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Global Scorecard- ECR Europe Conf 2005 · Page
The Global ScorecardJim Flannery, Procter & Gamble Rita Marzian, Metro GroupCo-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 AfricaChris Cave Jones Associate Partner, IBM Business Consulting Services
Global Scorecard- ECR Europe Conf 2005 · Page
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 ResultsHelp me understand the capabilities.
Show me the benefits ! How Companies and Countries are using the scorecard to improve resultsCase studies
A Challenge from the Scorecard Project team
Global Scorecard- ECR Europe Conf 2005 · Page
What is the Global Scorecard?Background on the Scorecard Project
Mission: Create a tool to enable companies to…
Understand performanceCompare results in a common wayEstablish priorities
The tool should be capable of being used…
InternallyCollaboratively
October 1998Wouldn’t it be a good idea
to converge the world’s ECR Scorecards into ONE that could be consistently
used by companies around the world?
March 1999 – AmsterdamFirst Global Scorecard meeting
Global Scorecard- ECR Europe Conf 2005 · Page
Scorecard Journey Four Clear ObjectivesA tool capable of supporting single company or joint
engagement
Globally consistentbut “modular” useable in
developing or matureECR situations
More pragmaticlinked to KPIs(day-to-day
management)
SimpleEasy to use
Global Scorecard- ECR Europe Conf 2005 · Page
The Global Scorecard – a Capability Assessment tool
- a simple solution to 4 business questions
WWW.GLOBALSCORECARD.NET
Global Scorecard- ECR Europe Conf 2005 · Page
1. What is it I want to deliver ?Key Performance IndicatorsImplementation Measures
Global Scorecard- ECR Europe Conf 2005 · Page
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
KPI Purpose / Comments Measure Definition Timeframe of measure
Example Where Measured Manuf. Retailer JointScorecard
Internal Scorecards
Service Level / Unit Fill Rate
To measure if the units / items being ordered are being delivered complete as measured by the recipient. This is a case/trading unit/volume measure.Over deliveries and back orders should not be included in this measure.
% Of cases / trading units / volume delivered as ordered
For all cases / trading units / items ordered, the % delivered as ordered. (A volume fill measure)
Use the data systems available from the enterprise. For benchmarking, report the average of these data points over the most recent 6-month period.
A fill measure. (E.g. if 50 cases of item “A” and 75 cases of item “B” were ordered but 50 cases of item “A” and 60 cases of item “B” were delivered. The service level would be 88% - 110/125)
Manufacturer to retailer DC. (for DSD) manufacturer to storeRetailer to Store(for make to order or consumer direct) Manufacturer to Consumer
1 or 3 1, 2 (& 3 if applicable)
1, 2 (& 3 if applicable)
On-Time Delivery
To measure order processing and distribution performance
% Of orders delivered on time.
# Of purchase orders delivered on time divided by the number of orders.“on-time” is based on the recipients agreed delivery window
1700 orders placed, 1560 delivered on-time (per final Purchase Order) = 91.1%
Manufacturer to retailer DC. (for DSD) manufacturer to storeRetailer to Store(for make to order or consumer direct) Manufacturer to Consumer
1 or 3 1, 2 (& 3 if applicable)
1, 2 (& 3 if applicable)
Inventory Measure finished goods inventory in the supply chain. The participant decided how that inventory is “valued” (e.g. cost of goods or sales value) and uses that “value” in the numerator and denominator.
Days “Value” of finished goods inventory divided by the “value” of average daily sales (calculated based on past 6 months history) of these products.
Finished goods inventory Value = $1,000,000Avg. daily sales = $75,000Inventory = 13.3 days(1000000/75000)
Manufacturer DCRetailer DCStore
1,2 & 3 2 & 3 1,2 & 3
On-shelf / point-of-sale availability
Measure if the product is available when the consumer wants to buy it. We will measure this KPI at the point-of-sale only – as an out-of-stock rate.
% Out of stock # Of items / SKUs not available divided by the number of items / SKUs.
