Use the ECR scorecard to benchmark and improve your performance:
The ECR scorecard from the Global Commerce Initiative (GCI) enables you to benchmark your supply- and demand-side collaboration against the performance of other companies. This session explains the use of the scorecard and includes a short explanation of basic ECR techniques.
ECR Europe Forum '05. Use the ECR scorecard to benchmark and improve your performance
1. The Global Scorecard
Jim Flannery, Procter & Gamble
Rita Marzian, Metro Group
Co-Chairs, GCI Scorecard Project
Martin White Langsdale Crook
Pam Stegeman Vice President, Supply Chain and
Technology
Grocery Manufacturers of America
August Iwanski CEO, Consumer Goods Council of
South Africa
Chris Cave Jones Associate Partner, IBM Business
Consulting Services
Global Scorecard- ECR Europe Conf 2005 · Page
2. Agenda – “Find out What ECR Can do for
You”
What is the Global Scorecard and how can it help me?
How does it work?
Key Performance Indicators – the Hard Business Results
Help me understand the capabilities.
Show me the benefits !
How Companies and Countries are using the scorecard to
improve results
Case studies
A Challenge from the Scorecard Project team
Global Scorecard- ECR Europe Conf 2005 · Page
3. What is the Global Scorecard?
Background on the Scorecard Project
October 1998 March 1999 – Amsterdam
Wouldn’t it be a good idea First Global Scorecard meeting
to converge the world’s
ECR Scorecards into ONE Mission:
that could be consistently
used by companies around Create a tool to enable
the world? companies to…
Understand performance
Compare results in a
common way
Establish priorities
The tool should be capable
of being used…
Internally
Collaboratively
Global Scorecard- ECR Europe Conf 2005 · Page
4. Scorecard Journey Four Clear Objectives
A tool capable of Globally consistent
supporting single but “modular” useable in
company or joint developing or mature
engagement ECR situations
More pragmatic Simple
linked to KPIs Easy to use
(day-to-day
management)
Global Scorecard- ECR Europe Conf 2005 · Page
5. The Global Scorecard –
a Capability Assessment tool
- a simple solution to 4 business questions
WWW.GLOBALSCORECARD.NET
Global Scorecard- ECR Europe Conf 2005 · Page
6. 1. What is it I want to deliver ?
Key Performance Indicators
Implementation Measures
Global Scorecard- ECR Europe Conf 2005 · Page
7. 8 Key Performance Indicators
Category Share – Is the organization achieving the category share desired?
Service Level / Unit Fill Rate – Are all items being delivered as ordered?
On-Time Delivery – Are goods arriving when expected?
Inventory – Have we minimized the amount of inventory needed in the
supply chain?
On-Shelf / Point-of-Sale availability – Can the consumer purchase the
product when they want it?
Order to Delivery Lead Time – How responsive are we to changing
consumer needs?
Distribution costs – Have we optimized the cost of product transportation &
storage?
Data Synchronization – Do we efficiently get information flow right the first
time?
Global Scorecard- ECR Europe Conf 2005 · Page
8. KPI Purpose / Comments Measure Definition Timeframe of Example Where Measured Manuf. Retailer Joint
measure Scorecard
InternalScorecards
Service Level To measure if the units / % Of cases / For all cases / trading Use the data A fill measure. (E.g. if 50 cases of Manufacturer to retailer DC. 1 or 3 1, 2 (& 3 if 1, 2 (& 3 if
/ Unit Fill Rate items being ordered are trading units / units / items ordered, systems item “A” and 75 cases of item “B” (for DSD) manufacturer to applicable) applicable)
volume the % delivered as available from the were ordered but 50 cases of item
being delivered complete store
delivered as ordered. (A volume fill enterprise. For “A” and 60 cases of item “B” were
as measured by the Retailer to Store
ordered measure) benchmarking, delivered. The service level would
(for make to order or
recipient. This is a case/ report the be 88% - 110/125)
consumer direct)
trading unit/volume average of these
Manufacturer to Consumer
data points over
measure.
the most recent
Over deliveries and back
6-month period.
orders should not be
included in this measure.
On-Time To measure order % Of orders # Of purchase orders 1700 orders placed, 1560 Manufacturer to retailer DC. 1 or 3 1, 2 (& 3 if 1, 2 (& 3 if
Delivery processing and delivered on delivered on time delivered on-time (per final (for DSD) manufacturer to applicable) applicable)
distribution performance time. Purchase Order) = 91.1%
divided by the store
number of orders. Retailer to Store
“on-time” is based on (for make to order or
the recipients agreed consumer direct)
delivery window Manufacturer to Consumer
Inventory Measure finished goods Days “Value” of finished Finished goods inventory Value = Manufacturer DC 1,2 & 3 2&3 1,2 & 3
inventory in the supply goods inventory $1,000,000 Retailer DC
chain. The participant divided by the “value” Avg. daily sales = $75,000 Store
decided how that inventory of average daily sales Inventory = 13.3 days
is “valued” (e.g. cost of (calculated based on (1000000/75000)
goods or sales value) and past 6 months
uses that “value” in the history) of these
numerator and products.
denominator.
On-shelf / Measure if the product is % Out of stock # Of items / SKUs OOS should be measured as on-shelf or point-of-sale. This 1 1 1
point-of-sale available when the not available divided frequently and as practically as KPI should be reported by
availability consumer wants to buy it. by the number of capabilities allow (e.g. audits- Manufacturers (based on
We will measure this KPI items / SKUs. preferably at peak times. Mkt. their knowledge of their
at the point-of-sale only – Measurement data, statistical brand’s in-stock position) and
as an out-of-stock rate. analysis) 6 items missing versus by retailers.
100 items expected = 6%
Global Scorecard- ECR Europe Conf 2005 · Page
9. 11 Implementation Measures
% of consumer units allocated GTIN
% of cases / cartons / inners allocated GTIN
% of pallets / unit loads labelled with SSCC
% of item exceptions to GTIN allocation guidelines
% of shipping or receiving locations that have been allocated a GLN
% of orders transacted via EDI or XML and % of Invoices transacted via
EDI or XML
% of sales with synchronized Master Data between trading partners via
standards compliant and GS-1 Certified data pools
% of SKUs registered in the GlobalRegistry
% of GTIN’ s that are catalogued consistent with Global Product
Classification Standards
For Retailers: % of checkouts that can scan an EAN 13 digit barcode
For Retailers: % of checkouts that can scan Reduced Space Symbology
(RSS)
Global Scorecard- ECR Europe Conf 2005 · Page
10. 1. What is it I want to deliver ?
