ECR AP - The need for collaboration - ECR Community

ECR AP - The need for collaboration 

Quarterly Newsletter of ECR Asia Pacific 

2 nd ISSUE 2012 Summer 

On the picture from left to right: Nick Lee, Tack Wai Wong , Bred Kim, Maximilian Musselius, 

Ivett Katalin Nagy, Anna Lin, Heidi Ho, Michael Haas, Chris Cave Jones, Alex von Behr, Francois 

Gay-Bellile, Apolonia Kersh, Ah Yiam Tng, Alain Ong, Nancy Quek, Anthony Rose 

“As a new participant on the ECR Asia Pacific council 

I was quite impressed with the content of the agenda 

and the discussions. I believe the agenda items are 

topical and can deliver significant benefits to the industry” 

Claude Ringuet SAP Page 2-3 

After this Programme, I can now be a Strategic 

Change Agent in my company, developing 

differentiating policies, becoming consumer- 

led every day!” Paolo from Barilla in 

Italy Page 4 

“I do not want people sitting in China thinking global. 

I want them to think local. Consumer in China won’t 

say that I am a global consumer. So you have to 

THINK LOCAL and at the same time ACT GLOB- 

AL. It is very important to build talent with local 

insight. “ Harish Manwani Unilever Page 27 “We have converted and enhanced the content, we 

have closed the deal and continue to drive customer 

loyalty. But this is still the very beginning. A lot is 

still coming.” Liu Jun Ling Page 29 

60 seconds with Alex von Behr P.2 

ECR AP Council Meeting May 2012 P.2-3 

ECR AP Knowledge and People 

Excellence LaB P.4 

ECR AP Sustainability: Walmart Best 

Cases P.5 

ECR AP Operational Excellence -OSA P.6 

Introducing: Metro Group P.7 

ECR AP New Members BT, SAP P.8 

Introducing ECR Hong Kong P.9 

ECR Asia Country News P.10-13 

Outside of Asia—CGF P.14 

Outside of Asia– Europe P.15 

Outside of Asia– Australia P.16-17 

SUPPLEMENT: ECR AP 2012 Conference 

P.18-31 

ECR AP News P.32 

1 

1

60 Seconds with Alex von Behr - 

former Co-chair of ECR Asia Pacific 

Alex tell us 

more about 

yourself and 

your role at 

ECR AP. 

I have spent a 

fascinating two 

years as Manufacturer 

co- 

Chair for the 

ECR Asia Pacific 

Council. 

After a year on the Council representing Unilever I took on the cochair 

role as I wanted to play my part in building real collaboration 

between retailers and FMCG manufacturers in AP. I had also previously 

-in an earlier role- spent a year on the Operating Board on 

ECR Europe so had a pretty good idea of what could be possible if 

we could get things organized. In my first year I focused on agreeing 

a framework for operating with my fellow council members, 

and in my second year I have been focused with my retailer cochair 

Anthony Rose of Wal-Mart in, firstly, building representation 

on the council from retailers and manufacturers, and secondly 

on encouraging the undertaking of collaborative projects. Of 

course this was “topped off” with a successful execution of the 

recent ECR AP Conference in Singapore, which coincided with 

the ending of my two year term as co-chair…it would be remiss of 

me not to also mention the drive and passion brought to the ECR 

AP movement by our Director Ivett Nagy who has been a close 

ally to Anthony and myself in taking things forward on all of these 

fronts, and to the ECR Singapore team for the very successful organization 

of the recent conference. And the advice and support of 

Jean- Marc Saubade, the Managing Director of our global umbrella 

organization Consumer Goods Forum (CGF) has really helped. 

What are your “legacies” as the out-going co-chair ? 

Over the last two years I do think we have made progress in establishing 

a clear way of working in line with our new charter and the 

strategic framework mirroring the CGs’ 5 pillars. As a council we 

have built additional participation for retailers and manufacturers 

but there is still some way to go and I would have liked to have 

seen more active participation from a couple of other major retailers 

operating in Asia Pacific. Big thanks in particular to Wal-Mart 

and Metro for the active and positive contributions, and the representatives 

from Coke and P&G have been particularly active, 

along with Unilever of course! It was a source of great pride to see 

much of our reason for being coming together over those few days 

in Singapore in May, with a vibrant Council Meeting reviewing 

good progress across a range of collaborative projects, followed by 

our two day conference attended by nearly 400 delegates, and 

showcasing keynote speeches by senior leaders from our members 

and the sharing of some terrific collaborative initiatives across the 

region, including awards for the best. 

What would be your advice for the person who will succeed 

you? 

He will need, and I know he has, a passion for taking forward the 

ECR AP agenda, with plenty of patience in getting the best out of 

very busy council members. We have built a strong platform and I 

feel very confident that under new, refreshing leadership the ECR 

AP movement will go on to even greater things! 

What are things you wished you had done differently? 

The killer has always been time. All council members are doing 

their roles in addition to their very busy day jobs, so finding the 

time has always been the biggest challenge. I am proud of what we 

have achieved despite this huge constraint. 

I have loved the opportunity to interact in a collaborative way with 

manufacturers and retailers across the Asia Pacific region – ECR 

AP Council is probably the unique forum in our part of the world 

for doing this, and has been an inspiring and enjoyable experience. 

I have always been keen to learn and build my experience and this 

role has really contributed to that. I am very grateful to have had 

the opportunity 

What are you most proud of ? 

Facilitating dynamic collaborative enjoyable ECR AP Council 

Meetings with good committed attendance 

How would sum up yourself ? 

strategic, considerate, driven 

What are your favorite places? 

3 S’s of Singapore, Switzerland and Sydney 

Who is the person you most admire and why ? 

Charles Darwin as he worked out and explained the puzzle of life! 

What is your favorite quote ? 

“If it’s to be it’s up to me” 

What trait you most value in people ? 

Integrity 

ECR AP COUNCIL MEETING UPDATE 

In May 2012 ECR AP Council member attended in our 47 th 

council meeting. 30 participants were presented from 16 companies 

and from 10 different Country ECR organizations .Alex 

von Behr opened the meeting with a special welcome to our 2 

new ECR AP members– British Telecom and SAP. This meeting 

was the last for Alex as manufacturer co-chair. Francois 

Gay-Bellile, Coca-Cola Pacific’s Vice President Customer 

Leadership is to become ECR Asia-Pacific’s new manufacturers’cochair. 

2 

2

Council meeting update 

Actions from the meeting: 

Operational Excellence: 

Palett standardization: Finish the project plan and collect case 

studied by July. 

OSA: Set up tradeshows and discuss follow on initiatives. 

Sustainability: Collect service provider cases for ECR AP best 

practice booklet what will be launched September 2012. 

Emerging Trends: Endorsement of our plan to refresh 

identification of future trends and commitment to provide key 

resources to working sessions to gather and test ideas, then 

review and sign off new white paper. Set up 3 workshops . 

Help us establish the right mechanism for sharing best practice 

information and encourage member organisation participation in 

any forum we establish . 

People Excellence: Members to think of people who could benefit 

from a participation in the LaB program . 

ECR India: Assist in leveraging Asia Pacific contacts of CPG 

companies/retailers to re-engage with ECR India activities and 

take leadership role in driving same. 

Share global best practices. 

Provide guidance on accelerating ECR principles adoption thru 

relevant use cases. 

National Initiatives: Set up framework and engage AP country 

organization. 

AGENDA 

Topics Who 

Introduction 

Alex von Behr 

Last meeting actions Alex von Behr 

Operational Excellence Committee 

Update 

Sustainability Committee Update 

People Excellence Committee 

Update 

Emerging Trends Committee 

Update 

Chris Cave Jones, Paul Prendergast, 

Haas Michael, Nigel 

Branch 

Anthony Rose/Pat Conklin 

Francois Gay-Bellile/ Ivett 

Nagy 

Alex von Behr/ Apolonia 

Kersh/ James Layard 

ECR India Ravi Mathur 

ECR Conference update Nick Lee 

National Initiatives Idea Ivett Nagy 

Next Manufacturer Co chair 

appointment 

Alex von Behr, Anthony Rose 

“Despite everyone’s busy schedules, it’s encouraging to see 

the preparation and engagement around making a bigger 

difference as a leadership group.” Pat Conklin (P&G) 

“It is a very good networking time to gather 

the industry players together to share 

the industry needs as both a local perspectives 

and a regional perspectives.” 

Heidi Ho (ECR Hong Kong) 

“The Council Meeting was a great opportunity to work 

collaboratively with like-minded manufacturers and retailers 

in Asia Pacific on collaborative opportunities like 

OSA and emerging trends – the quality of debate is always 

fascinating and thought-provoking – it is the only forum I 

know of that can bring together these interests in AP”. 

Alex von Behr (Unilever) 

“As a new participant on the ECR Asia Pacific council I was 

quite impressed with the content of the agenda and the discussions. 

I believe the agenda items are topical and can deliver 

significant benefits to the industry.” Claude Ringuet (SAP) 

“The Council meeting was the best we have had. Great to see 

the progress being made across our 5 main topics.” 

