2020 future value chain report

7/29/2019 2020 Future Value Chain Report

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BlDg sRAEgEs FOR E EW DEADE

Additional ponsorship from


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The Consumer Goods Forum (TCGF)

wishes to thank the following executives

for their time, support and valuable insight

into the 2020 Future Value Chain:

2020FutureValueChainProjectTeam

abin Rittr, h Consumr Goods Forum

igl Bagly, Unilvr

Dr. Grd Wolfram, Mtro Group

Ks Jacobs, Capgmini

Micha van Mtrn, Capgmini

Brian Girouard, Capgmini

Priscilla Dongan, Capgmini

2020FutureValueChainSteeringGroup

elln Gladdrs, sco

ony Vndrig, Ahold

aliha Barlaty, stl

Jim Flannry, Proctr & GamblMilan urk, Proctr & Gambl

John Phillips, PpsiCo, Inc.

Philipp Lambott, Kraft

Bruno Acto, G1 Italy

Chris Adcock, G1

Maria rsa Aguilar, Capgmini

erik Angot, stl Franc

Flor Argumdo, Comrcial Mxicana

Ricardo Ausin, Kraft Foods

David Baily, Microsoft

im Bckmann, Kuhn + agl

Johan Boijnga, Jumbo

Frans van dn Boomn, Mars drland

etinn Boont, G1 Blgilux

Frits van dn Bos, G1 drland

Jim Brackn, G1 Irland

Bob Branham, Gnral Mills, Inc.

Dal Brockwll, Kraft Foods

Chris Brooks, Woolworths

Clay Broussard, PpsiCo, Inc.

Jan-Michl Bru, Carrfour

Duco Buijz, Lkkrland

Jo Burton, Mars Ptcar U

Brtt Campbll, Graysonlin

Jff Chahly, Kraft Foods

Bn Church, Blucop tl

Pavla Cihlarova, G1 Czch Rpublic

d Combs, Microsoftcott Craig, Dlhaiz Amrica

Roland Dachs, Crown europ

athali Damry, G1

hirry Dsouchs, ystm U

Ivanny Ramos Daz, PpsiCo

Ingilby Dickson, Blucop tl

Ann Dozir, h Coca-Cola Company

Ros elphick, VFLC

Alfonso Franco endo, La Costa

Hans erdmann, Classns erdmann

Mario escrcga, G1 Mxico

Mario Padilla espinosa, Unilvr

Glnn exton, HP

Bob Fasstt, Capgmini

avir Filou, Lralil Findlay, QLC

imothy Fischr, Bumbl B Foods

Ginny Fishr, Capgmini

Mik Fitzpatrick, stl

Ptr Flornz, Hnkl

icolas Florin, G1 witzrland

Rob Fox, JM muckr Company

Brnard Fradin, Kraft Foods

avir Franco, Johnson & Johnson

Paultt Frank, Johnson & Johnson

nno Frans, AholdDavid Fridlr, Proctr & Gambl

Aljandro Fustr, Capgmini

Jorg Garcs D., indas Garcs

Pirr Gorgt, G1 Franc

Ptr Gitlink, G1 thrlands

Gmma Gordon, Macklin ransport

ina Groothuijzn, Microsoft

Mara Asuncin espinosa Guzmn, Capgmini

Lorik Hagdorn, /VU

Bram Hag, Partnr Logistics

Rudigr Hagdorn, h Consumr Goods Forum

Michal Hains, Wstgat Ports

elzbita Halas, G1 Poland

August Hardr, Coop

Drk Harris, Aust Rail rack Corp

Carlos Hrnndz, G1 Mxico

Grardo Zwigr Hrrn, PpsiCo, Inc.

Grgor Hrzog, G1 Austria

Frd Holvast, Hinkn drland upply

Jos van Huizn, stl drland

Daryll Hull, ALC/ransport and Logistics Cntr

Ian Huntr, ational ransport Commission (C)

Monica Hysll, Abbott utrition

Miroslav Ilic, G1 rbia

igmund Brl Jnsn, G1 orway

haron Jsk, h Consumr Goods Forum

igl Jsson, Gro-Markt Logistics

Marisa Jimnz, G1

Jff Johnson, C Johnson & onRichard Jons, G1

twart Jons, Commonwalth DIRDLG

Laurnc Jumaux, Capgmini

Klara Karivan, G1 Croatia

Rob Karman, par Intrnational

David Ktszri, G1 in europ

Manvndra Khati, Capgmini

Michal Kilgariff, Australian Logistics Council

Mhmt Kuntr, Unilvr

livir Labass, eCR Franc

Dominiqu Lacaz, Bl

Hrv Laurau, Unilvr

Grgoir Lbrt, stl Franc

enriqu Lgorrta, Kraft Foods

Philipp Lmoin, Lareduardo Lon, Proctr & Gambl

Patrick Lhur, Capgmini

Chris Libri, C Johnson & on

Mary Long, Campbll oup

Migul Lopra, G1

Ciprian Losp, G1 Romania

Gary Lynch, G1 UK

icola Macivn, Proctr & Gambl

Chris Mangan, QMMFC

Jurgn Matrn, Mtro Group

Krry Mcair, h Coca-Cola Company

Lona Mikl, Land Laks, Inc.

eduard Molknbor, DHL

Rafal na Morlos, ConAgra Foods

Ian Munro, Kraft Foods

il Murphy, AFC

Hugo nchz ri, Capgmini

Hln wll, Asciano

ACKWLeDGMe Bn wton, Woolworthserland ilsn, G1 Dnmark

Aljandra Monts d ca, G1 Mxico

Donna lszowka, Gorgia-Pacific

Frnando rozco, igma

Bnot Pacaud, Capgmini

rg Papin, ystm U

Mna Patl, CapgminiMigul Angl Pralta, G1 Mxico

Clyd Prira, Coca-Cola Hllnic

Philip Ptrsn, FLC

Grald Ponct, Capgmini

Jrg Prtzl, G1 Grmany

Chris Purcll, ntl

Bo Raattamaa, G1 wdn

David Gonzlz Ramirz, G1 Mxico

Robrto Rocha Ramirz, Bimbo

ro Rautsola, G1 Finland

Gidr Razinskin, G1 Lithuania

Katrin Rck, eCR europ

Bob Richardson, Clorox Company

Pascal Rigaud, Danon eaux Franc

eduardo Rios, Bimbo

Francisco Javir Rodrguz, Kraft Foods

Jos Luis Ibaz Rojas, La Costa

Lticia Gonzlz Romro, Pasin Mxicana

Ian Ross, Australian Logistics Council (ALC)

haron Rossi, Unilvr

Dav Rost, C Johnson & on

Will Ruiz, HP

Franois Rullir, ILeC

abina aksna, G1 U

Rodolfo snaya alas, C Johnson & on

David alisbury, ACCC

Jan-Marc aubad, h Consumr Goods Forum

rip hutz, h Coca-Cola Company

Rimantas idlauskas, G1 Lithuanialivir iglr, Capgmini

Andrw mith, PpsiCo, Inc.

Jan omrs, G1 Blgilux

Aljandro ouza, Capgmini

Franz pr, Hnkl

Grg pikr, Qantas

Ptr wan, Amway

adia alb, G1

Marnix ax, ara L Intrnational

Mariann immons, Wgmans

Aljandro Rys orrs, Unilvr

odd urnr, Grocry Manufacturrs Association

Mauro Unghrtti, GD

Victoria Garcia Urrutia, PpsiCo, Inc.

Luis Ricardo Valncia, CapgminiMicha Vnman, Bakkrsland

Fokk van dr Vr, Unilvr Bnlux

Liliana Villalpando, G1 Mxico

Mario Vollbracht, HP

om Vuorinn, Capgmini

Luk van Wassnhov, IeAD

Dav Whit, Capgmini

Michal Whiting, Johnson & Johnson Consumr

Christin Whitny, Wgmans

Colln Wickring, Mijr

Hans Wilinga, Bakkrsland

Jill Wilkinson, Capgmini

Robrt Wilkinson, h Coca-Cola Company

roy Witt, Clorox Company

Paul Woltring, Akzoobl Coatings

il Wong, ational ransport Commission (C)

Jacob Yau, Chiquita

Pitr Zwart, Coolblu B.V.


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Ce

02 Forword04 excutiv ummary

08 h evolution of th Futur Valu Chain

14 rnds: What Is Driving ur bjctivs

22 bjctivs: What W Want to Achiv36 actics: How W Will Achiv ur bjctivs as an Industry

46 How to Us th Futur Valu Chain in Your Company

56 Conclusion

2011 h Consumr Goods Forum, Capgmini, HP, Microsoft. All rights rsrvd.

Printd on a rcycld papr producd from 75% rcycld wast at a mill awarddwith I14001 nvironmntal managmnt crtification.

50%


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FOREWORD

From Nigel Bagley, Unilever, and Dr. Gerd

Wolfram, METRO Group, Co-Chairmen,

2020 Future Value Chain

h Futur Valu Chain initiativ opratson two connctd and complmntaryplatforms: th rport and th workshops.

In your hand is th third Futur Valu

Chain rport, Building tratgis forth w Dcad. his rport lays outth trnds that will most impact ourbusinss ovr th nxt 10 yars. Itprsnts th stratgic objctivs thatwill hlp us, as a collctiv industry,to continu to mt th nds of ourvr-changing shopprs, consumrsand communitis. And it dmonstratshow th programs undr way in hConsumr Goods Forum will hlpus to achiv thos objctivs.

But it is on th scond platform,

th workshops, that th FuturValu Chain, w bliv, nowprovids th biggst bnfits.

In th fiv yars that th Futur ValuChain initiativ has bn oprating,mor than 400 profssionals fromour industry hav dirctly ngagdin workshops that hav takn placin europ, orth Amrica, LatinAmrica, Asia and Australasia.

It is at th workshops that th Futur

Valu Chain projct coms aliv.Participants lav th workshopsxcitd and nthusiastic.

During th 2008 workshops, in HongKong, a participant from a rgionalrtailr told us: In th 10 yars I havbn in this industry, I hav nvrbfor sat down with my industrypartnrs and talkd frankly about how,by working togthr, our industry canbttr srv our joint consumrs.

In th sam yar, in India, w wr

told that this workshop has broughttogthr ladrs from th biggstbusinsss in India in a way thathas nvr happnd bfor.