OOS should be measured as frequently and as practically as capabilities allow (e.g. audits-preferably at peak times. Mkt. Measurement data, statistical analysis) 6 items missing versus 100 items expected = 6%
on-shelf or point-of-sale. This KPI should be reported by Manufacturers (based on their knowledge of their brand’s in-stock position) and by retailers.
1 1 1
Global Scorecard- ECR Europe Conf 2005 · Page
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 StandardsFor Retailers: % of checkouts that can scan an EAN 13 digit barcodeFor Retailers: % of checkouts that can scan Reduced Space Symbology (RSS)
Global Scorecard- ECR Europe Conf 2005 · Page
2. What capabilities do I need to deliver it?
1. What is it I want to deliver ?
Scorecard Concepts and Best
Practices
Key Performance IndicatorsImplementation Measures
Global Scorecard- ECR Europe Conf 2005 · Page
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• Majority of Joint scorecards• Time, resource constrained• non-strategic business / relationship• 80/20 approach
FULL• Current tool• Best tool for internal company assessment• used jointly in strategic relationships
Global Scorecard- ECR Europe Conf 2005 · Page
Scorecard – Progress
Intermediate(2002)
Full(1999)
Cascade down
Cascade down
Deep dive
Seamless link from Entry through Intermediate to Global
Achieving
Improving
Pioneering
Completing the Family
Entry(2001)
Key Performance Indicators(2001)
Global Scorecard- ECR Europe Conf 2005 · Page
3. How developed are those capabilities within my situation?
e.g. link to VICS CPFR sitewww.cpfr.org
4. How do I improve those capabilities?
Global Scorecard- ECR Europe Conf 2005 · Page
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
GCI Compliance ScorecardSection 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
ComplianceScorecard
Key Performance Indicators
Global Scorecard- ECR Europe Conf 2005 · Page
Scorecard Usage continues to grow…Value being delivered and recognized
1999 2000 2001 2002 2003 20040
500
1000
1500
2000
2500
3000
3500
KPIsFullIntermediateEntryCompliance
Global Scorecard- ECR Europe Conf 2005 · Page
400Compliance
500Entry
125Intermediate
1 200Full
686KPIs
Which Scorecard Should I Use?
Trading Partners- Just Starting to Collaborate- Driving for Alignment- Strategic Relations
Companies- Internal Readiness-Management Committees
Country GS-1 & ECR Efforts- To Drive Standards Implementation- To set work plan priorities
Global Scorecard- ECR Europe Conf 2005 · Page
Let’s start off by understanding the WHAT The Quantifiable Key Performance Indicators and Implementation Measures of ECR
ComplianceScorecard
Key Performance Indicators
Global Scorecard- ECR Europe Conf 2005 · Page
ClickHere
Global Scorecard- ECR Europe Conf 2005 · Page
The Scorecard looks like this…..
QualitativeAssessment of
Capabilities(not going to spend much
time here)
QuantitativeAssessment ofResultant Key Performance
Indicators
88
96
95
22
32
Global Scorecard- ECR Europe Conf 2005 · Page
QuantitativeAssessment of the
ImplementationGS-1 Standards and Business Processes
97
94
7
89
92
5
50
75
70
8
40
Global Scorecard- ECR Europe Conf 2005 · Page
Global Commerce Initiative
Compliance Scorecard2004 Benchmark Results
Winter / SpringCase Studies &
Improvement Plans
Fall Board MeetingReview Results and Progress
July – Sept.Complete Scorecards
Spring Board MeetingReview Improvement Plans &Launch next year cycle
Global Scorecard- ECR Europe Conf 2005 · Page
So How Did We Do?PARTICIPATION 2002 2003 2004# of Scorecards 159 183 326 (+78%)
# of Companies 56 60 71 (+18%)
CountriesNAEMEALAAsia
25852525
201102525
45 (+130%)185 (+68%)29 (+16%)67 (+168%)
• Growth of Participation• Was driven by Companies Broadening their geographic representation• To be a better measurement tool, we need to reach out to more companies.
