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Similar to 2012 supply chain sustainability starts with massification
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2012 supply chain sustainability starts with massification
- 5. ECR France
Project organisation
Supply Chain 2012: common language
Definition, optimization levers, KPI, mutualisation specifications …
Products typology Road workshop Rail workshop River workshop
High volumes Road transport Speed dating With rail transport
(beverages, optimisation of road providers
petfoods, milk Tools: transport
…) –Cartography
–Ecometer &
Short best by Ecosimulators
date (yogurt, –Transport
shortage
ham …) –ECR Europe
sustainable
Controlled transport
temperature radmap Committee work
8° to 22° –…
(chocolate, Implementation Pilots
biscuits …)
Others
products
© ECR France 2009
- 7. How to identify easily potential
ECR
ECR
manufacturers or retailers partners Transport
Transport
Web dating
Web dating
in order to optimize together the road transport?
© ECR France 2009
- 8. 63 companies ECR
ECR
Transport
Transport
and 343 distribution centres Web dating
Web dating
20TH CENTURY FOX HOME VIDEO, AUCHAN, BARILLA, BEIERSDORF,
BÉNÉDICTA, BIC, BLEDINA, BONCOLAC, BONGRAIN SOPARIND,
Brasseries KRONENBOURG, CADBURY, CARREFOUR CASCH, CARREFOUR
SPC, CASINO, COCA‐COLA, COLGATE PALMOLIVE, CORA, DANONE EAUX,
DANONE France, DOUWE EGBERTS, DR. OETKER, ECKES GRANINI,
FERRERO, FLEURY MICHON, FROMAGERIES BEL, GEMEY MAYBELLINE
GARNIER, GENERAL MILLS, GEORGIA PACIFIC, HEINEKEN, HENKEL, ITM,
KELLOGG'S, KRAFT FOODS, L’OREAL, LASCAD, LESIEUR, LOTUS, LU,
LUSTUCRU Frais, MARIE, MARIEBEL, MARS, MC CORMICK, MCBRIDE,
MERALLIANCE, METRO CASH AND CARRY, MHD, NESTLE, ORANGINA‐
SCHWEPPES, PIERRE HENRY, SAINT HUBERT, SAUPIQUET, SCA, SCACHAP,
SCAPARFUMERIE, SDV Les marchés du monde, SOCAMIL (CENTRALE
LECLERC), SODIAAL, SODEBO, SOLINEST, SYSTEME U, UNILEVER, VANIA
EXPANSION
© ECR France 2009
- 9. 2 speed datings a year
Which have lead to better
optimizations of load capacity
– Between manufacturers
• Upstream transport mutualisation
• …
– Between retailers
• Backhauling
• …
– Between manufacturers and retailers
• Backhauling
• …
© ECR France 2009
- 13. Current Network:
non performant network
PoS
PoS
DC DC
Plant A Retailer X
manufacturer A
PoS
DC
manufacturer A
DC
Retailer X
PoS
Local su
ppliers
Plant B DC
manufacturer B DC Retailer Y
PoS
© ECR France 2009
- 15. Network B: MdC – PoS PoS
PoS
Plant A DC DC Retailer X
Manufacturer A
PoS
DC
Manufacturer A
DC Retailer X
PoS
Plant B DC
Manufacturer B DC Retailer Y
Multipick variant, Multidrop variant PoS
© ECR France 2009
- 16. Direct Service Delivery
Nouveaux entrepôts
‐ List of hypermarkets ‐ Optimized network for the 3 partners
‐ Skus (full pallets)
‐ Frequency and lead time
© ECR France 2009
- 17. Direct Service Value:
added value and key factors of success
Key factors of success:
Added value:
•Maintain a right delivery frequency (it’s a
•Save one stop at Retailer Distribution store !)
Centers •Be able to order full trucks from different
•Reduce level of stocks on important skus suppliers
‐ Stock vision
•Reduce kms : +/‐ 20% (France vision) ‐ Anticipation
•Reduce CO2 emission •100% quality of service in physical delivery
•Reduce total delivery costs •The right specifications between partners
•Accelerate reactivity and new innovation and an agreed governance
presence •A permanent link with Business teams and
stores management
A win win situation (Share savings)
Information flows are the key issues
© ECR France 2009
- 18. Network C : Plant – RdC PoS
PoS
Plant A DC DC Retailer X
Manufacturer A
PoS
DC
Manufacturer A
DC Retailer X
PoS
Plant B DC
Manufacturer B DC Retailer Y
Multipick variant, Multidrop variant PoS
© ECR France 2009
- 21. III. Results
Before
Tons of CO2
Liters of saved Vehicles x km
gasoline
After
Tons of CO2
Liters of saved
gasoline Vehicles x km
© ECR France 2009
- 22. Network D : « Plant – Store » PoS
PoS
Plant A DC DC Retailer X
Manufacturer A
PoS
DC
Manufacturer A
DC Retailer X
PoS
Plant B DC
Manufacturer B DC Retailer Y
Multipick variant, Multidrop variant PoS
© ECR France 2009
- 23. Network E : « Shared MdC » PoS
PoS
Plant A DC Retailer X
PoS
DC
Manufacturers
A & B DC Retailer X
PoS
Plant B
DC Retailer Y
Multipick variant, Multidrop variant PoS
© ECR France 2009
- 24. Summary and results
The mutualisation isn’t just a customer answer but is the result of a
company’s strategy
It requires large concertation between partners in order to share a plural
future
Competition is not inside the lorry…
&… what about saving the planet !!!
Litre of gasoline kg CO2 Vehicles.km
Initial situation 753 598 2 005 890 1 902 413
Multiplayer solution 618 278 1 645 703 1 426 632
Savings 135 320 360 187 475 781
% of savings 18% 18% 25%
1 000 a year
© ECR France 2009
- 25. Network F : « Shared RdC » PoS
PoS
Plant A DC
Manufacturer A
PoS
DC
Manufacturer A
DC Retailers X & Y
PoS
Plant B DC
Manufacturer B
PoS
Multipick variant, Multidrop variant
© ECR France 2009
- 26. Network G : Shared MdC & RDC PoS
PoS
Plant A
PoS
DC multi
manufacturers
and multi retailers
PoS
Plant B
PoS
Multipick variant, Multidrop variant
© ECR France 2009
- 30. Key Factors of Success
For each problem, one solution
Collaboration
– New mindset: don’t wait for the future, act now!
– Clear specifications and governance
Commitment
– CEOs support
– Trust in your partner(s)
© ECR France 2009
- 31. Conclusion
Don’t wait for the big picture, built it up
Every little helps
The best solution for tomorrow is not the one of
today. Have a continuous improvement approach
The toolbox is available (best practices,
measurement tools, “dating” website, EDI messages
…). Pick the ones adapted to your current situation
Collaboration is the output of a supply chain
strategy
Our challenge is sustainable development:
consumers’ satisfaction, citizens’ wellness, planet
protection and durability of our industry
© ECR France 2009