James Layard (BT) 

“ The broad attendance at the Council Meeting was very good 

to see especially the representation from some countries who 

had not joined before. I agree completely with the sentiments 

expressed in Council that the organisation and structure which 

has now been set up around the Council makes the projects 

worthwhile with clear deliverables. Once again thankyou to 

Alex for playing such a key role in making this happen. “ Nigel 

Branch (CHEP) 

“well run meeting with efficient review of 

current projects and ideas for future initiatives 

“ Apolonia Kersh 

3 

3

ECR AP Knowledge and People Excellence - Learning across 

Boundaries - The Consumer Goods Sector Executive Development Programme 

New dates for the 2012-2013 session 

26-30 November 2012: First Module at INSEAD Campus, 

Singapore 

Academic Research / Case Studies & Industry Speakers, Discussion, 

Simulations, Workshops & Field Trips (Field Trips 

focusing on Store Visits exploring the peculiarities of mature 

European markets) 

18-22 March 2013: Second Module at INSEAD Campus, 

France 

Academic Research / Case Studies & Industry Speakers, Discussion, 

Simulations, Workshops & Field Trips (Field Trips 

focusing on Asian Supply Chain processes and Store Visits of 

Asian markets) 

My name is Stephanie Penning and I have been working with the 

ECR EU Learning & Development Initiatives for over eight 

years – firstly developing the framework for the national learning 

programmes; then becoming the manager (now development director) 

for the global executive development programme. 

Over the years, this programme has developed into the “ECR 

LaB: Leading across Boundaries Programme” that we know 

today. ECR AP People Excellence Committee is an integral part 

of the Steering Committee that stewards the development of a 

relevant curriculum and it will be the first time in 2012 that one 

week of the program will be held in Asia in Singapore. 

Its predecessor (the “Progressive Management Programme”) 

hosted 100 delegates from the Consumer Goods Sector through 

interactive modules focusing on subjects relating to the whole 

Consumer Value Chain. These delegates now form the ECR 

Alumni, who, in their turn, assist the development team to shape 

the ECR LaB Programme of today. 

As with all ECR initiatives, the ECR LaB Programme is itself a 

collaboration – between the ECR Executive Board and LaB 

Team, with the world-renowned INSEAD Business School, plus 

leading companies in the Consumer Goods Sector. 

The ECR LaB Programme is... 

� for high-potential executives in Consumer Goods companies; 

� for crossing new boundaries: within companies; with 

trading partners - globally 

� a ‘LaBoratory’: an exploratory environment – to discover 

& try out new ideas 

� an analysis of the Key Leadership Duality – change what 

needs to change; keep what works 

� a transition towards delegates’ own visions – from studying 

ideas of others’ 

� complements company leadership programmes – a joint 

experience for delegates from different companies, forging 

strong relationships during (and after) the Programme 

I continue to work with this Programme as I believe it is fundamental 

in supporting Consumer Goods companies to prepare their 

high-potential executives to become their Leaders of the Future – 

placing their companies at the top of the Sector. 

Previous delegates have gained many, many benefits 

and have become strong ambassadors of the 

Programme, commenting: 

“I am creating a step-change in Category Management 

in Central Europe, using Consumer Insights 

and Fair Process concepts learned during 

the Programme - in collaboration with a Supplier 

met on the Programme, then with other Suppliers.” 

Anna from Tesco in Poland 

“Having already created a collaborative Task 

Force with a Retailer during the Programme, use 

our insights and time in store, then work on ranges, 

planograms, etc. Implement this elsewhere, 

creating a pool of global experts to work with our 

customers.” Jon from Coca-Cola in Great 

Britain 

“After this Programme, I can now be a Strategic 

Change Agent in my company, developing differentiating 

policies, becoming consumer- led every 

day!” Paolo from Barilla in Italy 

For more information, or to book yourself, a colleague 

or a member of your team on this unique Programme, 

please contact Ivett Katalin Nagy on ivett@ecr-all.org 

or directly to me, Stephanie Penning, on Stephanie.penning@ecreurope.com 

or +39 349 243 3706. 

4 

4

ECR AP Sustainability - Walmart Best Practices 

Walmart is a pioneer in the area of responsible sourcing with a strong focus on the Asian markets from where it sources 80% of its 

merchandise. 

Walmart’s Supplier Development Program is a first of its kind initiative to 

encourage suppliers to adopt best practices. The program goes beyond simple 

audits by teaching suppliers hands on methods to bring their operations to a 

world-class level. Benefits include a decrease in workplace injuries, lower 

employee turnover rate, enhanced energy efficiency, improved recruitment 

practices and better internal communications practices. 

54 suppliers have already graduated from the program and 127 suppliers are 

currently enrolled. . 

Walmart puts a great deal of emphasis on encouraging its suppliers to adhere 

to global best practices in areas ranging from sustainability to safety. The best 

case practice in this area is Walmart China’s Energy Efficiency Program 

that involved more than 300 factories in China. 

By January 2011, 143 factories have achieved 20% energy efficiency improvement with totally saved energy consumption by 514 

million KWh, equivalent to reducing CO2 411,000 tons. 

Walmart Supplier Diversity program was launched in 1994 to help bring minority and women-owned businesses into our vast network 

of suppliers with an initial spend of US$2 million. Today, our procurement from diverse suppliers’ accounts for more than 

US$10.5 billion in direct and second-tier spend. 

Walmart and Unilever HUL recycling initiative in India 

In 2011, Bharti Walmart and Unilever 

India launched “HUL”, a first-ofits 

kind recycling initiative in India 

promoting plastic waste recycling 

and educating consumers on responsible 

consumption. The program ran 

for three months across 30 stores. 

Throughout the campaign period, 

customers were encouraged to bring 

empty plastic bottles and pouches in 

exchange for store coupons 

Bangladesh – Walmart WHEEL program for garment workers 

In Bangladesh, more than 80 percent of garment workers are women, 

and nearly all of them live in poverty. These women often lack a formal 

education and the skills necessary to improve their quality of life. 

With our assistance, the WHEEL program has set up 100 learning centers 

where women can gain workplace skills and receive literacy training. 

The initiative will benefit 2,500 workers and their families, positively 

impacting an estimated 12,500 to 15,000 people in their communities. 

Walmart and SC Johnson Sustainability partnership 

Walmart U.S. publically announced the desire to 

phase-out of products containing the following three 

chemicals: permethrin, propoxur, dichlorvos. 

Walmart’s announcement focused on having suppliers 

deliver a plan to achieve this goal. 

SCJ put together a plan based on product development 

and regulatory timelines to move from Permethrin 

to other active ingredients with the imperative 

of maintaining product performance. 

Walmart and P&G Value Stream Mapping 

(VSM) project 

VSM project aimed to eliminate the waste where it 

exists along the value stream process in between of 

P&G and Walmart. It was done by process optimization, 

technology application and operation innovation. 

As a result Lead time (time involved from receiving 

time to shipping time) improved by 54% and receiving 

time improved by 49% in 2011. 

5 

5

ECR AP Operational Excellence – On Shelf Availability Press Release 

ECR Asia Pacific launch On 

Shelf Availability in Asia Pacific 

22 nd May 2012 

ECR Asia Pacific and Accenture 

are excited to announce the publication 

of the first Asia Pacific 

wide report into On Shelf Availability 

(OSA). The report was 

created by an OSA working 

group setup in 2011 between 

Accenture, Unilever and Diageo. 

Retailers and Manufacturers in 

APAC are realizing the importance 

of OSA in an industry 

where vertical integration is 

limited, and parties have to rely 

on each other to achieve their respective goals. This goal is now a 

common one: shopper and consumer satisfaction, which can only 

be achieved by ensuring high levels of collaboration and adopting 

a common methodology to approaching issues. 

Over 2011 and 2012, 51 manufacturers and retailers from 14 

different countries participated in the first ECR APAC wide On- 

Shelf Availability survey, investigating the perception of OSA 

within APAC as well as the critical success factors and key barri- 

Future Agenda 

Based on this report and its key findings, a set of follow on initiatives 

have been proposed –see them below-, aimed at leveraging 

the momentum that has been created in ECR APAC around 

OSA. These initiatives will set the stage that will allow ECR 

members to successfully kick start their OSA improvement journey 

and will require industry wide commitment. 

Standards, measures and definitions 

The inconsistent method and frequency of measuring of OSA 

and the lack of APAC wide benchmarks is high priority in the 

future agenda for change. 

Consumer behavior Response to OOS Survey 

Given the current widely used benchmark is based on a Consumer 

Behaviour Study conducted in 2004, a more relevant study 

would bring new insights and allow APAC initiatives to respond 

more accurately to customer preferences. 

ers to reducing out of stocks. The outcomes of the survey combined 

with insights from a series of 1on1 interviews were the 

basis of the ECR APAC OSA report - outlining the key findings 

and the future agenda for change. 

The report can be accessed through the following link: http:// 

www.ecr-all.org/upload/blogfiles/0c7/APAC%20ECR% 

20OSA%20Report%202012.pdf 

Efficient Consumer Response Asia Pacific (ECR AP) is an 

independent joint trade and industry body, which is co-chaired by 

representatives from the retail sector and the manufacturing sector. 

It promotes the use of Efficient Consumer Response techniques 

in Fast Moving Consumer Good (FMCG) retailing to remove 

unnecessary costs from the supply chain and make the sector, 

as a whole, more responsive to consumer demand. 

Accenture is a global management consulting, technology services 

and outsourcing company. Combining unparalleled experience, 

comprehensive capabilities across all industries and business 

functions, and extensive research on the world’s most successful 

companies, Accenture collaborates with clients 

to help them become high-performance businesses and governments. 

With more than 247,000 people in 49 countries, the company 

generated net revenues of US$25 billion for the fiscal year 

ended 31 August 2011. 

