New Ways of Working Together
  Pat Conklin, Chief Customer Officer, Procter & Gamble- Asia




   The light bulb was not i...
“Stores are over SKU’d”
                                                         New SKUs
                                ...
Out-of-stocks
                     persist




 The Case
for Change




               Trading partners
             conti...
“The best way to
                          predict the future is
                          to invent it.”

               ...
New Ways of Working Together –
                A Consumer Goods Forum Initiative                                          ...
New Ways of Working Together
       Eliminate supply chain disruptions, enable growth
  Industry Track (Collaborate)
     ...
New Ways of Working Together
       Eliminate supply chain disruptions, enable growth
 Industry Track (Collaborate)
      ...
New Ways of Working Together
        Eliminate supply chain disruptions, enable growth
  Industry Track (Collaborate)
    ...
• Understand the Barriers and
                                                  Enablers to long term, shopper
           ...
• Industry and trading
   partners must do things
   differently

 • Adopt more sustainable                               ...
New Ways of Working Together will require:
            – Leaders who inspire by example
            – Honesty, Integrity a...
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Sam kim new ways of working together

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Sam kim new ways of working together

  1. 1. New Ways of Working Together Pat Conklin, Chief Customer Officer, Procter & Gamble- Asia The light bulb was not invented from continuous Innovation of a Candle The case for change • We have been talking about Collaborative Commerce and Collaboration for years. • Efficient Consumer Response was founded on the Strategies of: – Efficient Assortment – Efficient Replenishment – Efficient Promotion – Efficient New Item Introduction Yet today’s Supply Chain is STILL filled with waste…. The Case for Change
  2. 2. “Stores are over SKU’d” New SKUs Registered 1980 2,899 2005 10,651 2007 85,000 Average Items in a Typical Supermarket 1987 24,500 1997 30,000 The Case for Change 2007 45,000 Source: Global Commerce Initiative New Ways of Working Together Inventories are too high “There is too much of the stuff consumers don’t want and not The Case enough of what they for Change do.”
  3. 3. Out-of-stocks persist The Case for Change Trading partners continue to focus on The Case business minutiae for Change instead of shoppers
  4. 4. “The best way to predict the future is to invent it.” – Alan Kay, noted computer scientist Forces and trends that have the potential to significantly alter the industry’s value chain over the next decade. The industry must Redefine the 2016 Value Chain Trading Partners must more readily and freely Share Information In their Bi-Lateral relationships The industry must Develop New Ways of Working Together
  5. 5. New Ways of Working Together – A Consumer Goods Forum Initiative Colleen GOGGINS Worldwide Chairman, Consumer Group Jean-Paul AGON JOHNSON & JOHNSON Chief Executive Officer L’OREAL Bob MCDONALD Chairman, President & Brenda C. BARNES Chief Executive Officer Chairman & Chief Project Leaders THE PROCTER & Executive Officer GAMBLE COMPANY SARA LEE CORPORATION Manufacturers Retailers Sir Terry Warren F. BRYANT JOHNSON & JOHNSON CARREFOUR LEAHY Chairman Chief Executive NATIONAL Officer ASSOCIATION OF NESTLÉ KROGER CO. TESCO PLC CHAIN DRUG STORES PROCTER & GAMBLE METRO GROUP Eckhard CORDES KRAFT FOODS WAL-MART Mike DUKE Chairman of the President & Management Board CEO & Chief Executive Officer UNILEVER TESCO Wal*Mart METRO AG J.M. SMUCKER WEGMANS Lars OLOFFSON Stefano PESSINA Chief Executive COCA-COLA SAFEWAY Executive Officer Chairman CARREFOUR Legal Counsel ALLIANCE GROUP BOOTS John RISHTON Motoki OZAKI Michael KOK Paul POLMAN Chief Executive Officer President Kao Group CEO Chief Executive Royal Ahold Dairy Farm Officer UNILEVER New Ways of Working Together Eliminate supply chain disruptions, enable growth Industry Track (Collaborate) Best Documentati Guiding Share Practices/ on, Education, Principles and Communication Frameworks Results Standards Focus Connect Prepare Share on ed Business People for Our Supply Consumer/ Consumer Information New World Chain Shopper • • • • Satisfaction Strategy Common Knowledge, Sustainability Alignment Goals & Skills & Measures • Cross • JAG Capabilities Industry Framework • Information • Incentives & Integration Sharing* Rewards • Integrated • EPC • organisation Supply Chain • Data Sync Design Strategic Common Specific Other Issues Between Goals, Common Measures & Data Sharing Trading Partners Measures Priorities Opportunities Trading Partner Track (Competitive Advantage) *Note: Utilizations of Industry Standards
  6. 6. New Ways of Working Together Eliminate supply chain disruptions, enable growth Industry Track (Collaborate) Best Documentati Guiding Share Practices/ on, Education, Principles and Communication Frameworks Results Standards Focus Connect Prepare Share on ed Business People for Our Supply Consumer/ Consumer Information New World Chain Shopper • • • • Satisfaction Strategy Common Knowledge, Sustainability Alignment Goals & Skills & Measures • Cross • Joint Capabilities Industry Business • Information • Incentives & Integration Planning Sharing* Rewards • Integrated • EPC • organisation Supply Chain • Data Sync Design Strategic Common Specific Other Issues Between Goals, Common Measures & Data Sharing Trading Partners Measures Priorities Opportunities Trading Partner Track (Competitive Advantage) *Note: Utilizations of Industry Standards • Encourage bi-lateral collaboration – Based on clear, fact-based understanding of market context and trends – (P&G) Establish True Scorecards based on trading partners strategies as well as operational and financial objectives • Embrace joint long-term planning Focus – Annual planning is often insufficient – IP protection and trust on Consumer • Implement longer term planning processes J AG proces s • Five step process building a three-yea r rolling JAG plan • Ann ual milestones to be set Step 1 • Prog ra m reviewed Step 2 Review the ec onomic and throughout the year Review shopper environment • Buyer-Seller accountable for sales and functional l iaison, pla nning agree on coordination , agreement and prioritized execution follow-up growth • Cross-funct ional teams dr ive levers analysis and planning to Step 5 support Buyer-Seller Monit or & Condit ions adapt for succe ss Step 3 Define and Fact based agree on 3-year • Help trade p ar tners b uild JAG plan rationale for their growth Step 4 strategy Execute the • Demonstrate the objective JAG plan selection of relevant growth levers • Al low re liable quan tification of the o pportunities and expected ROI
