Operational Excellence 2011 Executive Summary


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Operational Excellence 2011 Executive Summary

  1. 1. 20 marketing / supply chain / information technology11 Executive Summary ConsumerGoods DrvenSucces EmergingTrends Share 1PlaceToNotMiss AllBeginningsStartWith1Place PersonSkilledlnTheArt AGoodPlaceToVisit BestPlactice Utility SenseOfPlace BestMinds BetterLives TakePlace BetterLivesThroughBetterBusiness StrongFocus KnowledgedSharing SeniorManagmentMembers The Consumer Goods Forum Time&Place2.1TrillionEuros IndustryExcellence IdeasExchange BetterBusiness FriendsInHighPlaces RetailersKnowlege GlobalPlatform ActiveParticipation Sharing 70Countries StrategicInformation CommonPositions www.tcgfoperationalexcellence.com BARCELONA
  2. 2. the the consumer sumer e goods forumWhat is the Consumer Goods Forum?The Consumer Goods Forum (CGF) is a global, parity-based industry network, drivenby its members. It brings together the CEOs and senior management of over 400retailers, manufacturers, service providers and other stakeholders across 70countries and reflects the diversity of the industry in geography, size, productcategory and format. Forum member companies have combined sales of EUR 2.5trillion. Their retailer and manufacturer members directly employ nearly 10 millionpeople with a further 90 million related jobs estimated along the value chain.The Forum was created in June 2009 by the merger of CIES - The Food Business Forum, the GlobalCommerce Initiative (GCI) and the Global CEO Forum. The Consumer Goods Forum is governed by its Boardof Directors, which includes 50 manufacturer and retailer CEOs and Chairmen.The Forum provides a unique global platform for knowledge exchange and initiatives around five strategicpriorities – Emerging Trends, Sustainability, Safety & Health, Operational Excellence and Knowledge Sharing& People Development – which are central to the advancement of today’s consumer goods industry.The Forum’s vision is: “Better lives through better business”. To fulfil this, its members have given the Foruma mandate to develop common positions on key strategic and operational issues affecting the consumergoods business, with a strong focus on non-competitive process improvement. The Forum’s success isdriven by the active participation of the key players in the sector, who together develop and lead theimplementation of best practices along the value chain.With its headquarters in Paris and its regional offices in Washington, D.C., and Tokyo, the CGF serves itsmembers throughout the world. 2
  3. 3. Executive Summary produced by IGD on behalf of The Consumer Goods ForumIGD is a leading international research organisation for the consumer goods industry worldwide. We offerunderstanding and insight, developed from extensive analysis of global business issues and an ongoing dialoguewith shoppers. We help businesses to identify opportunities, improve performance and create a competitive edge.Find out more at www.igd.comIdeas. Content. Communication. Information designed for your business.Find out more at: www.delevine.co www.delevine.comFabra Davies is an established cloud organisation with a track record in design innovation and social media forthe consumer goods market. With a background in trends, architecture, marketing and contracts completedworldwide, we can provide a unique range of services and skills.Twenty successful years of consultancy is a reflection of our commitment to inovation, quality and the talent ofour lovely personnel. Find out more at: www.fabradavies.com
  4. 4. Contents 2 Introduction 6 Operational Excellence 7 Highlights 8 Experience10 Committees13 Store Tour15 Opening Plenary Sessions21 Marketing Stream29 IT Stream39 Supply Chain Stream49 Breakfast Sessions53 Closing Plenary Sessions55 Networking Moments 4
  5. 5. The Strategic Pillars & Forum Activities Ageing Population Share our Health Supply Chain Global Social & WellnessCompliance Information & Education Programme Prepare Health & Our people Carbon Wellness Measurement Principles Connect Deforestation Commitments Business Refrigeration Information Engagement Global Food Safety Future Global Initiative Leaders Packaging Focus on Consumers Future & Shoppers Value Chain Summit THE CONSUMER GOODS FORUM 1 2 3 4 5 OPERATIONAL EXCELLENCE & PEOPLE DEVELOPMENT KNOWLEDGE SHARING EMERGING TRENDS HEALTH & SAFETY SUSTAINABILITY
  6. 6. Operational Excellence The key to growth Creating and implementing change in industry collaboration Our objective is to enable trading partners and the Consumer Goods Industry to better serve our consumers and shoppers by driving Operational Excellence. Our aim is to do this through collaborative business practices of New Ways of Working Together. This includes four strategic priorities, which are also reflected in the four Operational Excellence Committees: The objectives will be accomplished through: retailers and other participants in the extended value chain to drive consumer benefits. This would include the adoption and implementation of best practices, GS1 Standards and Industry Utilities. New Ways of Working Together Eliminate supply chain disruptions, enable growth Industry Track ( collaborate ) 2 Best Practices/ Standards Documentation, Education, Communication Guiding Principes and Frameworks Share Results Consumer & Shopper OPERATIONAL EXCELLENCE Satisfaction Focus on business Prepare people for new world Share our consumer information supply chain COMMON GOALS & KNOWLEDGE, SKILLS & STRATEGY ALIGNEMENT MEASURES CAPABILITIES SUSTAINABILITY JAG FRAMEWORK INFORMATION CROSS INDUSTRY INTEGRATION INCENTIVES & REWARDS SHARING* INTEGRATED SUPPLY CHAIN EPC ORGANIZATION DESIGN DATA SYNC Strategic Issues Common Goals, c Measures Other Data Between & Priorities Sharing Common Measures OpportunitiesFocus Trading Partners Trading Partner Track ( Competitive Advantage ) *Note: Utilizations of Industry Standards The Operational Excellence – New Ways of Working Together Core Team is charged with creating and implementing change in the way our industry collaborates (in bi-lateral trading relationships and on non-competitive Industry issues) to better serve our consumers and shoppers. It also serves as the Integration Platform and Steering Group for the pillar and its work. The Marketing, IT and Supply Chain Knowledge Exchange & Networking Forum At the annual member event, we bring together our members to focus on the consumer and shopper. In bringing retailers and manufacturers together, we look at how we can work together to ensure continuous improvement throughout the value chain by focusing on the needs of the consumer and optimizing processes and collaborative action along the way. It’s all about excellence in execution … and how Marketing, IT and Supply Chain can work together to bring operational excellence to their business. 6
  7. 7. HighlightsThe shopper and consumer at the heart …The “Shopper & Consumer” is what this gathering was all about. And how we can work together to meetthe needs of today’s empowered consumer.We brought together our members to exchange knowledge, network with peers, pick up new ideas andlearn from practical experiences.At this knowledge exchange & networking event, Marketing, IT and Supply Chain executives took adeep dive at how we can better serve the consumer by concentrating on the following Marketing, ITand Supply Chain themes:“Turning Consumer and Shopper Insights into Growth”“The Consumerism of IT”“Delighting the Consumer. Acting as One.”ExperienceHear what the experts have to say about their experience...“CGF has proven to me to be a fantastic platform to gain valuable insights into how leading industry playersaddress trends that shape our mid to long term future. Networking with peer executives frommanufacturers, retail partners and strategic vendors opens many doors for collaboration.”Clyde Pereira, CIO, Coca-Cola Hellenic, Austria“The Marketing Forum exercises and expands your mind like no other marketing event in the world. It is themarketing event of the year for me. We stimulate your left and right brain with an intentional mix ofsuccessful case study presentations and relevant experiences, outside of the box, inspirational speakers tostretch your mind.”Stephen Smith, Chief Marketing Officer, Asda Stores Ltd, United Kingdom“Excellent event to get new inputs, to meet inspiring colleagues, to exchange information and tobenchmark own ideas!”Andreas Münch, Member of the Executive Board, Head of Department Logistics & IT, Migros,Switzerland“The store and DC tours also provide great insights on how individuals can improve their own operationsand leverage new technologies.”John S. Phillips, Senior Vice President, Customer Supply Chain & Logistics, PepsiCo, USA “The CGF Marketing Forum is an excellent blend of manufacturers, retailers, and select suppliers comingtogether to discuss new ways of working together to deliver improved shopping experiences. The speakersare dynamic and the forum is candid in terms of interaction and discussion – a great mix!”Kristen Nostrand, Marketing Director, Procter & Gamble, USA 8
  8. 8. The Consumer Goods Forum is your associationBy the members, for the membersThis year’s conference was developed by the Operational Excellence Committees for the membersof the Forum. Here are the industry experts who have been working behind the scenes throughoutthe year.