And in this yars workshops w havsn, again, fantastic participationand concrt outcoms:

In Australia th workshop tamis now working with govrnmnton stablishing th bluprint fora collaborativ supply chain.

In th thrlands and Mxico thoutput from th workshops has b-com th cntral thm for thoscountris industry programs.

A communication platformdvlopd in th U.. workshop isnow bing adaptd for global usas part of h Consumr GoodsForums Knowldg haring pillar.

h G1 in europ workshophas rsultd in significantly bttralignmnt btwn national G1

programs and th global vision.

2020FutureValueChainBuilding tratgis for th w Dcad2


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inc this last round of workshops whav also sn many national associa-tions, as wll as individual companis,initiating thir own workshops basdon th Futur Valu Chain framwork.

his is whr th ral succss of thprogram lis; in th way that thprincipls and concpts ar bing

adoptd across our industry to drivral collaborativ action that dlivrsvalu to our consumrs.

ur rward for lading this initiativis to s and har that nthusiasm.

From Jean-Marc Saubade, Managing

Director The Consumer Goods Forum

It is with grat plasur that w sharthis third Futur Valu Chain rportwith you.

his initiativ is on of th cornrstonsof h Consumr Goods Forum program

and continus to bring valuabl andusabl dlivrabls into th Forum.

his currnt rport uniquly provids uswith th opportunity to considr thmany activitis that w hav undr wayin h Consumr Goods Forum inrlation to th 10-yar vision for ourindustry. In particular, w can rviw ourprogram against th industry objctivsthat hav mrgd from th workshops.

I am plasd to s that thinitiativs and projcts undr way

across th Forums fiv stratgicpillars ar right on track to dlivrths objctivs.

ustainability, th hard upply Chain,Consumr chnology and Halth andWllbing ar all topics that w addrsstoday and will continu to addrsstomorrow. And w look forward to thFutur Valu Chain initiativ continuingto hlp us bring th right focus acrossour portfolio.

uccss, though, coms throughimplmntation of ths programs byour mmbrs and across th industry.In this, I ask for your continud supportand ngagmnt on th Forumsinitiativs and projcts.

3FOREWORD


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What do you want to achieve in 2020? Are you focued on akin

your buine ore utainabe, optiizin a new hared uppy

chain, enain with technooy-enabed conuer or hepin

conuer iprove their heath and webein? Do you expect to

achieve a thi by youref, or wi you ook for coaboration?

ur ability to achiv ths objctivsis ssntial for th succss of thconsumr goods industry ovr thcoming dcad. his lis at th hart ofth 2020 Futur Valu Chain projct.

In th conclusion of th prior 2018Futur Valu Chain rport, w notdthat th diffrnc btwn succss andfailur in th consumr goods industryin th nxt 10 yars would b ourability to adapt to rapid and significant

chang. his is still tru. Howvr, itis clar that succss will also rquirfocusd stratgis and ffctivtactics for individual companisand for th industry as a whol.

his nw rport provids thindustry and companis with thframwork in th form of trends,objectives and tactics to buildstratgis and action plans for2020. And th tim to act is now.

Trends: What Is Driving Our Objectives

h first phas of th 2020 FuturValu Chain projct involvd idntifyingand analyzing th trnds that will havth gratst impact on our industry

in th coming 10 yars. wlv globalroot trnds wr idntifid that addrsschang in socity, shoppr bhavior,nvironmnt and tchnology.

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1. Increased Urbanization and thris of mgacitis will impactth siz of stors, logisticsand th supply chain, anddistribution infrastructurs,among othr factors.

2. Aging Population will havconomic and politicalconsquncs rlatd to thamount of mony spnt onncssitis lik food and drink,

and th typ of dlivry srvics,stor formats and locationsoffrd to oldr consumrs.

3. Increasing Spread of Wealth

will lad to a growing middlclass in dvloping rgions,impacting consumption andavailability of food itms andproviding a sourc of growth formanufacturrs and rtailrs.

4. Increased Impact of Consumer

Technology Adoption will brflctd not only in consumrsown bhavior but also in thir

ability to influnc th buyingbhavior of othr consumrsas th us of social and digitalmdia continus to sprad.

5. Increase in Consumer Service

Demands will dfin nw srvicmodls, offrd via th Intrnt,that mov byond sllingindividual products and will bringdiffrnt typs of solutionsto consumrs and shopprs.

6. Increased Importance of Health

and Wellbeing will hav significantramifications as sals of halthfulproducts and srvics ar

xpctd to narly quadruplin th coming fiv yars.

2020 Future Value Chain on the Web

more inforation about the 2020 Future aue

hain report and prora can be found at

www.Futureauehain.co.

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7. Growing Consumer Concern about

Sustainability will lad consumrs to look

to govrnmnts and companis to play amajor rol in combating climat chang.

8. Shifting of Economic Power to countrislik China and India will caus tradaras to volv and a nw gnrationof globally comptitiv companis fromths dvloping markts to mrg.

9. Scarcity of Natural Resources lik nrgy,watr and food will bcom a growing issuas dmand is projctd to outstrip asilyavailabl supplis ovr th nxt dcad,

rsulting in incrasing production costs.

10. Increase in Regulatory Pressure will b snparticularly for hot-button aras lik thnvironmnt, sustainability and food safty.

11. Rapid Adoption of Supply Chain

Technology Capabilities will nabl amor synchronizd valu chain withgratr visibility and tracability.

12. Impact of Next-Generation Information

Technologies lik cloud computingwill lad to a nw way to dal, jointly,

with businss and tchnology inth consumr goods industry.

Objectives: What We Want to Achieve

h ovrall impact of ths root trnds is

significant, and will rquir a fundamntalchang in th way consumr productscompanis and rtailrs run thir businsssand srv consumrs and shopprs. hingsnot only nd to b don diffrntly, thyalso nd to b don collaborativly. Byworking togthr not only as an industrybut also with govrnmnts, Gs andconsumrs w can achiv collctivlywhat non of us can achiv alon.

h analysis of th trnds was th startingpoint to hlp th industry dtrmin what our

stratgic objctivs dfind as what wwant to achiv should b for th nxt 10yars. h 2020 Futur Valu Chain projctwnt through a thorough procss to idntify thglobal stratgic objctivs on which th industryshould focus. h objctivs idntifid wr:

1. Make Our Business More Sustainable

2. Optimize a Shared Supply Chain

3. Engage with Technology-Enabled Consumers

4. Serve the Health and Wellbeing of Consumers

COSE-UP ON

COUNTRIES LCAL IMPAC I A GLBAL Ce

During th cours of th 2020 Futur Valu

Chain projct, a sris of workshops was hld,

including a global sssion, a pan-europan

workshop and country-spcific workshops in

Australia, Franc, Mxico, thrlands and th

Unitd tats. hs markts wr slctd to

provid a broad cross-sction of th industry.

h objctiv of ths country workshops was to

xamin th most rlvant trnds from a local

prspctiv, and from thr to dfin and dvlop

initiativs that could hlp addrss ths trnds.

All workshops usd th sam Futur Valu Chain

framwork and globally idntifid trnds as th

starting point, but ach country workshop had its

own spcific focus, dpnding on th markt. For

xampl, in Australia th group chos to focus

on dvloping a sustainabl supply chain with a

goal of hlping to shap th ovrall sustainability

agnda. In th U.. th tam dtrmind

that crating a sustainabl valu chain and

ngaging with tchnology-nabld consumrs

wr particularly rlvant in thir markt. In

Mxico th group focusd not only on trnds

lik tchnological dvlopmnts and product

safty, but also on crim and national scurity.

hroughout this rport, you will find sidbars thattak a clos-up look at th country workshops.

ot: For a closr look at Asia, plas s th

arlir rport, titld 2018 Futur Valu Chain:

uccding in a Volatil Markt, which highlightd

th rsults of similar workshops hld in Hong Kong

(focusd on outhast Asia), India and Japan.



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h trnds link to ths objctivs. For

xampl, trnds such as scarcity ofnatural rsourcs and incrasd rgulatoryprssur will b dirct chang drivrs forth industrys supply chain in th comingdcad. And th rapid adoption of consumrtchnology and th incras in consumrsrvic dmands will rquir industry andcompanis to rthink th way thy ngagwith tchnology-nabld consumrs.

hs four industry objctivs ar notonly rlvant at th global lvl; thy alsoapply at th rgional and country lvls,

although somtims with diffrncs inthir accnts and dgr of impact.

Tactics: How We Will Achieve Our

Objectives as an Industry

Aftr knowing whatw want to achiv, thnxt stp is to dtrmin howto achiv it. hgood nws is that w dont hav to start fromscratch to dvlop tactics that addrss thfour global stratgic objctivs. A wid rangof global programs ar alrady in plac, asdmonstratd by a rviw of currnt initiativsrun by h Consumr Goods Forum undr thorganizations pillars of ustainability, afty

and Halth, and prational excllnc.

Matching th four stratgic objctivs withth currnt scop and stratgic prioritisof h Consumr Goods Forum shows goodalignmnt. All four objctivs ar addrssdin global industry initiativs and projcts,many of which ar outlind in this rport.h rspctiv global, rgional and localorganizations will nd to continu to workclosly to align thir activitis, providcompany-drivn focus on som ky prioritisand hlp avoid duplication of fforts.

How to Use the Future Value

Chain in Your Company

From th first Futur Valu Chain projct in2006 it was clar that companis wr takingth Futur Valu Chain idas and output andusing thm intrnally to driv thir own thinkingand actions.

hr ar at last thr ways companis canlvrag th Futur Valu Chain in thir ownbusinss:

1. Apply the Future Value Chain framework

inside your company. h rcommnddand provn thr-stp Futur Valu Chainframwork (rnds, bjctivs, actics)

includs a company track that can b usd

to hlp businsss dvlop long-trm actionplans to rspond to th xtrnal trnds.

2. Implement the relevant tactics and ideas

from the Future Value Chain initiative.

In addition to industry global, rgionaland local programs, many initiativs thataddrss th four stratgic objctivs aralrady ongoing insid companis. Asampling of ths initiativs is prsntd inthis rport to offr idas and inspiration.