Key Performance Indicators
Implementation Measures
2. What capabilities do I need to deliver it?
a nd B est
onc epts
orec ard C
Sc Prac tices
Global Scorecard- ECR Europe Conf 2005 · Page
11. 3. How developed are those capabilities within my situation?
Progress vs. criteria / benchmarking
Entry – Are you ready to work collaboratively?
Do you have the basic Supply Chain Infrastructure in place?
INTERMEDIATE FULL
• Majority of Joint scorecards • Current tool
• Time, resource constrained • Best tool for internal
• non-strategic business / relationship company assessment
• 80/20 approach • used jointly in strategic
relationships
Global Scorecard- ECR Europe Conf 2005 · Page
12. Scorecard – Progress
Seamless link Completing the Family
from Entry
through
Pioneering Full
Intermediate
(1999) Deep dive
to Global
Improving Intermediate
Cascade down
(2002)
Achieving
Cascade down
Entry
(2001)
Key Performance Indicators
(2001)
Global Scorecard- ECR Europe Conf 2005 · Page
13. 3. How developed are those capabilities within my situation?
4. How do I improve those capabilities?
e.g. link to VICS CPFR site
www.cpfr.org
Global Scorecard- ECR Europe Conf 2005 · Page
14. 2002 also saw the introduction of the GCI Compliance Scorecard: A
shortcut to 3 sections of the Industry tool to measure quantifiable results of
implementation of EAN*UCC Standards and GCI endorsed business
Processes,
Global Scorecard- ECR Europe Conf 2005 · Page
15. GCI Compliance Scorecard
Section 1: Captures The Qualitative Measures for Standards
Implementation – CAPABILITY
Section 2: Captures the Quantitative Measures for KPIs
Section 3:Captures the Quantitative measurement for Standards
Implementation
Key Performance Indicators
Compliance
Scorecard
Global Scorecard- ECR Europe Conf 2005 · Page
16. Scorecard Usage continues to grow…
Value being delivered and recognized
3500
3000
2500 KPIs
Full
2000
Intermediate
1500 Entry
Compliance
1000
500
0
1999 2000 2001 2002 2003 2004
Global Scorecard- ECR Europe Conf 2005 · Page
17. Which Scorecard Should I Use?
Compliance Companies
400 - Internal Readiness
KPIs
-Management Committees
686
Country GS-1 & ECR
Efforts
- To Drive Standards
Entry Implementation
500 - To set work plan priorities
Trading Partners
- Just Starting to
Collaborate
Intermediate - Driving for Alignment
125 - Strategic Relations
Global Scorecard- ECR Europe Conf 2005 · Page
18. Let’s start off by understanding the WHAT
The Quantifiable Key Performance Indicators
and Implementation Measures of ECR
Key Performance Indicators
Compliance
Scorecard
Global Scorecard- ECR Europe Conf 2005 · Page
19. Click
Here
Global Scorecard- ECR Europe Conf 2005 · Page
20. The Scorecard looks like this…..
Qualitative
Assessment of
Capabilities
(not going to spend much
time here)
Quantitative
Assessment of 88
Resultant Key
96
Performance
95
Indicators
22
Global Scorecard- ECR Europe Conf 2005 · Page 32
21. 97
94
Quantitative 7
Assessment of the
89
Implementation
GS-1 Standards and 92
Business Processes
5
50
75
70
8
40
Global Scorecard- ECR Europe Conf 2005 · Page
22. Global Commerce Initiative
Compliance Scorecard
2004 Benchmark Results
July – Sept.
Complete Scorecards
Spring Board Meeting
Review Improvement Plans & Fall Board Meeting
Launch next year cycle Review Results and Progress
Winter / Spring
Case Studies &
Improvement Plans
Global Scorecard- ECR Europe Conf 2005 · Page
23. So How Did We Do?
PARTICIPATION 2002 2003 2004
# of Scorecards 159 183 326 (+78%)
• Growth of Participation
• Was driven by Companies
# of Companiestheir geographic
Broadening
56 60 71 (+18%)
representation
• To be a better measurement tool,
we need to reach out to more
Countries
companies.
NA 25 20 45 (+130%)
EMEA 85 110 185 (+68%)
LA 25 25 29 (+16%)
Asia 25 25 67 (+168%)
Global Scorecard- ECR Europe Conf 2005 · Page
24. There are 11 Implementation Measures
The first 4 are focused on the use of GTINS, or
barcodes at various stages in the supply chain.
And 9 Key Performance Indicators
Global Scorecard- ECR Europe Conf 2005 · Page
25. What is a GTIN ?
The Global Trade Item Number is a
globally unique number to identify
trade items, and is therefore the
foundation for Global e-commerce.
“Umbrella" term used to describe the
entire family of EAN/UCC codes,
including EAN/UCC-8, UCC-12 (UPC),
EAN/UCC-13, and EAN/UCC/DUN-14.
Global Scorecard- ECR Europe Conf 2005 · Page
26. Product & Shipment Identification – GTIN at Consumer Unit Level
Discussion – Why Not 100%?
Use of EAN/UCC 14 digit Global Trade Identification Number (GTIN) at the consumer item level including (1) the ability to store and process 14 digit numbers in
your interface with your trading partners, (2) the ability of all point-of-sale systems in your company if you have them to scan EAN*UCC-13, UPC-12 and
Simple Weighted
EAN*UCC-8 barcode symbols and (3) application of automatic data capture (ADC) for bar-coding scanning and/or radio frequency applications (RFID).
Because there are items transacted that do not have
barcodes today (flowers, bulk, fresh)
Full Total 92.4% 92.2%
Implementation
These items require RSS technology
NA 86.3% 90.4%
Roll-out
Started
EMEA 94.4% 98.3%
Pilots
Started
LA 100% 100%
Plans
Agreed
Asia 84.2% 76.3%
European Analysis- GTIN at Consumer Unit Level
# of Records Business Type Cum. $US Value Wtd. Result
Nothing
Planned
90 Manufacturers $58.4Billion 97.9% of Units allocated a GTIN
28 C&C / Retailers / Wholesalers $76.7Billion 98.6% of Units allocated a GTIN
118 All $138.1Billion 98.3% of Units allocated a GTIN
Global Scorecard- ECR Europe Conf 2005 · Page
27. Product & Shipment Identification – GTIN at Trade (Case, Carton) Unit Level
Use of EAN/UCC system (14 digit Global Trade Identification Number (GTIN) at the Trade Unit
Simple Weighted
level (case, carton) and application of automatic data capture (ADC) for bar-coding scanning
Discussion
and/ or radio frequency applications (RFID).