  9. 9. Marketing CommitteeActivating Shopper and Consumer InsightsArnaud de Belloy, Vice President Global Customer & Sales, Nestlé Group, Switzerland (Co-Chairman of the MarketingCommittee - Activating Shopper and Consumer Insights)Stephen Smith, Chief Marketing Officer, Asda Stores Ltd, United Kingdom (Co-Chairman of the Marketing Committee -Activating Shopper and Consumer Insights)Jonathan Ackerman, Customer Director, Pick N Pay Retailers, South AfricaAdam Balon, Founder & International Director, Innocent Drinks, United KingdomCarolyn Bradley, UK Marketing Director, Tesco, United KingdomJeff Burt, Group Vice President Perishable Merchandising and Procurement, The Kroger Co., USAGuy Elewaut, Senior Vice President Strategy, Marketing and Communications, Delhaize, BelgiumBernard Fevry, Director of Operational Marketing Europe, The Coca-Cola Company, FranceAngela Francolini, Vice President, International Marketing & Innovation, Mc Cormick & Co, Inc., USAMarkus Gisiger, Head of Marketing Food, Migros, SwitzerlandSharon Jeske, Director, Operational Excellence, The Consumer Goods ForumRobert Kitching, Vice President Consumer Marketing Insights Western Europe, Unilever, The NetherlandsMeg Levene, Vice President, Field Sales Organization, Johnson & Johnson, USASatoshi Nakashima, General. Manager, Strategic Trade Marketing Department., Marketing Integration Division,Meiji Co., Ltd.,JapanKristen Nostrand, Marketing Director, Procter & Gamble, USASimon Potts, Director - Business Development Health & Beauty Division, Alliance Boots, United KingdomPatrick Rouvillois, Chief Marketing Officer, Carrefour Group, FranceJean Rubens, Executive Managing Director, Casino Supermarches, FranceYuji Shimizu, Director, Business Planning & Coordination, Global Consumer Product, Kao, JapanVanessa Silva, Marketing Director, Jeronimo Martins, PortugalAndré Tordjman, Chairman and Founder, Little-Extra & Affiliate Professor, EDHEC, FranceJean-Jacques Vandenheede, Director Retailer Insights Europe, The Nielsen Company, BelgiumTim Welch, Director International Shopper Marketing, PepsiCo, USAPaolo Zazzi, Europe and Export Customer Marketing Responsible, Barilla, Italy 10Russell Zwanka, Senior Vice President Sales, Merchandising, and Marketing, Price Chopper, USA
  10. 10. IT CommitteeConnecting Businesses for ConsumersAugust Harder, Chief Information Officer, Coop, Switzerland (Co-Chairman of the IT Committee - ConnectingBusinesses for Consumers)Clyde Pereira, Chief Information Officer, Coca-Cola Hellenic, Austria ( Co-Chairman of the IT Committee -Connecting Businesses for Consumers)Masayuki Abe, Vice President, Information System Strategic Planning, Kao Corporation, JapanJoão Günther Amaral, Director, Sonae PortugalGreg Buckley, Senior Director, Customer Supply Chain, PepsiCo, USAGuy Chambers, Chief Operations Officer (Greater China), Swire Beverages, ChinaAndrija Derezic, Executive Director of IT and Telecommunications, Mercator Group, SloveniaMartin Haas, Chief Information Officer, Migros, SwitzerlandRod Hefford, Vice President IT - Global Customer Development and Supply Chain, Unilever, United KingdomSharon Jeske, Director, Operational Excellence, The Consumer Goods ForumClinton Keay, Senior Vice President , Chief Information Officer, Sobeys Inc., CanadaEspen Kjonsberg, Chief Information Officer, Norgesgruppen, General Manager, Norgesgruppen Data, NorwayAndreas Kranabitl, Managing Director, Spar, AustriaKevin Puppe, Senior Director of IT, Johnson and Johnson Consumer Group, USAMarco Rossi, IT Business Process Support Director, Barilla, ItalyJens Siebenhaar, Chief Information Officer, Rewe Informations Systeme GmbH, GermanyFranck Suykens, Senior Vice President & Chief Information Officer, Europe and Asia, Delhaize Group, BelgiumJoseph Taylor, Director of IT Strategy and Innovation, Wal-Mart Stores, Inc., USAFrancesco Tinto, Vice President - IS Americas, Kraft Foods, Inc., USAMilan Turk, Managing Director, Global Customer Business Development, Procter & Gamble, USAWim Van Herwijnen, Chief Information Officer – Real-hypermarkets, Metro Group, GermanyJerry Wolfe, Vice President, Global Supply Chain Strategy and Chief Information Officer, Mc Cormick & Co., Inc, USAMike Yorwerth, Group Technology and Architecture Director, Tesco, United Kingdom
  11. 11. Supply Chain CommiteeDelighting the Consumer. Acting as One.John S. Phillips, Senior Vice President, Customer Supply Chain & Logistics, PepsiCo, USA (Co-Chairman of the Supply ChainCommittee - Delighting the Consumer. Acting as One.)Tony Vendrig, Executive Vice President Business Development, Ahold Europe, The Netherlands (Co-Chairman of the Supply ChainCommittee - Delighting the Consumer. Acting as One.)Petra Albuschus, Senior Vice President Logistics, ICA Sverige AB, SwedenTony Borg, Vice President - Head of Corporate Supply Chain, Nestlé Group, SwitzerlandFrank Bruni, Vice President Logistic Operations, The Kroger Co., USARoberto Canevari, Group Supply Chain Executive Director, Carrefour, FranceNuno Cardoso, Supply Chain Director, Jeronimo Martins, PortugalGeoff Fulford, Group Vice President Customer Service Excellence, Unilever, United KingdomMartin Gleiss, Supply Chain & Logistics Manager, Spar, AustriaCenk Gurol, Chief Executive Officer, Æon Global SCM Co. Ltd., JapanSharon Jeske, Director, Operational Excellence, The Consumer Goods ForumDavid Jones, Supply Chain Director, Waitrose Ltd., United KingdomHerbert Kueng, Vice President Customer Service & Logistics CEEMA, Kraft Foods CEEMA GmbH, AustriaKieron Low, Supply Chain Director, L’Oréal Consumer Product Division, L’Oréal, FranceKerry McNair, Director, Global Supply Chain, Walmart Group, The Coca-Cola Company, USAAndreas Münch, Member of the Executive Board, Head of Department Logistics & IT, Migros, SwitzerlandStefano Pietroni, Network Design Planning & Sourcing Director, Barilla, ItalyJim Radin, Vice President – Global Supply Chain Operations, Mc Cormick & Co., Inc., USAJoze Sadar, Senior Vice President, Mercator D.D., Mercator Operations Slovenia, FMCG Retail, SloveniaYannis Skoufalos, Global Product Supply Officer, Procter & Gamble, USAXavier Ury, Vice President Procurement Support, Quality and Supply Chain, Delhaize Group, BelgiumNaoto Takahashi, Managing Director, Representative Director, President of Production Division, President of Supply ChainManagement Division, Kirin Brewery, JapanSpecial Advisor to the Committee:Valentin Elistratov, Vice President Business Development International Supply Chain, EMEA, DHL Global Forwarding, France 12
  12. 12. Tuesday 11th October
  13. 13. PROGRAMME OGRAMME Participants were kindly welcomed by: 14