3. Challenge yourself to see how robust

your 2020 strategy really is. f cours,your company alrady has stratgis inplac. And of cours, you bliv thatyou ar addrssing th trnds in thmarkt that ar rlvant to you. But isyour stratgy rally robust in th contxtof th rapid and dramatic changs thatwill impact th industry ovr th nxt10 yars? W rcommnd you challngyourslf with th list of qustionsprsntd nar th nd of th rport.

A Call to Action for the Industry

h conclusions of th rport ar clar:

o b rady for 2020 (and 2018and 2016) w nd to increase thecollaboration across our industry.

h Consumr Goods Forum companisnd to fully support th Forum programs and th appropriat rgional andlocal programs that ar undr way.

Companis across our industry ndto challenge themselves on howprpard thy ar for 2020.

Companis should us th Futur ValuChain framwork to develop a strategy andtactical plan that rsponds to th xtrnalshoppr, consumr and socital trnds.

h following pags provid a clos-up lookinsid th 2020 Futur Valu Chain: thtrends that will hav th gratst impact onth industry for th coming 10 yars; thobjectives on which th industry should focus;and th tactics that will hlp us achivths objctivs. W strongly rcommnd yourad th full rport to valuat what actions

you nd to tak today to nsur that ourcompanis and our industry ar rady forth challngs and opportunitis of 2020.

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A windowe hote eetin roo at schipho Airport in Aterda

wa the birthpace, in 2005, of the Future aue hain initiative.

n the roo wa a handfu of executive fro eadin anufacturer

and retaier who were eetin to dicu how our oba indutry

aociation coud ove to the next eve in faciitatin coaboration

acro our indutry. oaboration that woud brin benefit to our

hopper and conuer a we a reovin inefficiency fro our

hared buine activitie.

h considration of this nxt lvldid not imply that th industrywas not progrssing wll on arasof collaboration. In fact, th firstfw yars of th nw cntury sawtrmndous progrss, including th

mrging of eA and UCC to cratG1, th collaborativ principlsof eCR bing institutionalizdwithin our businsss, and th

dvlopmnt of a sris of businsscas rports by th Global CommrcInitiativ on programs such asGlobal Data ynchronization andth elctronic Product Cod.

o, you might ask, why did thpopl in that chiphol mtingroom think thr was a ndto look for anothr lvl?

E EOlO OF EFRE AlE A



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h answr was simpl. Much of thsuccss taking plac around th in-dustry activity was basd on concptsand idas that had bn dvlopdin th 1990s or vn arlir. But thnw cntury was bringing chang at a

phnomnal pac, chang that wouldfundamntally impact our industry andwould triggr th nd for nw collabor-ativ businss modls for our industry.

h xplosion of consumrcommunication and tchnology from social ntworking to th mobilIntrnt is prhaps th mostvisibl chang. But if you cast yourmind back 10 yars, how focusd

was your company in 2000 onnvironmntal sustainability, obsityor incrasing rgulatory prssur?

At th chiphol mting th viw wastakn that whil w, as an industry,should continu to fully supportth programs undr way, w alsondd to stablish a think tank thatwould dvlop a collctiv futur

vision and rspons for our industryin light of th rapid changs.

Hnc th stablishmnt of thFutur Valu Chain initiativ.

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h objctivs wr clar. h FuturValu Chain initiativ would:

Provid th consumr goods industrywith a comprhnsiv, connctd andupdatd viw of th critical trnds thatwill impact companis ovr th comingdcad, with a goal to idntify actionplans that addrss ths trnds.

Idntify ky aras whr w blivcompanis should collaborat in ordr tosuccssfully manag th valu chain.

Idntify, initiat and implmntappropriat industry activitis.

2016: A Vision of the Future Value Chain

In mid-2006 th 2016 Futur ValuChain projct kickd off with two globalworkshops that involvd narly 80 popl.

h rsulting rport, 2016: h Futur ValuChain, was launchd in lat 2006. hrport laid out a sris of scnarios of howour consumrs would bhav and how ourindustry would oprat in 2016. each of thrports thr ky findings ld to th crationof a global industry projct. h findings wr:

The industry must Redefine the 2016Supply Chain. h nsuing projct hasspcifically focusd on th industrysphysical supply chain and has dsignd anintgratd supply chain modl that taks

into account sustainability paramtrsas wll as traditional masurs.2

Trading partners must more readily andfreely Share Information in their Bi-Lateral

Relationships. o addrss this a projctwas launchd to xamin how th industrycan bttr shar information, th barrirs

that prvnt it, th bnfits that can bdrivd from doing so, and th possibltchnical solutions that could nabl it.

The industry must Develop New Ways ofWorking Together. A snior xcutiv tamwas stablishd to addrss innovativ formsof collaboration btwn manufacturrs andrtailrs. Aimd at stimulating sustainablchangs in cultur, collaborativ businssplanning and nw masurs and rwards, thw Ways of Working ogthr framworkhas bn adoptd for h Consumr GoodsForums prational excllnc pillar.

h rport was wll rcivd across thindustry. Rgional and national associations(including eCR and G1) took th rport to

hart and starting aligning thir programs to thrport outcoms and to th thr nw globalprojcts. Individual companis intrnalizdth findings, challnging thir own businss tos how prpard thy wr for 2016. Board-lvl prsntations at a numbr of companisconfirmd th significanc of th findings.

From th outst, clar principlswr also stablishd:

h initiativ would publish a rportvry two yars that would b basdon a 10-yar prspctiv.

Input would com from workshops thatwould bring togthr xprts in markting,supply chain, sals, commrcial andacross th businss. his would nsurthat th initiativ rflctd what ourindustry flt it would truly b an initiativ

byth industry, forth industry.

Whil th initiativ would bnfit fromth support of consultants it wouldnot b a consultant projct.1

1 n thi repect the project ha benefited in the pat five year fro the upport of apeini, which ha acted a ead

conutant and ha provided independent faciitation of the workhop and report.2 For ore inforation ee www.futureuppychain.co.



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2018: Succeeding in a Volatile Market

For th scond itration of th initiativin 2008, th tam dcidd to drilldown from a global prspctiv torgional and national lvls.

h choic of rgion to focus on was simpl:Asia. In addition to th rapid conomic growthin th rgion, Asia also contains xtrms onjust about vry aspct of our industry. Anmrging middl class on on hand, a massivlow-incom population on th othr. Rapidmigration to urban nvironmnts coupld

with vast undr-populatd rural xpanss.Global ladrship in tchnology in a rgiondominatd by a supply chain infrastructurdcads and, in som cass, cnturis old.

n of th takaways from th 2018 rportwas that dspit th apparnt diffrncsamong rgions and countris, th rgionalprioritis and th local prioritis wr narlyalways fully alignd. At all lvls th nd forgratr collaboration and improvd fficincisar apparnt. Countris may b at diffrntplacs on a spctrum but it was th sam,globally applicabl spctrum. his mantthat global collaborativ programs rally arapplicabl at rgional and national lvls andthat larning in on markt can asily bnfitothr, smingly vry diffrnt, markts.

2020: Building Strategies for the New Decade

As a rsult of th outcoms of th Asianworkshops svral rgional and nationalassociations approachd th Futur ValuChain tam through 2009 looking to run

workshops in thir markts to hlp thmbuild thir own industry work plans.

his, coupld with th us by mmbrcompanis of th 2016 Futur Valu Chainrport intrnally to triggr long-trm stratgicplanning, ld to a rfocusing of th Futur

Valu Chain initiativ. h focus shiftd toproviding a framwork to hlp th industryand individual companis undrstand thtrnds that impact our businss, nvision howthy will impact, and thn formulat plans to

bnfit our businss from thos changs.

Collaboration and, of cours, th globalindustry projcts undr way in hConsumr Goods Forum would rmainth platform for rsulting actions.



14/68

The Future Value Chain Framework

h Futur Valu Chain framwork wasdvlopd in an itrativ procss throughoutth ight workshops that took plac inth 2020 projct btwn Fbruary andptmbr 2010. h framworks roots arin th scan, focus, act mthodologythat has bn usd succssfully in allth Futur Valu Chain projct workshopssinc th initiativ startd in 2005.

hs thr phass hav nowbn translatd to:

Trends: Undrstanding what is happning inour world and how it will impact our industryor organization in th nxt 10 yars.

Objectives: Idntifying whr thindustry or organization wants to b in10 yars, what it wants to achiv.

Tactics: h activitis that must startnow to nabl th industry or organizationto achiv its 10-yar objctivs.

hrough a facilitatd workshop, projct

participants progrss through th thrphass, arriving at a st of tactics that willhlp thm achiv thir objctivs and bwll positiond for th anticipatd trnds.

h framwork allows for two tracks: anindustry track and a company track.

h industry track would b usd by global,rgional and national associations to formulatstratgic non-comptitiv industry objctivsand to st a tactical agnda basd oncollaboration. h company track would busd by individual companis to st thir ownstratgic objctivs and comptitiv agnda.

For both th company and th industrytracks, howvr, th starting point

trnds would b th sam.

It is also th cas that industry objctivsand company objctivs should hav commonthms. And, in th tactics, a company mayinclud ngagmnt with trading partnrs onindustry projcts as part of its tactical plan.o th two tracks ar continually connctd.

Whil diffrnt countris or rgions mayhav diffrnt prioritis, w hav foundthat th sam trnds and objctivs comthrough at both th global and local lvls.

his nw rport prsnts th findings fromth 2020 Futur Valu Chain workshops andprovids th industry and individual companiswith th framwork to plan for 2020.

BUILDIG RAeGIe FR He eW DeCADe

Industry

Strategic

Objectives

INDUSTRY

TRACK

COMPANY

TRACK

TRENDS

Global Programs

Regional Programs

Local Programs

TACTICSOBJECTIVES

CompanyStrategicObjectives

Trends

Industry Collaboration Tactics

1:1 Collaboration Tactics

Competitive Tactics



15/68

JUST THE FACTS He FUURe VALUe CHAI IIIAIVe

What startd in 2005 with a handful of xcutivs

from a fw lading manufacturrs and rtailrs

has grown ovr th yars to includ mor than

400 participants from across th industry as

wll as acadmia, logistics srvic providrs,

consultants and subjct mattr spcialists.

Considr a fw facts about th Futur Valu Chain:

2016 Future Value Chain h 2016 projct involvd two global

workshops hld in Utrcht in th

thrlands and Chicago in th U..