The largest GAP is the lack of GTINs application at the “Inner pack” level.
Full
It appears that the 89 responding manufacturers 86.5% job than is
Implementation Total do a better 74.9%
“averagely” seen by the retailer segment.
Roll-out NA 84.7% 69.4%
Started
EMEA 88.3% 91.9%
Pilots
Started
LA 99.9% 100%
Plans
Agreed
Asia 79.8% 82.3%
European Analysis- GTIN at Trade Unit Level
# of Records
Nothing
Business Type Cum. $US Value Wtd. Result
Planned
89 Manufacturers $57.5Billion 96.4% of Trade Units allocated a GTIN
27 C&C / Retailers / Wholesalers $82.2Billion 88.7% of Trade Units allocated a GTIN
116 All $139.7Billion 91.9% of Trade Units allocated a GTIN
Global Scorecard- ECR Europe Conf 2005 · Page
28. Product & Shipment Identification (GTIN) Violations
What % of items sold / received have exceptions to the Global Trade Identification
Discussion.
Number (GTIN) allocation guidelines?.
It appears that far fewer companies are tracking / measuring data quality.
(30% less records than most other measures) Simple Weighted
Those that are measuring know they have errors that need to be fixed.
Since “you manage what you measure” and since “data quality” is the root of
Total 2.7%
synchronization benefit – this should be a high priority. 3.0%
NA 2.4% 3.5%
EMEA 2.0% 1.1%
LA 0.9% 2.9%
European Analysis- % of items with Know GTIN Allocation Rules Violations
# of Records Business Type
Asia 5.1%
Cum. $US Value
3.8%
Wtd. Result
43 Manufacturers $42.2Billion 1.4% of items have know violations
26 C&C / Retailers / Wholesalers $74.3Billion 1.0% of items have know violations
69 All $116.6Billion 1.1% of items have know violations
Global Scorecard- ECR Europe Conf 2005 · Page
29. Product Classification Standards
Use of the EAN.UCC GPC (Global Product Classification) standards to classify and
categorise products in the areas of forecasting, planning, searching, procurement,
Simple Weighted
category management and global data synchronization in the communication both
Discussion.
internally within the organizations and between trading partners..
Product Classification Standards new in Mid-2004
Full
Implementation
Fast Moving Consumer Goods including Food, Beverage, Tobacco completed
Total 17.0% 10.0%
4
first. Manufacturers just starting to implement.
Gen. Merchandise, DIY, Hardlines, Apparel to follow
Roll-out
Started
NA 25.6% 9.9%
3
Retailers need multiple categories available to use the capability
This critical mass of categories should be available now.
Pilots
Started
EMEA 16.8% 10.1%
2 1.7
1.2 LA 1.1 15.8%
1.2 5.0%
Plans 1.0
Agreed
1
Asia 18.8% 11.0%
European Analysis- GTINs catalogued consistently with GPC Standards
# of Records Business Type Cum. $US Value Wtd. Result
Nothing
Planned 0
96 Manufacturers
NA EMEA LA $65.6Billion
Asia 17.6%
Total consistent with GPC Standards
6 C&C / Retailers / Wholesalers $48.6Billion 0.0% consistent with GPC Standards
102 All
Global Scorecard- ECR Europe Conf 2005 · Page
2004
$114.2Billion 10.1% consistent with GPC Standards
30. Global Data Synchronization
The establishment, loading, registering and synchronizing of item and party data based
on EAN.UCC standards (GDS Network) Discussion.
Simple Weighted
Results are probably overstated relative to new “certified” measure versus simply
“standards compliant”
Full
GDSN Roadmap / GlobalRegistry now in place. Results should grow.
Implementation
Total 16.3%
Sinfos, WWRE, Transora, GXS, GS-1UK Data Pool, UCCNet (and 4 other) Data 12.2%
Pools now “Certified”
Roll-out
StartedThe “work” is to get non-certified data pools “certified” or move to a certified data
NA 16.6% 9.9%
pool.
Only 11 (versus average 28) retailers responded to this measure.
Pilots
Started
EMEA 18.7% 20.8%
LA 10.6% 4.6%
Plans
Agreed
Asia 8.7% 3.0%
European Analysis- % Sales Synchronized via Standards Compliant Data Pool
Note: in 2005, measure will be adjusted to read “GS-1 Certified Data Pool”
Nothing
PlannedRecords
# of Business Type Cum. $US Value Wtd. Result
97 Manufacturers $66.7Billion 21.2% of sales synchronized
11 C&C / Retailers / Wholesalers $65.4Billion 20.4% of sales synchronized
108 All $132.1Billion 20.8% of sales synchronized
Global Scorecard- ECR Europe Conf 2005 · Page
31. Use of Electronic Message Capability
% of Orders % of Invoices
Use of standard electronic messages to support the product replenishment process
Discussion.
between trading partners. These include orders, advanced shipment notices (or
Simple Weighted Simple Weighted
despatch advice), receiving advice and invoices. remains anshould be transmitted using
Electronic Messaging for orders and invoices Messages underutilized capability
in Europe.
EDI via EANCOM, web-EDI or XML standard formats.
In this case, it appears that the 52.5%
Total participating86.9% make 44.8% of 82.8%
retailers more use the
capability than retailers “averagely” seen by suppliers.