  14. 14. Jean-Marc Saubade,Managing Director,The Consumer Goods Forum Opening Plenary Sessions Wednesday 12th and Thursday 13th October The Consumer Goods Forum Managing Director Jean-Marc Saubade welcomed 300 delegates from 30 countries and 130 companies to Operational Excellence 2011 Saubade stressed that, in an uncertain economic environment, the basic need for consumer goods companies to better serve their consumers and shoppers through enhancing operational capabilities was greater than ever. For 2011, the Forum’s Supply Chain, IT and Marketing conferences had come together for the first time under one roof. Saubade took the opportunity of the first plenary session to remind delegates of the principal areas of focus for the Forum. The Forum’s five strategic pillars are: sustainability; safety & health; emerging trends; operational excellence; knowledge sharing & people development.
  15. 15. Welcome to Operational Excellence 2011 16
  16. 16. Robert McDonaldChairman of the Board,President & CEO,The Procter & Gamble Company,USAJim FlanneryManaging Director, CustomerDevelopment, Procter & GambleGlobal Operations, The Procter & Operational ExcellenceGamble Company, USA New ways of working together “The only strategy consumers and shoppers see is our ability to execute,” Jim Flannery told delegates. Speaking with Robert McDonald, who joined the conference by video, Flannery introduced delegates to the Forum’s New Ways of Working Together framework, which provides a common language for collaborative action. A “game-changing enabler,” the common approach leads to consumer-focused business plans and helps companies create operational synergies McDonald and Flannery urged delegates to take advantage of the networking facilities offered by the enlarged conference to share expertise and gain inspiration from one another: “The Operational Excellence pillar at the Forum is all about making a real difference in the industry and we should all take our work to the next level,” Flannery said.
  17. 17. Erik Wahl International Keynote Speaker and Artist USAThink big, dream bigThe risks and rewards of working togetherThe corporate world can be risk-averse, artist and motivational speaker Erik Wahl told the conference in hiskeynote address. This is logical, since companies have to manage the interests of shareholders and financialbackers. But if innovation is vital in a fast-changing consumer climate, then surely “creativity is the new corporatecapital”.This kind of capital is abundant and free, but requires a risk and a shift of focus from the logical left side of thebrain to the creative and collaborative right. Wahl encouraged delegates to look for ways to work together, putfear to one side and embrace new ideas. “See the world through different eyes,” he urged the conference.To illustrate his point, quite literally, Wahl painted a picture to music and invited a volunteer on stage. Herewarded the volunteer for taking this potentially humiliating venture into the unknown by making a gift of thepainting: “Sometimes it pays to take a risk.” Wahl also painted a portrait of inspirational footballer Lionel Messi. 18
  18. 18. KeyTakeawaysOGILVYACTIONBuild brand utilityalongside brandawarenessTurn content fromsocial media into datayou can useBe mindful of this newempowered consumerFACEBOOKDon’t underestimateimportance of onlinestory tellingLeverage connectednetworksHave “Social byDesign” strategies
  19. 19. Matt Gierhart, Global Head of Social,Stories from the frontlines of OgilvyAction, United KingdomconsumerismBrands are the new publishers, “facilitating consumers’ ownstories”.stories”Social media has increased brand awareness for those that have embraced it. But awareness is not enough: moreutility is needed. Consumers are developing increasingly personal relationships with their favourite brands. Inthis context, brands are the new publishers, “facilitating consumers’ own stories”.“Consumers are taking the brand and making it their own experience,” Gierhart said. The Smirnoff Ice viraldrinking game — in which the victim, presented with a bottle of Smirnoff Ice, must get down on one knee anddown it in one, no matter where they are — encouraged consumers to “ice” their friends and post the evidenceto Facebook. Similarly, Levi Jeans ran a campaign in which consumers hid cameras in their back pockets andrecorded the looks their jeans got from passers by.Content is the point of entry, but companies need to convert this consumer interaction into sales. US fast foodbrand In-N-Out Burger, for example, used social media to propagate a “secret menu” alongside its limitedpublished menu. Only consumers in the know can access this, via a series of coded keywords. Concluding hispresentation, Gierhart affirmed that consumers are using social media as vast collaborative network to helpthem make decisions. Effective strategies for success will take into account this new, empowered consumer. Matthew Doris European Market Development Lead (Global Customer Marketing),The new empowered consumer Facebook, United Kingdomand the “stories” opportunityBrands need to adopt strategies that are “social by design”The days of the nameless, faceless web are over, Facebook’s Matthew Doris told delegates. Social media hasplayed a key role in empowering consumers to tell their own stories online and recommendations among usersare becoming increasingly important. Consumers are now discovering information and knowledge in a differentway, based on who they are and who they are connected with. Brand owners should be aware of this growingactivity: social apps can help people to tell their own stories more easily.We are also more mobile online, creating “villages” via our connections with multiple social networks. Marketersneed to understand the scope of these linked networks and appreciate that brands are now centre-stage viasocial media. Given this, brands need to adopt strategies that are “social by design” and which put people at thecore. 20
  20. 20. Arnaud de elloy ice President Global Customer& Sales, Nestl , S it erlandCo Chairman of the MarketingCommittee Activating Shopperand Consumer Insights Turning Consumer & Shopper Insights Into Growth The importance of social media, loyalty programmes and other sources of data on consumer preferences and behaviour is not to be underestimated As co-chair of the Marketing Committee, Arnaud de Belloy introduced the start of the event’s individual stream on marketing. The importance of social media, loyalty programmes and other sources of data on consumer preferences and behaviour is not to be underestimated, he said. But what has been missing is a clear roadmap for converting such data into intelligence. Insights are valueless unless we can turn them into growth. The marketing stream will attempt to provide this roadmap, de Belloy said.
