Implementing
Sustainable Change

   Bernard Karli
   Managing Director
ECR Europe’s investment in implementing
                 sustainable change
Starting in 1996
• ECR Europe conferences
Star...
From 2007 – our mission
To effect a sustainable, broad-scale
change in collaborative business
relationships and behaviour ...
From 2007 – our assets
Networking
             Communicating
                             Learning together
For more information
Visit the International Commerce Institute


   At stand H12 in the Marketplace
   At www.ecr-institu...
Implementing Sustainable Change

        Discussion session
Atul Bhardwaj, Tesco Plc
Dr. Katerina Pramatari, Athens Univer...
Implementing
Sustainable Change
       through
  Joint Research
   Collaboration
  Dr. Katerina Pramatari
            Assi...
Business Sustainability
• Sustainability of human resources
  – life-long education and people development
  – knowledge g...
Is your company doing something
about environmental sustainability
  and other emerging consumer
            concerns?
The challenge

1. How to address emerging
   concerns through product        Research
   and process innovation?


2. How ...
The Dynamic Pricing Project
• A research project funded by the
  International Commerce Institute –
  Unilever Fund
• Comb...
The concept
• Dynamic Pricing: Price-off for products
  approaching their expiration date
• Used partially as a waste mana...
Key Questions
• What is the impact on consumer behavior?
• Can it be implemented as an industry-wide
  practice for waste ...
The role of Academia
• Conduct research: design and execute
  several studies and consumer surveys
  addressing various as...
Intelligent Integration of Supply Chain
               Processes and Consumer Services
               based on RFID


GREE...
The opportunity ahead…
INDUSTRY                   ACADEMIA
• Address emerging         • Design and conduct
  concerns beyo...
In practical terms
• Student Internships
• Scholarships for PhD studies
• Joint research collaboration projects
  – Initia...
Concluding Remarks
• The grocery retail industry is expected to be
  highly impacted by the need for
  environmental susta...
Putting New Knowledge
              to Work
                       Daniel T Jones

                Chairman, Lean Enterpri...
Outline

• Lessons from influential research projects
   – MIT auto studies of the 1980s
   – Lean supply chains at Unipar...
MIT Auto Studies

• Explain the rise of the Japanese auto makers
• Academic research with active industrial board
• Benchm...
Lean Fundamentals
• Organisations manage knowledge, careers, assets and
  performance vertically
• But all value is the re...
Lean Supply Chains

• Unipart and Tesco asked the same question –
  how to create a lean supply chain?
• Toyota parts syst...
Actions

 Purpose              Process                People
 Loyalty cards        Walk and map           Align strategy o...
Consumer Goods

• How to overcome batch thinking in process
  industries?
• Experiments demonstrated the power of sieving
...
Next Steps

• Go beyond pilots to learn to manage win-win
  cooperation on an ongoing basis?
• Understand how to help cons...
Bridging the Gap

• Practice leads theory in this field
• Breakthroughs come from real partnerships with
  industry –not j...
International Commerce Institute
• A forum for advancing theory and practice
   – Progressive Management Programme –
     ...
Putting New Knowledge
              to Work
                       Daniel T Jones

                Chairman, Lean Enterpri...
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ECR Europe Forum '08. Implementing sustainable change

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Implementing sustainable change

We may agree that we need to change the current business models of our industry. But how do we implement this change in a sustainable way? Hear from leading retailers the challenges they face to manage change throughout their organisations and the role academia can play to help them implement sustainable change.

Speakers: Dan Jones, Lean Academy; Katerina Pramatari, Athens University.

Facilitated by the International Commerce Institute.

Published in: Business, Technology
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ECR Europe Forum '08. Implementing sustainable change

