17 element(s)

ECR Australasia - Winning with Promotions Report (promotional OSA)

ECR Australasia 01/12/2011 00:16:23

<p><p style="text-align: justify;"><img style="float: left; margin-left: 10px; margin-right: 10px;" src="<a class="txttohtmllink" href="http://www.ecraustralasia.org.au/storage/publication-covers/Winning%;20with%20Promotions.JPG?__SQUARESPACE_CACHEVERSION=1289785043457">http://www.ecraustralasia.org.au/storage/publication-covers/Winning%;20with%20Promotions.JPG?__SQUARESPACE_CACHEVERSION=1289785043457</a>" alt="" width="233" height="255" />The <strong><em>Winning with Promotions Industry Report </em></strong><strong>completed in 2010 </strong>is the culmination of a year long focus on delivering improved product availability for promoted products across the operational aspects of planning, execution and evaluation. The Australian market is one of the most heavily promoted in the world with on average 54% of product sold on promotion and in some categories as high as 80%.</p><br />
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<p><p style="text-align: justify;">The industry report details key results and findings from an industry wide survey, in-store assessment and retail specific workshops. The insights offered by the report should prove useful to food and grocery manufacturers, suppliers, retailers and wholesalers. Companies are encouraged to use the findings in discussion with trading partners, to challenge  current promotional execution and deliver improved on-shelf availability....<br />
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Maximising the Effectiveness of ECRA - 2005

ECR Australasia 2010.09.24


The ECRA Board commissioned a review of ECRA initiatives with the aim of maximising their effectiveness and identifying relevant future work streams. The review included a desktop evaluation of existing work activities, the communication media adopted by ECRA and a questionnaire issued to retailers and suppliers in the food and grocery sector.

Analysis of report recommendation adoption rates provided an insight into those areas that have yet to reach full business integration. The report did not evaluate the causes of low adoption rates. For every issue full adoption and integration of report recommendations has not yet occurred. While there is progress towards full integration there is a requirement to continually reinforce past project work and findings and to assist in the uptake of report recommendations. This report makes some suggestions as to how they may be encouraged.

The questionnaire analysis identified the opportunity to further embed ECR practice and principles within organisations and between trading partners. 89% of respondents indicated they are actively working with trading partners to reduce supply chain costs.[CUT]However some enablers to progress this work effectively such as distinguishing between commercial and supply chain costs; utilising cost-to-serve techniques in joint decision making with trading partners; investment in IT infrastructure and common tools and process for demand forecasting are yet to be fully realised.  The success stories in terms of full integration included; the adoption of industry product movement standards (55.9%); company individual measurement and analysis of stock outs (44.1%); integration of electronic transactional processes into core information systems (30.3%) and synchronisation of item and party data using EANnet (27.3%).

Issues that had the least traction included; collaboration on loss prevention (50.0%) potentially driven by the smaller number of specific SKU’s impacted; the use of cost to serve techniques in joint decision making (35.36%) however the majority of respondents have partially or substantially adopted cost to serve techniques in their own business; collaborative innovation with trading partners to decrease environmental and safety pressure on transport and packaging (35.3%) and standard messaging to support CPFR between trading partners (32.4%), low adoption may be due to limited number of companies involved in CPFR practices.

When asked to evaluate future work streams, respondents indicated strong support for further developing and appreciating on shelf availability; CPFR; cost/value profit measure; collaborative information management; and the optimisation of new product introductions.

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The Profit Impact of ECR - 2000

ECR Australasia 2010.09.24


To quote from the 1999 Grocery Industry Tracking Study, "The role of activity based costing in ECR is to understand the likely impacts of new ways of doing business. However, the results of that study indicate that there has been relatively little progress with activity based costing". In view of the lack of progress in activity-based costing across the Australasian grocery industry this project was established to evaluate and trial a methodology developed by ECR Europe, for the pre- and post-implementation analysis of the cost and profit impact of ECR initiatives. This publication covers the Australian case studies undertaken as part of the project work and includes conclusions and recommendations to the industry along with an extract from the ECR Europe publication, "Assessing the Profit Impact of ECR", covering the methodology and activity wizard tested and approved for use in the Australasian market.
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Australasian Grocery Industry Tracking Study 2002

ECR Australasia 2010.09.24




The ECR Australasia (ECRA) Board commissioned PwC Consulting (PwC) to conduct the 2002 Tracking Study as part of its ongoing process to monitor and encourage the development and implementation of advanced demand and supply chain management processes in Australasia. The major objectives of the study are to identify:

-    progress, current performance and best practices in implementing Efficient
Consumer Response (ECR) in Australasia
-    opportunities for further improvement from both an industry and individual trading
partner perspective.