Global Scorecard- ECR Europe Conf 2005 · Page
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
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.
What is a GTIN ?
Global Scorecard- ECR Europe Conf 2005 · Page
Product & Shipment Identification – GTIN at Consumer Unit Level
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 EAN*UCC-8 barcode symbols and (3) application of automatic data capture (ADC) for bar-coding scanning and/or radio frequency applications (RFID). Simple Weighted
Total 92.4% 92.2%
NA 86.3% 90.4%
EMEA 94.4% 98.3%
LA 100% 100%
Asia 84.2% 76.3%
NothingPlanned
Plans Agreed
PilotsStarted
Roll-outStarted
FullImplementation
European Analysis- GTIN at Consumer Unit Level
# of Records Business Type Cum. $US Value Wtd. Result
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
Discussion – Why Not 100%?
Because there are items transacted that do not have barcodes today (flowers, bulk, fresh)
These items require RSS technology
Global Scorecard- ECR Europe Conf 2005 · Page
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 level (case, carton) and application of automatic data capture (ADC) for bar-coding scanning and/ or radio frequency applications (RFID).
Simple Weighted
Total 86.5% 74.9%
NA 84.7% 69.4%
EMEA 88.3% 91.9%
LA 99.9% 100%
Asia 79.8% 82.3%
NothingPlanned
Plans Agreed
PilotsStarted
Roll-outStarted
FullImplementation
European Analysis- GTIN at Trade Unit Level
# of Records Business Type Cum. $US Value Wtd. Result
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
DiscussionThe largest GAP is the lack of GTINs application at the “Inner pack” level.
It appears that the 89 responding manufacturers do a better job than is “averagely” seen by the retailer segment.
Global Scorecard- ECR Europe Conf 2005 · Page
Product & Shipment Identification (GTIN) Violations
What % of items sold / received have exceptions to the Global Trade Identification Number (GTIN) allocation guidelines?.
Simple Weighted
Total 2.7% 3.0%
NA 2.4% 3.5%
EMEA 2.0% 1.1%
LA 0.9% 2.9%
Asia 5.1% 3.8%
European Analysis- % of items with Know GTIN Allocation Rules Violations
# of Records Business Type Cum. $US Value 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
Discussion. It appears that far fewer companies are tracking / measuring data quality. (30% less records than most other measures)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 synchronization benefit – this should be a high priority.
Global Scorecard- ECR Europe Conf 2005 · Page
Use of the EAN.UCC GPC (Global Product Classification) standards to classify and categorise products in the areas of forecasting, planning, searching, procurement, category management and global data synchronization in the communication both internally within the organizations and between trading partners..
Product Classification Standards
NA EMEA LA Asia Total0
1
2
3
4
1.71.2 1.0 1.1 1.2
2004
Simple Weighted
Total 17.0% 10.0%
NA 25.6% 9.9%
EMEA 16.8% 10.1%
LA 15.8% 5.0%
Asia 18.8% 11.0%NothingPlanned
Plans Agreed
PilotsStarted
Roll-outStarted
FullImplementation
European Analysis- GTINs catalogued consistently with GPC Standards
# of Records Business Type Cum. $US Value Wtd. Result
96 Manufacturers $65.6Billion 17.6% consistent with GPC Standards
6 C&C / Retailers / Wholesalers $48.6Billion 0.0% consistent with GPC Standards
102 All $114.2Billion 10.1% consistent with GPC Standards
Discussion.Product Classification Standards new in Mid-2004Fast Moving Consumer Goods including Food, Beverage, Tobacco completed first. Manufacturers just starting to implement.Gen. Merchandise, DIY, Hardlines, Apparel to followRetailers need multiple categories available to use the capabilityThis critical mass of categories should be available now.
