MR Patrick G. Gonklin

New Ways of Working Together
Pat Conklin, Chief Customer Officer, Procter & Gamble- Asia
The light bulb was not invented from continuous Innovation of a Candle
The case for change

We have been talking about Collaborative Commerce and Collaboration for years. Efficient Consumer Response was founded on the Strategies of:
Efficient Assortment Efficient Replenishment Efficient Promotion Efficient New Item Introduction
The Case for Change
Yet todays Supply Chain is STILL filled with waste.
Stores are over SKUd
New SKUs Registered 1980 2005 2007 2,899 10,651 85,000
Average Items in a Typical Supermarket 1987 1997

The Case for Change
24,500 30,000 45,000
2007
Source: Global Commerce Initiative New Ways of Working Together
Inventories are too high
The Case for Change
There is too much of the stuff consumers dont want and not enough of what they do.
Out-of-stocks persist
The Case for Change
The Case for Change
Trading partners continue to focus on business minutiae instead of shoppers
The best way to predict the future is to invent it.

Alan Kay, noted computer scientist
Forces and trends that have the potential to significantly alter the industrys value chain over the next decade.
The industry must Redefine the 2016 Value Chain

Trading Partners must more readily and freely
Share Information
In their Bi-Lateral relationships
The industry must Develop New Ways of Working Together
New Ways of Working Together A Consumer Goods Forum Initiative

Jean-Paul AGON Chief Executive Officer LOREAL Brenda C. BARNES Chairman & Chief Executive Officer SARA LEE CORPORATION Warren F. BRYANT Chairman NATIONAL ASSOCIATION OF CHAIN DRUG STORES
Colleen GOGGINS Worldwide Chairman, Consumer Group JOHNSON & JOHNSON Bob MCDONALD Chairman, President & Chief Executive Officer THE PROCTER & GAMBLE COMPANY
Project Leaders
Manufacturers JOHNSON & JOHNSON NESTL PROCTER & GAMBLE Retailers CARREFOUR KROGER CO.
Sir Terry LEAHY Chief Executive Officer TESCO PLC
METRO GROUP WAL-MART TESCO WEGMANS SAFEWAY

Stefano PESSINA Executive Chairman ALLIANCE BOOTS Mike DUKE President & CEO Wal*Mart
Eckhard CORDES KRAFT FOODS Chairman of the Management Board UNILEVER & Chief Executive Officer METRO AG Lars OLOFFSON Chief Executive Officer CARREFOUR GROUP John RISHTON Chief Executive Officer Royal Ahold
J.M. SMUCKER COCA-COLA Legal Counsel
Motoki OZAKI President Kao
Michael KOK Group CEO Dairy Farm
Paul POLMAN Chief Executive Officer UNILEVER
New Ways of Working Together Eliminate supply chain disruptions, enable growth
Industry Track (Collaborate)
Best Practices/ Standards Documentation, Education, Communication Guiding Principles and Frameworks Share Results
Focus on Consumer
Strategy Alignment JAG Framework
Connected Business Information

Common Goals & Measures Information Sharing* EPC Data Sync
Prepare People for New World

Knowledge, Skills & Capabilities Incentives & Rewards organisation Design
Share Our Supply Chain

Sustainability Cross Industry Integration Integrated Supply Chain
Consumer/ Shopper Satisfaction
Strategic Issues Between Trading Partners
Common Goals, Common Measures
Specific Measures & Priorities
Other Data Sharing Opportunities
Trading Partner Track (Competitive Advantage)

*Note: Utilizations of Industry Standards
Focus on Consumer
Strategy Alignment Joint Business Planning




Encourage bi-lateral collaboration

Based on clear, fact-based understanding of market context and trends (P&G) Establish True Scorecards based on trading partners strategies as well as operational and financial objectives
Focus on Consumer
Embrace joint long-term planning

Annual planning is often insufficient IP protection and trust
Implement longer term planning processes

JAG process
Five step process building a Annual milestones to be set Program reviewed

three-year rolling JAG plan Step 1 Review the economic and shopper environment Step 2 Review sales and agree on prioritized growth levers Step 3 Define and agree on 3-year JAG plan
throughout the year Buyer-Seller accountable for functional liaison, planning coordination, agreement and execution follow-up Cross-functional teams drive analysis and planning to support Buyer-Seller
Step 5 Monitor & adapt
Conditions for success
Fact based
Help trade partners build Demonstrate the objective

rationale for their growth strategy Step 4 Execute the JAG plan
Allow reliable quantification

of the opportunities and expected ROI
selection of relevant growth levers
Focus on Consumer




Common Goals and Common Measures

Based on a common language
GS1 Trading Partner Performance Management Standard Global Data Synchronization
Focus on Consumer