  21. 21. marketing stream 22
  22. 22. Matthew DorisEuropean Market DevelopmentLead (Global Customer Building BrandsMarketing), Facebook,United Kingdom through Social Networks Marketing that is Social by Design Personal recommendations are crucial to driving brand awareness and this now rivals communication by traditional media. Following from his presentation in the plenary session, Matthew Doris demonstrated the importance of “fans” and how this valuable group of consumers can advocate on behalf of your brand. Heavyweight brands such as TicketMaster, Nike and Diageo are using social apps, sponsored stories, and check-in deals to create excitement and drive awareness of their brands in highly competitive categories. These activities can help marketers to better understand their consumer segments and drive growth. Doris argued that, when measured through Facebook’s analytics, these activities can also help brands raise shoppers’ intent to purchase. Because of this, brands must make sure the consumer experience online is as authentic as “in real life”. Consumers don’t recognise any intrinsic difference between the way a brand’s physical business is operated and its activities online. Increasingly, online is real life. Jean-Jac ues andenheede Director etail Insights Europe, The Nielsen Company, Belgium Building Brands for Brand Equity Growth Word of mouth is the new advertising “Socialomics” is here! Word of mouth and user recommendations are the new advertising. Social media is all about users sharing their experiences and “likes” and allowing them to be amplified across their networks, according to Nielsen Director of Retail Insights Europe Jean-Jacques Vandenheede. He coined the term “socialomics” to refer to the growing trend. Building your brand via social media is now an essential driver of equity growth. But because social is about sharing, the old megaphone technique is no longer valid: the spray gun approach to advertising fails in this environment. Vandenheede stressed that marketers need to prepare strategies that genuinely engage consumers, to ensure they can connect with users and consumers online in a meaningful way.
  23. 23. KeyTakeawaysFACEBOOKBuild brands throughsocial networksEnsure user experienceis as authentic on lineas in real lifeUse social apps to gainsocial insightTHE NIELSEN COMPANYBuild brands for equitygrowthUse social media toharness growth 24
  24. 24. Key Takeaways JC PENNEY Be customer centric Become a resource for your shopper Understand the true insights Implement tailored rewards for your loyalty programme MICHEL & AUGUSTIN Build your brand through collaboration with consumers Innovative packaging makes a difference Build your brand from the “inside out”Ruby AnikChief Marketing Officer,JCPenney, USA The Customer Centric Retailer Turning Shopper and Consumer Insights into Growth Shopping is not just about shopping, Ruby Anik said. “It’s about discovery and being a partner to your customers.” Retailers need to become a genuine resource to their shoppers, instead of just a store. Generating growth in your brand equity relies on this. “Shoppers shop the brand and not the channel,” Anik continued. It is therefore critical to have an integrated multi-channel strategy. JCPenney has recently invested heavily in its digital marketing plans and plans to develop its mobile channel. Social media is hugely important to the retailer: “It’s about generating viral, fluid conversations and targeting audiences that JCPenney doesn’t naturally have,” she said. JCPenney’s multi-channel plan uses digital marketing to build loyalty and trust amongst its shoppers. Being relevant to shoppers provides a point of difference with competitors, Anik argued. In order to achieve this, though, a retailer must first understand its customers. JCPenney’s own data has revealed a cultural shift with its shopper base, from which three main trends emerge: The New Savvy – People are shopping more judiciously, mixing new clothing purchases with existing wardrobe items. JCPenney is effectively competing against its customers’ wardrobes. A Sense of Discovery – Consumers are looking for creativity, innovation and fun despite working with a small amount of time and money. They will respond positively to the unexpected. Younger Oldsters – Today’s over-60s are the first generation to see old age as a time of opportunity, renewal and self actualisation. However, not all customers want the same from their loyalty programme, Anik said. “Tailoring rewards is essential in making these programmes meaningful.”
  25. 25. Building a Brand through Michel de Rovira Co founder and CEO,Collaboration with Consumers Michel & Augustin, ranceTaste is the first promise to your consumersMichel de Rovira built up French food brand Michel & Augustin over six years, along with childhood friendAugustin Paluel-Marmont. Building on the idea of complicity with customers seen with Ben & Jerry’s orInnocent Drinks, the brand now has such a strong following that it is promoted by its consumers, who havebecome “fans”.Building your brand through collaboration with consumers is essential, de Rovira said. The Michel & Augustinbrand aims to create a special connection with its customer base on a daily basis. “Tell, share and build. It’s adaily real-time adventure using all media, but with packaging as the number one means through which todo this,” de Rovira told the conference. “People connect with innovative packaging and this is key toengaging with your consumers.”Branding “from the inside out” is also an integral part of the Michel & Augustin strategy. But to make thiswork, you must get the fundamentals right. “Taste is the first promise to your consumers,” de Rovira said. “Youhave to get this right.” But it doesn’t end there: you must also keep your brand current and relevant toconsumers. At the end of each day, review what you have really shared with your consumer. 26
  26. 26. uc DemeulenaereSenior Advisor,Emnos,BelgiumDieter Ebbers The Consumer & Shopper JourneyDirector Market esearchand Media est Europe, Customer Centric Value Creation enkel, Germany between Retailers and Manufacturers Successful retailers and consumer businesses ultimately create more value for shareholders and drive growth by taking a customer-centric approach, Luc Demeulenaere argued. He added that the industry is currently challenged to bring more focus to what the consumer and shopper really wants. Given the impact of digital media, online retailing and the rise of a new generation of consumers, the scope for winning new business is no longer limited to the store. But finding out what your customers really want just got simpler. The Consumer and Shopper Journey Framework merges traditional insights into manufacturers and retailers with a 360° shopper and consumer view, allowing the industry to build stronger value propositions and more effective marketing plans. Developed for ECR, it is a practical set of tools and processes, designed to allow retailers and manufacturers to gain a better understanding of consumer and shopper journeys. The framework offers a platform from which to develop commercial innovation, Demeulenaere said. The idea is to help companies to evolve from selling products to selling solutions and move from category management to shopper-driven marketing. Dieter Ebbers explained how Henkel’s “GLOCAL Shoppers’ Perspective” study had applied the framework. The study identified three distinct international shopper clusters: economiser, value-seeker and carefree, all of which show different behavioural characteristics. “Shopper-centric activities are not a story for the future only,”Ebbers said. “They can be implemented today and we should seek to harness this approach as soon as possible.”
