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Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
Akin bayer. metro c&c
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Akin bayer. metro c&c

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  • 1. ECR International Forum – “Act Local” <ul><li>Akin Bayer </li></ul><ul><li>Moscow, June 2nd, 2010 </li></ul>Copyright © 2009 METRO Cash & Carry Russia Member of METRO Group METRO Cash & Carry Russia
  • 2. METRO Cash & Carry – a core Division of METRO Group Page Member of METRO Group METRO Cash & Carry Russia Sales (bn): € 19.7 Countries: 16 Stores: 818 METRO Group sales 2009: € 65.5 bn Sales (bn): € 11.3 Countries: 6 Stores: 441 Sales (bn): € 3.5 Countries: 2 Stores: 141 Sales (bn): €30.6 Countries*: …. Stores*: Self-Service Wholesale Food retail Department stores Nonfood specialty Cross functional companies
  • 3. METRO Cash & Carry is internationally leading self-service wholesaler Page Member of METRO Group METRO Cash & Carry Russia <ul><li>670 Stores in 30 countries </li></ul><ul><li>5.3 million m2 total sales area </li></ul><ul><li>106.000 employees </li></ul><ul><li>31 billion EUR Sales in 2009 </li></ul>METRO Cash & Carry International METRO Cash & Carry Russia <ul><li>2001 – start of operation </li></ul><ul><li>52 operative stores (federal) </li></ul><ul><li>13.000 employees </li></ul><ul><li>2.6 billion EUR sales in 2009 </li></ul>
  • 4. METRO Cash&Carry participates actively in ECR initiatives worldwide Page Member of METRO Group METRO Cash & Carry Russia Anti theft protection Building Brands Shrinkage Food Safety Couponing Efficient Unit Loads Shelf ready packaging EPC Task Force Category Management GDS RFID Logistics On Shelf Availability Enabling Technologies
  • 5. Economic developments in 2009 underline the necessity to foster deeper cooperation between retailers and suppliers Page Member of METRO Group METRO Cash & Carry Russia +38% Drop in retail market development Drop in currency rate Drop in customer confidence
  • 6. Satisfying customers needs and expectations is key Page Member of METRO Group METRO Cash & Carry Russia EDI Supply chain & Supplier collaboration Category Management
  • 7. Successful category management requires a trustful relation with suppliers and producers Page Member of METRO Group METRO Cash & Carry Russia <ul><li>relationship turns into collaboration </li></ul><ul><li>exchange of information and data's </li></ul><ul><li>joint business building </li></ul>Active category management approach fosters the relation between retailer & supplier <ul><li>… with the main aim to serve customers needs and to meet their expectations in terms of </li></ul><ul><li>availability </li></ul><ul><li>easy to find </li></ul><ul><li>quality </li></ul><ul><li>packaging </li></ul>Selected intensified cooperation's
  • 8. Category management is the interface to the customer – findings category shopper helps us to indentify the decision drivers Page Member of METRO Group METRO Cash & Carry Russia Decision Drivers BRAND known product (62%), favourite taste (45%) manufacturer/ brand (27%) PRICE (33%) *Raffaello = 100% brand awareness, >17%* market share “ Brand of the Year” in Pralines in 2009 Conclusion: Visual Anchor in the Category needed to: <ul><li>bring shoppers in the aisle and help to orientate </li></ul><ul><li>visual Anchor = the strongest brand in the category </li></ul>I have already bought these pralines and I like them Specifics of taste and formula Acceptable price Producer company Good value for money Producer country Brand Beautiful pack I wanted to taste novelty Another person asked me Different tastes in one pack
  • 9. Category management is the interface to the customer – findings from category shopper helps to identify the decision drivers Page Member of METRO Group METRO Cash & Carry Russia Visual Anchor <ul><li>Shopper Decision factors </li></ul><ul><li>Brand as recipe and price tier </li></ul><ul><li>Planograms based on: </li></ul><ul><li>Sales in RUR and Metro units </li></ul><ul><li>Total Income </li></ul><ul><li>Shelf Stock coverage </li></ul><ul><li>Professional assortment </li></ul><ul><li>Own Brands </li></ul>Usage of planograms Integration of visual anchors