For more details please contact Ivett Nagy (ECR Asia Pacific) at 

ivett@ecr-all.org or Paul Prendergast (Accenture) at 

paul.d.prendergast@accenture.com 

Periodical monitoring of OSA levels in APAC 

To collect OSA data points from manufacturers and retailers on a 

periodic basis, bringing all data centrally to conduct and provide 

basic analytics. The output of this initiative would be an analysis 

based on a large volume of POS, stock on hand and order data 

from a breadth of contributors that would allow all parties access 

to OSA improvement insights. 

Global OSA Survey based on ECR APAC Survey template 

A global survey, using the ECR APAC survey as a template will 

provide consistent results across geographies and bring forward a 

greater collaboration of best practices and ideas. 

A future ECR APAC report on OSA could also focus on traditional 

(mom-and-pop) distribution. 

6 

6

Michael Haas is 

introducing: 

METRO GROUP 

in Asia 

As a pioneer 

among international 

trading companies, 

METRO 

GROUP entered 

the Asian market as 

early as in 1996 

with its first Metro Cash & Carry outlet opened in China, 

Shanghai. Today the group generates more than 60 percent of 

its turnover outside of Germany with Asia being one of the 

most important growth regions. With its sales division Metro 

Cash & Carry the group is already present in five Asian countries 

with around 100 outlets in China, India, Japan, Pakistan 

and Vietnam. In 2010 the group entered Asia with its consumer 

electronics division Media Markt which operated until end of 

2011 7 outlets in Shanghai. 

Metro Cash & Carry – a unique business-to-business concept 

Metro Cash & Carry is the top selling sales brand of METRO 

GROUP and operates over 700 outlets in 30 countries. The 

unique wholesale business-to-business model of Metro Cash & 

Carry is focused on professional customers such as hotels, restaurants, 

caterers, small and mid-sized retailers as well as other 

companies and offices. One of the cornerstones of the concept 

of Metro Cash & Carry is to establish direct procurement from 

local suppliers and to offer an “all under one roof” concept 

with 90 percent locally sourced products to its professional 

customers. 

Metro’s aim is to 

contribute to the 

sustainable development 

of the emerging 

markets in Asia: 

With our unique 

B2B concept we link 

local farmers and 

producers to the 

market and offer 

small businesses a 

reliable supply 

source of high quality goods at competitive prices. Together 

with tailored support programs for example for small traders or 

trainings for local restaurants and caterers, we enable SMEs to 

compete in increasingly challenging markets. By establishing 

our business we create a modern trade infrastructure with fewer 

middlemen and establish e.g. an unbroken cooling chain or 

distribution platforms for fresh produce. Production can be 

better aligned with market demands and distribution efficiency 

for local products increases. This leads to lower wastage and 

lower costs and in turn results in lower food prices and enhanced 

domestic consumption. Metro also trains farmers and 

suppliers in applying international quality standards and create 

access for them to our network in 33 countries – thus fostering 

the agricultural sector in general. 

Michael Haas 

Head of Supply Chain Management 

MCC Asia . He has joined to the ECR AP 

Council in 2012. He is co -chairing the 

Operational Excellence Committee and 

also lead of the Pallet Standardization 

working group. 

7 

7

New Members: British Telecom, SAP 

Operating globally, delivering locally – 

BT continues to grow in Asia Pacific 

In September 2010, BT Global Services 

announced an ambitious, 3 year investment 

programme for Asia Pacific which 

outlined several goals – to support our customers, double the size 

of our business and to win new customers. Half way through the 

rollout, BT has delivered on its promises. 

With a major increase in headcount, the setting up of new customer 

technology showcases, and a new portfolio of products and value-added 

services, the company is showing solid growth. As they 

embark on the second phase, Kevin Taylor, President Asia Pacific 

BT Global Services, explains. 

“We are halfway into our investment programme and have a 

strong foundation from which to further accelerate our growth. 

Winning Telecom Asia’s ‘Best Managed Service Provider’ for the 

third year running is a fantastic achievement for BT – and we intend 

to put that leadership into practice in our ongoing support, not 

only for global multinational organisations expanding into the 

region, but for local multinationals going global. 

We have hired 300 new staff across Asia Pacific – especially in 

the key markets of China, India, Australia, Singapore, Hong Kong 

and Japan –to ensure we have the right talent and respected local 

leadership to strengthen how we engage with our customers. 

We have rolled out a portfolio of 20 new products and services in 

Asia Pacific, which means that our customers can now access the 

As market leader in enterprise application 

software, SAP (NYSE: SAP) helps companies 

of all sizes and industries run better. 

From back office to boardroom, warehouse 

to storefront, desktop to mobile device – 

SAP empowers people and organizations to 

work together more efficiently and use 

business insight more effectively to stay 

ahead of the competition. SAP applications 

and services enable more than 183,000 customers (includes customers 

from the acquisition of Sybase) to operate profitably, adapt 

continuously, and grow sustainably. For more information, visit 

www.sap.com. 

As market leader in enterprise application software, SAP (NYSE: 

SAP) helps companies of all sizes and industries run better. 

Founded in 1972, SAP (which stands for "Systems, Applications, 

and Products in Data Processing") has a rich history of innovation 

and growth as a true industry leader. Today, SAP has sales and 

development locations in more than 50 countries worldwide. SAP 

applications and services enable more than 183,000 customers 

worldwide to operate profitably, adapt continuously, and grow 

sustainably. 

From back office to boardroom, warehouse to storefront, desktop 

to mobile device, SAP empowers people and organizations to 

work together more efficiently and use business insight more ef- 

same standardised portfolio whether they are in Shanghai, Sydney 

or Sao Paulo. In addition we have continued to expand our professional 

services arm in region to offer business led solutions. 

Six customer technology showcases have been launched in Beijing, 

New Delhi, Hong Kong, Singapore, Shanghai and Sydney, 

enabling our customers to experience and interact with our innovative 

solutions and capabilities firsthand. 

We outlined our business sector growth plan in the areas of: global 

banking and financial services; government and health; consumer 

packaged goods; and global commerce. And we’ve made great 

progress against that commitment with several major deals signed 

over the last 12 months. 

In the CPG and Retail industry we are proud to be a Council 

Member of ECR APAC, and commit to help drive the Collaboration 

and Visibility agendas through the Thought Leadership and 

Solutions we bring. At the heart of this is helping organisations to 

get more from their Networks in solving real business issues. 

2011 has been a year of transformation for BT in Asia Pacific. 

Against a challenging business backdrop, we listened to our customers 

and we delivered against a clear set of goals. 

As we embark on the second half of our three year journey, it remains 

clear that companies are continuing to seek growth into - 

and out of - Asia. At BT we are learning a lot from our own experiences 

as well as those of our customers, and looking forward to 

strengthening our reputation as a networked IT services leader.” 

fectively to stay ahead of the competition. We do this by extending 

the availability of software across on-premise installations, ondemand 

deployments and mobile devices. 

We believe that the power of our people, products, and partners 

unleashes growth and creates significant new value for our customers, 

SAP, and ultimately, entire industries and the economy at 

large. 

Our mission is to help companies of all sizes and industries to run 

better. Our vision is to help the world run better. 

In Asia Pacific, SAP is a market leading provider of business software 

to the consumer products and retail industries. With over 

90% of the leading global consumer products companies leveraging 

SAP technology we are extremely well placed to drive value 

for ECR Asia member organisations. With 5 market categories 

covering Applications, Database and Technology, Cloud, Mobility 

and Analytics, SAP can support businesses to not only grow but to 

innovate. 

Claude Ringuet is the Vice President for APJ for Consumer Industries. 

This portfolio covers consumer products, retail and wholesale 

industries. Claude has a background in management consulting 

and working directly in industry as a CIO for a global 3PL as 

well as business strategy leader at The Campbell Soup Co. 

8 

8

Introducing ECR Hong Kong 

ECR Hong Kong’s OBJECTIVES are: 

� Provide an industry platform for retailers and suppliers to improve 

and collaborate on supply chain related matters 

� Facilitate FMCG industry to increase business efficiency and 

customer services via ECR/SCM best practices and enabling 

technologies for better management of demand and supply 

chains 

� Promote and support ECR/SCM activities locally, regionally 

and globally, and establish linkage to ECR Asia, Consumer 

Goods Forum and GS1 

The MISSION 

“Collaborative 

Efforts to Win 

Customers” 

SCOPE OF WORK: 

1.Promotion & Education 

To promote SCM concept, best practices and technologies to the 

local industry and Asia Pacific region for greater awareness on the 

benefits of SCM implementation through key events, website, information 

dissemination through media and website, and educate practitioners 

2.Industry Collaboration 

To study new ECR initiatives or practices and align work of members 

towards same goal and definitions 

3.Industry Benchmark 

To facilitate wide-spread use of ECR capability assessment tool and 

standard compliance tracking tool in HK for on-going measurement 

of company and industry progress on SCM/ECR through pilots, 

benchmarking exercise and tracking usage and improvement capabilities 

4.Industry Infrastructure 

To establish common physical & 

informational infrastructure based 

on international standards to support 

ongoing development and 

alignment with regional & global 

users 

5.Industry Network 

To maintain regular communications 

& updates on regional and 

global trends among ECR HK 

members and between ECR HK 

and regional ECR members 

Member companies 

MILESTONES 

KEY FOCUS IN 2012 

MOVING FORWARD 

•Efficient Consumer Response (ECR) Hong Kong will continuous 

drive supply chain management excellence through 

industry collaboration and global standards adaptation 

•Efficient Consumer Response (ECR) Hong Kong will continuous 

drive industry 

common practices based 

on international standards 

to support on-going development 

and alignment 

with regional & global 

consumers 

•Efficient Consumer Response 

(ECR) Hong Kong 

will continuous explore 

new tools for the industry 

in order to response consumer 

efficiently. 