  7. 7. New Ways of Working Together Eliminate supply chain disruptions, enable growth Industry Track (Collaborate) Best Documentati Guiding Share Practices/ on, Education, Principles and Communication Frameworks Results Standards Focus Connect Prepare Share on ed Business People for Our Supply Consumer/ Consumer Information New World Chain Shopper • • • • Satisfaction Strategy Common Knowledge, Sustainability Alignment Goals & Skills & Measures • Cross • JAG Capabilities Industry Framework • Information • Incentives & Integration Sharing* Rewards • Integrated • EPC • organisation Supply Chain • Data Sync Design Strategic Common Specific Other Issues Between Goals, Common Measures & Data Sharing Trading Partners Measures Priorities Opportunities Trading Partner Track (Competitive Advantage) *Note: Utilizations of Industry Standards • Common Goals and Common Measures – Based on a common language Connecte • GS1 “Trading Partner d Business Performance Management” Information Standard • Global Data Synchronization
  8. 8. New Ways of Working Together Eliminate supply chain disruptions, enable growth Industry Track (Collaborate) Best Documentati Guiding Share Practices/ on, Education, Principles and Communication Frameworks Results Standards Focus Connect Prepare Share on ed Business People for Our Supply Consumer/ Consumer Information New World Chain Shopper • • • • Satisfaction Strategy Common Knowledge, Sustainability Alignment Goals & Skills & Measures • Cross • JAG Capabilities Industry Framework • Information • Incentives & Integration Sharing* Rewards • Integrated • EPC • organisation Supply Chain • Data Sync Design Strategic Common Specific Other Issues Between Goals, Common Measures & Data Sharing Trading Partners Measures Priorities Opportunities Trading Partner Track (Competitive Advantage) *Note: Utilizations of Industry Standards Five Elements of Change? Change Vision Skills Measures / Resources Action Change Rewards Plan Measures / Action Skills Rewards Resources Confusion Plan Vision Measures / Resources Action Anxiety Prepare Rewards Plan People for Action Gradual Vision NewSkills World Resources Plan Change Vision Skills Measures / Action Frustration Rewards Plan Measures / False Vision Skills Rewards Resources Starts
  9. 9. • Understand the Barriers and Enablers to long term, shopper focused business planning • Transform people performance Prepare incentives and rewards People for New World • Build knowledge, skill and capability sets • Design organisational structure around consumer needs and drivers New Ways of Working Together Eliminate supply chain disruptions, enable growth Industry Track (Collaborate) Best Documentati Guiding Share Practices/ on, Education, Principles and Communication Frameworks Results Standards Focus Connect Prepare Share on ed Business People for Our Supply Consumer/ Consumer Information New World Chain Shopper • • • • Satisfaction Strategy Common Knowledge, Sustainability Alignment Goals & Skills & Measures • Cross • JAG Capabilities Industry Framework • Information • Incentives & Integration Sharing* Rewards • Integrated • EPC • organisation Supply Chain • Data Sync Design Strategic Common Specific Other Issues Between Goals, Common Measures & Data Sharing Trading Partners Measures Priorities Opportunities Trading Partner Track (Competitive Advantage) *Note: Utilizations of Industry Standards
  10. 10. • Industry and trading partners must do things differently • Adopt more sustainable Share business practices Our Supply Chain • Collaborative Transport Management, Empty Miles • Focus on the Consumer will not work if goals and measures are not shared, or if supporting rewards and structures are not in place • Connect our Business will not work if the connection point is not the shopper or if there are no mutual goals or the supply chain is still viewed as “yours versus mine” • Prepare our People will be insufficient if there is not a clear, shopper focused business plan focusing the organization, or if there are not the commonFocus common Connected andPeoplePrepare visibility toShare Our goals, on Consumer measures Business information for New act on. Supply • Share our Supply Chain will not be possible without understanding how Information World Chain every decision impacts the shopper, or if the way we measure success is different. Too often we optimize components of the supply chain, but sub- • Strategy • Common • • optimize the whole Goals & Measures Alignment Knowledge, Skills Sustainability • JAG Framework • Information & Capabilities • Cross Industry Sharing* • Incentives & Integration • EPC Rewards • Integrated Supply • Data Sync • organisation Chain Design An Integrated Approach to Better Business Results
  11. 11. New Ways of Working Together will require: – Leaders who inspire by example – Honesty, Integrity and Credibility – Transformation of Business information • Visible • Connected • Accurate • Informative • Actionable • Relevant So, what do we do about it? The NWWT Opportunity • Take responsibility for the current state • Expand your view to include all stakeholders • Collaborate effectively across the supply chain in the name of the customer experience. • Change outdated structures. • Modify incentives or rewards that do not result in behaviors that positively impacts the consumer. • Seek to understand and adjust non-compatible processes. So, what do we do about it?

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