Five Elements of Change? Change Vision Skills Skills

Measures / Rewards Measures / Rewards Measures / Rewards Resources
Action Plan Action Plan Action Plan Action Plan Action Plan
Change Confusion Anxiety Gradual Change Frustration False Starts
Resources
Prepare People for Vision Skills New World

Vision Vision Skills Skills
Vision
Resources
Resources
Measures / Rewards Measures / Rewards
Resources
Understand the Barriers and Enablers to long term, shopper focused business planning
Transform people performance incentives and rewards Build knowledge, skill and capability sets Design organisational structure around consumer needs and drivers
Focus on Consumer




Industry and trading partners must do things differently Adopt more sustainable business practices Collaborative Transport Management, Empty Miles Share Our Supply Chain
Focus on the Consumer will not work if goals and measures are not shared, or if supporting rewards and structures are not in place Connect our Business will not work if the connection point is not the shopper or if there are no mutual goals or the supply chain is still viewed as yours versus mine Prepare our People will be insufficient if there is not a clear, shopper focused business plan focusing the organization, or if there are not the Focus Connected Prepare People common goals, common measures and information for Share Chainon. visibility toOur Supply act on Consumer Business New World Share our Supply Chain will not be possible without understanding how Information every decision impacts the shopper, or if the way we measure success is Common Goals & different. Too often we optimize components of the supply Sustainability sub Strategy Knowledge, Skills & chain, but Measures Alignment Capabilities optimize the whole Cross Industry
JAG Framework Information Sharing* EPC Data Sync Incentives & Rewards organisation Design Integration Integrated Supply Chain
An Integrated Approach to Better Business Results
New Ways of Working Together will require:

Leaders who inspire by example Honesty, Integrity and Credibility Transformation of Business information
Visible Connected Accurate Informative Actionable Relevant
So, what do we do about it?
The NWWT Opportunity

Take responsibility for the current state Expand your view to include all stakeholders Collaborate effectively across the supply chain in the name of the customer experience. Change outdated structures. Modify incentives or rewards that do not result in behaviors that positively impacts the consumer. Seek to understand and adjust non-compatible processes.
So, what do we do about it?

MR Patrick G. Gonklin

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

MR Patrick G. Gonklin

Загружено:

Авторское право:

Доступные форматы

New Ways of Working Together

Pat Conklin, Chief Customer Officer, Procter & Gamble- Asia

The case for change

The Case for Change

Yet todays Supply Chain is STILL filled with waste.

Stores are over SKUd

New SKUs Registered 1980 2005 2007 2,899 10,651 85,000

Average Items in a Typical Supermarket 1987 1997

24,500 30,000 45,000

Source: Global Commerce Initiative New Ways of Working Together

Inventories are too high

The Case for Change

The Case for Change

The Case for Change

Trading partners continue to focus on business minutiae instead of shoppers

The best way to predict the future is to invent it.

The industry must Redefine the 2016 Value Chain

The industry must Develop New Ways of Working Together

New Ways of Working Together A Consumer Goods Forum Initiative

Sir Terry LEAHY Chief Executive Officer TESCO PLC

METRO GROUP WAL-MART TESCO WEGMANS SAFEWAY

J.M. SMUCKER COCA-COLA Legal Counsel

Motoki OZAKI President Kao

Michael KOK Group CEO Dairy Farm

Paul POLMAN Chief Executive Officer UNILEVER

Connected Business Information

Prepare People for New World

Share Our Supply Chain

Consumer/ Shopper Satisfaction

Strategic Issues Between Trading Partners

Common Goals, Common Measures

Specific Measures & Priorities

Other Data Sharing Opportunities

Trading Partner Track (Competitive Advantage)

Connected Business Information

Prepare People for New World

Share Our Supply Chain

Consumer/ Shopper Satisfaction

Strategic Issues Between Trading Partners

Common Goals, Common Measures

Specific Measures & Priorities

Other Data Sharing Opportunities

Trading Partner Track (Competitive Advantage)

Encourage bi-lateral collaboration

Embrace joint long-term planning

Implement longer term planning processes

Five step process building a Annual milestones to be set Program reviewed

Step 5 Monitor & adapt

Conditions for success

Help trade partners build Demonstrate the objective

Allow reliable quantification

selection of relevant growth levers

Connected Business Information

Prepare People for New World

Share Our Supply Chain

Consumer/ Shopper Satisfaction

Strategic Issues Between Trading Partners

Common Goals, Common Measures

Specific Measures & Priorities

Other Data Sharing Opportunities

Trading Partner Track (Competitive Advantage)

Common Goals and Common Measures