Full
Implementation
NA 73.0% 94.6% 65.7% 91.2%
4
3.3
3.2 EMEA 56.3% 71.7% 51.6% 66.1%
Roll-out
Started 3.1
3 2.7 2.9
2.8 2.7 2.8
LA 2.4 2.4 2.3 2.4 2.5 29.0%
41.5% 39.4% 35.8%
2.2
Pilots
Started 2.0
2 European Analysis- % of44.2% Invoices transacted via EDI or XML35.1%
Asia Orders & 48.7% 28.4%
# of Records Business Type Cum. $US Value Wtd. Result
Plans
Agreed 1021 Manufacturers $70.7Billion 62.2% of orders EDI or XML
99 $67.8Billion 57.6 % of invoices EDI or XML
29 0 C&C / Retailers / Wholesalers $85.4Billion 79.6% of orders EDI or XML
Nothing
Planned 72.9% of invoices EDI or XML
NA
All
EMEA LA Asia Total
131 $156.2Billion 71.1% of orders EDI or XML
128 $153.2Billion 66.1% of invoices EDI or XML
2002 2003
Global Scorecard- ECR Europe Conf 2005 · Page
32. Pam Stegeman
Vice President, Supply Chain and
Technology
Grocery Manufacturers of America
Global Scorecard- ECR Europe Conf 2005 · Page
33. GMA’s Work in Supply Chain
Mission: To assist in creating efficient, effective
supply chain
Tools: ECR principles, GS1 Global Standards
Current Focus:
GTINs, GLNs
Global Data Synchronization
Need: Measurement tool
Global Scorecard- ECR Europe Conf 2005 · Page
34. GMA’s Use of GCI Scorecard
GMA and North American Manufacturers have
been working on GTIN implementation and
GDS for past 5+ years
High level support within companies
Strong desire to track progress
Set North American goals in 2004
Too many industry surveys, but nothing tracking
standards compliance
Global Scorecard- ECR Europe Conf 2005 · Page
35. GMA’s Progress on GCI Scorecard
North American Company Presidents (IAC) took lead
to use existing scorecard to measure progress
Results:
2003 20
2004 45 (+130%)
Now, IAC companies are completing scorecards on
same cycle as GCI Board
Global Scorecard- ECR Europe Conf 2005 · Page
36. North American Goals, Timelines, and
Measures
Implementation Measures 2004 Goal Timeframe
Benchmark
% of consumer units allocated GTIN 90.1 95 Jan 2008
Requires
RSS
% of cases/cartons/inners allocated a GTIN 69.4 80 Jan 2007
Gap is
“inners”
% of pallet/unit loads labeled w/ SSCC 74.0 80 Jan 2007
% of item exceptions to GTIN allocation guidelines 3.5 <1 Jan 2006
All about
clean data
% of shipping or receiving locations that have been 62.8 80 Jan 2007
allocated a GLN Move from
Duns to
GLN
Global Scorecard- ECR Europe Conf 2005 · Page
37. North American Goals, Timelines, and
Measures
Implementation Measures 2004 Goal Timeframe
Benchmark
% of orders transacted via EDI or XML 94.6 85 Goal
Achieved
% of invoices transacted via EDI or XML 91.2 85 Goal
Achieved
% of sales with synchronized master data between 9.9 50 Jan 2007
trading partners via standards compliant data pools 20% in 05
50% in 06
% of GTINS catalogued consistently w/ Global 9.9 50 Jan 2007
Classification Standards
Global Scorecard- ECR Europe Conf 2005 · Page
38. GMA’s Use of GCI Scorecard
Results used by GMA and other industry
groups to determine where more work and
education is needed
More education and business case studies on
GDS
Education/communication of GTIN Allocation
Guidelines
Information on Global Product Classification
Push GLNs
Global Scorecard- ECR Europe Conf 2005 · Page
39. 2005 Plan to Drive Engagement
Goal:
15%+ increase in number of manufacturers
completing scorecard
Plan:
Present updates at each IAC meeting
Present to other GMA Committees and
conferences
Use output as GMA Benchmarks on Standards
implementation in U.S.
Global Scorecard- ECR Europe Conf 2005 · Page
40. Is ECR dead in the U.S.?
Absolutely NOT!!!
U.S. FMCG and Retail industries have similar
work plans to ECR Europe
We may not have a formal ECR venue,
but the work, the attitude, and the collaborative
spirit is alive and well
Global Scorecard- ECR Europe Conf 2005 · Page
41. A Quick Look at Key
Performance Indicators
Global Scorecard- ECR Europe Conf 2005 · Page
42. 2003 2002 Simple
Simple Average
Sample total 2004 Average
revenue Sample
Criterion – EUROPE Totals Units US$m # Records Weighted Avg
Key Performance Indicators
Service Level / Unit Fill Rate % 132401 87 95.2 96.9 96.1
On-Time Delivery % 128720 80 90.6 88.4 93.4
Manufacturer/Supplier's Finished Goods days 43605 55 39.2 39.2 42.3
Inventory Cover
Retail Distribution Centre Inventory Cover days 98083 41 19.1 19.1 15.7
Retail Store Inventory Cover days 68219 35 37.9 14.4 17.0
On-Shelf/Point-of-Sale Out-of-Stocks % 76469 48 5.1 4.0 4.3
Lead Time hours 124601 82 61.7 37.1 48.3
Distribution Costs (% of sales value) % 123743 69 4.0 3.6 4.3
Invoice Accuracy - Master Data % 84613 52 94.9 96.4 91.3
Invoice Accuracy % 98055 75 86.3 91.7 88.4
Global Scorecard- ECR Europe Conf 2005 · Page
43. Criterion – EUROPE MANUFACTURERS Sample Weighted Sample total revenue
Key Performance Indicators Units Avg US$m # Records
Service Level / Unit Fill Rate % 98.5 47005 58
On-Time Delivery % 96.3 43324 51
Manufacturer/Supplier's Finished Goods Inventory Cover days 39.2 43605 55
Retail Distribution Centre Inventory Cover days 22.0 17468 18
Retail Store Inventory Cover days 6.7 7823 7
On-Shelf/Point-of-Sale Out-of-Stocks % 5.9 31751 26
Lead Time hours 60.4 39205 53
Distribution Costs (% of sales value) % 5.1 40856 44
Invoice Accuracy - Master Data % 98.6 29160 27
Invoice Accuracy % 92.6 38083 48
Criterion EUROPE C&C / RETAILERS / WHOLESALERS Sample Weighted Sample total revenue
Key Performance Indicators Units Avg US$m # Records
Service Level / Unit Fill Rate % 93.4 85396 29
On-Time Delivery % 87.7 85396 29
Retail Distribution Centre Inventory Cover days 18.5 80615 23
Retail Store Inventory Cover days 41.9 60396 28
On-Shelf/Point-of-Sale Out-of-Stocks % 4.5 44718 22
Lead Time hours 62.4 85396 29
Distribution Costs (% of sales value) % 3.5 82887 25
Invoice Accuracy - Master Data % 92.9 55453 25
Invoice Accuracy Scorecard- ECR Europe Conf 2005 · Page %
Global 82.3 59972 27
45. We now have Benchmark Data to Establish GLOBAL
Goals, Timelines and Measure Real Progress
Implementation Measures 2004
Timeframe
Goal
Benchmark
% of consumer units allocated GTIN %
92.2 95 Jan 2008 Requires RSS
% of cases/cartons/inners allocated a GTIN %
74.9 95 Jan 2007 Gap is “inners”
% of pallets/unit loads labeled with SSCC %
65.7 80 Jan 2007
% of item exceptions to GTIN allocation guidelines %
3.0 < 1 Jan 2006 This is all about clean data
% of shipping or receiving locations that have been allocated %
a GLN
66.0 80 Jan 2007 Requires GLN allocation rules
% of orders transacted via EDI or XML %
86.9 85 Jan 2005
% of invoices transacted via EDI or XML %
82.8 85 Jan 2006
% of sales with synchronized master data between trading %
partners via standards compliant data pools
12.2 50 Jan 2007
From 13 – 26 in 05, 26 – 50 in 06
% of GTINs that are catalogued consistently with Global %
Product Classification Standards
10.0 80 Jan 2007
% of checkouts that can scan a 13 digit barcode %
99.9 99 Jan 2005
% of checkouts that can scan Reduced Space Symbology %
(RSS)
6.3 99 Jan 2008
Global Scorecard- ECR Europe Conf 2005 · Page
46. What Goals, Timelines and Measures Will You Set for your Company /
Country / Business unit?
