what is the forum? the board of directors retailer college 4

WHAT IS THE FORUM?

THE BOARD OF DIRECTORS

RETAILER COLLEGE

4

MANUFACTURER COLLEGE

5

Strategic pillars

The building blocks of our vision

• Emerging Trends

• Sustainability

• Safety & Health

• Operational Excellence / New

Ways of Working Together

• Knowledge Sharing &

People Development

6

OPERATIONAL EXCELLENCE

Direct Store Delivery (DSD) is a method of delivering products from a distributor directly to the retail store, bypassing a retailer’s warehouse.

The scope of this working group is:

• To develop a DSD business model and the necessary process extensions• To partner with GS1 to develop the required standards • To drive the broad implementation of DSD.

DSD – Direct Store Delivery

Focus: plan to cash

Raw materials, ingredients and packaging

• Better visibility• Optimized inventory levels• Better supplier service levels• Lower integration costs• Optimized processes

• Increased retailer responsiveness• Maximised production capacity• Optimized inventory levels• Reduced obsolescence• Optimized processes

GUSI – Global Upstream Supply Initiative

Aims at:

Share our Supply ChainSupply Chain Conference 2010

Supply Chain Conference

12th – 14th OctoberBerlin

SAFETY & HEALTH

Global Food Safety Initiative (GFSI)

• Reduce food safety risks by delivering equivalence and convergence between effective food safety management systems

• Manage cost in the global food system by eliminating redundancy and improving operationalefficiency

• Develop competencies and capacity building in food safety to create consistent and effective global food systems

• Provide a unique international stakeholder platform for collaboration, knowledge exchange and networking

Managing Cost by Eliminating Redundancy

Impact Assessment Questionnaire, March 2010

Are you able to evaluate the annual cost savings that the implementation of GFSI recognised schemes has provided?

Retailer/Food Service Business Cases:Internal cost reduction of 90%

Manufacturer Business Cases:1: < $50K/yr

2: We are currently saving about $6million/yr

Global Food Safety Initiative (GFSI)

Global trends that will affect your business

Trends in mature markets

o Saturation of hyper and supermarketo Persistent rise of discount modelo Increased penetration of private labelo Increasing importance of convenience

and proximity

Trends in mature markets

o Saturation of hyper and supermarketo Persistent rise of discount modelo Increased penetration of private labelo Increasing importance of convenience

and proximity

40 – 50% average penetrationnow common in Europe and US catching up

SOURCE: Masmi

Trends in mature markets

o Saturation of hyper and supermarketo Persistent rise of discount modelo Increased penetration of private labelo Increasing importance of convenience

and proximity

France alone has seen 40% growth in three years

Trends in mature markets

SOURCE: Deloitte

Trends in mature markets

Convenience in France: +2.7% CAGRHypermarket in France: + 0.1% CAGR

SOURCE: Kantar Retail

o Saturation of hyper and supermarketo Persistent rise of discount modelo Increased penetration of private labelo Increasing importance of convenience

and proximity

Consolidation

Foreign entrants

SOURCE: Kantar Retail

Russia: market consolidation

1990 2000 2006 2011

Russia: retail market development

Why collaborate?

Shared problemsREQUIRE

Shared solutions AND BRING

Shared benefits

The vision

“Better lives through better business”

23