Global Scorecard- ECR Europe Conf 2005 · Page
Global Data Synchronization
The establishment, loading, registering and synchronizing of item and party data based on EAN.UCC standards (GDS Network) Simple Weighted
Total 16.3% 12.2%
NA 16.6% 9.9%
EMEA 18.7% 20.8%
LA 10.6% 4.6%
Asia 8.7% 3.0%
NothingPlanned
Plans Agreed
PilotsStarted
Roll-outStarted
FullImplementation
European Analysis- % Sales Synchronized via Standards Compliant Data PoolNote: in 2005, measure will be adjusted to read “GS-1 Certified Data Pool”
# of Records 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
Discussion.Results are probably overstated relative to new “certified” measure versus simply “standards compliant”GDSN Roadmap / GlobalRegistry now in place. Results should grow.Sinfos, WWRE, Transora, GXS, GS-1UK Data Pool, UCCNet (and 4 other) Data Pools now “Certified”The “work” is to get non-certified data pools “certified” or move to a certified data pool.Only 11 (versus average 28) retailers responded to this measure.
Global Scorecard- ECR Europe Conf 2005 · Page
Use of Electronic Message Capability
NA EMEA LA Asia Total0
1
2
3
43.1 2.9
2.4 2.42.8
3.22.8
2.2 2.02.5
3.32.7
2.4 2.32.7
20022004
2003
Use of standard electronic messages to support the product replenishment process between trading partners. These include orders, advanced shipment notices (or despatch advice), receiving advice and invoices. Messages should be transmitted using EDI via EANCOM, web-EDI or XML standard formats.
Simple Weighted Simple Weighted
Total 52.5% 86.9% 44.8% 82.8%
NA 73.0% 94.6% 65.7% 91.2%
EMEA 56.3% 71.7% 51.6% 66.1%
LA 41.5% 39.4% 29.0% 35.8%
Asia 44.2% 48.7% 28.4% 35.1%
% of Orders % of Invoices
NothingPlanned
Plans Agreed
PilotsStarted
Roll-outStarted
FullImplementation
European Analysis- % of Orders & Invoices transacted via EDI or XML# of Records Business Type Cum. $US Value Wtd. Result
10299
Manufacturers $70.7Billion$67.8Billion
62.2% of orders EDI or XML57.6 % of invoices EDI or XML
29 C&C / Retailers / Wholesalers $85.4Billion 79.6% of orders EDI or XML72.9% of invoices EDI or XML
131128
All $156.2Billion$153.2Billion
71.1% of orders EDI or XML66.1% of invoices EDI or XML
Discussion.Electronic Messaging for orders and invoices remains an underutilized capability in Europe.In this case, it appears that the participating retailers make more use of the capability than retailers “averagely” seen by suppliers.
Global Scorecard- ECR Europe Conf 2005 · Page
Pam Stegeman
Vice President, Supply Chain and TechnologyGrocery Manufacturers of America
Global Scorecard- ECR Europe Conf 2005 · Page
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
GMA’s Use of GCI Scorecard
GMA and North American Manufacturers have been working on GTIN implementation and GDS for past 5+ yearsHigh level support within companiesStrong desire to track progress
Set North American goals in 2004Too many industry surveys, but nothing tracking standards compliance
Global Scorecard- ECR Europe Conf 2005 · Page
GMA’s Progress on GCI Scorecard
North American Company Presidents (IAC) took lead to use existing scorecard to measure progress
Results: 200320
200445 (+130%)
Now, IAC companies are completing scorecards on same cycle as GCI Board
Global Scorecard- ECR Europe Conf 2005 · Page
Implementation Measures 2004 Benchmark
Goal Timeframe
% 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 allocated a GLN
62.8 80 Jan 2007 Move from Duns to GLN