Implementation Measures WW 2004 WW Europe 2004
Benchmark Goal Benchmark Europe goal
% of consumer units allocated GTIN % 92.2 95 (1/08) 98.3
% of cases/cartons/inners allocated a GTIN % 74.9 95 (1/07) 91.3
% of pallets/unit loads labeled with SSCC % 65.7 80 39.8
(1/07)
% of item exceptions to GTIN allocation guidelines % 3.0 <1 1.1
(1/06)
% of shipping or receiving locations that have been % 66.0 80 82.1
allocated a GLN (1/07)
% of orders transacted via EDI or XML % 86.9 85 71.7
(1/05)
% of invoices transacted via EDI or XML % 82.8 85 66.1
(1/06)
% of sales with synchronized master data between trading partners % 12.2 50 20.8
via standards compliant data pools (1/07)
% of GTINs that are catalogued consistently with Global Product % 10.0 80 10.1
Classification Standards (1.07)
% of checkouts that can scan a 13 digit barcode % 99.9 99 100.0
% of checkouts that can scan Reduced Space Symbology (RSS) % 6.3 99 **
(1/08)
Global Scorecard- ECR Europe Conf 2005 · Page
47. The same can be done with the Key Performance
Indicators
Key Performance Indicators - Benchmark Results
Sample Sample total My Weighted
Criterion Units Weighted Avg revenue US$m # Records Avg My Goal
Key Performance Indicators
Service Level / Unit Fill Rate % 95.2 132401 87 99.7
On-Time Delivery % 90.6 128720 80 96.4
Manufacturer/Supplier's Finished Goods Inventory Cover days 39.2 43605 55 37.3
Retail Distribution Centre Inventory Cover days 19.1 98083 41 23.2
Retail Store Inventory Cover days 37.9 68219 35 30.0
On-Shelf/Point-of-Sale Out-of-Stocks % 4.1 76469 48 6.2 <4%
Lead Time hours 41.8 124601 82 58.8 48
Distribution Costs (% of sales value) % 4.0 123743 69 5.0
Invoice Accuracy - Master Data % 95.1 83513 51 98.1
Invoice Accuracy % 86.5 98055 75 96.1
1. Performance Gaps can be identified
2. Objectives can be set
Global Scorecard- ECR Europe Conf 2005 · Page
48. And now we can use the Global Scorecard to Identify
HOW to improve those results
Rita Marzian
Title: Metro Stores
Global Scorecard- ECR Europe Conf 2005 · Page
49. Now That We Know WHAT Performance Measures Need to Improve
We Need to Understand HOW To Improve Them - The Best Practices
Lets start with a look at the demand side……
Global Scorecard- ECR Europe Conf 2005 · Page
51. Collaborative Shopper Value Creation
1. Collaborative Information Management
Panel
Retailer Services
Market Research
Company
POS DATA
Capture and share
Consumer- and Shopper-
Data needed for joint Value
Qualitative creation Shopper
Data research
Consumer supplier 2
research
Research Agency
Supplier 1
Global Scorecard- ECR Europe Conf 2005 · Page
56. Supply Management
Focus
of expansion
Reliable operations is an increasingly relevant theme in a fast changing
business environment
Global Scorecard- ECR Europe Conf 2005 · Page
57. Operational Excellence
We have enhanced the concept definition and the
definition of best practices today
Concept
it is about continuous improvement strategies and techniques
a focus on minimising service and quality defects e.g.out of stocks
Definitions
store operations
reflects emphasis to the shelf
need for compliance
drive to improve shopper availability
distribution
reflects increased use of track and trace
production
reflects practices of synchronisation and lot traceability
Global Scorecard- ECR Europe Conf 2005 · Page
58. Operational Excellence
But the main focus is on two best practices
(1)Reliable stockloss and shrinkage management
From nothing planned – 0 there is limited awareness of the problem. There are no plans
Stock loss is not measured and
to alter stock loss measurement processes, to share information or to take individual or joint
proactive measures to reduce stock loss
To fully implemented - 4
Stock loss is tackled as a part of corporate policy, in a proactive manner. Within the
organisation there is a dedicated department for handling stock loss. The problem is
measured and analysed on a regular basis. A systematic plan to tackle shrinkage, both
individually and collaboratively, is in place, which is acted upon and regularly reviewed.
Optimisation of shopper satisfaction achieved through integrating markdown and loss
management with product availability
Applicable to known and unknown stockloss
Reflects practices from the ecr shrinkage group
Global Scorecard- ECR Europe Conf 2005 · Page
59. Operational Excellence
(2)Reliable on–shelf availability management
From nothing planned - issue partners have no plans to tackle on-shelf availability,
Out-of-stock rate not known. Trading
because it is not seen as an
0
To fully implemented - 4
OSA is an integrated business process. Continuous measurement with automatic and alert
based data capture, regular root cause analysis and continuous actions based on consumer
value creation strategies is undertaken
Reflects the need to balance availability with a cost to serve and the
customer reaction
Best practice is a continuous real time process, fully linked to consumer
value creation – but is independent of the technologies required to do this
Global Scorecard- ECR Europe Conf 2005 · Page
62. Use of product classification standards
The EAN.UCC Global Product Classification
(GPC) standards allow products to be grouped
into a standard hierarchy.
The business objectives of the standard are:
To support buying programmes by allowing buyers
to pre-select groups of applicable products.
To provide a common language for category
analysis, thus speeding up the ability to react to
consumer needs.
