ecr int forum akin bayer

Copyright © 2009 METRO Cash & Carry Russia Member of METRO Group

ECR International Forum – “Act Local”

Akin BayerMoscow, June 2nd, 2010

METRO Cash & Carry Russia

Member of METRO GroupMETRO Cash & Carry Russia

670

Self-Service Wholesale

Food retailDepartment

storesNonfood specialty

METRO Cash & Carry – a core Division of METRO Group

Sales (bn): € 19.7Countries: 16Stores: 818

METRO Group sales 2009: € 65.5 bn

Cross functional companies



Sales (bn): €30.6Countries*:…. Stores*:

30


METRO Cash & Carry is internationally leading self-service wholesaler

METRO Cash & Carry International

670 Stores in 30 countries

5.3 million m2 total sales area

106.000 employees

31 billion EUR Sales in 2009

METRO Cash & Carry Russia

2001 – start of operation

52 operative stores (federal)

13.000 employees

2.6 billion EUR sales in 2009


METRO Cash&Carry participates actively in ECR initiatives worldwide

Anti theftprotection

Building Brands

Shrinkage

Food Safety

Couponing

Efficient Unit Loads Shelf ready

packaging

EPC Task Force

Category Management

GDS

RFID

Logistics

On ShelfAvailability

Enabling Technologies


Economic developments in 2009 underline the necessity to foster deeper cooperation between retailers and suppliers

Drop in retail market development

23.5 23.8

29.4

2.90

5

10

15

20

25

30

35

2006 2007 2008 2009

Drop in currency rate

+38%+38%

Drop in customer confidence


Satisfying customers needs and expectations is key

EDI

Supply chain & Supplier

collaboration

Category Management


Successful category management requires a trustful relation with suppliers and producers

Selected intensified cooperation's

relationship turns into collaboration

exchange of information and data's

joint business building

Active category management approach fosters the relation between retailer & supplier

… with the main aim to serve customersneeds and to meet their expectations in terms of

availability

easy to find

quality

packaging


Category management is the interface to the customer – findings category shopper helps us to indentify the decision drivers

45

33

27

18

12

11

9

5

4

4

62I have already bought these pralines and I like them

Specifics of taste and formula

Acceptable price

Producer company

Good value for money

Producer country

Brand

Beautiful pack

I wanted to taste novelty

Another person asked me

Different tastes in one pack

Decision Drivers

BRAND known product (62%), favourite taste (45%) manufacturer/ brand (27%)

PRICE (33%)

*Raffaello = 100% brand awareness, >17%* market share“Brand of the Year” in Pralines in 2009

Conclusion: Visual Anchorin the Category needed to:

bring shoppers in the aisle and help to orientate

visual Anchor = the strongest brand in the category


Category management is the interface to the customer – findings from category shopper helps to identify the decision drivers

Usage of planogramsIntegration of visual anchors

Visual Anchor

Shopper Decision factors

Brand as recipe and price tier

Planograms based on:

Sales in RUR and Metro units Total Income Shelf Stock coverage Professional assortment Own Brands


Supplier Collaboration aimed to improve availability and stock days at the same time

Stock days decrease* Service level*

Stock reduction measures allowed to reduce stock days:

Supplier discipline – more accurate deliveries due to adjusted time schedules and minimum order recalculation

Planning of promo-actions

Master data issues – timely price adjustment, missing, wrong bar-coding, timely articles blocking

Administrative issues – delivery documents completeness, certificates availability - supplier’s data sources (internet portal of the suppliers)

Out of Stock at supplier’s warehouse – forecasting improvement, production adjustments

*1Q 2010 vs Q1-Q4 2009:

0.44

5.77

3.98

6.37

0 2 4 6 8

Danone

Coca-Cola

Kraft

P&G

-1.53

-3.21

-2.85

-1.1

-4 -3 -2 -1 0

Coca-Cola

P&G

Unilever

Nestle


EDI implementation proved significant benefits

EDI business impacts

EDI (Electronic Data Interchange) performs a great impact for MCC and supplier business processes:

- Process optimization

- Cost optimization

- Reliable and on-time payments

EDI solutions are significantly flexible for business needs, traceable and transparent

EDI is a considerably stable and well-performed technology.

Implementation milestones

EDI penetration results

Message CommentNumber of suppliers

Penetration (% of documents)

ORDERSPurchase order

3271 81,61%

DESADV Delivery note 515 25,39%

RECADVGoods receiving

497 20,23%

2005 2008 2009 2009

EDI launch

DESADVRECADV

Invoice SLSINVPRT

MCC RU is a “pathfinder” for EDI in Russia


EDI INVOICE is the next milestone to be reached

Current EDI process together with paper

Paper invoice

Reconciliation of EDIand paper invoice

Invoice payment

Input of total data

Goods receiving data

Archive

EDI invoice

Retail chain

Sup

plie

r

Aim of the project: Implement EDI invoice with suppliers. As soon as necessary law changes are adopted immediately switch to EDI invoice without paper.

Current status: 63 suppliers are in

production, another 600 suppliers

are in test including Kraft foods,

Nestle, WBD.

Target 2010: receive 5% of the

invoices by EDI


ECR activities are not only fostering customer orientation, but also an excellent dialog platform

improve efficiency by spotting non-productive processes

makes End to End Supply Chain processes and costs transparent

helps to reduce pipeline cost

supports reliable cooperation, best practice transfers between supplier and retailer

however, it’s an important dialog platform

ECR initiatives are depending on

shared vision “customer”

ready to share relevant information and best practices

mutual respect and trust between the players

full commitment

Member of METRO GroupMETRO Cash & Carry International GmbH Page 14

Contact

AKIN BAYERManaging Director

METRO Cash & Carry LtdLeningradskoye Shosse, 71 G,125445 MoscowRussian Federation

Phone: +7 (495) 660 26 00Fax: +7 (495) 502 12 20Mobile: +7 (919) 991 94 09

[email protected]

© Copyright

This concept is intended only for the purpose of presentation and is the intellectual property of Metro Cash & Carry International GmbH. Passing on to third parties as well as the use and exploitation of the presentation either in whole or in part is expressly forbidden

METRO Cash & Carry International GmbHGeschäftsführung/Executive board of management: Frans W.H. Muller (CEO); Dr. Andrea Francesco Martinelli; Dr. Christian Mielsch; Dr. Claudia Schlossberger; Thomas ZieglerSitz/registered office Düsseldorf, Amtsgericht Düsseldorf HRB 36616 - Commercial Register of the Duesseldorf Local Court HRB 36616

ecr int forum akin bayer

Business

edi implementation

metro group sales

edi invoicewithout paper

eur sales

metro cash carry russia

current edi process

successful category

metro cashcarry