Fast, fresh, in full and forecastable Dutch retailers have lead the way for innovation in European supply chains. What lessons can be learned from Dutch retailers in distribution and transportation, planning and control and supply chain collaboration? What role did logistics service providers play in realising innovation?

1. The Netherlands…
Lessons learned
retail logistics
30-35% trucks on our roads are agrifood-related
Walther Ploos van Amstel
Amsterdam University of Applied Sciences
March 2016
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2. Share with you…
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• What are trends in FMCG in the Netherlands?
• What are new requirements: fresh, full, fast, forecasted?
• Which innovations will be relevant?
• Which competencies are required?

3. Agrifood:
Netherlands is the most important gateway from and to Europe
• Local produced for local markets within EU: 50-80%
• Export non EU: 20-40%
• Meat, cereals and milk: manufacturers are
dominant
• For other products: trade is dominant. In transit
75% controlled by non Dutch based traders
• Airport-seaport connection is important
• Emerging markets for import:
Africa, Central America
• 90% of logistics is outsourced
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4. Our consumers are changing:
Smaller shipments, more frequent, on time
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5. The Netherlands
Retail and food service
• Market 57 bln Euro/year, no growth, even decline in sales volumes
in past years
• Low prices and low margins in retail and food service
– Retail price levels 10-15% lower than UK
– Retail price levels 2-5% lower than B and Fr
• Food service share is 31% and not increasing (anymore)
Dutch catering market (1 bln Euro/year) not growing
Speciality stores: 18%. Supermarkets: 51%
• On line and convenience slowly growing, but still not significant and
not profitable, maybe click-and-collect will bring potential
• Ongoing concentration in most distribution channels (but, still local-
for-local business)
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6. The Netherlands – retail and food service
Concentrated – but, local for local
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Retail Food service

7. Next 10 years:
Changing FMCG supply chains
• More volume with 25% people less in transport and
distribution in 2020 due to aging population
• Reduce waste and increase sustainability
• Increase freshness of products
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8. Innovation is driven by producers and retailers
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9. Collaboration
External
collaboration
(Suppliers)
External
collaboration
(Competitors)
External
collaboration
(Customers)
External
collaboration
(Other
organisations)
Internal
Collaboration
Vertical
Collaboration
Horizontal
Collaboration
Network Collaboration

10. Collaboration in the Netherlands is based on
ECR framework
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11. One example:
Speed docking competition
1. Green order
2. Scan and go: SSCC
3. Dynamic dock planning
4. Dock and roll

12. Collaboration
Align supply chains…
Strategy
Balanced scorecard
Supply Chain Objectives
supply chain
plan and
control
ICT
organization
Strategy
Balanced scorecard
Supply Chain Objectives
supply chain
plan and
control
ICT
organization
ALIGN SUPPLY CHAIN

13. Supply chain process innovation:
industry standards support reducing cost to serve
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14. Innovations in transport

15. Innovations in warehousing

16. Dispersed supply chain operations in FMCG
• Retail: 100 DC’s
• Food Service: over a
1.000 DC’s
• 6.000 producers
• More consolidation
• More outsourcing
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17. Collaboration
Stronger focus on planning and control…
Strategy
Balanced scorecard
Supply Chain Objectives
supply chain
plan and
control
ICT
organization
Strategy
Balanced scorecard
Supply Chain Objectives
supply chain
plan and
control
ICT
organization
ALIGN SUPPLY CHAIN
ALIGN DATA AND PLANNING

18. Retail transport control tower:
from EDI to API

19. Sharing data in the supply chain: CPFR
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20. Collaboration is changing focus
• From efficiency, to
growth…
• New focus is on long
term growth by value
creation
• Focus shifting from
supply side to demand
side
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21. Putting the consumer in control?
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22. Collaboration
Social innovation…
Strategy
Balanced scorecard
Supply Chain Objectives
supply chain
plan and
control
ICT
organization
Strategy
Balanced scorecard
Supply Chain Objectives
supply chain
plan and
control
ICT
organization
SOCIAL INNOVATION
ALIGN SUPPLY CHAIN
ALIGN DATA AND PLANNING

23. Social innovation:
Doing business in Holland
• Egalitarian: teams take decisions, not top
management
• Procurement is King
• But, more focus on collaborative relationships
• No nonsense culture: plain speaking and fact
based
• Keep your promise(s): trust
• Language: Dutch, English and German
• International orientation
• Respect diversity
• ‘Poldermodel’: trade organisations are strong
• Light lunches… if, at all
• Humour… and we keep our private lives private
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24. Social innovation:
World class people
• Architect of a profitable value chain
• Create successful alliances
• Plan and control
• Use advanced ICT
• Successfully implement innovations:
Train your team as you fight…

25. Future Supply Chain FMCG
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