To be a key enabler of the data synchronisation
process
Global Scorecard- ECR Europe Conf 2005 · Page
63. Electronic messages for supply
Advanced Shipment Notice Receipt Advice
Or
Despatch note Order
Invoice
Manufacturer Retailer
Global Scorecard- ECR Europe Conf 2005 · Page
64. Electronic messages for CPFR
Sales History
Inventory
Manufacturer Retailer
Forecast
Global Scorecard- ECR Europe Conf 2005 · Page
65. Electronic messages for data
synchronisation
GTINs plus all mandatory attributes
GLNs plus all mandatory attributes
Messages exchanged between users and
datapools, between data pools, with the single
item registry, between trading partners
Global Scorecard- ECR Europe Conf 2005 · Page
66. Global Data Synchronisation
Registry 3. The registry holds this
basic information about all
items and the location of each
items’ source data pool.
Manufacturer
Data 2. The data pool sends very 4. A retailer will search the
registry, via a selected data pool,
Pool basic information about the
for an item (by GTIN or by
item to the Global Registry.
description). The registry returns
the details of the items to the data
pool.
1. A manufacturer will Data
publish item information to the Pool
source data pool.
5. The trading partners
synchronise the item information
between their respective data Retailer
pools.
This model supports a rich network of data pools.
Global Scorecard- ECR Europe Conf 2005 · Page
68. How the EPC network automates the supply chain
Global Scorecard- ECR Europe Conf 2005 · Page
69. Web site demonstration
Chris Cave Jones
Associate Partner
IBM Business Consulting Services
Global Scorecard- ECR Europe Conf 2005 · Page
70. Select your
language
Site fully translated
Full site translation
in progress
Some elements
translated
Getting Started
Global Scorecard- ECR Europe Conf 2005 · Page
71. Introductory material
on
• ECR
• Key Performance
Indicators
• The different levels of
scorecard
• How to use the
scorecard
collaboratively with a
trading partner
• How to do
benchmarking
• How to customise
your scorecards and
KPIs
Global Scorecard- ECR Europe Conf 2005 · Page
72. Guide to ECR
Improvement
Concepts
Click on the name
any of the
improvement
concepts to find out
more about it.
Global Scorecard- ECR Europe Conf 2005 · Page
73. Scr
oll
D
Global Scorecard- ECR Europe Conf 2005 · Page o
74. Additional resources
section with links to
related sites or other
downloadable
material
Global Scorecard- ECR Europe Conf 2005 · Page
76. Use Key
Performance
Indicators
“the What”
Global Scorecard- ECR Europe Conf 2005 · Page
77. Insert new KPI
record
Global Scorecard- ECR Europe Conf 2005 · Page
78. First enter your
profile data so your
KPIs can be
correctly registered
Enter your annual
revenue so that the
weighted average
can be calculated
New feature to allow
data to be entered
for a single country
or a region
Global Scorecard- ECR Europe Conf 2005 · Page
79. Next
enter
your KPI
values
Click on the
KPI name if
you want to see
the definition
S
c
Global Scorecard- ECR Europe Conf 2005 · Page r
80. Here is where you enter
your Implementation
Measures
Optional KPIs for those
who want a wider range of
benchmarking measures
S
c
Global Scorecard- ECR Europe Conf 2005 · Page r
81. Click the “Save” button once
you have finished entering
your data
Global Scorecard- ECR Europe Conf 2005 · Page
82. KPIs must be
submitted for error
checking before they
can be benchmarked
Global Scorecard- ECR Europe Conf 2005 · Page
83. Next, we’ll use the
capability scorecards
Global Scorecard- ECR Europe Conf 2005 · Page
84. First, we’ll
demonstrate the full
global scorecard
Global Scorecard- ECR Europe Conf 2005 · Page
85. You have to enter a
scorecard before
you can do
benchmarking!
Global Scorecard- ECR Europe Conf 2005 · Page
86. Enter your profile
data, then click
“Submit”
Global Scorecard- ECR Europe Conf 2005 · Page
87. Enter your capability
scores by clicking on
the radio button
…or click on the
concept name to see
the scorecard details
Global Scorecard- ECR Europe Conf 2005 · Page
88. Enter your capability
scores by clicking on
the radio button
Enter comments or
justification for the
score here
Global Scorecard- ECR Europe Conf 2005 · Page
89. The GCI data entry
short cut combines
the Enablers section
of the full scorecard
with the KPIs and
the Implementation
Measures
Global Scorecard- ECR Europe Conf 2005 · Page
90. Scr
oll
D
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91. Enter KPI
values
here then
scroll
down
Global Scorecard- ECR Europe Conf 2005 · Page
92. Enter
Implementation
Measures, then
when ready click
“Submit”
Global Scorecard- ECR Europe Conf 2005 · Page
93. I signed on to the
KPI section using
the P&G master user
name
I will now
demonstrate how to
benchmark KPIs
Global Scorecard- ECR Europe Conf 2005 · Page
94. The P&G Master User can see
all the KPI records submitted
by each of his subsidiary users
as well as his own KPI
records.
He can select which records
he wants to include in the
benchmarking report
Global Scorecard- ECR Europe Conf 2005 · Page
95. I selected to benchmark
against European KPI values
For manufacturers
And to display the
results in a table
Global Scorecard- ECR Europe Conf 2005 · Page
97. I could have chosen to display
the results in a set of
distribution charts
Similar charts can be
produced for ECR Capability
scores
Global Scorecard- ECR Europe Conf 2005 · Page
98. I will now demonstrate how to
use the Entry Level Scorecard
Collaboratively with a trading
partner
Global Scorecard- ECR Europe Conf 2005 · Page
99. Enter a new joint scorecard
Global Scorecard- ECR Europe Conf 2005 · Page
100. You have to know the master
user name of your trading
partner. Ask them if you don’t
know
Global Scorecard- ECR Europe Conf 2005 · Page
101. Enter your profile data and then
select who you want to work with
at your trading partner
Global Scorecard- ECR Europe Conf 2005 · Page
103. At the bottom, I enter my
proposed actions
I then click “Save” to save it as a
draft. My trading partner can’t
see the scorecard at this stage
Global Scorecard- ECR Europe Conf 2005 · Page
104. After saving, I am returned to the
view screen and can submit the
scorecard to my trading partner
when ready.
My trading partner will get an
automatic e-mail telling him that a
scorecard has been submitted for
his attention
Global Scorecard- ECR Europe Conf 2005 · Page
105. My trading partner signs on, and
then finds my scorecard in his
“Available Scorecards” list.
He clicks the “View” icon to see
Global Scorecard- ECR Europe Conf 2005 · Page it.