9 

9

ECR Asia Country News-Hong Kong 

The 12th GS1 Hong Kong Supply Chain Management Excellence 

Summit is an annual executive forum, bringing together 

business, technology and supply chain leaders and professionals 

from around the world to share and discuss the industry trends, 

issues, challenges and opportunities facing all stakeholders 

along the supply chain. 

Programme Theme with Topic Highlight - Champion Business 

Success Through Value Creation 

Distinguished Keynote and Plenary Session 

� Industry Case Sharing 

� Technological Innovation with HK RFID Awards 2012 

� SCM Solutions Showcase with Networking Opportunity 

An affiliated event to Asian Logistics and Maritime Conference 

(ALMC) organized by HKTDC on 8 November 

(with special offer to ALM Conference delegate) 

Enquiry: 

Ms Cecilia Wong, tel : 2863 9753, email : ceciliawong@gs1hk.org, 

Website : www.gs1hksummit.com 

Programme Agenda 

Organizer : GS1 Hong Kong 

Date : 9 Nov 2012 

Time : 09:00am – 4:00pm 

1) Registration-GS1HK SCM Excellence Summit 

2) Registration-Delegate of Asian Logistics & Maritime Conference 

to SCM Excellence Summit 

Venue : Hong Kong Convention and Exhibition Centre, 1 Expo 

Drive, Wanchai, Hong Kong 

10 

10

ECR Asia Country News-Thailand 

DAY 1 Opening 

Mr. Payungsak Chartsuthipol (The President of the Federation of Thai Industries) 

Mr. Joe Dybell (Supply Chain Director of Ek-Chai Distribution System Co., Ltd.) 

Co-Chairman of ECR Thailand 

Dr. Viwat Krisdhasima (VP-Supply Chain Unilever Thai Trading Ltd.) 


Keynote Speaker : Economic and Industry Outlook 

Mr. Payungsak Chartsuthipol (The President of the Federation of Thai Industries) 

Coffee Break : Visit Exhibition Booths 

Topic: Consumers Insight 

Speaker: Mr. Yongyut Ongwattanpat (Director in Retail Management Science 

(RMS) of Nielsen Company) 

Topic: Shopping Trend 

Speaker: Mr. Charkrit Direkwattanachai (Function Head of Corporate Affairs of Ek 

-Chai Distribution System Co., Ltd.) 

Lunch Break & Visit Exhibition Booths 

Topic: Fulfilling Consumers’ Needs during Natural Catastrophe 

Speakers: Mr. Kraisar Gilitwala (Operations Director of L’Oreal Thailand Ltd.) and 

Mr. Chakkaphob Nuangchamnong (Supply Chain Management of Charoen Pokphand 

Foods PCL.) 

ECR Projects 

1. On Shelf Availability (30 minutes) 

Speaker : Project Team (Unilever) 

2. Returnable Packaging (30 minutes) 

Speakers : Mr. Peter Hubbard (Country General Manager of Loscam Thailand Ltd.) 

and Mr. Richard Volle (Business Director for Whole Sale of Big C Supercenter 

Thailand) 


ECR Projects 

3. Pallet Height (30 minutes) 

Speaker : Mr. Ekachai Kanjanavanich (Customer Services & Distribution Group 

Manager of Nestle Thailand Ltd.) 

4. Sell More, Lose Less (30 minutes) 

Speaker : Mr. Bob Travers (Associate Director, Physical Distribution & Customer 

Logistics of P&G Singapore) 

5. Green Transportation (30 minutes) 

Speaker : Dr. Nutthanakrizz Chantjiraporn (CEO of SCM Executive Education 

Institute) 

DAY 2 Opening 

Mr. Joe Dybell (Supply Chain Director of Ek-Chai Distribution System Co., Ltd.) 


Dr. Viwat Krisdhasima (VP-Supply Chain Unilever Thai Trading Ltd.) 


Keynote Speaker 

Topic : AEC (ASEAN Economic Community) Crisis or Opportunity 

Speaker : Ms. Kobkarn Wattanavrangkul (Chairperson of Toshiba Thailand Co., 

Ltd.) 

Topic : The Preparation to Cope with Natural Disaster 

Speaker : Asst. Prof Dr. Seree Supharatid (Director of Natural Disasters Research 

Centre, Rangsit University) 


Topic: Future Trend in Labor Supply 

Speaker: Mr. Sanan Angubolkul (Chairman of Srithai Superware Public Company 

Ltd.) 

Topic: Supply Chain Academy 

Speaker: Dr. Sompong Sirisoponsilp (Director of Transportation Institute 

Chulalongkorn University) and 

Dr. Pongchai Athikomrattanakul (Director of Centre for Logistics Excellence, 

King 

Mongkut's University of Technology Thonburi) 

Lunch Break & Visit Exhibition Booths 

Topic: Supply Chain In Action - New Technology & Warehouse Management 

Speaker: Mr. Kanok Juthamanee (Logistics Center Manager of Boonthavorn 

Ceramic Co., Ltd.) and 

Mr. Sarawut Laoprasert (Country Manager of SSI Schaefer Thailand) 

Topic: Supply Chain In Action - Enhancing Consumers’ Intimacy 

Speaker: (Guest Speaker) 


Topic: Senior Executive Forum “Winning Consumers’ Hearts & Minds” 

Speakers : 

Mr. Chanin Archjananun ( Managing Director of Friesland Campina (Thailand)) 

Mr. Andrew Shepard (Managing Director of Colgate-Palmolive (Thailand)) 

Mr. Kurt Kamp (Chief Marketing Officer of Ek-Chai Distribution System Co., 

Ltd.) 

Mr. Neil McCann (Vice President Supply Chain of Big C Supercente ) 

Moderator : Dr. Karndee Leopairote (Assistant Professor of Department of Industrial 

and Operations Management, Thammasat University) 

Closing Speech 

11 

11

The 8 th ECR Forum –the most significant event in Russian retail 

attracted 1045 delegates! 

Leading retailers and suppliers shared best practices of cooperation in the field of demand management, supply chain development and 

shrinkage reduction during 18 breakout sessions and 2 plenary sessions of ECR Forum, which took place 5-6 June, 2012 in Moscow. 

The CoChairs of ECR Russia BoD – CEO of Metro C&C Russia Pieter Boone and President of Kraft Foods Russia David Steer announced 

the major goals of retail and industry for the next years: 

� Reduce OOS 3 times in 3 years (from 14% to 5%) 

� Increase the share of e-invoices up to 30% by the end of 2013 

� Make CatMan a "basic hygiene" of Russian retail and move to Jointly Agreed Growth Initiatives 

Within the framework of ECR Forum The Third Conference "Electronic Documents - Sustainable Economy" took place. It 

was dedicated to the prospects of implementing electronic document management in Russia. Representatives of The Federal Tax Service, 

Ministry of Finance, Ministry of Economy Development, Ministry of Communications and other State Institutions took part in the 

event. 

At the Evening Reception of the Forum took place ECR Award - the most recognized award of the industry best practice cases. 

More than 250 guests congratulated the winners: 

1. Unilever and Magnit, "Winning together with new technologies in Health and Beauty" - The best case in Shopper Research and 

Category Management. 

2. Arla Foods - Billa, the first case in Russia of completely legal paperless e-invoice interchange (project, made with the involvement 

of The Federal Tax Service) - The best case in Technological innovations. 

3. Diageo, was nominated as The best case in Supply Chain for their innovations and improvement of shipment logistics management. 

In additional, Metro C&C Russia awarded with a special Diploma for their consistent work in e-invoice implementation in Russia. 

And Lenta and Baltika were also awarded for realization of ECR principles in collaboration. 

Know more about the Forum: 

ECR Forum presentations, 

ECR Asia Country News-Russia 

Photos of the event Next ECR Russia Forum & Marketplace will take place on 4 - 5 June 2013 in Moscow. Save the date! 

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12

Russia is on the way 

to Electronic Documents 

Interchange 

Russia has long been the only European country in which the law 

did not allow the creation of legally significant invoices in electronic 

form. 

May 23, 2012 - the date of formal entry into force of the last document 

necessary for the exchange of legally significant electronic 

invoices (Order of the Federal Tax Service of Russia from March 

5, 2012 № MMV-7-6/138), which adopts the format of electronic 

invoices, book of purchases and sales as well as the log book of 

issued and received invoices. 

The electronic exchange of invoices between parties via telecommunication 

channels should be carried out through the Operators 

of electronic documents interchange in compliance with all provisions 

of the Order, i.e. contractors can not exchange electronic 

invoices by regular e-mail. 

Operators of electronic documents interchange - these are organizations 

that provide open and confidential information via telecommunication 

channels. 

Currently, on the territory of the Russian Federation are issued 

about 13 billion primary paper accounting documents per year. 

Given that the estimated cost of processing each paper document 

is 40 rubles ($ 1.25), the total amount spent on paper documents 

is 520 billion rubles ($ 16.25 billion). 