Participants comprisd narly 80 popl

from rtailrs, consumr products

manufacturrs, logistics srvic providrs

and tchnology companis.

h projct was ld by th Global Commrc

Initiativ and ndorsd by AIM - europan

Brands Association, CIe - h Food Businss

Forum, eCR europ, Food Markting Institut

(FMI), Grocry Manufacturrs Association(GMA), G1, G1 U and Voluntary

Intrindustry Commrc olutions (VIC).


h 2018 projct involvd 130 participants

rprsnting local and intrnational rtailrs

and manufacturrs, third-party partnrs,

acadmia and industry associations.

Four workshops wr hld: a global workshop

in Utrcht, th thrlands; an Asian rgional

workshop in Hong Kong; a Mumbai workshop

focusd on th Indian markt; and a okyoworkshop focusd on th Japans markt.


h 2020 projct involvd narly 200

participants in ight workshops.

wo global workshops wr hld, on at th

start of th projct in Brussls, Blgium,

and on at th nd that took plac at

Ls Fontains (Chantilly) in Franc.

A rgional workshop was hld in Antwrp,

Blgium, for G1 in europ, along with

country workshops in Australia, Franc,th thrlands, U.. and Mxico.

Whie different countrie or reion ay

have different prioritie, we have found

that the ae trend and objective coe

throuh at both the oba and oca eve.



16/68

he peed of chane i acceeratin. Oranization and

indutrie ut repond fater and fater. But how do

we enure that chane happen foru intead oftou?

And that deciion are ade with fu inforation?

he firt phae of the Future aue hain fraework

addree thee quetion by identifyin and

anayzin the trend that wi have the reatet

ipact on the indutry for the coin 10 year.

REDs: WA s DRg

OR OBEEs



17/68

15REDs: WA s DRg OR OBEEs


18/68

tarting with xtnsiv rsarch as afoundation, th trnds and scnarios wrdvlopd with ngagmnt and input fromdiffrnt functions and backgrounds acrossth industry as wll as input from acadmiaand consultants all jointly addrssing thstrnds from thir diffrnt prspctivsthrough facilitatd intractiv workshops. h

nt rsult is sing byond th obvious.

For th 2020 Futur Valu Chain projct12 global root trnds wr idntifidthat addrss chang in socity, shopprbhavior, nvironmnt and tchnology.

hs trnds should not b considrd inisolation. It is important to undrstand thinflunc that th trnds hav on ach othr.Incrasing urbanization, for xampl, canimpact availability of rsourcs; th incrasingsprad of walth is a factor driving th shiftof conomic powr; and rapid consumr

tchnology adoption has ld to gratr srvicdmands in th wb-basd conomy.

h combind ffct of trnds will also rsultin nw trnds bing idntifid. For xampl,th growth of onlin shopping is a trndthat is drivn by four of th 12 global roottrnds: incrasd urbanization (in dnslypackd citis smallr rtail outlts will notb abl to carry th rang that shopprs askfor but hom dlivry can sourc from th

widr assortmnt of a warhous), th agingpopulation (oldr popl dont want to carryhavy shopping bags back from th stor andthy ar computr litrat!), th incrasdimpact of consumr tchnology adoption andth incras in consumr srvic dmands.

h Futur Valu Chain approach of lookingbyond th ordinary and idntifying thunxpctd consquncs of th roottrnds is instrumntal to th dvlopmntof th industry stratgis and tactics.hs global trnds provid an xcllntstarting point for any organization mbarking

on a Futur Valu Chain projct.

let have a coer ook at the 12 identified root trend.

1. Increased Urbanization

vr half of humanity now livs in citis, andthr is no nd in sight for urban growth. By

2050, roughly 70% of th worlds populationwill liv in urban cntrs.3 h numbr ofcitis with populations gratr than 8 millionis xpctd to doubl by 2015.4 Many of thsmgacitis will b in Asia, but also in Africa,europ and Latin Amrica. By 2020, Mumbai,Dlhi, Mxico City, ao Paulo, w York,Dhaka, Jakarta and Lagos all will hav achivdmtacity status (mor than 20 million popl).5

Among th consquncs of urbanizationfor th consumr goods and rtail industrywill b a shift to smallr-footprint stors,

with no room for unproductiv invntory. Inaddition, th industry will fac significantsupply and logistical challngs, and nwdistribution infrastructurs willb rquird. h industry has anopportunity to work with citis thatwill massivly invst in modrnizingand xpanding thir infrastructurs.

SURVIVING INMEGACITIES

3 sieen anticipate aive invetent wordwide in utainabe urban infratructure, 360 Deree iew of money, http://www.athyaurthy.co/finance/2009/12/ieen-anticipate-aive-invetent-wordwide-in-utainabe-urban-

infratructure/#ixzz13y8PRA, ov. 25, 20094 lon er goba Deoraphic rend: Rehapin the geopoitica landcape, A, 20015 -abitat: state of the Word itie 2006/7, -ABA, 2007



19/68


20/68


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22/68

THE ROADTO

Printd on papr mad from 100% rcycld matrial using a bio ful nrgy

sourc. h natural shad is du to th omission of optical brightning agnts.Blu Angl, ordic wan and eU Flowr accrditd papr.100%


23/68

6 buine ready for an aein nation? Departent for Buine nnovation & ski, march 20107 ow wi deoraphic chane affect the oba econoy? www.if.or, 20048 goba Econoic Propect, he Word Bank, 20079 he ew goba midde a: Potentiay Profitabe but Ao npredictabe, Knowede@Wharton, uy 2008

2. Aging Population

h aging of socitis will hav unxpctdconomic and political consquncs. h viwof an oldr population as bing rlativly poordos not hold up. ldr consumrs, in fact,hav substantial conomic powr and dvota gratr proportion of thir total xpnditurto ncssitis lik food and drink and housing,ful and powr than do youngr housholds.6In many countris, consumrs 50 and oldr

may soon rprsnt th majority of thvoting public, making it hardr to implmntpolitical policis that advrsly affct thm.7

Rtailrs will nd to considr changsto thir businss modl to accommodat

th nds of an oldr population. hismight includ shuttl srvics, mor homdlivry, widr aisls, stors in nursinghoms and assistd-living facilitis, larg-print labls, among othr dvlopmnts.

At th sam tim, population aging willlikly dprss growth rats in advancdconomis, whil mor youthfuldvloping countris may njoy a growth

boost as working-ag populations incras.evn with productivity incrass, slowrmploymnt growth causd by th shrinkingworkforc in som countris will likly rducalrady tpid GDP growth, impact laborsupply and put prssur on social programs.

3. Increasing Spread of Wealth

h middl class, particularly in dvloping

rgions, is rapidly xpanding, with thpopulation in low- and middl-incomcountris with purchasing powr parity(PPP) xpctd to tripl by 2030.8 In2000, dvloping countris wr hom to56% of th global middl class; by 2030that figur is xpctd to rach 93%.9

h ris in th dvloping worldsmiddl class will lad to an incras

in consumption, which may havimplications for availability and pricof commoditis lik oil and food-stuffs. It may also rsult in protctionistpolicis by countris with a middl classthat fls thratnd by growth abroad. Butth nw middl class will also b th sourcof growth for manufacturrs and rtailrs.

SAY HELLOTO THE NE W

MIDDLE CLASS

Oder conuer have ubtantia econoic power and devote a reater

proportion of their tota expenditure to neceitie ike food and drink.

POWERTO THE

SENIORS



24/68

COUCH POTATOESARE OUT!

6. Increased Importance of Healthand Wellbeing

Halth, safty and wllbing ar incrasinglyimportant to consumrs as wll as tomanufacturrs and rtailrs, and will havsignificant ramifications in th futur asshopprs plac gratr attntion on morhalthful products as wll as halthirlifstyls. emrging consumr sgmntslik LHA (Lifstyls of Halth and

ustainability) will hlp driv th saftyand halth markt in th nxt dcad.

In th U.., for xampl, th LHA marktis stimatd to compris approximatly19% of th adult population, rprsntinga markt of 41 million consumrs.12 alsfrom LHA consumrs ar xpctd tonarly quadrupl in th coming fiv yars.

4. Increased Impact of Consumer

Technology Adoption

vr th nxt 10 yars, shopprs will continuto bcom mor mpowrd through thus of nw communication tchnologis.h growth of mobil faturs and dvicconvrgnc such as wallt phons will drivmobil commrc. By 2013 mor than 2billion mobil usrs globally will hav mada purchas via thir handsts.10 At th samtim, stor visits will b nhancd by dynamic

digital displays and prsonalization through ahand-hld dvic or th customrs own phon.

h us of ths nw tools will impactnot only consumrs own bhavior but willalso influnc th buying bhavior of othrconsumrs as th us of social mdia continusto sprad. Kys to succss will b slctingth right social communitis to ffctivlyintract with th targt consumr groups,managing communication on th sits,and dtrmining how to lvrag th hugamounts of onlin consumr data. Consumrproducts and rtail companis will nd to

bcom mor transparnt and collaborativin thir intractions with shopprs whilkping a clos y on privacy concrns.

5. Increase in Consumer Service Demands

h xponntial growth and adoption ofconsumr tchnologis will driv nw lvls ofsrvic dmands by shopprs and consumrs.W will s th ris of a strongr wb-basd

srvic conomy, giving consumrs gratrchoic of shopping options and improvdtransparncy. In this nvironmnt, consumrswill xpct and dmand srvics 24/7. hmost prominnt occurrnc of this trnd isshown by th xpctd impact of sals via th

Intrnt: vr th nxt dcad thonlin channl will grow to 25%to 30% of total rtail sals, upfrom th currnt 4% to 15%.11

his trnd will also dfin nwsrvic modls, offrd via thIntrnt, that mov byond sllingindividual products and will bringdiffrnt typs of solutionsto consumrs and shopprs.