106. He reviews my scores and
comments
He can either choose to accept
them as is, or can edit them
Global Scorecard- ECR Europe Conf 2005 · Page
107. At the bottom of the “Edit” screen
the trading partner can enter his
own comments
End then clicks “Save”
Global Scorecard- ECR Europe Conf 2005 · Page
108. Status changes to “Edited By Partner”
Global Scorecard- ECR Europe Conf 2005 · Page
109. I can review the trading partner’s
comments and the approve the
scorecard or edit again.
Global Scorecard- ECR Europe Conf 2005 · Page
110. Status changed to Joint Confirmed
Global Scorecard- ECR Europe Conf 2005 · Page
111. Now we will demonstrate using the
intermediate scorecard with a trading partner
Global Scorecard- ECR Europe Conf 2005 · Page
112. The trading partner is selected, profile set up
then scores and comments entered using the
Intermediate Level Scorecard
Global Scorecard- ECR Europe Conf 2005 · Page
113. Submit to trading partner when ready
Global Scorecard- ECR Europe Conf 2005 · Page
114. My trading partner can see that I have created a scorecard,
but cannot view it until I have submitted it.
In the meantime he can start his own scorecard, by click in
the “Respond” button. His scorecard will be linked to mine
Global Scorecard- ECR Europe Conf 2005 · Page
115. He completes his Intermediate Scorecard and
then clicks “Save”
Global Scorecard- ECR Europe Conf 2005 · Page
116. Once both parties have submitted their
scorecards, we are ready for the workshop.
Once both parties are in the same room, we
can start the workshop.
Global Scorecard- ECR Europe Conf 2005 · Page
117. My score, comments and actions are shown here
My trading partner’s score, comments and actions are
shown here
Our jointly agreed score, comments and actions are
entered during the workshop
Global Scorecard- ECR Europe Conf 2005 · Page
118. The Sainsbury Master User can monitor the
state of all of the Intermediate Scorecards
whether under progress or completed
Global Scorecard- ECR Europe Conf 2005 · Page
120. The last area is for the deeper KPI
benchmarking systems
Global Scorecard- ECR Europe Conf 2005 · Page
121. The Glosup programme allows retailers to
carry out deeper benchmarking analysis
Click here to apply to Templeton
College, Oxford University, for
membership of the programme
A full set of downloads is available on the site
APQC is an organisation which supports
standardised in-depth benchmarking of
business measures.
Global Scorecard- ECR Europe Conf 2005 · Page
126. Case Studies
1. How ECR South Africa Used the Global
Scorecard to Galvanize Action
2. How Metro is using the Global scorecard
3. P&G’s use of the Full Scorecard as a
collaboration tool
Global Scorecard- ECR Europe Conf 2005 · Page
127. South Africa – Scorecard
in action
August Iwański
Chief Executive - CGCSA
129. Mission
To enable retailers, wholesalers,
manufacturers, logistics and service
providers in the South African Consumer
Packaged Goods industry to WORK
TOGETHER to meet consumer needs
better, faster, and at least cost.
132. Key activities
Supply and Demand Chain efficiencies –
under the banner of ECR
Crime Prevention Programme
Global Standards including data
synchronisation and catalogue (PDC.za)
Legal and Regulatory (non-competitive
issues including Food Safety)
133. Objectives
Best practice processes
To develop and promote best practice processes for joint
demand and supply management projects.
EAN●UCC standards endorsed by GCI
To support and disseminate the adoption of identification
and communication standards i.e. the Enablers and
Integrators (as agreed through EAN●UCC and endorsed
by the GCI) which enhance inter-company logistics and
increase efficiencies for trading partners.
134. Objectives (cont. 1)
Industry research and education
To improve market understanding of member
companies through industry research and
education.
A voice for the industry
To provide a voice for the industry to government
and other key bodies on all relevant industry,
legal & regulatory affairs.
135. Underlying principles
Focus on the consumer
A commitment to the belief that sustained business
success stems only from providing consumers with
products and services that consistently meet or surpass
their demands and expectations.
Working Together
The greatest consumer value can be offered only when
organisations work together, both internally and with
their trading partners, to overcome barriers that erode
efficiency and effectiveness.
136. South African FMCG Value Chain
Analysis (VCA)
First study commissioned in 1999
To determine the potential cost savings in the SA FMCG
Industry
11 Manufacturers and 6 Wholesale / Retail participants
Key Results
• Manufacturers were ahead of retailers
• R2.55 billion potential saving for consumers
• R5.1 billion potential saving in a once off inventory reduction
137. South African FMCG Value Chain
Analysis (VCA) cont. 1
In 2004 a new study was commissioned
To measure progress of ECR implementation in
the SA FMCG Industry
To Identify opportunities for further improvement
22 Manufacturers & 6 Retailers/Wholesalers
138. VCA Project - Purpose
Snapshot - Determine the degree of implementation,
Trend - Identify whether there has been progress
since the 1999 study
Industry - Identify opportunities for industry initiatives
to implement improvements
Benchmark - Allow participating organizations to
benchmark themselves against the SA FMCG industry,
as well as run global benchmarks
Action - Help participants identify opportunities and
improvement potentials and specific action steps
Trigger - Deliver a trigger for the SA industry to start
talking TO rather than AT one another
140. Sample Composition
22 Manufacturers, 6 Retailers/Wholesalers
Participant Composition
NB: Some participants have filled in more than one scorecard, as they
scored for several categories.
141. Survey Findings – Key
Performance Indicators
The Supply Chain is neither lean nor efficient
17 days more inventory in the SA Supply Chain
than the global
Averages Case fill / service level is inadequate:
• Averages On time delivery: Manufacturers 90.2% vs.
retailers 87.3%, which means that 10-12% of deliveries
are late
Unnecessary frictions in order cycle & sorting out
problems
142. Survey Findings – Key
Performance Indicators (cont. 1)
Retailer DCs seem to not yet have yielded the expected
benefits
Similar store inventory levels for DSD and DC replenished operations
Supply Chain as a whole is not very responsive
Long lead times / replenishment cycles, NDDs
Average level out-of-stock on shelf is between 9 and 10%
Supply Chain operates in a traditional push approach
Despite pledges towards collaboration current business practices
between retailers and manufacturers remain predominantly “push” and
deal driven
Performance measuring is not standardized or a regular
practice
The South African FMCG industry needs to operationally a standard
set of performance measures which is continuously monitored,
reviewed and acted upon
145. 1999 – 2004 – 2007 (total ECR) cont. 1
Since 1999 survey – ECR-SA implementation shows
moderate progress.
Retailers embracing ECR principles slightly more than
manufacturers, both parties are virtually on par on overall
ECR score.
