10 10 kl ecr presentation

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10 10 kl ecr presentation

  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 DRAFT V-9 July 2010
  2. 2. <ul><li>We have been talking about Collaborative Commerce and Collaboration for years. </li></ul><ul><li>Efficient Consumer Response was founded on the Strategies of: </li></ul><ul><ul><li>Efficient Assortment </li></ul></ul><ul><ul><li>Efficient Replenishment </li></ul></ul><ul><ul><li>Efficient Promotion </li></ul></ul><ul><ul><li>Efficient New Item Introduction </li></ul></ul>Yet today’s Supply Chain is STILL filled with waste…. The case for change The Case for Change
  3. 3. “ Stores are over SKU’d” New SKUs Registered Average Items in a Typical Supermarket Source: Global Commerce Initiative New Ways of Working Together 1980 2,899 2005 10,651 2007 85,000 1987 24,500 1997 30,000 2007 45,000 The Case for Change
  4. 4. Inventories are too high “ There is too much of the stuff consumers don’t want and not enough of what they do.” The Case for Change
  5. 5. Out-of-stocks persist The Case for Change
  6. 6. Trading partners continue to focus on business minutiae instead of shoppers The Case for Change
  7. 7. <ul><li>“ The best way to predict the future is to invent it.” </li></ul><ul><ul><li>– Alan Kay, noted computer scientist </li></ul></ul>Forces and trends that have the potential to significantly alter the industry’s value chain over the next decade.
  8. 8. The industry must Develop New Ways of Working Together Trading Partners must more readily and freely Share Information In their Bi-Lateral relationships The industry must Redefine the 2016 Value Chain
  9. 9. Brenda C. BARNES Chairman & Chief Executive Officer SARA LEE CORPORATION Warren F. BRYANT Chairman NATIONAL ASSOCIATION OF CHAIN DRUG STORES Jean-Paul AGON Chief Executive Officer L’OREAL Eckhard CORDES Chairman of the Management Board & Chief Executive Officer METRO AG Colleen GOGGINS Worldwide Chairman, Consumer Group JOHNSON & JOHNSON Bob MCDONALD Chairman, President & Chief Executive Officer THE PROCTER & GAMBLE COMPANY Sir Terry LEAHY Chief Executive Officer TESCO PLC Stefano PESSINA Executive Chairman ALLIANCE BOOTS Paul POLMAN Chief Executive Officer UNILEVER New Ways of Working Together – A Consumer Goods Forum Initiative Lars OLOFFSON Chief Executive Officer CARREFOUR GROUP John RISHTON Chief Executive Officer Royal Ahold Mike DUKE President & CEO Wal*Mart Project Leaders Michael KOK Group CEO Dairy Farm Motoki OZAKI President Kao
  10. 10.  Industry Track (Collaborate)  New Ways of Working Together Eliminate supply chain disruptions, enable growth  Trading Partner Track (Competitive Advantage)  *Note: Utilizations of Industry Standards  Best Practices/ Standards  Documentation, Education, Communication  Guiding Principles and Frameworks   Share Results  • Strategy Alignment • JAG Framework  Focus on Consumer  • Common Goals & Measures • Information Sharing* • EPC • Data Sync  Connected Business Information   • Knowledge, Skills & Capabilities • Incentives & Rewards • organisation Design  Prepare People for New World   • Sustainability • Cross Industry Integration • Integrated Supply Chain  Share Our Supply Chain  Strategic Issues Between Trading Partners  Common Goals, Common Measures  Specific Measures & Priorities   Other Data Sharing Opportunities Consumer/ Shopper Satisfaction
  11. 11.  Industry Track (Collaborate)  New Ways of Working Together Eliminate supply chain disruptions, enable growth  Trading Partner Track (Competitive Advantage)  *Note: Utilizations of Industry Standards  Best Practices/ Standards  Documentation, Education, Communication  Guiding Principles and Frameworks   Share Results  • Common Goals & Measures • Information Sharing* • EPC • Data Sync  Connected Business Information   • Knowledge, Skills & Capabilities • Incentives & Rewards • organisation Design  Prepare People for New World   • Sustainability • Cross Industry Integration • Integrated Supply Chain  Share Our Supply Chain  Strategic Issues Between Trading Partners  Common Goals, Common Measures  Specific Measures & Priorities   Other Data Sharing Opportunities Consumer/ Shopper Satisfaction  • Strategy Alignment • Joint Business Planning  Focus on Consumer
  12. 12. <ul><li>Encourage bi-lateral collaboration </li></ul><ul><ul><li>Based on clear, fact-based understanding of market context and trends </li></ul></ul><ul><ul><li>(P&G) Establish True Scorecards based on trading partners strategies as well as operational and financial objectives </li></ul></ul><ul><li>Embrace joint long-term planning </li></ul><ul><ul><li>Annual planning is often insufficient </li></ul></ul><ul><ul><li>IP protection and trust </li></ul></ul><ul><li>Implement longer term planning processes </li></ul> Focus on Consumer
  13. 13.  Industry Track (Collaborate)  New Ways of Working Together Eliminate supply chain disruptions, enable growth  Trading Partner Track (Competitive Advantage)  *Note: Utilizations of Industry Standards  Best Practices/ Standards  Documentation, Education, Communication  Guiding Principles and Frameworks   Share Results  • Strategy Alignment • JAG Framework  Focus on Consumer   • Knowledge, Skills & Capabilities • Incentives & Rewards • organisation Design  Prepare People for New World   • Sustainability • Cross Industry Integration • Integrated Supply Chain  Share Our Supply Chain  Strategic Issues Between Trading Partners  Common Goals, Common Measures  Specific Measures & Priorities   Other Data Sharing Opportunities Consumer/ Shopper Satisfaction  • Common Goals & Measures • Information Sharing* • EPC • Data Sync  Connected Business Information
