can stand adversity, but if you want to test a man’s character, give him power. “ The Software – the 4th dimension of growth In today’s world where business leaders are much maligned there is a dimension of growth that is emerging critical. Consistent/ competitive/profitable growth was always seen the key driver of business and share holder value. More than ever, this will differentiate companies where people will work and companies which people/consumers will reject. True North Business needs leaders that recognise that there are some nonnegotiable. They recognise that the “True North” of organisations never changes. Ultimately, an organisation like ours that offers products in 190+ countries cannot be policed on the basis of good processes and audits. The glue that holds the organisation together are these non -negotiable and the shared values. Unilever values These are the values Unilever committed to…From Nigeria to Netherlands… from Uganda to United States.. This is the Ying&Yang of developing people which create powerful sustainable businesses – building organisational capabilities and creating a “purpose driven values led” organisation. Organisations are about people but it is good leaders that grows good people. 23 23
Page 1 and 2: 1 ECR AP - The need for collaborati
Page 3 and 4: 3 Council meeting update Actions fr
Page 5 and 6: 5 ECR AP Sustainability - Walmart B
Page 7 and 8: Michael Haas is introducing: 7 METR
Page 9 and 10: 9 Introducing ECR Hong Kong MILESTO
Page 11 and 12: 11 ECR Asia Country News-Thailand D
Page 13 and 14: 13 Russia is on the way to Electron
Page 15 and 16: 15 THE CONSUMER GOODS FORUM The Con
Page 17 and 18: 17 ECR Australia News Winning at th
Page 19 and 20: 19 With over 400 delegates from acr
Page 21: Third, for us, sustainability isn
Page 25 and 26: CEOs’ Panel Session with Scott Pr
Page 27 and 28: Chris: Back to talent development.
Page 29 and 30: ECR AP Award WINNER E-commerce Inno
Page 31 and 32: 31 ECR AP Award Bronze Integration

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