The cost of the electronic document will be initially by a few 

times lower than the cost of the paper document, and most likely 

will further decrease with time. 

Nowadays sending and receiving electronic invoices costs 4-10 

rubles ($ 0.22) per document. 

Experts estimate that by 2015 the number of electronic primary 

documents will be 25-30% of the total number of primary accounting 

documents (that will lead to about 130 billion RUB/$ 

4.06 billion of savings). 

The next step in the development of electronic documents interchange 

in Russia, is the transfer to electronic format of the trade 

bill and the act for accomplished work and services (Federal Tax 

Service approved the format of the two most commonly used in 

the accounting work documents in the Order № MMV 6-7/172@ 

on 23/03/2012.) 

The system of traceability 

in Russia 

The food traceability system is being developed 

in Russia by Expert Council “Electronic Documents 

- Sustainable Economy”, which was 

founded on a base of ECR Russia. 

This project is supported by Russian Ministry of 

Economy Development. It will guarantee the 

involvement of other state institutions, responsible 

for quality and safety control, and will ensure 

making the amendments to the relevant legislatives 

acts. 

The main idea of the project is to move from control 

of paper compliance documents, which are 

usually delivered with goods, to control of data, 

collected in traceability systems of state institutions 

and companies. 

It is assumed that a bar-code and a manufacturing 

date are enough to identify a product and trace it 

throughout the supply chain - from row materials 

to the grocery store and even consumers’ fridge. 

The working group of business and government 

representatives has been created. By the end of 

2012 it will work out the main principles of 

goods and manufacturers identification, collecting, 

recording and publishing data. Will determine 

the rules of access of different parties to this 

data and making this information relevant in law. 

The first pilot project will include meat, milk and 

alcohol traceability. 

The new system will enable retailers and suppliers 

to recall goods very quickly, government will 

reduce costs for quality and safety control, and 

consumers will be more informed of the products 

they persuade. 

ECR Russia is non-commercial partnership, within the scope of which the leading 

food retailers and FMCG manufacturers work together to grow the common business 

by generating Demand and enhancing the Supply chain efficiency. More than 50 

leading companies work actively together in breaking down the barriers to business 

efficiency. 

ECR mission is working together to fulfill consumer wishes better, faster and at less 

cost 

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13

Global Food Safety Initiative (GFSI): Facilitating 

Cross-Industry Collaboration on a 

Global Scale 

The Global Food Safety Initiative unites global and local food 

companies to collaborate on food safety issues that have relevance 

for the entire industry. Food safety experts from retailer, 

manufacturer and food service companies, service providers, international 

organizations, academia and government who truly 

believe that food safety is a non-competitive issue meet together 

throughout the year. Their joint vision is to effectively manage 

food safety to ultimately ensure confidence in the delivery of safe 

food to consumers worldwide. 

The GFSI Board of Directors, whose companies represent €1200 

billion of turnover annually, is responsible for defining the strategic 

direction of the initiative. Under their leadership, GFSI has 

become a globally recognized initiative whose approach to managing 

food safety is accepted by regulatory authorities in numerous 

countries and supported by companies the world over. GFSI 

works to bridge the gap between the public and private sector, 

convening multi-stakeholder Technical Working Groups so that 

approaches taken to industry-wide food safety issues incorporate 

all stakeholder standpoints. 

Collaboration across sectors and geographies is key to the success 

of the Global Food Safety Initiative, and collaboration between 

regulatory bodies and the agribusiness sector has been particularly 

strengthened over the past few years. The GFSI Guidance Document, 

steeped in the science-based principles of Codex, provides 

a consistent foundation upon which to develop documentation 

that raises the bar among food safety management schemes and 

drives harmonisation in their requirements. GFSI is currently 

engaging government bodies in its work on auditor competence, 

driving improvement in the third party certification process to 

provide reliable audits that a global industry can rely on. The 

GFSI Global Markets Programme, aimed at small and/or less 

developed businesses, helps them in developing effective food 

safety management systems through a systematic continuous improvement 

process. The programme has been particularly effective 

in demonstrating the private sector’s commitment to smaller 

suppliers, applauded by international organisations who in the 

past have seen the food industry’s stringent requirements as a 

barrier to market entry for these businesses. 

The GFSI Board is composed of companies from all over the 

world, and is fortunate to have the representation of two eminent 

Chinese companies, China Resources Vanguard and COFCO. 

These companies, as well as numerous other Chinese companies 

and organisations, are also represented on the GFSI Technical 

Working Groups. The Certification and Accreditation Admin- 

istration of the People's Republic of China (CNCA) is an honoured 

member of the GFSI Advisory Council, a body of experts 

providing perspectives on the implementation of GFSI’s strategic 

objectives. 

GFSI is further collaborating with China on its benchmarking 

process, has recently signed a Memorandum of Understanding 

with CNCA on collaboration on food safety and will sign a second 

MoU with the China Certification & Accreditation Institute 

(CCAI) so that GFSI can proceed with the benchmarking of the 

Chinese Food Safety HACCP scheme. 

GFSI has been developing awareness among local industry players 

through the GFSI Roadshow in partnership with CCFA’s 

(China Chain Store & Franchise Association) annual Food Safety 

Conference since 2008. GFSI is also represented at leading food 

safety events in China such as the China International Food Safety 

& Quality (CIFSQ) Conference and the Food Safety Peak Forum 

among others. Representatives from AQSIQ, CNCA, 

COFCO and China Resources Vanguard attend the annual Global 

Food Safety Conference on a regular basis, where the interest of 

Chinese companies in the GFSI activities is growing. 

A GFSI Food Safety workshop taking place on 28th March during 

the 18th Franco-Chinese Economic Forum (organised by 

CCPIT, CFC and DRC) and co-hosted with the Danone Group, 

will highlight that a modern food supply network in a global 

economy requires further collaboration by all food safety stakeholders. 

This is particularly pertinent to the Chinese marketplace 

in light of the fact that China is one of the world’s most important 

countries in terms of food consumption, as well as one of the 

worldwide leaders in food imports and exports. Feeding a growing 

population whilst maintaining a safe food supply chain will 

be a challenge, but a united food industry can meet this challenge 

head on. 

Aiming to strengthen communication and coordination with top 

food safety regulators and key industry players in China, GFSI is 

looking to work together with all Chinese stakeholders to improve 

Chinese consumer confidence in food safety. 

GLOBAL FOOD SAFETY INITIATIVE 

The GFSI, managed by The Consumer Goods Forum, was set up 

in 2000 to pursue continuous improvement in food safety management 

systems, cost efficiency in the supply chain and, above 

all, safe food for consumers worldwide. 

For more information, please visit www.mygfsi.com 

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14

THE CONSUMER GOODS FORUM 

The Consumer Goods Forum (CGF) is a global, parity based industry 

network, driven by its members. It brings together the 

CEOs and senior management of over 650 retailers, manufacturers, 

service providers and other stakeholders across 70 countries 

and reflects the diversity of the industry in geography, size, product 

category and format. Forum member companies have combined 

sales of EUR 2.5 trillion. 

The Forum’s vision is: “Better lives through better business”. To 

fulfill this, its members have given the Forum a mandate to develop 

common positions on key strategic and operational issues affecting 

the consumer goods business, with a strong focus on non 

competitive process improvement. The Forum’s success is driven 

by the active participation of the key players in the sector, who 

together develop and lead the implementation of best practices 

along the value chain. 

ECR Europe has new co-chairs 

ECR Europe News 

Mr Thomas Hübner, Executive Director for Europe for the Carrefour 

Group, and Mr Jan Zijderveld, President Europe of Unilever, 

have been designated as new co-chairs of ECR Europe during the 

last General Assembly which took place on 8 May in Brussels. 

To kick-off their new role, Thomas and Jan opened the 2012 ECR 

Europe Conference by setting out the new strategic vision for 

ECR – ‘The Next Generation’. 

Jan Zijderveld started in the FMCG-industry as brand manager at 

New ECR Europe website 

ECR Europe has launched its new corporate website. http://www.ecr-europe.org/ 

ECR Europe conference and Marketplace 2012 

Nearly 600 participants attended the last ECR Europe conference 

and Marketplace 2012 which took place in Brussels on 9 and 10 

May. 

The theme of this year’s conference was Digital, ECR: The Next 

Generation. 

New ECR Europe co-chairs Thomas Hübner and Jan Zijderveld 

shared the results of a survey conducted throughout Europe by 

McKinsey on the adoption, use and benefits of ECR practices in 

the opening plenary session. 

Second plenary was focused on how retail is reaching the consumer 

in the digital arena: What principal trends are driving 

change? How will new technologies and social networking impact 

the shopping experience? Peter Hinssen concluded this session 

presenting his vision of “The New Normal”. 

With its headquarters in Paris and its regional offices in Washington, 

D.C., and Tokyo, the CGF serves its members throughout the 

world. For more information, please visit: 

www.theconsumergoodsforum.com 

CONTACT DETAILS 

Claudine Musitelli 

VP, Ethical Sourcing and Food Safety Initiatives 

The Consumer Goods Forum 

c.musitelli@ theconsumergoodsforum.com 

For GFSI in China:Yangying XU 

GFSI China Chief Representative 

Food Safety Programs 

The Consumer Goods Forum 

y.xu@theconsumergoodsforum.com 

Unilever New Zealand in 1987. After that he held various senior 

management positions from Sydney to Dubai and Rotterdam. In 

2008, Jan moved to Singapore, as Executive Vice President of 

Unilever South East Asia and Australasia. In 2011, he was appointed 

to his current role: President, Unilever Europe. 