  • 10. Supplier Collaboration aimed to improve availability and stock days at the same time Page Member of METRO Group METRO Cash & Carry Russia <ul><li>Stock reduction measures allowed to reduce stock days: </li></ul><ul><li>Supplier discipline – more accurate deliveries due to adjusted time schedules and minimum order recalculation </li></ul><ul><li>Planning of promo-actions </li></ul><ul><li>Master data issues – timely price adjustment, missing, wrong bar-coding, timely articles blocking </li></ul><ul><li>Administrative issues – delivery documents completeness, certificates availability - supplier’s data sources (internet portal of the suppliers) </li></ul><ul><li>Out of Stock at supplier’s warehouse – forecasting improvement, production adjustments </li></ul>*1Q 2010 vs Q1-Q4 2009: Stock days decrease* Service level*
  • 11. EDI implementation proved significant benefits <ul><ul><li>EDI ( E lectronic D ata I nterchange) performs a great impact for MCC and supplier business processes: </li></ul></ul><ul><ul><ul><li>Process optimization </li></ul></ul></ul><ul><ul><ul><li>Cost optimization </li></ul></ul></ul><ul><ul><ul><li>Reliable and on-time payments </li></ul></ul></ul><ul><ul><li>EDI solutions are significantly flexible for business needs, traceable and transparent </li></ul></ul><ul><ul><li>EDI is a considerably stable and well-performed technology. </li></ul></ul>Page Member of METRO Group METRO Cash & Carry Russia 2005 2008 2009 2009 EDI launch DESADV RECADV Invoice SLS INVPRT EDI business impacts Implementation milestones EDI penetration results Message Comment Number of suppliers Penetration (% of documents) ORDERS Purchase order 3271 81,61% DESADV Delivery note 515 25,39% RECADV Goods receiving 497 20,23% MCC RU is a “pathfinder” for EDI in Russia
  • 12. EDI INVOICE is the next milestone to be reached Page Member of METRO Group METRO Cash & Carry Russia Paper invoice Invoice payment Input of total data Goods receiving data EDI invoice Retail chain Supplier <ul><li>Aim of the project: Implement EDI invoice with suppliers. As soon as necessary law changes are adopted immediately switch to EDI invoice without paper. </li></ul><ul><li>Current status : 63 suppliers are in production, another 600 suppliers are in test including Kraft foods, Nestle, WBD. </li></ul><ul><li>Target 2010 : receive 5% of the invoices by EDI </li></ul>Current EDI process together with paper Reconciliation of EDI and paper invoice Archive
  • 13. ECR activities are not only fostering customer orientation, but also an excellent dialog platform Page Member of METRO Group METRO Cash & Carry Russia <ul><li>improve efficiency by spotting non-productive processes </li></ul><ul><li>makes End to End Supply Chain processes and costs transparent </li></ul><ul><li>helps to reduce pipeline cost </li></ul><ul><li>supports reliable cooperation, best practice transfers between supplier and retailer </li></ul><ul><li>however, it’s an important dialog platform </li></ul><ul><li>ECR initiatives are depending on </li></ul><ul><li>shared vision “customer” </li></ul><ul><li>ready to share relevant information and best practices </li></ul><ul><li>mutual respect and trust between the players </li></ul><ul><li>full commitment </li></ul>
  • 14. Contact Page Member of METRO Group METRO Cash & Carry International GmbH Page 14 AKIN BAYER Managing Director METRO Cash & Carry Ltd Leningradskoye Shosse, 71 G, 125445 Moscow Russian Federation Phone: +7 (495) 660 26 00 Fax: +7 (495) 502 12 20 Mobile: +7 (919) 991 94 09 Akin.Bayer@metro.com.ru © Copyright This concept is intended only for the purpose of presentation and is the intellectual property of Metro Cash & Carry International GmbH. Passing on to third parties as well as the use and exploitation of the presentation either in whole or in part is expressly forbidden METRO Cash & Carry International GmbH Geschäftsführung/Executive board of management: Frans W.H. Muller (CEO); Dr. Andrea Francesco Martinelli; Dr. Christian Mielsch; Dr. Claudia Schlossberger; Thomas Ziegler Sitz/registered office Düsseldorf, Amtsgericht Düsseldorf HRB 36616 - Commercial Register of the Duesseldorf Local Court HRB 36616

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