North American Goals, Timelines, and Measures
Global Scorecard- ECR Europe Conf 2005 · Page
Implementation Measures 2004 Benchmark
Goal Timeframe
% 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 trading partners via standards compliant data pools
9.9 50 Jan 2007 20% in 0550% in 06
% of GTINS catalogued consistently w/ Global Classification Standards
9.9 50 Jan 2007
North American Goals, Timelines, and Measures
Global Scorecard- ECR Europe Conf 2005 · Page
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 GDSEducation/communication of GTIN Allocation GuidelinesInformation on Global Product ClassificationPush GLNs
Global Scorecard- ECR Europe Conf 2005 · Page
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
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
A Quick Look at Key Performance Indicators
Global Scorecard- ECR Europe Conf 2005 · Page
Criterion – EUROPE Totals Units
Sample total revenue US$m # Records
2004Sample
Weighted Avg
2003 Simple
Average
2002 Simple Average
Key Performance Indicators
Service Level / Unit Fill Rate % 132401 87 95.2 96.9 96.1On-Time Delivery % 128720 80 90.6 88.4 93.4Manufacturer/Supplier's Finished Goods Inventory Cover
days 43605 55 39.2 39.2 42.3
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 4.3Invoice Accuracy - Master Data % 84613 52 94.9 96.4 91.3Invoice Accuracy % 98055 75 86.3 91.7 88.4
Global Scorecard- ECR Europe Conf 2005 · Page
Criterion – EUROPE MANUFACTURERSKey Performance Indicators Units
Sample Weighted Avg
Sample total revenue US$m # Records
Service Level / Unit Fill Rate % 98.5 47005 58
On-Time Delivery % 96.3 43324 51
Manufacturer/Supplier's Finished Goods Inventory Cover days 39.2 43605 55
Retail Distribution Centre Inventory Cover days 22.0 17468 18
Retail Store Inventory Cover days 6.7 7823 7
On-Shelf/Point-of-Sale Out-of-Stocks % 5.9 31751 26
Lead Time hours 60.4 39205 53
Distribution Costs (% of sales value) % 5.1 40856 44
Invoice Accuracy - Master Data % 98.6 29160 27
Invoice Accuracy % 92.6 38083 48
Criterion EUROPE C&C / RETAILERS / WHOLESALERSKey Performance Indicators Units
Sample Weighted Avg
Sample total revenue US$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 % 82.3 59972 27
Global Scorecard- ECR Europe Conf 2005 · Page
Key Performance Indicators and Implementation Measures
Global Scorecard- ECR Europe Conf 2005 · Page
Implementation Measures 2004Benchmark Goal
Timeframe
% 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 2007From 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
We now have Benchmark Data to Establish GLOBALGoals, Timelines and Measure Real Progress
Global Scorecard- ECR Europe Conf 2005 · Page
Implementation Measures WW 2004
BenchmarkWWGoal
Europe 2004Benchmark 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(1/07)
39.8
% of item exceptions to GTIN allocation guidelines % 3.0 <1(1/06)
1.1
% of shipping or receiving locations that have been allocated a GLN
% 66.0 80(1/07)
82.1
% of orders transacted via EDI or XML % 86.9 85(1/05)
71.7
% of invoices transacted via EDI or XML % 82.8 85(1/06)
66.1
% of sales with synchronized master data between trading partners via standards compliant data pools
% 12.2 50(1/07)
20.8
% of GTINs that are catalogued consistently with Global Product Classification Standards
% 10.0 80(1.07)
10.1
% 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)
**
What Goals, Timelines and Measures Will You Set for your Company / Country / Business unit?