For the first time, the 2002 Tracking Study included New Zealand and made use of the Global Commerce Initiative (GCI) scorecard and database. Scorecards were enhanced from previous years to reflect evolving best practices and to emphasise the importance ofconcepts such as collaborative planning and consumer value creation. A verified self-assessment process was used for collecting individual company data from 49 manufacturers (representing approximately 50% of total ex-factory industry sales for the categories covered in the study through the grocery channel) and 6 retailers/wholesalers (representing approximately 70% of total grocery retail industry sales).

The leaders in the Australasian grocery industry have made significant progress in implementing ECR since our initial study was conducted in 1995. They have begun rolling out advanced ECR concepts across their businesses with significant progress in areassuch as demand management and operational excellence. Although progress has been made, the industry, as a whole, is substantially behind the targets that were set for 2002 by participants in the 1999 Tracking Study.

The 2002 Tracking Study reports that lagging organisations are missing out on the opportunity of seizing their share of further operating cost reductions in the Australasian industry. PwC estimate these to be greater than A$1 billion, and available reductions in finished goods inventory to be an additional A$800 million.

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Efficient Product Movement - 2003

ECR Australasia 2010.09.24




With the vital support of IBM Business Consulting Services, the latest report, “Efficient Product Movement” brings together the expertise of a project team drawn from suppliers, retailers and wholesalers at the leading edge of process change in the transport and distribution of food and grocery products in Australia and New Zealand. It reflects increased attention by trading partners to increased efficiency in the handling and transport of products through the supply chain.

It also reflects the recognition – highlighted in the 2002 Australasian Grocery Industry Tracking Study – that Australia and New Zealand lag behind North America and Europe in transport and distribution maturity. This is clearly an opportunity for improvement.
The “Efficient Product Movement” Guide provides direction for suppliers, retailers, wholesalers and service providers to improve the efficiency of product movement throughout the supply chain. It documents leading practice in Australasia, with the aid of 12 case study examples, and identified the opportunities for further cost savings through innovation or standardization in pallet and pack configuration, order multiples, technology, vehicles and storage facilities.

The guide points to activity based costing of product movement processes and cost-to-serve based trading terms as key drivers of collaborative process improvement and increased efficiency, reduced costs and enhanced consumer services.
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Australasian Grocery Industry Tracking Study 2006

ECR Australasia 2010.09.24


This is the fourth ECRA Tracking Study commissioned by the ECRA Board, facilitated by IBM Global Business Services. The objectives are to:
- assess industry maturity development vs targets previously set
- benchmark industry maturity vs Europe and the USA
- estimate potential remaining benefits of full ECR adoption at an industry level
- provide each participating company with visibility of their maturity vs others in their
industry
The results are qualified: firstly by the industry participation rate which is about a third of the last study in 2002; and secondly by the skew in participating companies towards those that are larger and more mature in ECR adoption. Nevertheless participants represent 20% of total ex-factory industry sales for the grocery categories covered and 81% of total grocery retail industry sales.

There are four key findings from the study:

1. Leading companies are leading in ECR implementation and now have scores that are comparable with  global benchmarks. They are reaping the benefits and positioning themselves for future success.

2. Lagging companies are in danger of losing relevance to both consumers and trading partners. In manufacturing,   laggards may seek to become the future low-cost house brand suppliers - but will need to improve service to retailers to reach this goal.

3. Assigning resources and priorities for business development is a recurrent issue. Several leading companies have made hard decisions about which parts of the business to keep in-house and focus on, vs which parts to outsource or send overseas. Other manufacturing businesses appear to have cut costs and their capacity for product and service innovation, passing this role to others in the industry.

4. For the leaders, collaboration is now an established way of working in areas such as replenishment ordering; although in other areas the lack of systems to support automated exchange of timely and accurate data is a limiting factor.

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Product Introduction and Delisting – Improving the Supply Chain Efficiency and Effectiveness

ECR Australasia 2010.09.24




The Product Introduction and Delisting report evaluates the operational inefficiencies and unnecessary costs for supplier, retailers and wholesalers through the introduction of new product lines and delisting of others, and outlines processes aimed at optimising the management of ranging decisions.


A cross industry project team conducted a detailed survey, a review of global best-practice and a number of industry workshops to understand current performance levels, underlying issues and to identify a set of recommended improvement actions.
For example the findings of an industry wide survey identify the cost of poor execution is significant and that supply chain budget over-runs for product launches alone are estimated to average 1% of revenue annually.
The Product Introduction and Delisting report includes:-
• The study findings including survey results, key findings and recommendations
• New Product Introduction and Delisting self assessment tool
• Examples of Product Lifecylce Management Processes
• Sample New Product Introduction and Delisting metrics
• Local and international case studies depicting best practice.
ECR Australasia extends thanks to the project participants for their invaluable input and to Accenture for their project management and facilitation throughout the project.
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A Guide To Efficient Replenishment and Reducing &amp;quot;Stock Outs&amp;quot; Within The Grocery Industry - 2001

ECR Australasia 2010.09.24




The publication is intended as an operational guide that is applicable across a variety of trading environments and provides an improvement path for companies with varying levels of experience and capability. The concepts in this guide reflect the conclusions of studies in Australasia and the USA that were accessed in the preparation of the report. Anecdotal evidence suggests that the stock out rate at retail may be 5%-10%, while for fast moving consumer products and during periods of high demand, stock outs may reach 15% or higher.