10 Fifth of onine retaier ue obie icroite to puh prootion, Retai Buetin, oveber 200811 Future hanne shoppin, apeini, 200912 goin green: he Future of the Retai Food ndutry, www.at.ar.c.ca, march 2009

AT YOURSERVICE

ON THEINTERNET

ALWAYS WIR EDIS A WAY OF LIFE



25/68

7. Growing Consumer Concern

about Sustainability

Consumr awarnss and carbon-footprintrgulations ar xpctd to significantlyincras, as consumrs look to govrnmntsand companis to play a major rol in combat-ing climat chang. According to th aturalMarkting Institut (MI), th grn markt-plac in th U.. is prdictd to grow from$420 billion in 2010 to $845 billion by 2015.13

Food and bvrag and prsonal andhoushold goods sctors ar particularly

xposd to carbon-missionscosts and futur rgulation risksdu to thir rlativly high lvlsof missions compard withrvnus. Wast is also bcominga ky focus of sustainabilitydiscussions. In th food industry,in particular, thr ar major wast losssdu to infficint procsss across th valuchain. At th consumr lvl, 14% to 26%of purchasd food in th Unitd tats and

around 25% of food and bvrags in thUnitd Kingdom ar wastd in housholds.14

THE POWERS OFTODAY WILL NOTBE THE POWERS

OF 2020

8. Shifting of Economic Power

In th nxt dcad nw conomic powrslik China and India will continu to ris.Chinas shar of total world GDP in trmsof PPP has incrasd from 7.1% in 2000

to 13.3% in 2010 and is xpctd to rach20.7% by 2020. China will ovrtak thU.. to bcom th worlds largst conomyas arly as 2017.15 And by 2012, India willhav ovrtakn Japan to bcom th worldsthird largst conomy, with GDP accountingfor 5.8% of th world total in PPP trms.16

As this powr shift occurs, a volatil globalconomy will rmain th norm for th com-ing dcad. rad aras will volv and a nwgnration of globally comptitiv companis

from dvloping markts will mrg, hlpingto furthr solidify thir position in th globalmarktplac: Brazil in agribusinss and off-shor nrgy xploration; Russia in nrgy andmtals; India in I srvics, pharmacuticals

and auto parts; and China in stl, hom ap-pliancs and tlcommunications quipmnt.

h rcnt rcssion has svrly affctdth global commodity markts, thrbycalling into qustion th impact futurrcssions may hav on global conomic growthacross most industris. In addition, althoughthis cannot b prdictd in grat dtail, thoccurrnc of disruptions such as naturaldisastrs, military conflicts and trrorismwill hav a grat impact on th conomy.

13 bid14 Drivin sutainabe onuption: aue hain Wate, Word Econoic Foru, October 200915 Euroonitor nternationa fro mF, nternationa Financia statitic and Word Econoic Outook//nationa tatitic16 bid

hina wi overtake the .s. to becoe the word aret econoy a

eary a 2017. And by 2012, ndia wi have overtaken apan to becoe

the word third aret econoy.

CARBONFOOTPRINTSCARIERTHAN

BIGFOOT



26/68

he indutry wi need to coaborate to addre utainabiity in buine

practice oin forward, particuary a conuer conider utainabiity

apect in their buyin deciion.

17 Riin food price: A oba crii, Overea Deveopent ntitute, 200818 bid19 hina, apan, south Korea in food afety pact, www.ap-foodtechnooy.co, oveber 2009

10. Increase in Regulatory Pressure

vr th nxt dcad rgulatory prssuris xpctd to incras, particularly forhot-button aras lik th nvironmnt andsustainability. h rcnt global conomicmltdown srvs as a timly rmindr ofth intr-connctd natur of global tradtoday, and how without propr rgulatoryframworks in plac, companis couldfac significantly wors scnarios.

Food safty will also b a kyfocus for rgulatory action.For xampl, China, Japanand Kora hav signd a foodsafty pact that nabls th thrnations to notify ach othr im-mdiatly if a food safty problmsurfacs and to clarify th pro-css of invstigation.19 Activitisto improv th ffctivnss of foodsafty rcalls will nd to b addrssd.

9. Scarcity of Natural Resources

By 2030, th worlds population will rach8.3 billion, with th dmand for food andnrgy incrasing by 50% and for frsh watrby 30%.17 his growth will continu to putprssur on natural rsourcs lik nrgy, watrand food, with dmand projctd to outstripasily availabl supplis ovr th nxt dcad,rsulting in incrasing production costs. h

UDA, for xampl, xpcts unit costs of cralproduction to ris by up to 15% by 2016-17.18h industry will nd to collaborat to addrsssustainability in businss practics goingforward, particularly as consumrs considrsustainability aspcts in thir buying dcisions.

Energy: As th cost of fossil ful rmainsvolatil and supplis finit, an nrgyrvolution could occur in th coming dcad

with wind and solar bcoming viabl sourcsof nrgy in som parts of th world.

Water: Watr-rlatd disruptions in thagricultural supply chain will hav adramatic impact on th industrys conomicprformanc. Additional challngs may comin th form of plant siting obstacls in watr-strssd countris and strictr watr policis.

Food: Global conomic growth and climat-chang impact on th availability of foodingrdints will lad to volatil food pricsovr th nxt dcad. Food prics will alsob impactd by th us of raw matrial forgnrating altrnativ nrgy lik biofuls.As food dmand incrass, prssurs onquality and safty will also mount.

BIG BROTHER WILLCONTROL IF WEDON'T CHANGE

DEMANDOUTSTRIPSSUPPLIES



27/68

11. Rapid Adoption of Supply Chain

Technology Capabilities

In th coming dcad, improvd collaborationtogthr with nw supply chain/logisticstchnologis and information transparncy willnabl a mor synchronizd valu chain withgratr visibility and tracability. Alrady 73%of fast-moving consumr goods companis saythy hav implmntd or improvd logistics-

rlatd tchnology tools or nablrs.20

W will s an incrasing ability to constantlyrad, analyz, xchang and ract to informa-tion insid and outsid th company boundar-is. Visibility will b nhancd by supplirsthat hav accss to bttr dmand signals,nabling thm to fficintly us thir capac-ity and othr rsourcs. Communication andhigh-quality data sharing will b th mostcritical factor in succssful collaboration. eDI,

GD and RFID will b ky nablrs for thissupply chain transparncy in th futur.

12. Impact of Next-Generation

Information Technologies

Information tchnology will no longr b justan indispnsabl support function, but anxpansion of th organizations intllignc,a univrsal connctor, th way to bcomadaptiv. With xcutivs, mploys, partnrs,shopprs and consumrs xprincinginformation tchnology in a nw way, withbusinss making tchnology its own, thr willb a nw way to dal, jointly, with businss andtchnology in th consumr goods industry.

w wavs of businss tchnologysolutions will nabl manufactur-rs and rtailrs to quickly anddynamically simulat, dscrib,modl, xcut and manag businssprocsss for xampl, to collaborativlymanag promotions, catgoris, invntoris orjoint valu chain prformanc. his opns upvast opportunitis for nw valu and innovation.In addition, nw tchnology solutions (radilydployabl on-dmand via th Intrnt, thso-calld cloud) will hlp companis to frthmslvs from currnt constraints providdby oftn inflxibl and costly I landscaps.

Etabihin a cear undertandin of thee trend and the potentia

ipact to our indutry ed to the identification of the trateic objective

that wi hep the indutry and copanie to et the aenda for 2020.

20 2010 hird-Party loitic study, apeini, septeber 2010

FINALLY, REAL-TIMEVISIBILITY

FREEING UP FROM

CONSTRAINTS, EMPOWERINGNEW O PPORTUN ITIES



28/68

he overa ipact of a thee root trend i inificant, and

wi require a fundaenta chane in the way conuer

product copanie and retaier run their buinee and

erve conuer and hopper. hin not ony need to be

done differenty, they ao need to be done coaborativey.

By workin toether not ony a an indutry but ao with

overnent, gO and conuer we can achievecoectivey what none of u can achieve aone.

OBEEs: WAWE WA O AEE



29/68

23OBEEs: WA WE WA O AEE


30/68

h analysis of th trnds was th starting pointto hlp th industry dtrmin what our stra-

tgic objctivs dfind as what w want toachiv should b for th nxt 10 yars. h2020 Futur Valu Chain projct wnt througha thorough procss to idntify th global strat-gic objctivs on which th industry should fo-cus its nrgis. h objctivs idntifid wr:

1. Make Our Business More Sustainable

2. Optimize a Shared Supply Chain

3. Engage with Technology-Enabled Consumers

4. Serve the Health and Wellbeing of Consumers

h tru powr of ths objctivs is basd on thfact that thy rsult from a synthsis of xtnsivrsarch on th idntifid trnds blndd with thoutcoms of th country and global workshops.

h trnds link to ths objctivs. For xampl,trnds such as scarcity of natural rsourcs and

incrasd rgulatory prssur will b dirctchang drivrs for th industrys supply chain inth coming dcad. And th rapid adoption ofconsumr tchnology and th incras inconsumr srvic dmands will rquir industryand companis to rthink th way thy ngagwith tchnology-nabld consumrs.

hs four industry objctivs ar not onlyrlvant at th global lvl; thy also apply atth rgional and country lvls. W liv in aglobal world and in local socitis at th samtim. In ach of th country workshops thsfour objctivs wr idntifid as important,

although thr ar diffrnt accnts indiffrnt countris or rgions. For xampl,in Mxico th focus of srv th halthand wllbing of consumrs rlats larglyto scurity, as popl fl inscur du toth incrasing crim rats. And in Australia,bcaus of its particular gographicalsituation, optimiz a shard supply chainrquirs a strong focus on import/xport andon urban vs. rural distribution collaboration.

hee indutry objective require a new and different type

of coaboration within the indutry. let ee what indutry

ucce ook ike for each of thee objective.



31/68

make Our Buine more sutainabe

Optiize a shared suppy hain

Enae with echnooy-Enabed onuer

serve the eath and Webein of onuer

Mak ur Businss Mor ustainabl:From ich to orm

h urgncy to achiv a mor sustainablbusinss is drivn by a numbr of trnds. h

continud growth of conomis lik China,India and Brazil will put a furthr strain onth worlds natural rsourcs, whthr food,nrgy or watr. h prdictd scarcity of somof ths critical rsourcs will incrasingly btop-of-mind topics for mdia attntion andsocital discussions. Popl will b mor andmor awar of th impact of thir bhavior andb mor cautious about th choics thy mak,as sustainability grows from nich to norm.

In this nvironmnt, companis nd to takrsponsibility in fact, if thy dont consumrs

will forc thm to do so. h rgulatorynvironmnt as it rlats to nvironmntalissus may significantly chang, but thindustry has th opportunity to gt ahad ofit by taking rsponsibility and acting now.

ustainability must b viwd holistically,with a lifcycl approach that includsconsumr us. his mans that influncingconsumr bhavior will likly b th biggstchallng for th industry and th biggstopportunity to mak a diffrnc.