  27. 27. A Revolution in Service atsuhiko Umetsu Senior Manager Global Business Dpt, amato Transport Co. td., Building a Brand that Symbolises Trust apan & ExcellenceBuilding a Brand the last centimetre hasisbeenlastcrucial factorExcellence Japan’s number The most important part of any delivery journey the Focusing on the quality of that SymbolisesaTrust & according to Katsuhiko Umetsu. that centimetre, in making Yamato one parcel delivery service, he claimed. The company based its business model on the belief that high quality service as a starting point will drive volume, leading to profitability and reinvestment in service quality. Yamato’s corporate philosophy is based on understanding the power of gemba, meaning “frontline”. If your company is only as good as the person who makes contact with your customer then this makes frontline employees the most powerful in the business. The company underpins this strategy by describing its staff as “employees of the customer”. The “revolution in service” is based on the idea that it is your quality of service that generates revenue, not your business activity. Everybody needs to send parcels. But they choose Yamato more often because of the service they receive, Umetsu argued. Key Takeaways EMNOS & HENKEL Insights driven Segmentation based Building co-equity in "sweet spots" Continuous engagement Enabled organisations YAMOTO TRANSPORT Build trust and excellence in customer service: First comes service, profit later. Fulfill responsibilities as members of society: safety first, then profit. 28
  28. 28. Clyde PereiraCIO, Coca-Cola Hellenic,Austria and Co Chairman ofthe IT Committee ConnectingBusinesses for Consumers The Consumerism of IT The importance of social media, loyalty programmes and other sources of data on consumer preferences and behaviour is not to be underestimated Information Technology is no longer just a back-office function. Increasingly, IT has a strategic and consumer-facing role to play in business and CIOs need to be aware of this trend. Introducing the individual stream on IT, Clyde Pereira encouraged delegates to think about what they can do collectively to help shape the industry and anticipate the latest trends. The Consumer Goods Forum IT Committee, he said, is currently working on five strategic priorities:
  29. 29. ITream 0
  30. 30. Matthias er og, Director Information Systems, ra t Foods On-The-Go Snacking Europe, S it erland meets digital innovation with Kraft FoodsWhen Kraft Foods Europe looked for ways to increase sales by capitalising on in-store vending, it waspresented with three innovative digital schemes, Matthias Herzog said.Facebook on their mobile device, to obtain a free sample and post a photo of themselves trying it. Thisand download the recommendations to their phone. A sampling facility is also provided, while theWhile the schemes are still being piloted, they show how social media and in-store activity can betrials. The touch-screen enabled vending machine was so successful that restocking to meet demandbecame a daily logistical challenge. Herzog said some useful learning points had emerged too — notleast that innovation is a process and not a technology. He also admitted the need for “guerrilla tactics”at times to overcome internal bureaucracy and barriers.
  31. 31. KeyTakeawaysKRAFT FOODSInnovation is a process not atechnologyInnovative digital solutions helpdrive sales“Guerilla” tactics can helpovercome internal bureaucracy andbarriersSONAEUnderstand business problems &position yourself in the futureUse an interoperableprotect your investmentsFind your business’ killer apppilot in less than 2 monthsBe prepared for the pull: userswill be demanding newfunctionalityMeasure everything usage,speed, problems From assisted service to Jo o G nther Amaral customer self service Director, Sonae, Portugal mobile technology, improves customer experience at Sonae Nuno Almeida, E Commerce Director, Back-office accuracy is essential to running a tight ship in retail, but Sonae, Portugal too much time on back-office processes and struggling to meet customer service needs on the shop floor. The solution was to bring the back-office onto the shop floor, by putting it in the store associates’ pocket. The printer technology where appropriate. customer. However, by incorporating feedback from users and adding additional functionality such as label have also started to add up, such as improved customer service, the ability to solve problems in front of the client and fewer stock-outs. The system’s architecture was based on interoperability, including mobile-ready components. This has been online picking and an internal mobile app to increase the information available to store managers. Future developments may include a consumer-facing app, but for now, the key learning points were the need to use an interoperable architecture and to be prepared for demands for increased functionality. 2
  32. 32. Matthew DorisEuropean Market DevelopmentLead (Global CustomerMarketing), Facebook,United Kingdom Connect with your Consumers Build your business through social networks Build The new internet is based on identity. The connected consumer takes her identity with her across different sites and platforms. The starting point for this is the Facebook ‘like’ button, one of the building blocks of an using their Facebook identity. serves up live musical content, are just two sites that contain Facebook feeds, allowing users to make purchases based on recommendations and endorsements from friends — or friends of friends.
  33. 33. 20KeyTakeawaysFACEBOOKUse personal identity to provideGOOGLECloud computing is not the future,it’s already here Didier Goibert Mid Market Director, EMEA, Google Enterprise,The Future of IT – 100% Web United KingdomCloud computing is not the model of the future – it is already here.a scalable and secure shared subscription model. Users only pay for what they use, they can access the cloudAccording to Goibert, more than one million businesses, including grocery retailers, have already switchedto Google’s cloud computing services. The cloud offers “new capabilities in terms of mobility andcollaboration,” Goibert told delegates, all of which he said would help lower costs for businesses and providea more reliable and secure solution.Google’s own cloud strategy relies on three main elements: video, Google cloud connect and Google Postini Google apps engine: A service through which businesses can run their own web applications on Google’s Google market place: A “new way of consuming IT for corporations”, providing apps for businesses which can be subscribed to and are immediately available 4
  34. 34. Freiko aeyens IT Breakout SessionIT Director InfrastructureCentre of E cellence,Delhai e Group, BelgiumPaul French ice President, product andSolution Marketing,Axway, USA Integrated IT Delivers Superior Brick and Mortar Store Customer Experience De late or incomplete under the company’s “home-made” tool and this was hurting sales and supply chain functions. This in turn led to poor strategic decisions and unhappy customers. controlled using this system and, crucially, alerts were delivered in the event of failure. Following a pilot in four challenges, such as how to manage installation, rollout and maintenance across 800 stores. Ultimately, though, the far more rapidly than would have been possible under the old system. delivery of a file once it had been created. The retailer is now considering the feasibility of consolidating its dataMilan Turk IT Breakout SessionManaging Director, GlobalCustomer Business Development,Procter & Gamble, USAJoe orwoodGS1 Mobile Com Manager, Data IntegrityGS1,Belgium The Key to Connecting Business for the Consumer business-to-business functions. Pr American business. By standardising the process, the company was able to reduce 220 distinct tasks to just 10. imilarly, P&G’s eContent project looked at making improvements to content found on eCommerce websites like Amazon.com and Walmart.com. "Ba eCommerce websites.” He added: “For consumers this is a digital first moment of truth and its critical to get it right." By In the past 12 months, more than 31 million items of eContent have been delivered via the solution for new
  35. 35. KeyTakeawaysDELHAIZE & AXWAYOptimize file transferbetween store andhead office operationsfor improved reliability,visibility andmanageability of dataBack to basics - ITdrives efficiency in theback officePROCTER & GAMBLEGS1Improving datae-commerce websitesis criticalservice model helpsbrands fully own theirproduct informationon line 6