Participants have indicated that over the next three years
they want to get from a piloting stage to the point where
the roll out of ECR principles is starting to yield real
benefits to the business.
146.
147.
148.
149. 2005 Action Steps
CGCSA Board agreed to focus on 4
projects identified from the VCA
Analysis:
1. On Shelf Availability
2. Standardized Industry Key Performance
Indicators
3. Category Management Methodologies
4. Training and Skills Development
150. Lessons Learned
Understanding of the principles depicted on the
scorecard is critical
CEO Commitment essential
Cross-functional team - directors and senior
management attendance at the workshop is
essential
Choose the right partner/facilitator
Adequate time is given for the completion of KPI’s
Three workshops per company must be held
151. Lessons Learned (cont. 1)
Enough time must be allocated after the
workshops to re-visit participating companies to
review data before presenting
Do not compare against your local competitor –
benchmark against global
Less is more
Regular feedback
Conduct the survey at least every 4-5 years to
monitor progress and keep top of mind
154. Global Scorecard at the
METRO Group
Rita Marzian
METRO Group
Global Scorecard- ECR Europe Conf 2005 · Page
155. What it started with
We have been doing ECR since the early 90‘s
We have seen many successful projects
Each project has it‘s individual KPI‘s
Numerous projects have become daily
processes
However….
Global Scorecard- ECR Europe Conf 2005 · Page
156. What we did not really know:
How are we doing in our distribution lines?
How are we doing in our countries?
Do we really do as good as we think we do?
Where do we stand compared to the rest of
the industry?
Where can we still improve?
What areas do we need to address first?
Global Scorecard- ECR Europe Conf 2005 · Page
157. Where can we find the answers?
Global Scorecard- ECR Europe Conf 2005 · Page
158. That is what we did
Identify ‘Scorecard Ambassadors‘ in the various
distribution lines
Train people on using the Global Scorecard
Evaluate process maturity for demand, supply and
integrators
Collect KPI‘s and Implementation Measures
Fill in the Full Global Scorecard for Germany
Fill in the Compliance Scorecard for all our countries
Global Scorecard- ECR Europe Conf 2005 · Page
159. First Results
Group wide we were equal to or above the
average in most of the areas
There are areas where we can do much
better:
Strengths and weaknesses differ by distribution
line and country
We need to push the application of enablers with
our business partners!!!
Global Scorecard- ECR Europe Conf 2005 · Page
160. Current Status
Roll-Out of compliance scorecard under way
to all our countries across all distribution lines
Setting targets for implementation
Develop plans to implement the missing
pieces / drive implementation further
Global Scorecard- ECR Europe Conf 2005 · Page
162. Sainsbury’s have been using the
scorecard over many years
Full global 20 suppliers
Intermediate 200 suppliers
Entry 2000 suppliers
The process has been integral to delivering sustained
collaborative improvements
Global Scorecard- ECR Europe Conf 2005 · Page
163. Over the years many lessons have
been learnt
Senior level guidance, but user driven
Focus on process and getting people going,
not the quality of the scores and output
Overcome the fear factor
The benefit from each scorecard is different
Each relationship is unique
Global Scorecard- ECR Europe Conf 2005 · Page
164. Over the years many lessons have
been learnt
The process works, but individuals will adapt
the process in a way that works for them
Set targets, then manage, monitor and
appraise
Creating “champions” encouraged healthy
competition and enthusiasm
Global Scorecard- ECR Europe Conf 2005 · Page
165. Improvements came in many different
areas
In 2003 for example we reported on:
- produce supplier
- depot service level improvement 1.8%
- stock loss reduction 22%
- pack at source saving 1.5m euros
- wine supplier
-50% reduction in supply chain inventory
-10% improvement in forecast accuracy
Global Scorecard- ECR Europe Conf 2005 · Page
166. With some suppliers this was a
Collaboration over many years
journey
Collaboration Facilitation of
journey Performance Review performance reviews
CPM
Benchmark Data
Scorecard Report
Management of Process Configuration
CPS Process & Business Rules
Alerting & Exceptions User Defined Alerts &
Exceptions
AR
M Data Publishing Reporting of KPI’s
PDS
GCI Entry Scorecard Collaborative
Scorecard Business Evaluation
Global Scorecard- ECR Europe Conf 2005 · Page
167. Conclusions
Over the course of the journey the Sainsbury’s
team undertook:
Over 1000 scorecards
Over 2500 agreed, joint, actions
The real power lies in local benchmarking and
the development of improvement plans with
your trading partner
There is no excuse for not getting started
Global Scorecard- ECR Europe Conf 2005 · Page
168. Time permitting
Procter & Gamble Case Study
Jim Flannery
Procter & Gamble
Global Scorecard- ECR Europe Conf 2005 · Page
169. Using the tool to improve Business Results
A Practical Example of using the
scorecard to get started
Customer “A” / P&G
Can we find Common Ground to drive Better
Business Planning and Long Term Results?
Global Scorecard- ECR Europe Conf 2005 · Page
170. So we got started..
These goals
Strengths included
Assessment & • Category Share
Weakness targets
• Inventory targets
• Cycle Time
• Data
Key Performance synchronization
Indicators
Opportunities
(Finding
Common Ground)
Global Scorecard- ECR Europe Conf 2005 · Page
171. So we got started..
Strengths • Execute
Assessment &
Weakness
the
Plans
Joint Action Plans • Review
Results
Opportunities Prioritize
(Finding
Common Ground)
Global Scorecard- ECR Europe Conf 2005 · Page
172. Review Results
Customer’s Market Share objectives exceeded
Category Management projects running
Shelf technology
Promotional Effectiveness
Weeks inventory reduced (P&G stock on hand
reduced by 2 weeks)
# of orders reduced
claims reduced from $120,000 to Nil !!
Order / delivery cycle time reduced by 3 days
Full Scorecard will be updated annually
Global Scorecard- ECR Europe Conf 2005 · Page
173. Financial Results
Customer / P&G sales up 9% (Ahead of P&G’s
market growth & Retailer’s business)
P&G “Cost of business” down 2%
plus profits from added sales
Customer’s “Cost of business” down 3%-3.5%
Plus inventory savings & Cash flow improvement
Bottom line profit improvements for both
Customer and P&G
Global Scorecard- ECR Europe Conf 2005 · Page
174. Global Scorecard results vs.
Operational Indices
150
Year 3
140
Year 2 Year 4
130
NOS Volume Index
Retailer's Gross Margin
120 P&G Profits
Year 1
110
100
209 318 520 369
Global Scorecard- ECR Europe Conf 2005 · Page