1



32/68

2020The View from 2020 What Success ooks

ike: Consumers Trust Our Industry

Futur succss on this objctiv is masurdsimply by th trust consumrs put in ourindustry to b doing th right thing. rust inth stors in which thy do thir daily andwkly shopping, and trust in th brands

with which thy intract on a daily basis.

Back in 2010, consumrs wr skpticalabout big businss, thy wr wary ofgrn-washing and confusd about whatndd to b don and who ndd to do it.

In 2020 consumrs s rtailrs and brandmanufacturrs working togthr, collctivly,to tackl th big challngs and to hlpconsumrs undrstand th rol thy play inliving an nvironmntally frindly lifstyl.h important word hr, for consumrs, iscollctivly. h actions that our industry

collctivly took sinc 2010, and ld by hConsumr Goods Forum, that addrssdhotspots on carbon missions such asdforstation and rfrigration, dmonstratdto consumrs that rtailrs and manufacturrscan trust ach othr. rust withinour industryhas hlpd consumrs trust inour industry.

With a collctiv voic using commonmasurs, a common languag and consistntmssaging also dvlopd by h ConsumrGoods Forum th industry has hlpdconsumrs undrstand th rol thy play andhlpd thm mak th right dcisions. hishas nabld a significant chang in consumrbhavior. his was rally ncssary, sinc formany of our industrys catgoris, th consumrus producs th largst climat impact.

his did not ngat th opportunity forcomptitivnss. But comptitivnss is

dlivrd by th prformanc of th brandsand stors and by brakthrough innovationsthat rally improv sustainability.

Consumrs also bnfit in 2020 fromgratr transparncy in our industry.Rtailrs and manufacturrs ar opn andhonst about th impact of thir oprationsand thir brands. hy opnly shar thirpolicis and thir initiativs and ar willingto admit whr thy hav not mad thprogrss thy had hopd for and whr thhotspots ar that thy nd to focus on.

Consumrs in 2020 s that our industry hasstppd up to th plat and providd ladrshipfor businss in gnral. By working with ourupstram supplirs and ncouraging thm tojoin us in our programs in fact, by makingit a condition of doing businss with us thatthy match our industry agrd standards andpolicis w hav xtndd our influncovr many othr contiguous industris.

o uarize, ucce cae when conuer bean

to trut our indutry.



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ptimiz a hard upply Chain:Collaborat Diffrntly, Compt Diffrntly

provids furthr transparncy and visibility.w information tchnologis will nabl nw

ways of collaboration and information sharingamong all partnrs in th valu chain.

w businss modls will focus oncollaborating to compt, as brand-indpndnt and smart supply chains mrgwhr information (including P, forcast andinvntory data) as wll as assts (tchnologis,facilitis and flts) ar shard across th valuchain. Distribution logistics will no longr b acomptitiv playing fild but a collaborativfoundation that allows for comptitivdiffrntiation on othr aras on top of that.

hr ar clar trnds that driv th ndto optimiz and shar our supply chains.

Incrasing urbanization which lads tostrict rgulations by city govrnmnts rquirs nw collaborativ formats for citydistribution. Consumr awarnss aboutsustainability dmands a mor C2-frindlysupply of products and srvics. Incrasdadoption of consumr tchnologis, th agingpopulation and growing urbanization willsignificantly chang shopping bhavior and willlad, for xampl, to strong growth in homshopping. his will triggr nw mchanismsfor hom dlivry and nighborhood pick-up.h adoption of supply chain tchnologis





2



34/68


ike: Supply Chains Are Optimized and Shared

h succssful supply chain of 2020 originatdfrom a significant rconsidration of th supplychain modl assumptions that xistd wllbfor 2010. In addition to ky prformancindicators (KPIs) focusd on cost fficincy and

availability, th nw modl also incorporatsparamtrs such as C2 missions rduction,rducd nrgy consumption, nhancdtracability and rducd traffic congstion.his nxt lvl of supply chain optimizationis basd on transparncy and collaboration.

h 2020 supply chain modl is drivn byconsumrs. hy ar th originators of thdmand signal from hom, any mobillocation or a stor. hy ar th triggr for anoptimizd collaborativ supply chain flow:21

Production is synchronizd withth prdictiv and actual dmandsignals from consumrs.

Aftr production th products ar shippd tocollaborativ warhouss in which multiplmanufacturrs stor thir products.

Collaborativ transport from th collaborativwarhous dlivrs to city hubs andto rgional consolidation cntrs.

on-urban aras hav rgionalconsolidation cntrs in which productsar cross-dockd for final distribution.

Final distribution to stors, pick-uppoints and homs in urban and non-urban aras taks plac via consolidatddlivris using nrgy-fficint assts.

his modl has dlivrd tangibl rsultson two typs of succss mtrics:

Effectiveness measures such as incrasdin-stock availability, C2 missionsrduction, improvd ordr fill rats, bttrcustomr srvic and rducd lad tims.

Efficiency measures lik cost rduction,fwr nods and lss handling.

o uarize, ucce cae when uppy chain optiiza-

tion wa treated fro a tota vaue chain perpective rather

than fro individua copany perpective.

21 hi future ode i decribed extenivey in the Future suppy hain viion (a preented in Future suppy hain 2016:

servin onuer in a sutainabe Way, pubihed by the goba oerce nitiative and apeini; ee ao

www.futureuppychain.co).



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engag with chnology-enabld Consumrs:h Consumr in th Drivrs at

similar dvlopmnt is taking plac rgardingbusinss tchnologis, which nabl companis

to samlssly and dirctly connct thir nwI platforms with shopprs and consumrs.

Companis will hav th opportunity to drivgratr valu by making a switch from talkingto towards ngaging with consumrs andshopprs. h shoppr and consumr willb in th drivrs sat, and th challng forcompanis will b to maintain a tru two-waydialogu with consumrs and shopprs andto b rsponsiv to thir changing nds.

h urgncy to ngag diffrntly withtchnology-nabld consumrs originats

from th normous incras in consumrtchnology adoption. Consumrs samlsslyintgrat th us of all kinds of tchnologis inthir livs and thir buying bhavior at anytim, at any location. hopprs will bcomvn mor informd and opinionatd aboutth products and srvics thy want and us;thy will tak gratr control ovr thir ownlivs and will b mor mpowrd towards thindustris that srv thm. his in itslf alsohas st th stag for a nxt lvl of consumrsrvic dmands. h good nws is that a





3



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2020The View from 2020 What Success

ooks ike: Consumers Are Fully

Engaged via Technology

Its 2020 and 15-yar-old Maria and hrfrinds all digital nativs who ustchnology ubiquitously and intuitivly arsnding ach othr vidos ovr thir phonwallts of thmslvs modling cloths thyrintrstd in buying. hy ar all simultanously

commnting and adding accssoris onlinto collctivly choos outfits for ach othr.

Jams, 35, has all his food basics automaticallyrplnishd wkly by his grocry rtailr basdon th familys stor cupboard availability,consumption pattrns and prfrncs.H browss th rcip suggstions sntto his mobil and slcts a coupl achwk; th ingrdints ar automaticallyaddd to his dlivry. If h is out, th ordris placd in his rfrigratd rcptionbox locatd at th back of his hous.

And 52-yar-old Anna shops onlin as sh hasfor 10 yars for gifts and houshold purchass.In contrast, hr tim spnt in th malls is allabout hr shopping inspirinc, an xprincaimd at inspiring touching, fling, tryingand gtting sals advic about nw productsand tchnologis. h usually taks in a

cooking or bauty dmo and fashion showduring hr shopping mall visits. h liks usingth location-basd srvics on hr phon thatlink into hr social mdia community, whichtll hr on th spot which of hr frindswr hr and what thy likd (and somtimssh locats a frind in a narby shop whichprovids a nic opportunity for lunch).

In 2020 consumr tchnology has a significantimpact on th livs of consumrs and vryphas of th shopping journy awarnss,choosing, transacting, dlivry and aftrsalscar. h marktplac has bcom much mortransparnt (for xampl, on prics) and trust isky for consumrs, who dmand prsonalizddialogus and offrings anytim and anywhr.Gnration Z, th digital nativs who grw upwith th Intrnt, is now a significant consumrbas, but at th sam tim all othr oldrgnrations, th digital immigrants, arhavy usrs of consumr tchnologis as wll.

Rapid chang causd by tchnology-nabldconsumrs was not ignord by th industrybtwn 2010 and 2020. W rcognizd thattchnologis ar much mor quickly mbracdby consumrs than by corporations. W figurdout how to ffctivly intract with consumrsvia social mdia ntworks and providdthm with mobil stor fronts so thy couldshop and intract via thir smart phons.

By 2020, th industry is viwd by consumrsas a trustd sourc for information duto an ffctiv ongoing dialogu and

intraction with clar rspct for privacy.h industry has mad quantitativprogrss rgarding th standardizationand quality of data and information bingcommunicatd to and from consumrs.uccssful companis hav includdconsumr input and control in th dsignand function of thir products and srvics.

o uarize, ucce cae when we undertood how to

aintain a true diaoue with conuer via their preferredchanne and technooie.



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4 rv th Halth and Wllbing ofConsumrs: Focus on Quality of Lifincras th adoption of nw supply chaintchnologis. By taking voluntary and rspon-

sibl action th industry may hav an opportu-nity to forstall safty and halth rgulations.

Achiving this objctiv will rquir full industrycollaboration and a focus on issus such asproduct safty (both food and non-food) aswll as providing halthir choics. In addition,improvd collaboration on product rcalls isssntial in ordr to achiv a globally commonand rliabl way to gt taintd products off thshlf. And collaboration with consumrs will bssntial to idntify brand innovation trnds inth ara of halth and wllbing in th futur.

Among th trnds dirctly impacting thisobjctiv ar, of cours, th ovrall incrasd

importanc placd on halth and wllbing bysocitis and consumrs as wll as th agingpopulation. Consumrs incrasingly dmandconvninc and no loss of quality of lif. hris strong prssur on th industry to find nwways to inform, ducat and ngag consumrs,govrnmnts and othr stakholdrs.