  14. 14. <ul><li>Common Goals and Common Measures </li></ul><ul><ul><li>Based on a common language </li></ul></ul><ul><li>GS1 “Trading Partner Performance Management” Standard </li></ul><ul><li>Global Data Synchronization </li></ul> Connected Business Information
  15. 15.  Industry Track (Collaborate)  New Ways of Working Together Eliminate supply chain disruptions, enable growth  Trading Partner Track (Competitive Advantage)  *Note: Utilizations of Industry Standards  Best Practices/ Standards  Documentation, Education, Communication  Guiding Principles and Frameworks   Share Results  • Strategy Alignment • JAG Framework  Focus on Consumer  • Common Goals & Measures • Information Sharing* • EPC • Data Sync  Connected Business Information   • Sustainability • Cross Industry Integration • Integrated Supply Chain  Share Our Supply Chain  Strategic Issues Between Trading Partners  Common Goals, Common Measures  Specific Measures & Priorities   Other Data Sharing Opportunities Consumer/ Shopper Satisfaction   • Knowledge, Skills & Capabilities • Incentives & Rewards • organisation Design  Prepare People for New World
  16. 16. Five Elements of Change?  Prepare People for New World Change Vision Skills Measures / Rewards Resources Action Plan Change Skills Measures / Rewards Resources Action Plan Confusion Vision Measures / Rewards Resources Action Plan Anxiety Vision Skills Resources Action Plan Gradual Change Vision Skills Measures / Rewards Action Plan Frustration Vision Skills Measures / Rewards Resources False Starts
  17. 17. <ul><li>Understand the Barriers and Enablers to long term, shopper focused business planning </li></ul><ul><li>Transform people performance incentives and rewards </li></ul><ul><li>Build knowledge, skill and capability sets </li></ul><ul><li>Design organisational structure around consumer needs and drivers </li></ul> Prepare People for New World
  18. 18.  Industry Track (Collaborate)  New Ways of Working Together Eliminate supply chain disruptions, enable growth  Trading Partner Track (Competitive Advantage)  *Note: Utilizations of Industry Standards  Best Practices/ Standards  Documentation, Education, Communication  Guiding Principles and Frameworks   Share Results  • Strategy Alignment • JAG Framework  Focus on Consumer  • Common Goals & Measures • Information Sharing* • EPC • Data Sync  Connected Business Information   • Knowledge, Skills & Capabilities • Incentives & Rewards • organisation Design  Prepare People for New World  Strategic Issues Between Trading Partners  Common Goals, Common Measures  Specific Measures & Priorities   Other Data Sharing Opportunities Consumer/ Shopper Satisfaction   • Sustainability • Cross Industry Integration • Integrated Supply Chain  Share Our Supply Chain
  19. 19. <ul><li>Industry and trading partners must do things differently </li></ul><ul><li>Adopt more sustainable business practices </li></ul><ul><li>Collaborative Transport Management, Empty Miles </li></ul> Share Our Supply Chain
  20. 20. An Integrated Approach to Better Business Results <ul><li>Focus on the Consumer will not work if goals and measures are not shared, or if supporting rewards and structures are not in place </li></ul><ul><li>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” </li></ul><ul><li>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 common goals, common measures and information visibility to act on. </li></ul><ul><li>Share our Supply Chain will not be possible without understanding how 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-optimize the whole </li></ul> • Strategy Alignment • JAG Framework  Focus on Consumer  • Common Goals & Measures • Information Sharing* • EPC • Data Sync  Connected Business Information   • Knowledge, Skills & Capabilities • Incentives & Rewards • organisation Design  Prepare People for New World   • Sustainability • Cross Industry Integration • Integrated Supply Chain  Share Our Supply Chain
  21. 21. New Ways of Working Together will require: <ul><ul><li>Leaders who inspire by example </li></ul></ul><ul><ul><li>Honesty, Integrity and Credibility </li></ul></ul><ul><ul><li>Transformation of Business information </li></ul></ul><ul><ul><ul><li>Visible </li></ul></ul></ul><ul><ul><ul><li>Connected </li></ul></ul></ul><ul><ul><ul><li>Accurate </li></ul></ul></ul><ul><ul><ul><li>Informative </li></ul></ul></ul><ul><ul><ul><li>Actionable </li></ul></ul></ul><ul><ul><ul><li>Relevant </li></ul></ul></ul>So, what do we do about it?
  22. 22. The NWWT Opportunity <ul><li>Take responsibility for the current state </li></ul><ul><li>Expand your view to include all stakeholders </li></ul><ul><li>Collaborate effectively across the supply chain in the name of the customer experience. </li></ul><ul><li>Change outdated structures. </li></ul><ul><li>Modify incentives or rewards that do not result in behaviors that positively impacts the consumer. </li></ul><ul><li>Seek to understand and adjust non-compatible processes. </li></ul>So, what do we do about it?

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