The Netherlands…

Lessons learned retail logistics 30-35% trucks on our roads are agrifood-related Walther Ploos van Amstel Amsterdam University of Applied Sciences March 2016

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Share with you…

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• What are trends inFMCG in the Netherlands?

• What are new requirements: fresh, full, fast, forecasted?

• Which innovations will be relevant?

• Which competencies are required?

Agrifood: Netherlands is the most important gateway from and to Europe

• Local produced for local markets within EU: 50-80%

• Export non EU: 20-40%

• Meat, cereals and milk: manufacturers are dominant

• For other products: trade is dominant. In transit 75% controlled by non Dutch based traders

• Airport-seaport connection is important

• Emerging markets for import: Africa, Central America

• 90% of logistics is outsourced

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Our consumers are changing: Smaller shipments, more frequent, on time

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The Netherlands Retail and food service

• Market 57 bln Euro/year, no growth, even decline in sales volumes in past years

• Low prices and low margins in retail and food service

– Retail price levels 10-15% lower than UK

– Retail price levels 2-5% lower than B and Fr

• Food service share is 31% and not increasing (anymore) Dutch catering market (1 bln Euro/year) not growing Speciality stores: 18%. Supermarkets: 51%

• On line and convenience slowly growing, but still not significant and not profitable, maybe click-and-collect will bring potential

• Ongoing concentration in most distribution channels (but, still local-for-local business)

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The Netherlands – retail and food service Concentrated – but, local for local

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Retail Food service

Next 10 years: Changing FMCG supply chains

• More volume with 25% people less in transport and distribution in 2020 due to aging population

• Reduce waste and increase sustainability

• Increase freshness of products

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Innovation is driven by producers and retailers

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Collaboration

External collaboration

(Suppliers)

External collaboration (Competitors)

External collaboration (Customers)

External collaboration

(Other organisations)

Internal Collaboration

Vertical Collaboration

Horizontal Collaboration

Network Collaboration

Collaboration in the Netherlands is based on ECR framework

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One example: Speed docking competition

1. Green order 2. Scan and go: SSCC 3. Dynamic dock planning 4. Dock and roll

Collaboration Align supply chains…

Strategy

Balanced scorecard

Supply Chain Objectives

supply chain

plan and control

ICT

organization

Strategy

Balanced scorecard

Supply Chain Objectives

supply chain

plan and control

ICT

organization

ALIGN SUPPLY CHAIN

Supply chain process innovation: industry standards support reducing cost to serve

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Innovations in transport

Innovations in warehousing

Dispersed supply chain operations in FMCG

• Retail: 100 DC’s

• Food Service: over a 1.000 DC’s

• 6.000 producers

• More consolidation

• More outsourcing

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Collaboration Stronger focus on planning and control…

Strategy

Balanced scorecard

Supply Chain Objectives

supply chain

plan and control

ICT

organization

Strategy

Balanced scorecard

Supply Chain Objectives

supply chain

plan and control

ICT

organization

ALIGN SUPPLY CHAIN

ALIGN DATA AND PLANNING

Retail transport control tower: from EDI to API

Sharing data in the supply chain: CPFR

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Collaboration is changing focus

• From efficiency, to growth…

• New focus is on long term growth by value creation

• Focus shifting from supply side to demand side

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Putting the consumer in control?

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Collaboration Social innovation…

Strategy

Balanced scorecard

Supply Chain Objectives

supply chain

plan and control

ICT

organization

Strategy

Balanced scorecard

Supply Chain Objectives

supply chain

plan and control

ICT

organization

SOCIAL INNOVATION

ALIGN SUPPLY CHAIN

ALIGN DATA AND PLANNING

Social innovation: Doing business in Holland

• Egalitarian: teams take decisions, not top management

• Procurement is King • But, more focus on collaborative relationships • No nonsense culture: plain speaking and fact

based • Keep your promise(s): trust • Language: Dutch, English and German • International orientation • Respect diversity • ‘Poldermodel’: trade organisations are strong • Light lunches… if, at all • Humour… and we keep our private lives private

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Social innovation: World class people

• Architect of a profitable value chain

• Create successful alliances

• Plan and control

• Use advanced ICT

• Successfully implement innovations: Train your team as you fight…

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