Halth and wllbing will incrasingly b-com a ky focus ara for rgulatory actionsby govrnmntal bodis. For xampl, foodsafty will furthr driv th nd for gratrtransparncy in th supply chain and thus will



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ike: Better ives through Better Business

rving th halth and wllbing ofconsumrs in 2020 covrs a broad rangof aspcts, from halthy dits and halthy

lifstyls to prsonal car and hygin, allcontributing to th physical, motional,spiritual, intllctual and sustainablwllbing of consumrs and shopprs.

h availability of halthy choics for allbudgt lvls and th provision of informationand ducation for consumrs and shopprs tomak informd choics ld to consumrs in2020 having changd thir bhavior towardsa mor halthy lifstyl with incrasd

xrcis and modratd intak of caloris.Btwn 2010 and 2020 w saw a dcrasin th obsity rats and th numbr ofpopl with chronic disass causd byunhalthy bhavior. his changd bhavior

is impacting ovrall halth car costs,social factors, th workplac and th localconomic and nvironmntal infrastructur.

In many countris succss is also dlivrdby th availability of affordabl halthyfood choics to hlp prvnt malnutrition.In addition, th availability and improvdquality of watr and hygin has hlpdrduc th incidnc of disass likcholra and th infant mortality rat.

his has all bn stablishd via a nw wayof working togthr among govrnmnts,

consumr goods companis, pharmacuticalcompanis and Gs. his has nabldnw businss modls and a dialogu tocollaborativly work on concrt solutions.

o uarize, ucce

cae when we focued

on better ive throuh

better buine.

ow that w know whatw want to achiv, th nxt stp is to dtrmin howto achiv it. hgood nws is that w dont hav to start from scratch to dvlop tactics for a viabl 2020 actionplan. Global, local and company programs alrady undr way provid a host of idas and toolsthat can b lvragd as wll s in th nxt chaptr.



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AUSTRAIA

COUNTRY

WORSHOP

FCU UAIABLe UPPLY CHAI I 2020

h Australia Futur Valu Chain workshop

focusd spcifically on dvloping a sustainabl

supply chain, with a goal of hlping to shap th

ovrall sustainability agnda. As a foundation,

th group of 27 participating xcutivs chos

to build on th findings of th Futur upply

Chain 2016 study publishd in 2008 by thGlobal Commrc Initiativ and Capgmini. h

rport concludd that a sustainabl supply chain

crats conomic bnfits to th ntrpris such

as a 40% rduction in pallt costs and 20%

rduction in nrgy costs. h way to achiv thos

bnfits is through th cration of collaborativ

framworks to nabl businss to work togthr.

h participants dvlopd four initiativs to

tak forward:

1. Export /Import Model for Unitized and Bulk Cargo.

wo distinct typs of import and xport tasks ar

important to Australia: th unitizd and bulk fright

movmnts. h major chang xpctd in 2020

will b th improvd us of information tchnology,

nabling not just th larg playrs, but all playrs

involvd in import and xport fright movmnts.

o succssfully adopt and implmnt th

proposd modl, th group rcommndd:

Land-us planning

A Virtual hard Logistics Managmnt

ystm (VLM) with opn accssbasd on standards and protocols

A national fright stratgy, which

includs all rlvant nods

Gratr partnrship btwn th

public and privat sctors

2. Urban, Inter-Urban, Regional and Import Chain

Model. h tam focusd on dvloping on

cohsiv futur-stat modl for urban, intr-urban

and rgional sustainabl supply chains by 2020.

o crat a stp chang toward sustainability

of supply chains will rquir a st of guiding

principls for th movmnt of fright in th urban

domain. hs principls ar that larg volums

rquir convyor-lik transport lans; mdium

volums rquir tram-lik mchanisms; and

small volums nd smi-lik movmnts.

h tam rcommndd raising th profil

of fright with policymakrs at all lvls, and

nsuring that it is firmly on th agnda. o assur

th viability of th futur-stat modl, th group

also rcommndd that it b placd in th

contxt of a longr-trm vision, byond 2020.



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3. Rural and Remote Model. h tam dvlopd

on cohsiv futur-stat modl for rural and

rmot sustainabl supply chains by 2020. hy

bgan by xamining th currnt situation for rural

and rmot, and dcidd that du to th natur

of this ara of supply chains, th status quo

should rmain and th futur-stat modl nd

not b radically diffrnt from th currnt stat.

Howvr, thy idntifid aras for improvmnt

such as nhancd collaboration to provid opn

accss and conomic bnfits to th community,

particularly with rgard to dp-sa ports and

bulk commodity movmnt; th consolidation

of local logistics providrs and rsourc sharingto nhanc rural and rmot supply chains; and

improvd visibility of information rgarding supply

and dmand to nabl th ability to consolidat and

smooth dmand to nsur sustainabl distribution.

h tam rcommndd gratr collaboration;

gratr invstmnt whr appropriat by govrnmnt,

privat ntrpris and public/privat partnrships;

and consolidation of and bttr accss to data.

4. Communications. h group confirmd that

currnt supply chain trnds and rgulations

ar unsustainabl and idntifid a stratgy to

highlight issus and offr solutions to govrnmnt,

industry and th community. h tam dvlopd

ky mssags around th burning platform for

chang that cntr on how to nsur that our

childrns futur standard of living dosnt dclin

in th fac of rducd housing affordability,

incrasd congstion, rducd rsourcs,

incrasd costs and incrasd urban tnsion

from population growth. hy notd that ths

factors, if lft unaddrssd, will lad to a dclin

in productivity and intrnational comptitivnss.

o mov ths initiativs forward, th Australia 2020

Futur Valu Chain group has publishd a rport titld

Futur upply Chains 2020. h rport highlights

a numbr of ky influncs, forcs and drivrs that

th Australian transportation and logistics industry

is currntly xprincing which th group blivs

will rmain constant or may incras in intnsity

ovr th dcad ahad. hrough a considration of

ths influncing forcs th group has dvlopd

a roadmap for th journy that Australian supply

chains will tak ovr th nxt dcad.



41/68

FRANCE COUNTRYWORSHOP CReAIG VALUe FR He CUMeR HRUGH CLLABRAI

h group of 20 participants from manufacturrs

and rtailrs in th Frnch Futur Valu Chain

workshop notd that consumption pattrns in

Franc ar changing and will continu to do

so ovr th nxt dcad as a rsult of volving

dmographics such as th aging population. At

th sam tim, consumrs ar mor informd and

awar of thir buying choics. hs shifts will hav

a significant impact on th consumr products and

rtail industry in Franc in th coming 10 yars.

Basd on ths assumptions, th group addrssdsix ky trnds impacting thir markt:

1. Pric vs. valu trad-off

2. Multi-channl dvlopmnt

3. ustainabl dvlopmnt across th valu chain

4. Halth and wllnss at th hart

of consumr concrns

5. w stps to b takn in collaboration

6. enhancd upstram or downstram

intgration for commrc playrs

h group concludd that ffctivly daling

with ths critical issus would rquir

improvd collaboration, with a goal ofcrating mor valu for th consumr. hy

idntifid thr major collaboration aras:

1. Optimize the product delivery to the final

consumer. Although initiativs ar alrady undr

way, thr is considrably mor that can b don

in aras such as sustainabl transport, stock

rduction, on-shlf availability and production

synchronization. Howvr, a qustion was raisd: Do

w rally want to b transparnt on all our costs?

2. Give consumers better information about

our products. Product information currntly

providd to consumrs is too limitd and not

always clar or standardizd. It is incumbntupon th industry to provid bttr information

in aras such as halth, organic products, carbon

footprint, fair trad and packaging. h group

dtrmind that standardization of information is

a ky subjct for collaboration. But should it b

don at an intrnational lvl or only in Franc?

3. Collectively create more value in our categories

for consumers. h dmand for products and

srvics typically grows fastr on th Intrnt than

in physical stors. h challng is how to optimiz

this and how to grow th shar of wallt togthr.

n approach is for manufacturrs and rtailrs to

collaborat on rsarching changing dmographics.

h group dtrmind that a furthr workshop was

ncssary to tak additional stps towards turning

ths rcommndations into concrt activity.



42/68

A wide rane of oba prora i aready in pace to

addre the four objective, a deontrated by a review

of the initiative run by he onuer good Foru.

As: OW WE Wll AEEOR OBEEs As A DsR



43/68

37As: OW WE Wll AEE OR OBEEs As A DsR


44/68

h Consumr Goods Forum was foundd

in Jun 2009 as a global rtailr andmanufacturr parity industry body, drivnby its mmbrs. It brings togthr rtailrs,manufacturrs and supplirs to collaboratacross th valu chain to nrich shoppr andconsumr valu in all markts. Its vision,Bttr livs through bttr businss, isaccomplishd by working togthr to nablth industry to passionatly srv shopprs,consumrs and communitis bttr, fastr,with grat valu and in a rsponsibl way.

h Consumr Goods Forum addrsss

common issus collaborativly with masurablplans dsignd to b actd upon. It buildsits work on th tratgic Pillars that ardfind by th mmbrship as cntral to

th futur of th businss thy shar. hy

ar shown in th accompanying diagram.As th diagram illustrats, all four stratgicobjctivs ar currntly alrady addrssd inmany of th activitis within th fiv tratgicPillars of h Consumr Goods Forum.

h Consumr Goods Forum works closlywith rgional collaborativ platforms and thstratgic partnrs and alliancs it has idntifid.n ky aspct of this collaboration is toalign th activitis on non-comptitiv issus,provid company-drivn focus on som kyprioritis and hlp avoid duplication of fforts.

Following is a look at th currntglobal initiativs and how thy alignwith th four stratgic objctivs.*

RAeGIC PILLAR F He CUMeR GD FRUM

2020 FutureValue Chain

EMERGING

TRENDS

GlobalFood Safety

Initiative(GFSI)

Health &Welness

PrinciplesCommit-ments

Informationand

Education

AgingPopulation

SAFETY AND HEALTH

Marketing:Focus onConsumer

PrepareOur

People

IT:Connect OurBusiness forConsumers

Supply Chain

OPERATIONAL EXCELLENCE

NEW WAYS OF WORKING TOGETHER

GlobalPackaging

Global SocialCompliance

Program(GSCP)

ClimateChange Work:

CarbonMeasurement

Deforestation

Refrigeration

ConsumerEngagement

SUSTAINABILITY

GlobalSummit

KNOWLEDGE

SHARING

FutureLeaders

Circles indicate projects where the strategic objectives are primarily addressed in The Consumer Goods Forum.