The project identified that the impact of stock outs is threefold:


  • cost of lost sales to retailers, estimated between $500 million — $1 billion per annum;

  • cost of lost sales to manufacturers, estimated between $450 million — $750 million per annum;

  • manufacturers and retailers can lose end consumers or repeat buyers.


Manufacturers and retailers will benefit from the analysis of the replenishment process, organisational requirements and enabling systems to reduce stock outs and improve consumer satisfaction. While the majority of root causes of stock outs appear to lie in-store, the greatest benefit is likely to be achieved through the collaborative efforts of all trading partners.

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A Guide to Demand Forecasting within the Grocery Industry - 2000

ECR Australasia 2010.09.24




The Grocery Industry Supply Chain Committee's (GISCC) 1999 Tracking Study identified that there were several opportunities for significant improvement in demand forecasting. General operating practices revealed that there were few instances of trading partners sharing information, few companies were actively developing forecasting capabilities and most forecasting was done on a monthly cycle rather than weekly using different forecasts for sales/marketing, etc. The ECR Australasia project team has developed a framework for demand forecasting including recommendations for improving the process, developing organisational capability and acquiring the right technology. "A Guide to Demand Forecasting within the Grocery Industry" includes two case studies which clearly demonstrate the improvements that can be made using the methods it recommends.
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A Guide to Collaborative Loss Prevention - 2002

ECR Australasia 2010.09.24




The benchmark ECR Europe shrinkage project reported early in 2001 and took up from the many retail loss prevention studies and surveys, to further investigate loss within the fast moving consumer goods and supermarket sector.

When the ECR Australasia Board considered the loss prevention project proposal, the Australasian impact could not be quantified beyond the general acknowledgement that it was of substantial estimated cost to the industry. There was little in the way of formalised or documented retailer and manufacturer collaboration or measures available for review.

The project objective was to determine the level of stock loss in the Australasian grocery supply chain, in a way that identifies key points and methods of loss, so that actions can be taken by trading partners individually and in collaboration to reduce the impact. While recognising that loss occurs in many ways, potential solutions to reduce fraudulent supply chain loss were the principal focus of the project. The project was undertaken with a view to utilising as much of the ECR Europe project methodology as was possible.

The project determined, through an industry survey, that in their last reported year, suppliers, retailers and wholesalers in the supermarket industry reported the value of overall stock loss along the supply chain and within the retail store as A$942 million or 1.73% of industry turnover.

Of particular significance in an ECR context was the survey finding of a very low level of collaboration between trading partners on the issue of loss prevention. The recommendations of the ECR Australasia project team highlight how suppliers and retailers can collaborate to reduce the incidence of stock loss.

In addition to measuring the size of the stock loss problem in Australasia, this project sought to highlight the key points and methods of loss. The project team reviewed the extended supply chain, using their knowledge and experience to highlight the risk areas, report on best practices and promote local case study examples. Project participants were able to identify elements of the community that need to be included in a holistic loss prevention.

In providing a quantifiable estimate of the impact of stock loss on the supermarket industry in Australasia, ECR Australasia has identified an understanding of where and how that loss occurs. This should serve as a call to trading partners to review the manner in which they are addressing loss prevention and to establish whether the sum of two halves will be greater as a whole, in attempting to reduce the total cost of stock loss. The cost of the status quo is the enormous, and growing figure of A$942 million dollars per year to Australasian supermarkets and their suppliers.

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Industry Toolkit for Shelf Ready Packaging

ECR Australasia 2010.09.24




ECRA announces the launch of an Industry Toolkit for Shelf Ready Packaging


The Board of Efficient Consumer Response Australasia (ECRA) recognised that there was the potential for a multiplication of shelf ready packaging standards within the Australian and New Zealand food and grocery industry leading to a risk of proliferation of contradictory guidelines, which would endanger the initial vision of bringing more value to the consumer.

The development of a set of common industry standards and guidelines aims to assist retailers, suppliers, wholesalers and packaging companies implement sustainable alternate packaging solutions. Through the publication of the Retail Ready Packaging – A focus on shelf ready packaging an Industry Toolkit guidance is provided on how to look at the introduction of shelf ready packaging within your organisation.