  36. 36. KeyTakeawaysTESCOGS1By making productinformation as rich aspossible products arebrought to life forcustomers in thevirtual world of onlineshoppingMICROSOFTImproving datae-commerce websitesis criticalBusiness benefits cantrump cost-savingbenefits in the cloud
  37. 37. 20IT Breakout Session Richard Copperthwaite IT Director, Tesco com, Tesco, UKBeyond the Label Malcolm owden President Global Solutions,Providing Digital Product Information to Build Consumers Trust GS1How does a company the size of Tesco manage an ever increasing array of digital product information forits stores, websites and mobile apps?consumer is on a website, they cannot pick up a product, feel it in their hands and read the packaging. Bymaking the product information as rich as possible we bring products to life for customers in the virtualworld of online shopping."Tesco manages product data centrally, with information feeding its various platforms. However, the systemproduct information and nutritional data available to power third-party internet and mobile applicationsCopperthwaite urged companies to go beyond the label and take the same care with digital productinformation as they do with information that is printed on the packaging.IT Breakout Session irk Carver Senior Strategist, Enterprise Strategy & Architecture,Beyond the Hype Microso t Corporation,USAPragmatic Pursuit of Cloud Computing OpportunitiesEverybody is talking about “the cloud” — but beyond the buzz-word, cloud computing offers five concretebenefits, Kirk Carver said. These are: billing based on measurable usage; on-demand self-service; broadnetwork access; resource pooling and rapid elasticity.Beyon-premises “private cloud” (where the service is fully managed by the client) to software as a service(where the data is fully managed by the service provider).The cloud is also elastic, to suit varied workload patterns. “Off and on” service suits processes that happenpeak.ThMany services have been operating within the cloud for years, while others are coming online throughand General Mills had already successfully tapped into the benefits of the cloud, Carver pointed out.considering migration to the cloud should evaluate cloud investment opportunities alongside the rest oftheir IT investment opportunities. 8
  38. 38. John S. PhillipsSenior ice President,Customer Supply Chain &Logistics, PepsiCo USATony endrigE ecutive ice PresidentBusiness Development,Ahold, Europe Delighting The Consumer Acting As One. Help businesses collaborate in new ways to delight the consumer at the shelf, each and every day. Welcoming delegates to the individual stream on supply chain, John Phillips said that, in line with the wider goals of The Consumer Goods Forum, this year’s event was designed to “help businesses collaborate in new ways to delight the consumer at the shelf, each and every day”. The Supply Chain Committee is currently driving three core projects, he said. These are: * define future supply chain best practices; * use the global scorecard to improve performance; * help upstream integration of raw materials ingredients and packaging.
  39. 39. supply 40© Anton Balazh - Fotolia.com
  40. 40. KeyTakeawaysLEAN ENTERPRISE ACADEMYDefine value back fromthe customer, notforward from assets ortargetsLook at the wholevalue stream, ratherthan optimising pointsalong itFocus on time: creatingflow makes wastevisibleWaste is a symptom offorecast errors,batching systems andpoor cooperationalong the streamKRAFT FOODSMulti modal transportsharing platform - byJanuary 2013 creation ofan Independant LogisticOptimiser to liaisebetween manufacturersand retailers forcollaborationopportunities
  41. 41. Pro . Daniel T. JonesCollaborative Lean Supply ounding Chairman of ean Enterprise Academy,Chains for the Web Era United KingdomWorking Together with Informed and Impatient Consumers tient Consumers nDaniel Jones introduced the concept of “lean” to the grocery industry in 1999 with a pilot project for Tesco. “Leanthinking,” he said, “can be used to fundamentally rethink supply chains to make them more competitive.”The key to making lean work, Jones argued, is to look at the whole supply chain rather than optimising parts of it.“You need to dig down to root causes and look at the supply chain as a whole.”While IT solutions can help resolve such issues when implementing lean, making the plan visible and establishinggood root-cause problem-solving are the only ways to optimise the horizontal value chain, Jones said.Manufacturers need to “think differently about SKUs” in order to manage capacity more efficiently, he said.Inventories, rather than production, should cover variation in demand.Stressing that “there is no one way,” Jones said lean was not just a tool box for eliminating waste. It is moreproperly the capability to respond to and solve problems. Lean solutions are particularly relevant today, since “weare now in a world of multi-channel — even for a single customer”. Jochen Rackebrandt Director Customer Service EMEA, ra t Foods, GermanyMulti-Modal Transport Sharing Dennis WereldsmaInitiative for Consumer Goods and Global Sector Leader Distribution & Transportation,Retail Companies Capgemini, The etherlandsRoad transport used to be cheap, Jochen Rackebrandt said. No longer. Increasing congestion, coupled Increasing congestion coupled asing congestion, coupledwith a shortage of drivers and road capacity is beginning to make a strong case f t t h i for transport sharing oralternative modes. Indeed, optimising a shared supply chain is one of the four objectives of theConsumer Goods Forum 2020 Future Supply Chain.The Multi-Modal Transport Sharing Initiative is a trial collaboration between Kraft, Nestlé, Colgate,Ahold, Tesco, SC Johnson and Bacardi. Opportunities for collaboration had been identified and a legalentity is to be set up to perform the role of independent logistics optimiser (ILO) to liaise between themanufacturers and logistics service providers. Among the key performance measures identified for thetrial were the decision to include KPIs such as being cost-neutral, ensuring cost-transparency, facilitatingcarbon reduction and the decision to make no compromise in service levels.Denis Wereldsma said the ILO would be created in 2012 and a start-up plan will be agreed by January2013.In an interactive poll, the audience identified the two best collaboration opportunities as the east-westcorridors within Europe (62%) and in-bound from China into Europe (40%). 42
  42. 42. Key Takeaways PROCTER & GAMBLE IBM Use GS1 standards to deliver better results Scorecard data helps you set priorities The scorecard is of no use if you do not have data in it BARILLA Healthy food drives sustainability Reduce carbon emissions & energy consumptions Optimising transport & distribution Sustainable sourcing More environmentally friendly products Customer communication Reducing packaging and wasteJim FlanneryManaging Director, CustomerBusiness Development,The Procter & Gamble Company,USA How to Create Value for You and CreSteve rown Comp Your Company Using the GlobalGeneral Manager,Global Consumer ProductsIndustry, I M, USA Scorecard Using the Global Scorecard across businesses brings concrete benefits, Jim Flannery said. The Consumer b b Goods Forum’s Annual Compliance Survey has run since 2000, trac tracking the implementation of GS1 standards “Us and processes (like GDSN) and the resulting business benefits. “Using data standards is beneficial,” Flannery said, adding: “There is a positive correlation between the u usage of GS1 standards and improved performance ” performance.” Among the benefits revealed by the Compliance Survey were: 61 hours reduction in lead time; 5.8% points of reduced out-of-stocks; 5.2% points saving of distribution costs and invoice accuracy was up 1.5%. Procter & Gamble had used the Global Scorecard effectively to compare performance of different clusters and countries and to establish priorities and choices, Flannery told the conference. In addition, using the scorecard with trading partners had helped P&G improve the opportunity gap for specific customers and provided a chance for them to further their relationship. “If you have a benchmark, you can begin making choices on what to improve, and help understand the cost of investment,” Flannery said.