Thomas Hübner has extensive experience in the food and retail 

industry, holding senior executive positions with McDonald’s and 

Metro Cash & Carry. He joined Carrefour on July 2011 as the 

Executive Director for Europe (excluding France) and he is member 

of the Executive Board of Carrefour. 

Third plenary was focused on Growth and Sustainability: how 

sustainability can stimulate innovation, and how top retailers and 

manufacturers are integrating sustainability in their daily business? 

Four sets of four breakout sessions gave a concrete view and real 

life examples of successful collaboration in 5 areas: Shopper, Sustainability, 

Supply-Chain, Enabling technologies and Business 

Strategies. 

For the first time at an ECR Europe conference, delegates were 

able to put questions to the main speakers, before or on the day, 

thanks to new interactive facility. Discover all answers from 

speakers: http://www.ecreuropeforum.net/Programme 

To get more information, view presentations and videos, please 

go to : 

http://www.ecreuropeforum.net/Programme 

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15

ECR Australia News 

We all know that the pace of change within our industry and society 

is speeding up, driven by rapid advances in communications, technology 

and an increasingly volatile trading environment. Increased 

agility and flexibility have become must-have factors in 2012, 

while efficiency, responsiveness and collaboration are also seen as 

critical. 

This year the fourth ECRA Annual Supplier and Retailer Convention 

examines the explosion of data, including how companies are 

starting to use large-scale data gathering and analytics to shape 

strategy. 

Technological advances are part of a wider societal trend in which 

shoppers and consumers demand inclusion. Both manufacturers 

and retailers are tapping into this trend, understanding that growing 

social media usage will accelerate engagement, transform product 

Loss Prevention Seminars prove a great success 

ECRA hosted two extremely successful Loss Prevention seminars in 

Melbourne and Sydney entitled “Sell More, Lose Less: Introducing 

New Loss Prevention”. Both events completely sold out prior meaning 

over 200 delegates were on hand to engage in collaborative discussion 

and interaction and bring a broad view of the underlying 

issues behind shrinkage and waste to the seminars. 

Generous sponsorship commitment from Checkpoint and Asset Security 

Concepts, along with administrative support from the Australian 

Food and Grocery Council provided the opportunity to bring 

excellent international speakers to the event, including Adrian Beck, 

Head of Department of Criminology at University of Leicester 

(UK); Colin Peacock, Director of Global In Store Execution at 

Procter & Gamble; and Neil Matthews, Vice President Europe from 

Checkpoint. 

development, reinvent shopper marketing processes and supply 

chains. 

Businesses will need to be prepared to increase supply chain flexibility 

ensuring their supply chains are fit for the future! 

The 2012 ECRA Convention will share, thought leadership, case 

studies, and targeted sessions: 

Global Outlook - Understand how global trends will affect Australia/New 

Zealand food and grocery businesses. 

Retail Strategies - Understand retail strategies and what they mean 

for your business. 

Supplier and Manufacturer Case Studies - Harness ideas from leading 

innovative manufacturers and suppliers. 

Consumer Insights - Obtain a vision of tomorrow’s consumer 

trends and the impacts on your business. 

For further information and to register click here. 

The major Australian retailers, Coles and Woolworths also provided 

great levels of commitment to ensuring the success of the seminars. 

Senior executives Andy Coleman (Coles) and Craig Partridge 

(Woolworths) opened the Melbourne and Sydney seminars respectively, 

with executives overseeing loss prevention at the retailers 

Martin Sayer (Coles) and Danny Baldwin (Woolworths) presenting 

their companies’ perspectives, plans and objectives at both seminars. 

The seminars provided delegates the opportunity to benchmark 

their own businesses against the ‘Loss Prevention Pyramid’ and to 

use the ECR Loss Prevention Road Map, a tool designed to help 

retailers and suppliers identify operational failures and develop new 

ways to sell more and lose less. The New Loss Prevention concept 

looked at why existing approaches are failing, the challenges presented 

by new trends and technologies in retailing and why operational 

failures are the root cause of most retail loss. In addition, 

international examples of engagement between suppliers, retailers 

and solution providers were explored. 

16 

The ECRA Loss Prevention 

Group now has the opportunity 

to consider the key 

learning's from the seminars 

as it formulates a platform 

for driving success in loss 

prevention in Australasia and 

defines a structure best suited 

to progressing the program. 

ECRA thanks Checkpoint, 

ASC and all those involved 

in driving the success of the 

Sell More, Lose seminars. 

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ECR Australia News 

Winning at the Shelf – New ECRA On-shelf Availability Project – update 

ECRA is currently undertaking a new On-shelf Availability (OSA) project entitled Winning at the Shelf. The project is focused on 

improving the execution of fixture (shelf and display) replenishment when stock is available in the store building but not on show to 

the shopper. For example, stock may be physically available in the storeroom or on the capping, but not on display to the shopper. 

Winning at the Shelf is part of ECRA’s ongoing commitment to OSA through its Winning programs which include 

Winning in January 

Winning with Promotions. 

Information on the Winning programs is available at the website http://www.ecraustralasia.org.au/ 

Winning in January - 2012 REPORT NOW 

AVAILABLE 

Improving availability through the supply chain in January represents 

a great opportunity to increase sales for suppliers and their 

retail trading partners, and ultimately to provide better service to 

shoppers. 

Within our market there is a major focus on planning and operational 

execution throughout December and over the Christmas 

period, however January has suffered by comparison. Historically 

and repeatedly we have seen a significant decline in product availability, 

reflected in a decline in service levels to retail distribution 

centres and stores of approximately 4 to 5% across the industry. 

Over the past three years the industry has come together through 

ECRA's Winning in January program to understand specific pressure 

points particular to January, consider root causes, establish 

joint improvement opportunities and collectively work towards 

improving service levels. Many tools have been developed and are 

freely available to the industry. 

ECRA has again this year undertaken a data based approach to 

reviewing service performance levels from retailer distribution 

centres to stores for the period over Christmas and New Year and 

the month of January 2012. The data set detailed in the recently 

released Winning in January 2012 report provides a unique opportunity 

to review whole of industry data since 2009. The report 

can be downloaded by clicking here. 

ECRA encourages trading partners 

to review the report, consider 

their business' performance 

and engage with trade 

partners to deliver further improvements 

for 2013. By now 

several categories are showing 

clear trends which should motivate 

and facilitate collaborative 

efforts to engage and address. 

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17

Summary Page 18 

CEOs’ Panel Session Page 

Page 25-27 

Opening Address by the 

Minister of 

State Page 18 

Joint Keynote Address by Scott 

Price, CEO Walmart Asia and 

Harish Manwani ,COO Unilever 

Page 20-24 

Exhibitors 

ECR AP Award Page 28-31 

18 

18

With over 400 delegates from across the region ECR Singapore 

hosted the 13 th ECR Asia Pacific Conference in May 2012. The 

theme this year was Touching Lives and Improving Value. 

“Touching lives and improving value is an extension of the Vision 

of ECR AP. We want to improve consumer satisfaction 

while reducing total cost, inventory and environmental impact in 

Asia. We want to make a difference in our consumer’s lives 

through our leverage of scale as an industry.” -said Alex von 

Behr former Co-chair of ECR AP 

“ECR AP has three basic objectives – understanding future 

trends, sharing industry best practices and networking between 

manufacturers and retailers in Asia. This Conference is an important 

means of meeting these objectives. A time to listen, a time 

to share, a time to inspire and be inspired.” Anthony Rose Co - 

chair ECR AP 

We had a rich agenda for the participants including our opening 

session from the Global COO of Unilever and the Asia CEO of 

Walmart; CEOs’ Panel session and learning's around 5 different 

topics: 

Customer Value from Paul Galagher Diageo, Claude Ringuet 

SAP and Dr Ahn Jae-Myung RetailTech. 

Consumer Trends from Seah Kian Peng NTUC FairPrice and 

Lies Ellison-Davis Kantar Retail Asia, Patrick Medley IBM, Terence 

Foo Accenture. 

Sustainability from Paul Prendergast Accenture, Nigel Bagley 

Unilever, Rene T. o P&G. 

Supply Chain from Ampy Cheung-Aswin Unilever, Toby Black 

Chep, Denny Yang Metro China. 

ECR Projects from Ian Williamson Accenture, Alfons Van- 

Woerkom Unilever, Jeffrey Jotie Diageo, Lawrence Low, Chris 

Cave Jones IBM. 

ECR AP would like to say Thanks for all of the sponsors , for the 

co-organiser ECR Singapore and for everybody who attended in 

EFFECTIVE CONSUMER 

RESPONSE IS IM- 

PORTANT IN REDUCING 

WASTAGE 

Minister of State for National 

Development and Manpower 

Tan Chuan-Jin has stressed 

the importance of Efficient 

Consumer Response (ECR) towards raising productivity, by reducing 

wastage throughout the supply chain. 

He was speaking at the opening of the 13th Efficient Consumer Response 

Asia-Pacific Conference and Exhibition. 

Mr Tan cited the example of implementing Cold Chain Management 

How did you see the conference? 