Global Scorecard- ECR Europe Conf 2005 · Page
1. Performance Gaps can be identified
Criterion UnitsSample
Weighted AvgSample total
revenue US$m # RecordsMy Weighted
Avg My GoalKey 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 Lead Time hours 41.8 124601 82 58.8 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
The same can be done with the Key Performance Indicators
Key Performance Indicators - Benchmark Results
<4%48
2. Objectives can be set
Global Scorecard- ECR Europe Conf 2005 · Page
Rita Marzian
Title: Metro Stores
And now we can use the Global Scorecard to Identify HOW to improve those results
Global Scorecard- ECR Europe Conf 2005 · Page
Now That We Know WHAT Performance Measures Need to ImproveWe 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
Global Scorecard- ECR Europe Conf 2005 · Page
Collaborative Shopper Value Creation
POS DATA
Research AgencySupplier 1
supplier 2
Market ResearchCompany
PanelServices
Shopper research
Retailer
Consumer research
Qualitative Data
Capture and share Consumer- and Shopper-Data needed for joint Value creation
1. Collaborative Information Management
Global Scorecard- ECR Europe Conf 2005 · Page
Collaborative Shopper Value Creation
2. Shopper Targeting
Global Scorecard- ECR Europe Conf 2005 · Page
Collaborative Shopper Value Creation – Differentiated Solutions
Global Scorecard- ECR Europe Conf 2005 · Page
Shopper loyalty management
Relationship based solutions
Category / brand management
Integrated value solutions
Collaborative Shopper Value Creation – Differentiated Solutions
Global Scorecard- ECR Europe Conf 2005 · Page
Supply Scorecard
Martin White
Global Scorecard- ECR Europe Conf 2005 · Page
Supply Management
Reliable operations is an increasingly relevant theme in a fast changing business environment
Focus of expansion
Global Scorecard- ECR Europe Conf 2005 · Page
Definitions store operations reflects emphasis to the shelfneed for compliancedrive to improve shopper availabilitydistributionreflects increased use of track and traceproductionreflects practices of synchronisation and lot traceability
Operational Excellence
Concept
it is about continuous improvement strategies and techniquesa focus on minimising service and quality defects e.g.out of stocks
We have enhanced the concept definition and the definition of best practices today
Global Scorecard- ECR Europe Conf 2005 · Page
But the main focus is on two best practices (1)Reliable stockloss and shrinkage management
Operational Excellence
From nothing planned – 0
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 stocklossReflects practices from the ecr shrinkage group
Stock loss is not measured and there is limited awareness of the problem. There are no plans to alter stock loss measurement processes, to share information or to take individual or joint proactive measures to reduce stock loss
Global Scorecard- ECR Europe Conf 2005 · Page
(2)Reliable on–shelf availability management
Operational Excellence
From nothing planned - 0
To fully implemented - 4
Reflects the need to balance availability with a cost to serve and the customer reactionBest practice is a continuous real time process, fully linked to consumer value creation – but is independent of the technologies required to do this
Out-of-stock rate not known. Trading partners have no plans to tackle on-shelf availability, because it is not seen as an issue
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
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Enabler Changes
Chris Cave JonesIBM
Global Scorecard- ECR Europe Conf 2005 · Page
Enabler Changes
Global Scorecard- ECR Europe Conf 2005 · Page
Use of product classification standardsThe 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
Electronic messages for supply
Manufacturer Retailer
OrderInvoice
Receipt AdviceAdvanced Shipment NoticeOr
Despatch note
Global Scorecard- ECR Europe Conf 2005 · Page
Electronic messages for CPFR
Manufacturer Retailer
Sales HistoryInventory
Forecast
Global Scorecard- ECR Europe Conf 2005 · Page
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
DataPool
Manufacturer
Registry
1. A manufacturer will publish item information to the source data pool.
2. The data pool sends very basic information about the item to the Global Registry.
3. The registry holds this basic information about all items and the location of each items’ source data pool.
DataPool
Retailer
4. A retailer will search the registry, via a selected data pool, for an item (by GTIN or by description). The registry returns the details of the items to the data pool.
5. The trading partners synchronise the item information between their respective data pools.
Global Data Synchronisation
This model supports a rich network of data pools.
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Electronic Product Code
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How the EPC network automates the supply chain
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Web site demonstration
Chris Cave JonesAssociate PartnerIBM Business Consulting Services
Global Scorecard- ECR Europe Conf 2005 · Page
Select your language
Site fully translated
Full site translation in progress
Some elements translated
Getting Started
Global Scorecard- ECR Europe Conf 2005 · Page
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
Click on the name any of the improvement concepts to find out more about it.