  1. 1. Implementing Sustainable Change Bernard Karli Managing Director
  2. 2. ECR Europe’s investment in implementing sustainable change Starting in 1996 • ECR Europe conferences Starting in 1999 • ECR Europe Academic Partnership Starting in 2001 • ECR Journal and Student Awards Starting in 2003 • Shared Learning Initiative Starting in 2005 • International Commerce Institute Starting in 2007 • International Commerce Review:ECR Journal
  3. 3. From 2007 – our mission To effect a sustainable, broad-scale change in collaborative business relationships and behaviour across the consumer goods business through Building Leadership Furthering Knowledge Instigating research Learning together
  4. 4. From 2007 – our assets Networking Communicating Learning together
  5. 5. For more information Visit the International Commerce Institute At stand H12 in the Marketplace At www.ecr-institute.org Or call + 41 796 522 722
  6. 6. Implementing Sustainable Change Discussion session Atul Bhardwaj, Tesco Plc Dr. Katerina Pramatari, Athens University Peter Jordan, Value Chain Vision Prof. Dan Jones, The Lean Academy
  7. 7. Implementing Sustainable Change through Joint Research Collaboration Dr. Katerina Pramatari Assist. Professor Athens University of Economics & Business ELTRUN Research Center, Greece www.eltrun.gr
  8. 8. Business Sustainability • Sustainability of human resources – life-long education and people development – knowledge generation and adoption of innovations • Sustainability of physical resources – environmental sustainability – sustainable transport – sustainable packaging and recycling – waste management
  9. 9. Is your company doing something about environmental sustainability and other emerging consumer concerns?
  10. 10. The challenge 1. How to address emerging concerns through product Research and process innovation? 2. How to turn innovations Process change into sustainable business People practices? development
  11. 11. The Dynamic Pricing Project • A research project funded by the International Commerce Institute – Unilever Fund • Combines both sustainability perspectives: – Joint collaboration of industry and academia to generate new knowledge – Looks at a promising sustainability practice from the consumer perspective
  12. 12. The concept • Dynamic Pricing: Price-off for products approaching their expiration date • Used partially as a waste management practice by some retailers • Consumers ranked it top as a service – surveys in two European countries (Greece, Germany)
  13. 13. Key Questions • What is the impact on consumer behavior? • Can it be implemented as an industry-wide practice for waste management? • Can it be implemented in collaboration? – suppliers of perishable goods are not currently involved • Can new technologies (such as RFID) make implementation more efficient ? – current implementation relies on manual intervention
  14. 14. The role of Academia • Conduct research: design and execute several studies and consumer surveys addressing various aspects: – Trade-off between price, quality and expiry-date – Price reduction versus consumer response – Evaluate implementation alternatives • Conduct field experiments with the participation of retailers and suppliers • Setup and coordinate a European research project testing an implementation of Dynamic Pricing based on RFID
  15. 15. Intelligent Integration of Supply Chain Processes and Consumer Services based on RFID GREECE IRELAND CYPRUS Veropoulos Alpha-Mega Papaellinas Supermarkets Supermarkets http://www.smart-rfid.eu/
  16. 16. The opportunity ahead… INDUSTRY ACADEMIA • Address emerging • Design and conduct concerns beyond high-quality and day-to-day business relevant research • Process as well as • Setup and coordinate product research research activities • Need for collaboration across different – Vertical organizations and (with supply chain countries partners) • Experiment with new – Horizontal and high-risk (across several technologies European countries) • Executive education … to bridge the gap and training
  17. 17. In practical terms • Student Internships • Scholarships for PhD studies • Joint research collaboration projects – Initiated by the industry – Initiated by the Academia • National, European • Executive education
  18. 18. Concluding Remarks • The grocery retail industry is expected to be highly impacted by the need for environmental sustainability and other emerging consumer concerns, such as food safety, nutritional labeling, ethical sourcing, etc. • Academia and joint research collaboration efforts at European level can play a key role in fostering knowledge and supporting business in managing and implementing this huge effort for sustainable change
  19. 19. Putting New Knowledge to Work Daniel T Jones Chairman, Lean Enterprise Academy Editor in Chief, International Commerce Review AWK 2008 Aachen 5 June 2008
  20. 20. Outline • Lessons from influential research projects – MIT auto studies of the 1980s – Lean supply chains at Unipart and Tesco in the 1990s – Lean in consumer goods right now • Bridging the gap between academia and industry • Harnessing research to meet tomorrows’ challenges AWK 2008 Aachen 5 June 2008
  21. 21. MIT Auto Studies • Explain the rise of the Japanese auto makers • Academic research with active industrial board • Benchmarking methodology – thoroughly tested • Powerfully written story engaged the industry • Followed up by research on how to close the gap – examples, principles, transition path • Written up for plant managers • Created a global movement – spreading lean to every industry AWK 2008 Aachen 5 June 2008
  22. 22. Lean Fundamentals • Organisations manage knowledge, careers, assets and performance vertically • But all value is the result of a horizontal process – which no one sees or is responsible for • Engage everyone to do what is right for their customer and to streamline the flow of value creation • And get the rest of the organisation to support and enable these primary processes to flow • Then the organisation can beat the competition by creating more value at little additional cost • It is about Purpose, Process and People AWK 2008 Aachen 5 June 2008
  23. 23. Lean Supply Chains • Unipart and Tesco asked the same question – how to create a lean supply chain? • Toyota parts system the reference example • Unipart created a corporate University to build knowledge and a common practice • From pilot experiments Tesco assembled the building blocks of a lean supply chain • Both understood the power of flow and time compression at board level AWK 2008 Aachen 5 June 2008
  24. 24. Actions Purpose Process People Loyalty cards Walk and map Align strategy on flow supply chains Home shopping Flow through Common dashboard stores & DCs Segment customers Continuous Pilot projects replenishment Understand Take on Tesco Operating preferences primary distribution System Convenience format Dollies and shelf- Store training ready packaging AWK 2008 Aachen 5 June 2008
  25. 25. Consumer Goods • How to overcome batch thinking in process industries? • Experiments demonstrated the power of sieving the product mix, and buffering demand and making high volume products more frequently • So you can make one, ship one and sell one in line with demand and respond more quickly • Current squeeze and disillusion with IT now triggering widespread interest in lean AWK 2008 Aachen 5 June 2008
  26. 26. Next Steps • Go beyond pilots to learn to manage win-win cooperation on an ongoing basis? • Understand how to help consumers manage their consumption while saving their time? • Discover how can we turn consumers from strangers to partners? • How will this change production, distribution, retail formats and channels to the home? • In a sustainable way? AWK 2008 Aachen 5 June 2008
  27. 27. Bridging the Gap • Practice leads theory in this field • Breakthroughs come from real partnerships with industry –not just having students analyse data – but by carrying out experiments to turn pilots into proven practice – which takes time • Academics driven by teaching and writing papers – but business schools increasingly need relevance • We need more joint research projects and discussion forums AWK 2008 Aachen 5 June 2008
  28. 28. International Commerce Institute • A forum for advancing theory and practice – Progressive Management Programme – developing tomorrow’s leaders – International Commerce Review – engaging leading academics – Research Sponsorship – Unilever grants – Thought leader forums – develop dialogues around new knowledge – ICI Web site – communications platform – keeping abreast of latest research Aachen 5 June 2008 AWK 2008
  29. 29. Putting New Knowledge to Work Daniel T Jones Chairman, Lean Enterprise Academy Editor in Chief, International Commerce Review AWK 2008 Aachen 5 June 2008
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