“Very good venue, content, organisation and ,as always a pleasure 

to meet so many business colleagues in the same place. Congratulations 

to ECR Singapore for the strong attendance and all 

those involved in putting this together. Both CHEP guests and 

ourselves enjoyed the event very much.” Nigel Branch (Chep) 

“The conference exceeded expectations in many ways but we 

need to focus on continuous improvement. To that end, I look 

forward to our driving hard to better attract increased retailer 

participation and attendance in Hong Kong. I think we are seeing 

that the difference between good and GREAT is working 

WITH our retail partners!” Pat Conklin (P&G) 

“It is a very comprehensive and fruitful conference to meet industry 

players and see the uptrends from the exhibitions. It is a 

mega event that the industry should not be missed out.” 

Heidi Ho (ECR HK) 

“The Conference just gets better and better each time. The quality 

of the presenters and content was a step up again this year “ 

James Layard (BT) 

“As diamond sponsor for this event, SAP was delighted with the 

caliber of attendees and speakers. The industry perspectives and 

content were well communicated and insightful. As the leading 

provider of software business solutions to the industry, it was a 

valuable event for SAP to participate in and we will certainly 

continue our involvement moving forward”. 

Claude Ringuet (SAP) 

“ The Conference gave members of ECR AP the chance to hear 

and learn about the future direction of the FMCG industry in 

Asia Pacific from the leaders themselves, provoking much discussion 

and debate, as well as to explore specific aspects of the 

ECR AP collaborative agenda in more detail, listening and engaging 

with experts in their respective fields.” 

Alex von Behr (Unilever) 

the conference. And we would like to invite you to Hong Kong to 

our next host country of the ECR AP Conference in 2014. 

Conference related materials can be downloaded from : http:// 

www.ecr-all.org/content/category/detail/13939 

Standards to help lengthen the shelf life of perishable products. 

Adoption of the standards have enabled suppliers to save more than 

S$260,000 per year. The lower operating costs has, in turn, benefitted 

consumers in the form of lower prices. 

Speaking after the opening ceremony, NTUC FairPrice CEO Seah 

Kian Peng stressed the need for increased efficiency, especially in 

the face of manpower constraints. 

"In the current context, it's becoming even more important because 

manpower is indeed, a constraint and if we don't try to adopt some 

of these best practices, it will impact operations," he said. 

"But if we do, and we're able to up the productivity, become more 

efficient, we can actually keep costs down, and these costs can eventually 

be passed down to consumers." source: channelnewsasia.com 

19 

19

Joint Keynote Address 

Collaboration between manufacturers 

and retailers to touch 

lives and improve value 

HARISH MANWANI, COO, UNILEVER SCOTT PRICE, PRESIDENT AND CEO, WALMART ASIA 

Scott Price: I like the theme of this year’s conference – Touching 

lives, Improving value. Because whether retailer or manufacturer, 

that is ultimately the purpose of what we do. We touch people’s 

lives. 

Given challenges the world faces today – of exploding population, 

higher consumption, unemployment etc. no one company 

or organization can create change all by itself. We have to collaborate 

with each other where possible to amplify the manner in 

which we can touch and improve the lives of our customers and 

consumers. 

We thought it would be appropriate to share with you four key 

areas where our working together can be very productive. These 

areas are: 

Products, Consumer Value, People and Planet 

Examples we share are primarily examples from Walmart and 

Unilever, but we hope this provokes fresh thoughts on how to 

better collaborate and leverage the ECR Asia Pacific association 

for us to make even greater impact both as individual companies 

and as an Industry. 

Harish Manwani: PRODUCT 

Unilever was founded over 100 years ago in 1885, when William 

Hesketh Lever launched the world’s first branded and packaged 

laundry soap, called Sunlight. In doing so he created not just one 

of the world’s first consumer brands, but also a company with 

strong social values with a mission to have our brands act as an 

agent of social change. He also set out a vision for his new company 

: It was: 

… to make cleanliness commonplace, to lessen work for women, 

to foster health and contribute to personal attractiveness, 

that life may be enjoyable and rewarding for the people who 

use our products. 

All this from a bar of soap. 

That mission has not changed to this day and I’ll come on to that 

in a moment. Everyday products that we make and our business 

practices are more important than ever in helping tackle some of 

the big issues we face as a global community . 

The 

world 

needs 

growth 

By 

2020, 

there 

will be 

7.6 bn 

people 

in the world. 1.8 bn consumers will move up to the socioeconomic 

ladder, but there will still be 2bn consumers at the bottom 

of the pyramid. Many people across the world today still lack 

access to basic everyday needs such as clean drinking water, good 

nutrition and basic hygiene. Simple products like soup, shampoo, 

tea can provide a better quality of life that these consumers deserve. 

This is an opportunity to improve everyday lives of billions, 

and at the same time it is an attractive business proposition. 

However, growth at this scale is not without its consequences. 

We need to grow differently We are today consuming resources 

at a rate greater than the earth’s ability to replenish them. If the 

whole world consumed at the rate that Europe does, we would 

need two more planets. If we consumed at the rate of the US, we 

would need five. 

But we cannot wish away consumption. We cannot deny billions 

of people the opportunity to improve the quality of their lives. 

However, our shared vision has to be to create a future in which 

people improve the quality of their lives without increasing their 

environmental impact. Hence we need to grow differently. We 

need to find a way to grow within the limited resources of one 

planet. 

No. 1 in Dow Jones sustainability Index for 14 years consecutively 

Last year, we set a new vision for Unilever, it’s expressed 

through our Unilever Sustainable Living Plan, which just a few 

weeks ago celebrated its first anniversary and published an inaugural 

annual report. 

Our vision is to double our business while reducing our environmental 

impact and increasing our positive social impact. We 

strongly believe that our brands and the way we do the business 

has to be at the heart of the social change that we wish to see 

around us. 

Three key features distinguish the plan 

First, it covers all our activities. It spans our entire portfolio of 

brands and all 170 countries in which we sell our products. 

Second, when it comes to the environment, the plan covers not 

just the direct impacts of our factories, offices, lorries and laboratories. 

It accepts that Unilever has a responsibility across the 

lifecycle – from the sourcing of raw materials all the way through 

to the energy and water needed by people to cook, clean and wash 

with our products. We have reviewed our overall value chain so 

see how we can achieve sustainability end-to-end across the value 

chain. This analysis shows that our own impacts are small. 68% 

of environmental impact is through people who use our brands. 

This means we have to design products which allow consumers to 

get the results they want with less energy and water. Changing 

consumer behavior can make a big difference to global environmental 

agenda. 

20 

20

Third, for us, sustainability isn’t just about the environment. 

There is a social and economic dimension. Our products can make 

a big difference to people’s health and well-being and our supply 

chain supports the livelihoods of millions of people. 

The Sustainable Living Plan has three overarching goals. By 

2020 it aims to: 

� Halve the environmental footprint of our products 

� Source 100% of our agricultural raw materials sustainably. 

� Help more than one billion people take action to improve 

their health and well-being 

And at the same time whilst doubling the size of our business. 

Our direct environmental impact 

Of course, sustainability begins at home. Over the past 15 years, 

in our network of 250 factories, we have reduced greenhouse gases 

by almost half, water by two thirds and waste by nearly three 

quarters. It’s a good start. But it is not enough just to put our own 

house in order. 

The “Big Difference” 

The big prize comes from changing consumer habits and behaviors. 

We know that consumers will not compromise on price, 

quality or convenience for “greenness”. So sustainability has to 

be built in to the design of the product. The good news is that 

many consumers recognise they have a role to play in tackling 

climate change. And the motivations for wanting to do so are the 

same around the world – concern for family; a desire to make the 

world better place for children and grandchildren; a desire to be a 

good citizen. 

This is where everyday consumer brands can play a role. They are 

an ideal vehicle through which to help people take action and feel 

that their collective efforts really do add up to make a big difference. 

2bln people use a UL brad everyday. If our brands can trigger a 

small sustainability action that multiplied by 2 bln will make a big 

difference in the world. In our experience, brands that embrace a 

social mission also grow faster. Let me give you some examples. 

Comfort One Rinse is a fabric conditioner that enables people to 

rinse clothes in one bucket of water instead of three, saving up to 

30 liters of water a wash. At the moment it is only available in 

parts of South East Asia, but if all our laundry brand users in Asia 

and Africa used Comfort One Rinse it would save over 500 billion 

liters of water a year. 

Small and Mighty: If everyone used concentrated liquid detergents 

we would save over 4 million tones of CO2 per year, equivalent 

to taking 1 million cars off the road annually. 

Pureit: When we look at innovation through sustainability lense it 

opens up new opportunities. We know that 1 billion people world- 

wide are without access to clean drinking water. Our Pureit was 

an innovation born out of this insight and we created a unique 

water appliance that kills all harmful viruses, parasites and pesticide 

impurities without the use of electricity or running water. 

This is now a huge business proposition for us and we are committed 

to reaching half a billion people by 2020. Business growth 

& sustainability … hand in hand ….doing well by doing good… 

Working with partners 

We also recognize that we cannot change the world alone. We 

need to work collaboratively with other like minded partners, like 

yourselves. In this agenda, there are no competitors, only peers 

and partners… 

Here are example s of what we are doing together with Walmart. 

Supply Chain 

We’ve engaged on supply chain initiatives in many different markets. 

For example in Mexico we worked with you on project 

Tetris, like the video game. In addition to reducing the CO2 emissions 

from the fuel saved, we also halved the number of pallets we 

were using. And these were wooden pallets made from Chilean 

timber. That was 18 months ago but it’s quite relevant as I saw 

recent statistics that in Europe 30% of our industry’s truck miles 

are shipping air. In the US that is 50%. 