Guide to ECR Improvement Concepts
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Scroll Down
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Additional resources section with links to related sites or other downloadable material
Global Scorecard- ECR Europe Conf 2005 · Page
Data synchronisation movie
Global Scorecard- ECR Europe Conf 2005 · Page
Use Key Performance Indicators
“the What”
Global Scorecard- ECR Europe Conf 2005 · Page
Insert new KPI record
Global Scorecard- ECR Europe Conf 2005 · Page
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
Next enter your KPI values
Click on the KPI name if you want to see the definition
Scroll Down
Global Scorecard- ECR Europe Conf 2005 · Page
Here is where you enter your Implementation Measures
Optional KPIs for those who want a wider range of benchmarking measures
Scroll Down
Global Scorecard- ECR Europe Conf 2005 · Page
Click the “Save” button once you have finished entering your data
Global Scorecard- ECR Europe Conf 2005 · Page
KPIs must be submitted for error
checking before they can be benchmarked
Global Scorecard- ECR Europe Conf 2005 · Page
Next, we’ll use the capability scorecards
Global Scorecard- ECR Europe Conf 2005 · Page
First, we’ll demonstrate the full
global scorecard
Global Scorecard- ECR Europe Conf 2005 · Page
You have to enter a scorecard before
you can do benchmarking!
Global Scorecard- ECR Europe Conf 2005 · Page
Enter your profile data, then click
“Submit”
Global Scorecard- ECR Europe Conf 2005 · Page
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
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
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
Scroll Down
Global Scorecard- ECR Europe Conf 2005 · Page
Enter KPI values
here then scroll down
Global Scorecard- ECR Europe Conf 2005 · Page
Enter Implementation Measures, then when ready click
“Submit”
Global Scorecard- ECR Europe Conf 2005 · Page
I will now demonstrate how to
benchmark KPIs
I signed on to the KPI section using
the P&G master user name
Global Scorecard- ECR Europe Conf 2005 · Page
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
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
Global Scorecard- ECR Europe Conf 2005 · Page
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
I will now demonstrate how to use the Entry Level Scorecard Collaboratively with a trading
partner
Global Scorecard- ECR Europe Conf 2005 · Page
Enter a new joint scorecard
Global Scorecard- ECR Europe Conf 2005 · Page
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
Enter your profile data and then select who you want to work with
at your trading partner
Global Scorecard- ECR Europe Conf 2005 · Page
Global Scorecard- ECR Europe Conf 2005 · Page
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
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
My trading partner signs on, and then finds my scorecard in his
“Available Scorecards” list.He clicks the “View” icon to see
it.
Global Scorecard- ECR Europe Conf 2005 · Page
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
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
Status changes to “Edited By Partner”
Global Scorecard- ECR Europe Conf 2005 · Page
I can review the trading partner’s comments and the approve the
scorecard or edit again.
Global Scorecard- ECR Europe Conf 2005 · Page
Status changed to Joint Confirmed
Global Scorecard- ECR Europe Conf 2005 · Page
Now we will demonstrate using the intermediate scorecard with a trading partner
Global Scorecard- ECR Europe Conf 2005 · Page
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
Submit to trading partner when ready
Global Scorecard- ECR Europe Conf 2005 · Page
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
He completes his Intermediate Scorecard and then clicks “Save”
Global Scorecard- ECR Europe Conf 2005 · Page
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
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
The Sainsbury Master User can monitor the state of all of the Intermediate Scorecards
whether under progress or completed
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Intermediate Scorecarding in Action
Global Scorecard- ECR Europe Conf 2005 · Page
The last area is for the deeper KPI benchmarking systems
Global Scorecard- ECR Europe Conf 2005 · Page
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 siteAPQC is an organisation which supports standardised in-depth benchmarking of
business measures.
Global Scorecard- ECR Europe Conf 2005 · Page
Global Scorecard- ECR Europe Conf 2005 · Page
Global Scorecard- ECR Europe Conf 2005 · Page
Global Scorecard- ECR Europe Conf 2005 · Page
www.globalscorecard.net
Global Scorecard- ECR Europe Conf 2005 · Page
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
South Africa – Scorecard in action
August IwańskiChief Executive - CGCSA
1st October 2002
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.