The practical approach of the Toolkit will benefit trading partners and provide a framework for open dialogue, avoiding prescribed solutions or technical specifications.
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How to Win in January – Improving service levels

ECR Australasia 2010.09.24




Improving availability through the supply chain in January represents a great opportunity to improve sales for suppliers and their retail trading partners, and ultimately provide a better service to shoppers and end consumers.

The following ECRA report aims to provide insight into this industry wide problem and guidance on the best ways for retailers and suppliers to meet the challenges and make the necessary improvements for January 2010.

Use this report to:


  • Understand the causes and impacts of poor service levels to the industry;

  • Identify the opportunities and challenges to improving service levels in January within the Australian market;

  • Gain insight into the top seven focus areas for improving availability and what they mean for your business; and

  • Consider developing organisational specific action plans to drive improvements.


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Accurate Product Measurement - Items and Trade Units within the Australian and New Zealand Grocery Industry

ECR Australasia 2010.09.24




Efficient Consumer Response Australasia, GS1 Australia and GS1 New Zealand officially released its latest report Accurate Product Measurement - Items and Trade Units within the Australian and New Zealand Grocery Industry at the highly successful workshop held on Wednesday 11 June 2008.

The report provides a concise summary of the key findings of an industry wide measurement audit and details the imporantance of accurate item and carton measurements, including the ongoing maintenance of this data in master data files. It also offers practical information on measurement rules; standard tolerances; and data quality management.
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A Guide to KPI Development within the Grocery Industry

ECR Australasia 2010.09.24




The Grocery Industry Supply Chain Committee's (GISCC) 1999 Tracking Study highlighted the general poor understanding, agreement and use of ECR-related Key Performance Indicators (KPIs) and scorecards at two levels.

-  within individual companies
-  between trading partners

A scorecard is the identification, definition and quantification of a set of KPIs that focus and drive desired behaviour to accord with what is being consistently measured both within and between trading partners.

The key issues were assessed to be the:

-  inability to agree upon KPIs to be used, consistent and common definitions and
frequency of measurement.
-  changing/redefining of performance measures tended to lag the development and
implementation of key initiatives; this has often resulted in the existence of long
standing, entrenched KPIs that incentivise behaviour inconsistent with new
business and trading arrangments.

-  inability to routinely measure the important data elements that make up the KPIs, typically, transaction systems such as
warehouse management, order processing and so forth have not been able to provide the routine data set measurements
required to efficiently quantify the performance measures.
-  general lack of preparedness, with some notable exceptions, for trading partners to share information with respect to the
performance measures with the view to seeking joint performance improvements.
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Getting the Best out of Pallet Labels

ECR Australasia 2010.09.24




Efficient Consumer Response Australasia (ECRA), proudly supported by AFGC, in partnership with GS1 Australia today launched a toolkit for use in the fast moving consumer goods industry to deliver improved pallet label compliance.

In a study conducted earlier this year 44% non compliance in pallet labeling was identified across the industry. This significant level of failure is being seen by the retail trade as the biggest  emerging issue in their respective supply chains.

The toolkit was launched in Melbourne on Monday 13 September and Sydney on Wednesday 15 September. Over 200 supply chain practitioners attended each session hearing directly from the retail trade on how this level of non-compliance impacts their business and how suppliers and logistics providers can actively work to deliver improvements.

The toolkit - Getting the Best out of Pallet Labels -provides practical advice for the industry including details on retail receival processes, common pitfalls and how to develop pallet label quality standards within organisations.
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Retail Ready Packaging Toolkit

ECR Australasia 2010.09.24




Since the publication in 2006 of the Retail Ready Packaging – A Focus on Shelf Ready Packaging an Industry Toolkit significant changes (such as global economic slowdown; commodity price increases; focus on sustainability; expansion of discount retail outlets; oil price peaks etc) have taken place in the Australian and New Zealand markets. Responding to these changes with the ability to adapt and develop agile responsive supply chains is increasingly important to food and grocery manufacturers, suppliers, retailers and wholesalers.
Many of these factors have had an indirect impact on the implementation and adoption of Retail Ready Packaging (RRP) solutions into the market. However it is as a result of inadequate in-store execution; a lack of a clear whole of chain business case; and cost complexity that wide spread adoption of RRP has not been evident.  ECRA has updated the guidelines and continues to work with retail and supplier organisations to ensure alignment where possible is achieved.
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Winning in January 2009/2010 Review

ECR Australasia 2010.09.24




The Winning in January 2009/2010 Review report is the culmination of a year long focus on delivering improved product availability in the retail space. The industry report details key results, findings and next steps.  The insights offered by the report should prove useful to your organisation, in discussion with trading partners and lead to a further improvement in January 2011.
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