  43. 43. * Ste ano Pietroni et ork Design, Planning &Food that’s Good for You, is Sourcing Director, arilla Group, ItalyGood for the Planet!How consumers diet choices drive planet sustainability & productssupply chainSustainability initiatives and credentials are no longer an optional extra, Stefano Pietroni said. They are a“must-have” for retailers and shoppers alike.“Shoppers’ choice of healthy food is driving sustainability,” Pietroni said. The Barilla Center for Food &Nutrition (BCFN) has developed a double pyramid (food and environmental), using a life cycle assessment(LCA) to consider the water, carbon and ecological footprint of different food groups. This has driven supplychain action in the field, in production, packaging, planning and logistics as well as in how shoppers cooktheir products, Pietroni said.In addition to identifying key food and nutrition priorities, BCFN aims to collect and analyse advancedexperience and knowledge from around the world and develop proposals and recommendations for opinionleaders and decision makers. Green growth, food security, food for health and food for culture are among thetop priorities for BCFN, Pietroni told the conference. BCFN’s work has also helped businesses setmanufacturing KPIs in energy use, waste, recycling and water consumption. 44
  44. 44. Midori amaguchiGeneral Manager, Supply Chain e engineering Department,Supply Chain Division,AEON Global SCM Co Ltd apan H How Aeon Rebuilt its Supply Chain People giving more of themselves In March 2011, Japan suffered a devastating earthquake and tsunami, both of which left a litany of destruction in their wake. For those that survived the double disaster, access to food and supplies was critical. But Aeon, Japan’s leading retailer, had also been drawn into the chaos. Of the 443 Aeon stores in Tohoku, northern Japan, that were affected, 65% could not operate at all, Midori Yamaguchi told the conference. But Aeon had prepared. Its business recovery process ensured that 95% of these stores could reopen within two weeks. With 30% of total supply chain capacity gone, Aeon’s network had to move up a gear: by the second week, 130% of regular capacity was being shipped. In this first stage of recovery, DCs in western Japan were supporting the effort by operating at more than twice their capacity. Supply chain and logistics, private brand supply networks and product sourcing were three important elements of the recovery. In addition, close collaboration with business partners was an essential factor. Technology and the ability to get real time information from the field were important to the success of the recovery, Yamaguchi said. But above all it was down to people giving more of themselves. Yamaguchi commended his colleagues’ resourcefulness and teamwork. Alberto Madariaga Supply Chain Director, Grupo Eroski, Spain Collaboration, Innovation andImanol AlberdiLogistics Operations Director, Sustainability Means MoreGrupo Eroski, Spain Profitability Spanish consumer co-operative Eros reduced costs by 20% and CO2 emissions by 18 tons by centralising Eroski its supply chain management in partnership with Europol Systems. The change in flow strategy also allowed the retailer to reduce inventory, since the new system required on 0.3 days of stock. The rethink also included the installation of an automated order-picking system, which improved quality and freshness as well as shaving off cost. Alberto Madariaga said logistics professionals were like midfielders in a football match: “Our role as a midfielder means having a wide operational vision and we must play an active part in the value chain processes.” Imanol Alberdi led a live opinion poll among delegates, with 78% agreeing with the statement: “We talk a lot about collaboration, but we have difficulty in making it a reality.”
  45. 45. Key TakeawaysAEONRecovery would have beenimpossible without: Partnership Responsibility Leadership People powerEROSKISimplification, innovation andsustainability improve qualityand profitsOptimizing transport across“logistics platforms” resulted in20% reduction of costs and 18tons less of CO2 emissionsICAOpen dialogue with customersImprovement became part ofeveryone’s responsibilityWorth investing in automationcompetence Michael Johansson How Change Management Turned Head of Logistics Operations, arehouse and Transport Management, ICA, S eden ICA’s Warehouse Operation & Automation from Disruption to Best in the ClassICA had experienced poor service levels to store, following the implementation of an automation processat its Helsingborg warehouse. The poor service had been caused by a lack of automation experience,non-standard demands, everyday “fire fighting” and a lack of leadership attention, Johannes Åverling said.Lack of clear priorities and responsibilities created internal challenges, while a complex structure, differingcultures and frustration among employees had mixed with varying perceptions of IT priorities amongcolleagues to contribute to the problem.Effective change management, then, was the key to the project’s success. ICA identified the need to haveopen dialogues with customers, involve local teams and set up cross-functional teams to make the changehappen. Furthermore, “improvements became part of everyone’s responsibility,” Åverling said. Followingthe change management programme the automation system began to deliver measurable benefits to thebusiness.Åverling advised delegates that the investment in automation competence is well worth making, butrecommended that businesses start working on managing the change at least two years before theautomation. 46
  46. 46. Key Takeaways IGD Get started on collaboration Be aware of the supply chain initiatives coming up in your market Walk the chain with your supply chain partner to challenge the status quo Execute on the basics to sustain momentum in your collaboration journey COCA-COLA Define the brand and pack set – keep it simple and standard Disconnect product supply from daily operations to reduce the risk Deal with every eventuality in such an event Build speed and capacityTarun PatelHead of Supply Chain,IGD,United Kingdom Taking a Supply Chain Gamble Collaboration has a key role to play The message of collaboration is not new, Tarun Patel told the conference. Indeed our industry is already one of the most progressively transparent, he argued. However, the need to secure competitive advantages via collaboration is more urgent today than ever, since the pressures and challenges we face due to a changing world are far greater than they used to be. The UN Index of food commodity prices is up by 39% on last year, Patel said. Meanwhile, an increase in temperature for grain of a single degree Celsius can reduce the yield by much as 10%. “With an increasingly volatile environment, companies must navigate their way through fluctuating supply,” Patel said. With the current economic climate, companies are seeking levers to drive growth. Patel said that recent research from IGD had identified that one in three manufacturers globally say promotions account for 50% or more of their sales. It is therefore no surprise that understanding price and promotions, the shopper, and supply chain have been the clearest commercial priorities for the past three years. “The resulting volatility in demand and supply means that there is an even greater need to build responsiveness. Collaboration has a key role to play here.” IGD has defined six levels of collaboration and measures performance against 15 criteria. Internationally, 21% of suppliers now have a strategic supply chain partnership with their key customers, a significant increase on last year. It’s never too late to begin. “Get started on collaboration,” Patel told delegates. “Be aware of the supply chain initiatives coming into your market, walk the chain with your supply chain partner to challenge the status quo, develop the skills of your people and execute on the basics to sustain momentum in your collaboration journey.”
