PROFIT IMPACT OF ECR

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Profit Impact of ECR

• ECR Australasia
• Interim Report

Jill Connell Non Food Business Manager,
Franklins Judy Quirk ECR Manager, Lever
Rexona
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What is it?
Profit Impact of ECR is about making joint
business decisions
based on

• true cost and profit information,
• right along the supply chain,

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SoWhats different?
IT WORKS !
QUICKLY !
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So Why did we do it?
To Grow Sales
To Cut Costs
To Increase Profits
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and..
We have already acted on the Results
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Agenda

• Project Objective

• Background

• Case studies

• Results

• What Next

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So..What is our objective?

• ECRA Profit Impact Project
• Objective
• To build on the work carried out by ECR Europe
  and to place that work in an Australasian context
  with an operational focus to encourage the common
  assessment of initiatives in the food and grocery
  industry.

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Agenda

• Project Objective

• Background

• Case studies

• Results

• What Next

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Profit Impact of ECR Task Force
BACKGROUND

• Commercial impact of ECR initiatives
• Methodology developed by the Profit Impact of ECR
  Taskforce (PIETF)
• ECR Profit Model developed by ECR Europe
  Consultants - PAP.

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Profit Impact of ECR
BACKGROUND

• Methodology and model piloted by major retailers
  and suppliers including

• Usego
• Tesco
• Albert Heijn
• Metro

• Nestle
• Procter Gamble
• Colgate Palmolive
• Unilever

• European Case studies completed include
• efficient assortment dish care
• pallet labeling

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The Methodology
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Agenda

• Project Objective

• Background

• Case studies

• Results

• What Next

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2 Case Studies
Cost-to-Serve Analysis
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How we Worked
Franklins
Lever Rexona
Focus
Focus
ECR Profit Model
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What did it deliver?
Cost-to-Serve Analysis
Category Analysis
Sub Category A
Sub Category B
Sub Category C
Category C
Sub Category D
Category D
Sub Category E
Category E
Illustrative Data only
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What did it deliver?
Cost-to-Serve Analysis
Category Analysis
Vendor A
Vendor B
Vendor C
Vendor D
Vendor E
Vendor F
Illustrative Data only
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Cost-to-Serve Analysis
Retailer Bubble Matrix by Product
Top Priority
Support to grow volume
Category Analysis
Product A Product B Product C
Product D
D
B
Profitability an issue
Delete or show cause
Illustrative Data only
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What did it Deliver.
Cost-to-Serve Analysis
Category Analysis
SUPPLY CHAIN
Product A
Illustrative Data only
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Agenda

• Project Objective

• Background

• Case studies

• Results

• What Next

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SoWhat did we achieve.

• Ranging decisions made
• SKUs for focus identified
• Joint supply chain improvement projects
  identified.

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Other Benefits

• Further develop trust between retailer and
  supplier
• Quality results quickly
• Develop understanding of each others business

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Agenda

• Project Objective

• Background

• Case studies

• Results

• What Next

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So...What next?Lever Rexona and Franklins?

• Pursue projects
• Monitor results

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What next?ECR Australasia

• Deliver recommendations
• Publish case studies
• Support Industry Adoption

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So We set out to
Grow Sales
Cut Costs
Increase Profits

• And we have made decisions that should deliver
  this.

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SoWhats in it for you.

• The PIETF methodology will identify initiatives
  which can

Grow Sales
Cut Costs
Increase Profits
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