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David steer. kraft foods

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David steer. kraft foods

  1. 1. The Retail / Manufacturer as Strategic Partners… - A perspective for the future David Steer President, Kraft Foods Russia ECR Conference, Moscow, June 1 2010
  2. 2. Do we speak the same language? …..
  3. 3. 12 months ago, 6 Questions If we are Consumer focused…. <ul><li>Management Information </li></ul><ul><ul><li>Why does it take over a month to get the information we need? </li></ul></ul><ul><li>Product Availability </li></ul><ul><ul><li>Why are we still running OOS at 5-20% </li></ul></ul><ul><li>Retailer / Supplier Partnerships </li></ul><ul><ul><li>Why are we still “introducing” effective category management? </li></ul></ul><ul><li>Speed to Market </li></ul><ul><ul><li>Why does it take 4 -6 weeks to range new products? </li></ul></ul><ul><li>End to End Linkage </li></ul><ul><ul><li>Why don’t we have common data platforms in place? </li></ul></ul><ul><li>Business and Government </li></ul><ul><ul><li>Can we leverage the retail / supplier partnership better with government? </li></ul></ul><ul><li>“ What is going to change, and When?” </li></ul>
  4. 4. Status Update, Kraft Experience in 2009… If we are Consumer focused…. <ul><li>Management Information </li></ul><ul><ul><li>Available, but not universal. Industry sources remain slow </li></ul></ul><ul><li>Product Availability </li></ul><ul><ul><li>Real progress if your information systems are linked, but not universal </li></ul></ul><ul><li>Retailer / Supplier Partnerships </li></ul><ul><ul><li>Real progress. Category growth of over 30% possible </li></ul></ul><ul><li>Speed to Market </li></ul><ul><li>End to End Linkage </li></ul><ul><li>Business and Government </li></ul>
  5. 5. Status Update, Kraft Experience in 2009… If we are Consumer focused…. <ul><li>Management Information </li></ul><ul><li>Product Availability </li></ul><ul><li>Retailer / Supplier Partnerships </li></ul><ul><li>Speed to Market </li></ul><ul><ul><li>MDS = Listing times cut from weeks to days. </li></ul></ul><ul><li>End to End Linkage </li></ul><ul><li>Business and Government </li></ul>
  6. 6. GDS accelerates new product launches by 50% <ul><li>New item listing procedure significantly simplifies communication between Sales and Buyer and allows to focus on business instead of copying information from one template/system to another </li></ul><ul><li>However, this process does require strict procedures on both sides </li></ul>Item introduction <ul><li>Details partially sent by e-mail </li></ul>2W Product analysis <ul><li>Category department access to all details </li></ul><ul><li>Briefing </li></ul><ul><li>Approval </li></ul><ul><li>Further requests </li></ul>1 W Completion <ul><li>Sales dept. fills in various questionnaires </li></ul><ul><li>Send information to retailers category manager </li></ul>1 W Store Product information <ul><li>Category manager checks info and pass it to database operator </li></ul>2 D Edit & Publish <ul><li>Manual editing/entry </li></ul><ul><li>Info to Stores </li></ul><ul><li>All details via GDS </li></ul><ul><li>Category department access to all details (excluding price) within buying system (MMS CAT) </li></ul><ul><li>Approval via MMS CAT </li></ul><ul><li>Access to all details via MMS CAT </li></ul>
  7. 7. Status Update, Kraft Experience in 2009… If we are Consumer focused…. <ul><li>Management Information </li></ul><ul><li>Product Availability </li></ul><ul><li>Retailer / Supplier Partnerships </li></ul><ul><li>Speed to Market </li></ul><ul><li>End to End Linkage </li></ul><ul><ul><li>MDS + EDI = Errors down by orders of magnitude </li></ul></ul><ul><li>Business and Government </li></ul>
  8. 8. EDI - DESADV/RECADV results exceed expectations DESADV implemented
  9. 9. Status Update, Kraft Experience in 2009… If we are Consumer focused…. <ul><li>Management Information </li></ul><ul><ul><li>Available, but not universal. Industry sources remain slow </li></ul></ul><ul><li>Product Availability </li></ul><ul><ul><li>Real progress if your information systems are linked, but not universal </li></ul></ul><ul><li>Retailer / Supplier Partnerships </li></ul><ul><ul><li>Real progress. Category growth of over 30% possible </li></ul></ul><ul><li>Speed to Market </li></ul><ul><ul><li>MDS = Listing times cut from weeks to days. </li></ul></ul><ul><li>End to End Linkage </li></ul><ul><ul><li>MDS + EDI = Errors down by orders of magnitude </li></ul></ul><ul><li>Business and Government </li></ul>
  10. 10. Status Update, Kraft Experience in 2009… If we are Consumer focused…. <ul><li>Management Information </li></ul><ul><li>Product Availability </li></ul><ul><li>Retailer / Supplier Partnerships </li></ul><ul><li>Speed to Market </li></ul><ul><li>End to End Linkage </li></ul><ul><li>Business and Government </li></ul><ul><ul><li>Much less impressive….. </li></ul></ul><ul><ul><li>the Trade Law is not as conducive to ECR as it could have been….. </li></ul></ul><ul><ul><li>Retailers and Manufacturers were not united, not consistent. </li></ul></ul><ul><ul><li>We kicked an own goal on this one…. </li></ul></ul>
  11. 11. If we want to to better serve the consumer and promote a healthy business environment, We need a much more effective and constructive strategic partnership between retailer and manufacturer on industry issues, And then we need to create a united and constructive dialogue with the government and with their agencies. Our Strategic Partnership – Key Issue If we are Consumer focused….

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