  47. 47. Frank van der ei den Commercial Director,Delivering the “Perfect Serve” Coca-Cola ellenic, AustriaThe Coca-Cola Company’s Supply Chain Peter athamLearnings from FIFA World Cup and London ice President Logistics, Coca-Cola Enterprises,Olympics United KingdomWhen it comes to managing supply during special events such as the FIFA World Cup, the oppo tunity to orld Cup, the opportunity to d Cup, ppor ityexcel is just 15 minutes during the half-time break, Frank van der Heijden of Coca-Cola Hellenic said.Building speed and capacity is essential to success, as is reducing risk by disconnecting supply fromeveryday operations.When it comes to an event on the scale of the Olympics, effective preparation is critical, Peter Latham said.In addition to managing all aspects of operations in the venues for the 2012 games, collaboration, buildingthe in-store experience and developing shared supply chain concepts were very important considerations.Latham emphasised the importance of gaining credentials in sustainable supply. “Doing so can put supplychains in the top tier,” he told delegates 48
  48. 48. OPERATIONAE CE ENCE REA FASTSESSIONS Key Takeaways MONOPRIX TRACE ONE Innovative product packaging brings value to brands Set up of a collaborative workspace to accelerate product development Private workplace in the cloud for everybody Secured collaborative architecture allows certain activities to be performed in real time Get started on collaboration Be aware of the supply chain initiatives coming up in your market
  49. 49. Stephane Ma uaire CEO, Monoprix, rance Packaging Innovation Beyond ubert mard Deputy Chief E ecutive, Monoprix, rance Customer ExpectationFrench retailer Monoprix used innovative product packaging to bring value J r me Malavoy CEO,to its brands, creating a more satisfying shopper experience. Faced with the Trace One, rancechallenge of designing new packaging that stood out, the business used anAndy Warhol style design and plenty of colours on 2,000 Monoprix products.Implementing such a change within the private label management process, however, was andoperational challenge. To manage the project, Monoprix set up a collaborative workspace toaccelerate product development, which could be shared by printers, designers, laboratories andauditors in real time.Everybody using the system had a private workspace in the cloud and, with the help of a securedcollaborative architecture, activities such as document management and web proofing could beperformed in real time. This created time savings of between 20% and 30% in new productdevelopment, a process which would normally take between six and twelve months. 0
  50. 50. Key Takeaways DELOITTE Look for growth opportunities in markets with changing demographics Brands need to harness connections with consumers to drive growth Find creative, relevant and legitimate ways to interact Link bricks and mortar businesses with online opportunities awrence utterGlobal Leader Consumer Business,Deloitte, United Kingdom The Mobile Consumer 2020+: Communicating, Connecting,Fernando Sou aDirector, Deloitte Spain Socializing, and Shopping Economic and demographic change are changing shopper preferences, according to Lawrence Hutter and changes Fernando Souza. Markets undergoing demographic change offer important growth opportunities. underg Consumers’ changing menus and the sustainability imperative also play their part in changing shopping habits. At the same time, mobile technology is revolutionising the way we access and share information. Deloitte’s report “Consumer 2020 - Reading The Signs” highlights the increasingly “obsessive” nature of communication and socialising online. Brands must harness this to nurture connections with consumers, as online influencers drive growth. But consumer engagement is not a given. Marketers must earn their dialogues with consumers by finding creative, relevant and legitimate ways to interact in a positive and visible way. As digital behaviour becomes mainstream, it is critical to link bricks and mortar businesses with online opportunities.
  51. 51. Key Takeaways IBM Start using information across the business Prioritise investment far more towards digital Plan and prepare now for the five year horizonThe Future of Marketing Patrick Medley Consumer Product Industry Leader, I M, AustraliaThe Global Chief Marketing OfficerStudy 2011 “Stop telling and start talking,” Patrick Medley warned. The “omni-consumer” is coming. These technology-enabled consumers will see everything and know everything — and the future of marketing depends on establishing a true dialogue with them. While devices such as the smart phone, kiosks, gaming and interactive outdoor advertising, can help, the digital era will also see new challenges emerge for CMOs. There will be more data and more clarity when it comes to analysing real results from campaigns, so senior marketers are likely to be increasingly held to account. Medley’s remarks drew on the findings of IBM’s Global Chief Marketing Officer Study 2011, which brings together conversations with more than 1000 CMOs. “CMOs have just three to four years to get ready,” Medley said. Many are unprepared for the data explosion, however. Some 85% are concerned about this, the study shows. But there is a roadmap, Medley claimed. The solution to solving such data problems lies in closer internal collaboration between IT and marketing functions, rather than relying on marketing agencies for support. “CMOs will also need to foster lasting connections with consumers if they are to empower them.” Many are currently using traditional sources of insight to achieve this, but it will be new sources of insight in the future that make a difference. Now is the time to experiment, Medley advised the conference, to ensure CMOs get the best out of consumer relationships in the future. 2
  52. 52. John S. PhillipsSenior ice President, CustomerSupply Chain and Logistics,PepsiCo, USA Future Value Chain 2020 “Plan now for a radically different world,” John Phillips told the closing plenary session. Twelve mega trends will shape our supply chains, systems and brands in the future, according to the findings of the Consumer Goods Forum’s “2020 Future Value Chain” report. While some of these trends point to a greater need for efficiency, Phillips said that others would mean changes to entire business models and “new ways of working, both within companies and with trading partners”. Transparency and collaboration with shoppers and other businesses will become increasingly important too. The trends are: increased urbanisation; aging population; increasing middle class; adoption of consumer technology; increased consumer service demands; increased importance of health and wellbeing; growing concern about sustainability; shift of economic power; scarcity of natural resources; increase in regulatory pressures; rapid adoption of supply chain capabilities; the impact of next generation technologies. The aims of the Future Value Chain project are to make the consumer goods business more sustainable, to optimise a shared supply chain, to engage with technology-enabled consumers and to serve the health and wellbeing of consumers. A full copy of the report can be accessed at www.futurevaluechain.com.
  53. 53. Caroline Mc ugh Chief IDologist, IDology, United KingdomCherry on the CakeThe Art of Being You – Releasing Human Potential to its FullestWho are you really? What is the message of your life? These are the basic questions Caroline McHughsuggests we ask ourselves. “People who are truly successful have a signature, a voice – one true note they aredestined to sing,” McHugh said. “Each one of us is different and none of us knows how long we have on thisplanet – so we need to be clear on what we as individuals expect from life.”Learning to be the authentic version of ourselves is the key to manifesting our expectations, McHugh said,although we are generally better at being authentic when we are children than in adulthood. This is partlydue to the need to manage the way we are perceived: as a parent, an executive and so on. “But why letsomeone else decide who you are?” McHugh asked. “You cannot master others until you have masteredyourself,” she argued. The key here is to understand your own “interiority”. According to the IDology model, apersonality is made up for four elements, expressed as concentric circles: perception, persona, ego and id,the centre of your subconscious universe. The trick is to “pick one thing that you know you want to find inyourself” and focus on that.One thing is certain for McHugh: a life without risk is a life that will never reach its true potential. “You haveto live life on the edge.” Or, at the very least, we owe ourselves a serious reflection on why we have made thechoices we have so far in life and what comes next. 4
  54. 54. Networking Moments
  55. 55. Marketing, IT and Supply Chain Con erence 2011 6
  56. 56. Networking Moments 2011
  57. 57. The Consumer Goods Forum Join us in Paris 6 - 8 November 2012 Marketing Forum IT Conference Supply Chain Conference www.tcgfoperationalexcellence.com 6© Beboy - Fotolia.com
  58. 58. The Consumer Goods Forum would like to thank the companies below for their valuable support: www.tcgfoperationalexcellence.com