Serve the Health and Wellbeing of ConsumersEngage with Technology-Enabled ConsumersOptimize a Shared Supply ChainMake Our Busines More Sustainable

* o activity of he onuer good Foru, incudin thee initiative, invove the exchane of confidentia or copetitive inforation.



45/68

Make Our Business More Sustainable:

Towards Collective Action

h Board of Dirctors of h ConsumrGoods Forum has agrd on a ClimateChange Initiative that ncompasss thfollowing four projcts:

Deforestation. Dforstation accountsfor about 20% of all grnhous gasmissions. Whil th causs of dfor-station ar complx, it is gnrallyacknowldgd that th biggst drivrsar th cultivation of soya and palmoil, logging for th production of papr

and board, and th raring of cattl.All of ths commoditis ar majoringrdints in th supply chains ofmost consumr goods companis.

h objctiv of h ConsumrGoods Forum projct is to minimizth impact that th consumr goodsindustry has on th dgradation anddstruction of tropical rainforsts.At its mting in Paris in ovmbr2010, h Consumr Goods Forumsboard agrd upon a rsolutionon dforstation, which includs a

pldg to mobiliz rsourcs withinth rspctiv businsss to hlpachiv zro nt dforstation by2020 as wll as an action plan.h aim is to achiv this both byindividualcompany initiativs and byworking collectivelyin partnrship withgovrnmnts and Gs lik th WorldWildlif Fund (WWF) and othrs.

Refrigeration. Rfrigration is alsoa significant and growing sourc ofgrnhous gass. his is bcaus

th dominant tchnology hydro-fluorocarbons (HFC) is 1,400 timsmor potnt than carbon dioxid asa grnhous gas. HFCs rprsnt1.5% of total warming potntial today,and ar xpctd to incras to 6%to 9% of total grnhous gassby 2050 unlss w tak action.

Again, h Consumr Goods ForumsBoard agrd on a rsolution andaction plan in ovmbr 2010:h companis rcogniz th majorand incrasing contribution to total

grnhous gas missions fromhydrofluorocarbons and drivativchmical rfrigrants. h companis

ar taking action to mobiliz rsourcswithin thir rspctiv businsss tobgin phasing out HFC rfrigrants by2015 and rplac thm with non-HFC rfrigrants (natural rfrigrantaltrnativs) whr ths ar lgallyallowd and availabl for nwpurchass of point-of-sal units and

larg rfrigration installations.

Carbon Measurement. h objctivof this work is to dvlop a common,global approach and systm formasuring and sharing valu chaincarbon data. h ida is to nabl asimpl, cost-ffctiv and consistntassssmnt of th grnhous gas/nrgy in products, procsss andsrvics, and provid a strong basisfor coopration across th industry.

Consumer Engagement. A prrquisitto communicating with and ducatingconsumrs around sustainability is forth businsss in our industry to agron using consistnt vocabulary. hisprojct will dvlop a glossary of trmsto b usd by commrcial partnrs; thagrd languag will b usd to ngagcustomrs in maningful bhaviors.A scond phas should tak th formof a dialogu with consumrs to findand agr on th bst ways to motivatthm on sustainabl consumption.his should in turn lad to spcific

initiativs on th part of th mmbrbusinsss both on an individualcompany basis and in collaboration

across th various industry sctors to achiv ladrship in ngaging andmpowring sustainabl consumption.

h work of th Forum also includstwo ky initiativs:

h Global Social Compliance Program

(GSCP). h vision is to harmonizxisting fforts to dlivr a shard,consistnt and global approach forth continual improvmnt of workingand nvironmntal conditions inglobal supply chains. h programprovids a cross-industry platform topromot th xchang of knowldgand bst practics as wll as thconvrgnc btwn xisting laborand nvironmntal standards througha procss of quivalnc using thGCP rfrnc tools as a bnchmark.

h Global Packaging Project (GPP).his projct addrsss th nd inour industry for a common languagto allow for informd dbat andbttr dcision making btwnand within companis on packagingand sustainability. A framwork hasbn dvlopd that considrd throl of packaging, th principls ofsustainability and addrsss howpackaging can contribut to improvingsustainability. It also includs anovrviw of th masurmnt systm,

which includd agrd mtrics,indicators and guidanc on usag.



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Optimize a Shared Supply

Chain: Where to Compete and

Where to Collaborate?

h global Future Supply Chain projctis dsignd to hlp manufacturrsand rtailrs dfin thir futursupply chain and its rquirmnts.

Initiatd as a follow-up to th 2016Futur Valu Chain rport, th projctdvlopd a vision for a nw intgratdsupply chain modl that taks intoaccount sustainability paramtrs

such as C2 missions rduction,rducd nrgy consumption, bttrtracability and rducd trafficcongstion, as wll as traditionalmasurs lik on-shlf availability, costrduction and financial prformanc.

h Futur upply Chain projctfocuss on concrt initiativs, suchas multi-modal transport sharing;multi-rtailr, multi-manufacturrdistribution sharing; and KPIs.

btwn east and Wst europ.h main bnfits idntifid rlatto businss continuity (stay inbusinss), C2 rduction, customrsrvic lvls, costs and scurity.First rsults from th pilot arxpctd in autumn 2011.

h multi-modal transport sharingprojct (s accompanying graphic),supportd by Capgmini, broughttogthr a group of rout xprtsand logistics dirctors from 10manufacturrs and nin logisticssrvic providrs (LPs) to look forways to launch concrt projcts. Apilot focus was slctd rgardingmulti-modal collaboration on primarytransportation in crtain corridors

MULI-MDAL RAPR HARIG IIIAIVe: A-I V. -Be

AS-IS: 100% Road Transport

Over longer term diesel prices will rise

German MAUT (road tax) will increase

CO2 taxation EU regulations

Congesetion increase (unreliable transit times)

Trailer theft

Short transit times

Limited timeslots for lorry transport

TO-BE: Multi-Modal Transport Sharing

Less road KM

Less personnel required

50%-80% less CO2 emissions

Low cost, provided a critical mass

Longer, but more reliable transit times

Payload increase (24 tons 28 tons per trailer)



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Engage with Technology-

Enabled Consumers: How to

Create a Two-Way Dialogue

In th original 2016 Futur ValuChain rport th industry agrd onth nd to crat a two-way dialoguwith consumrs in ordr to bttrsrv thm, hlp thm mak morinformd dcisions, and link th storand th hom with mrging in-housand consumr tchnology. Howvr,thr is still considrabl room forimprovmnt to achiv this goal.

o nabl an ffctiv dialogu withth consumr rquirs th dvlopmntof a nw-gnration markting modlfor th industry. his modl, proposdin th 2016 rport, will focus on a nwand collaborativ information flow.Product data will b dividd into:

Generic data, such as tracabilityinformation and rich-mdiaproduct data, including imags,will b availabl for vryon.

Differentiating data, such asspcial promotions, will only bavailabl to crtain customrsor customr clustrs.

h prational excllnc Pillar willaddrss this topic in a working group.

A G1 B2C program currntlyundr way is dsignd to xtndth G1 global standards to providconsumrs with authoritativ productinformation, which thy can trust.Pilot activitis ar in plac and anaction plan has bn agrd andndorsd at th latst ConsumrGoods Forum Board mting.

o enabe an effective diaoue with the conuer require the deveop-

ent of a new-eneration arketin ode for the indutry. hi ode

wi focu on a new and coaborative inforation fow.



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n major initiativ is focusdon ongoing issus such aschildhood obsity by :

Dvloping and implmntinghalth and wllnss principlsand commitmnts for thconsumr goods industry.

Providing information and ducationto mpowr consumrs andshopprs to mak informd choicsfor thir halth and wllnss.

Anothr initiativ focuss onprparing for th futur by buildinga clarr undrstanding of thhalth and wllnss consquncsand nds of aging populations.

Clarly, thr is no shortag of xistinginitiativs to hlp th industry achivth stratgic objctivs for 2020. Buthow dos this translat for individualcompanis? In th nxt chaptr, wlook at how organizations can apply th

sam Futur Valu Chain framworkto thir own businss and w highlightxampls of currnt company initiativsthat addrss th stratgic objctivs.

Serve the Health and Wellbeing of

Consumers: Taking Joint Responsibility

Companis can ngag in twoconcrt initiativs from hConsumr Goods Forum:

Global Food Safety Initiative (GFSI).

h GFI is focusd on rducing foodsafty risks by dlivring quivalncand convrgnc among ffctivfood safty managmnt systms.

Health and Wellness: h goal of this

initiativ is to quip th industry witha thought ladrship and collaborationplatform on non-comptitivhalth and wllnss qustionsamong manufacturrs, rtailrsand thir common stakholdrs.

he oa of the eath and Wene initiative i to equip the indutry

with a thouht eaderhip and coaboration patfor on non-copetitive

heath and wene quetion aon anufacturer, retaier and their

coon takehoder.



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GS1 IN EUROPE

REGIONA

WORSHOP

ALIGMe IDeIFIeD BU Me GAP ReMAI

In addition to th country Futur Valu Chain

workshops, a europan rgional sssion was hld in

Antwrp, Blgium, by G1 in europ. Participantswr th G1 Ces of 24 europan countris and

rprsntativs from G1 Global ffic, eCR europ

and h Consumr Goods Forum. h objctivs of

th workshop wr to undrstand th 2020 Futur

Valu Chain program and th globally idntifid

trnds; translat this to a country-spcific contxt,

including prioritization on th lvl of impact;

match rlvant trnds with currnt programs and

initiativs (G1 and/or eCR); and undrstand th

rol of G1/eCR in addrssing ths trnds.

h group prsntd thir country initiativs (covring

a rang of activitis on topics lik eDI, global data

synchronization, data quality, ePC, tracability,

B2C/mobil commrc and savvy consumr). In

addition, thy analyzd th global trnds towards

2020 and mappd G1 country initiativs against

thos trnds. In th ara of th shard supply chain,

for xampl, thy concludd that G1 activitis

covr a wid rang of rlvant topics, including

fficint logistics, C2 masurmnt for transport

and warhousing, sustainabl warhousing,

tracability and product rcall, and -invoicing.

h participants dtrmind that a high dgr

of ovrall alignmnt xists among th various

initiativs, but full alignmnt is lacking. Amongth gaps, thy idntifid a nd for a singl

agnda, mor tr

2020 future value chain report

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