1. ECR Europe - Supply Side Work Group 11 February Participating organisations: Retailers: –Metro, Metro Greece, Tradeka, Woolworth Manufacturers: –Colgate-Palmolive, Coors Brewers, Douwe Egberts, Gillette, Heineken, Henkel, Kraft Foods, Nestlé, Procter & Gamble, SCA Hygiene Products, SC Johnson Wax Organisations: –ECR Germany, France, Italy –GS1, EuroCommerce –ECR Europe Shared Learning Initiative Objective: Review status and identify supply side agenda 2005/2006 and next steps

2. –Where are we today on supply side What have we done ? Do we have solid foundations to move forward ? Barriers to optimal results on supply side Bridges to overcome barriers –Axis of supply side agenda 2005 &2006 Focus on results and efficiency & effectiveness Content & Context of Supply Side Review

3. Supply side implementation - We can be pleased but not yet proud of where we are today Average Global ECR Scorecard results between 1.6 and 2.9 (out of 4) Pilot stage Implementation started

4. ECR has done a lot but we are far away from foundations of ECR "every day" Key "Barriers"to Supply Implementation –Awareness and education among the industry –Lack of critical mass and stakeholder engagement (especially by retailers) –Transparency and alignment between stakeholders –Mindset - Do we really live the ECR principles and want to collaborate –Need to drive and focus the implementation process –Basic enablers e.g standards need stronger and broader adoption

5. We have to address "bridges to barriers" to ensure an agenda has optimum foundations for success Key "Bridges" to supply side implementation –Total industry leadership and commitment Get a "burning platform" for our industry Governance - more focused, more forceful. –Open up - Transparency and objectives Scorecard, Measure, Share, Review, Act "Gain Share" - motivate engagement –ECR Europe General Learning Programme accelerate - reach, depth and influence mindset –Nurture and support supply collaboration in industry Do not mix with commercial negotiations or disputes –Focus on enablers to drive ECR agenda

6. ECR Supply Side Agenda - Axis to be relevant & deliver in 2005/2006 1."Back to Basics" - to get optimum "ROI" on what we already have done to date. 2."New supply side agenda" to address business challenges in efficiency & effectiveness

7. 1. Recommendation: "Back to basics" to achieve tangible deliverables for ECR now ! –Address the foundations and barriers with vigour with a focus on implementation of enablers –Measure "maturity" and accelerate action on key and targeted enablers to drive a focused agenda. –Establish critical mass & scale of targeted enablers –We have an abundant agenda based on previous work ( ECR Blue books) –Re- evaluate &Re- Focus on key areas of industry relevance to become "completer/finishers" of work already started –Agenda requires joint agreement of industry

8. Taking existing work further: –Optimal Shelf Availability More practical solutions and embed in daily work –Transport Optimisation (incl. pallet standards and management) Environment, cost etc... New agenda items: –Shelf-ready packaging "Standards" as appropriate –Optimise the industry supply chain structure strategy alignment and asset reduction –Migration to EPC/RFID From "pilots" to scale 2. Recommendation: "New Supply Side Agenda" to Efficiency & Effectiveness in the industry 2005/2006

9. Summary and Conclusions Key priority tackling "Barriers and Bridges" Commitment by board and industry essential ECR Governance should be reviewed: Focus, priorities, alignment Highest ROI is to focus on "Back to Basics" New "Supply side agenda" is strong but will not be optimised without "basics" being addressed Unless we address the above with all relevant players to drive for results relevance of ECR agenda will diminish