Vision
“A single voice, adding value”
Co-Chairs:
Directors:
Board
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)
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.
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.
Underlying principles
Focus on the consumerA 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.
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
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
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
Working together22 Manufacturers, 6 Retailers
National Brands
Sample Composition22 Manufacturers, 6 Retailers/Wholesalers
Participant Composition
NB: Some participants have filled in more than one scorecard, as they scored for several categories.
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
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
KPIs - Averages
1999 – 2004 – 2007 (total ECR)
1999 2004 20070%
10%
20%
30%
40%
50%
60%
70%
80%
ManufacturersRetailers
(target)
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.
2005 Action Steps
CGCSA Board agreed to focus on 4 projects identified from the VCA Analysis:1. On Shelf Availability2. Standardized Industry Key Performance
Indicators3. Category Management Methodologies4. Training and Skills Development
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
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
Finally, to conclude
Just do it!
The end
Thank you
Global Scorecard- ECR Europe Conf 2005 · Page
Global Scorecard at the METRO Group
Rita MarzianMETRO Group
Global Scorecard- ECR Europe Conf 2005 · Page
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
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?
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Where can we find the answers?
Global Scorecard- ECR Europe Conf 2005 · Page
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
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
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
Retailer Scorecard Use
The Sainsbury’s Journey
Time Permitting
Global Scorecard- ECR Europe Conf 2005 · Page
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
Entry
Global Scorecard- ECR Europe Conf 2005 · Page
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
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
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
Collaboration journey
PDS
Scorecard
ARM
CPS
CPM Collaboration Performance Review
Facilitation of performance reviewsBenchmark DataScorecard Report
Management of Process
Process Configuration & Business Rules
Alerting & Exceptions User Defined Alerts & Exceptions
Data Publishing Reporting of KPI’s
GCI Entry Scorecard Collaborative Business Evaluation
With some suppliers this was a journey over many years
Global Scorecard- ECR Europe Conf 2005 · Page
ConclusionsOver the course of the journey the Sainsbury’s team undertook:
Over 1000 scorecardsOver 2500 agreed, joint, actions
The real power lies in local benchmarking and the development of improvement plans with your trading partnerThere is no excuse for not getting started
Global Scorecard- ECR Europe Conf 2005 · Page
Procter & Gamble Case Study
Jim FlanneryProcter & Gamble
Time permitting
Global Scorecard- ECR Europe Conf 2005 · Page
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?
Using the tool to improve Business Results
Global Scorecard- ECR Europe Conf 2005 · Page
AssessmentStrengths &Weakness
Opportunities(FindingCommon Ground)
These goals included• Category Share
targets
• Inventory targets
• Cycle Time
• Data synchronization
So we got started..
Key Performance Indicators
Global Scorecard- ECR Europe Conf 2005 · Page
AssessmentStrengths &Weakness
Opportunities(FindingCommon Ground)
Prioritize
Joint Action Plans
• Execute the Plans
• Review Results
So we got started..
Global Scorecard- ECR Europe Conf 2005 · Page
Review Results
Customer’s Market Share objectives exceededCategory Management projects running
Shelf technologyPromotional Effectiveness
Weeks inventory reduced (P&G stock on hand reduced by 2 weeks)# of orders reducedclaims reduced from $120,000 to Nil !!Order / delivery cycle time reduced by 3 daysFull Scorecard will be updated annually
Global Scorecard- ECR Europe Conf 2005 · Page
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
Global Scorecard results vs. Operational Indices
209 318 520 369100
110
120
130
140
150
NOS Volume IndexRetailer's Gross MarginP&G Profits
Year 1
Year 2
Year 3
Year 4
Global Scorecard- ECR Europe Conf 2005 · Page
Thank you
www.gci-net.org/gswww.globalscorecard.net
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