Suave: turn-off-the-top is a more recent US example… With 

Walmart and our US brand Suave shampoo, we encouraged people 

to turn off the tap while they lathered their hair, and save up to 

€150 a year on their utility bills 

A house with a message “Casa do Bem” 

Another example is the project “Casa do Bem” which means sustainable 

housing. Unilever's sustainable house shows Wal-Mart 

customers how to live in an environmentally friendly way. As 

part of the campaign, sustainable show houses have been installed 

in the supermarket's Brazilian stores. Customers who step inside 

hear messages and tips on how to lead a more environmentallyfriendly 

life. The houses are built from recycled and environmentally-friendly 

materials. 

I started this presentation with our brand Sunlight ,and the vision 

of Lord Lever to change the lives in Victorian Britain with a mere 

bar of soap. It is ultimately the power of brands which triggers the 

small actions that can make a difference to the world. 100 years 

later, we still have a brand called Lifebuoy, which is one of our 

biggest brands, and at the same time runs the biggest Hand washing 

Campaign (140 million consumers across the world) . Hand 

washing ( and therefore Lifebuoy) prevents more diseases and 

deaths than many more sophisticated medicines. 

Similarly, 100 years later our vision is still the same : 

“ …help people feel good, look good and get more out of life 

with brands and services which are good for them and good 

for others”. 

“brands have to be at the forefront of the social change” 

21 

21

Scott Price : CONSUMER VALUES 

“ If we work together, we’ll lower the cost of living for everyone… 

we’ll give the world an opportunity to see what it’s like to 

save and have a better life.” Sam Walton 

50 years ago Sam Walton opened our first store. His vision was 

clear – to take quality products to the people in the USA who did 

not have access to them (people not necessarily in tier one towns) 

at the lowest possible price and provide the best value. Sam 

Walton believed in saving people money so that they could live 

better. 

So Sam went from State to State in the USA replicating his model 

of quality products at great prices. Over the last 50 years the 

challenges have changed. Today’s global scenario is even more 

daunting. Sam Walton’s vision of delivering value to the common 

man and Every day Low Prices (EDLP) is even more relevant. 

Poverty: 

� 900 million people in Asia are living in absolute poverty. 

This group of people is currently spending about two 

thirds of their annual income on food. 

� Asia has 60% of world’s population but only 34% of world’s 

cultivatable land 

Inflation: 

� Food inflation is already up in China and in India. 

� In China food inflation rose by 11.5% in 2011 and in India 

the food price index rose by 8.55% in 2011. 

Purchasing Decision: 

� In Asia value and price are the biggest drivers for the purchasing 

decisions of customers 

� 79% of customers in China and 72% in India are making 

their choice based on price competitiveness of products 

� Customers are putting ‘rising food prices’ at the top of their 

list of worries (13% vs. 8% for ‘Job Security’ and 6% for 

‘Children’s education and welfare’). 

So clearly price and value are very important. 

PRODICTIVITY LOOP: 

Co-operation and joint business 

planning with key supplier partners 

such as Unilever ensure we 

can operate for less, buy for less, 

sell for less and Grow sales. We 

call this the Productivity Loop. 

This simple mission is responsible 

for making Walmart the success 

we are today - a 444 Billion 

dollar Company with over 10,100 stores across the world. 

In Asia we currently have operations in China, Japan and India, 

with close to 150,000 associates. 

I want to share with you a few examples of how our work in 

providing the best prices to our customers is touching their lives. 

In Japan when the tsunami struck on March 2011, we 

had 24 stores in Sendai. Within a few hours of the tsunami, our 

store managers had already started giving away items of daily 

necessity from the parking lots of our stores. Within a few days 

they were back full time to serve the communities that needed 

help. Many of you in this room played a key role in supplying us 

with the products most needed in Japan at the time. Water, noodles, 

candles, soap. In total we donated 5 million US $, tones of 

water and thousands of our employee volunteer hours to re building 

the community. Post tsunami did research on the items that 

were most important to customers. We then dropped prices on 

the top 1000 items. Customers responded sincerely by posting 

“Thank you” notes in the hundreds on the doors of ours stores in 

Sendai and other parts of Japan. Most recently customers are 

able to vote further via twitter for items they need price reductions 

on. 

In the UK, as part 

of its concerted drive to improve 

product quality and 

value, at no extra cost to 

customers, ASDA has unveiled 

a New Quality Mark 

Across 3,500 Products - 

'Chosen By You‘ 

� New ‘Chosen By You’ 

range with annual sales of £8 

-£9bn is largest, single, own brand re-launch in UK retailing 

history 

� £100m invested by retailer benchmarking, testing and reformulating 

products to improve quality 

� 3,500 individual products independently tested by Cambridge 

Market Research in just nine months 

� 40,000 consumers took part in 200,000 blind taste tests 

across the UK 

In India our Best Price wholesale stores are serving 

small businesses and helping them delight their own customers. 

Best Price stores help our customers (in this case small stores) 

become more efficient through increased savings, more reliable 

fill rates and higher quality produce. We have even set up a 

“kirana” in our Best Price stores where we educate small shop 

owners on how best to display, stock and sell their wares. We 

are only able to delight our customers thanks to the very strong 

partnerships we have with all of our multiple suppliers including 

Unilever . So I must thank all of you. Some examples: 

Sugar Loose, Fresh Chicken and other fresh produce 

Over 90% of goods and services sold are locally sourced. This is 

an important first step to eliminating waste in fresh supply 

chains. 

22 

22

Harish Manwani : PEOPLE 

“The future ain’t what it used to be!” And we live in a VUCA 

world – volatile, uncertain, complex and ambiguous . As the 

business folks I am sure all of you recognize this. Behind this 

dark scenarios of economic crisis lie some fundamental shifts that 

will alter the future and the way business will need to be managed. 

..And the people who manage the businesses 

3 big seismic shifts 

D&E : By 2020 more than half of consumption will be in D&E, 

probably faster. Asia will be the largest consumer market in the 

world, overtaking US. 

Urbanisation : 60% of worlds GDP is in 600 urban centres. In 

China, more than 200m people moved into Urban in the last decade, 

the ever fastest urbanization in human history 

Digitalisation: More than 2 bln internet users, and growing fast. 

And digitalisation already changes the way we live, operate and 

do business. 

Sustainability: We have spoken about sustainability and how 

this will shape the future. In a resource-constrained world, sustainability 

will be the license to operate. 

And ..War for Talent 

Growth, particularly in D&E world is not without its challenges, 

notably the war for talent – both quantity and quality. In a world 

obsessed with economic capital, we have to remind ourselves that 

human/intellectual capital will drive the future of our businesses. 

Attracting, developing, retaining top talent (that can operate in 

new reality) is therefore key to future success. 

Unilever is in Top3 employer in FMCG in 27 markets – Employer 

brand is key. Our brands are key, but perhaps more important 

is the employer brand which decides our ability to attract the 

right talent. For Unilever, brand share is important. But our employer 

brand ranking is equally important. We are proud, particularly 

in the fast growing emerging markets, we enjoy a reputation 

as an employer of choice. This is key to attracting top talent. 

Developing / Retaining top talent 

Attracting top talent is important, but so is retaining/developing 

top talent and leadership in the organisation. This new world requires 

new capabilities and also implies a new context for the 

role of leadership. Hardware of leadership- ORGANISATIONAL 

READINESS- is about sustaining competitive advantage through 

strategic clarity and executional capabilities of the organization. 

Its about delivering exceptional business results. Software of 

LEADERSHIP is about building organization character. Quite 

simply this is about commitment to values and living them. 

Good times or bad times. 

Let’s pick up the “ORGANISATIONAL READINESS” .Is your 

organisation ready for this new world ? The key question we 

have to ask ourselves is . Do we have the Talent/ skills/ organisation/ 

culture to match our growth ambition? 

Celebrating diversity 

Unilever Brazil signed an agreement with Wal-Mart and 50 other 

companies to support and accelerate women’s development specifically 

for: 

Development of women inside their organizations 

Development of women in supply chain 

Social inclusion of women 

Valuing the image of women in society 

Global Leadership Development 

– Four Acres Singapore 

Developing leadership in emerging 

markets ( both for D&E and 

the D) is indeed an integral element 

of raising a diverse organisation. 

With that in mind, we are setting up a 2nd worldwide 

4Acres Leadership Development Centre in Singapore. Aiming to 

be operational in 2013 and investment amounting to E44m. 

THE SOFTWARE-LEADERSHIP 

Now, let me talk about even more important agenda - developing 

the right leaders-the leaders that build organization's character… 

the leaders that commit to values and live them. Good times or 

bad times. 

Abraham Lincoln once said 

“ Nearly all men can stand adversity, but if you want to test a 

man’s character, give him power. “ 

The Software – the 4th dimension of growth 

In today’s world where business leaders are much maligned there 

is a dimension of growth that is emerging critical. Consistent/ 

competitive/profitable growth was always seen the key driver of 

business and share holder value. More than ever, this will differentiate 

companies where people will work and companies which 

people/consumers will reject. 

True North 

Business needs leaders that recognise that there are some nonnegotiable. 

They recognise that the “True North” of organisations 

never changes. 

Ultimately, an organisation like ours that offers products in 190+ 

countries cannot be policed on the basis of good processes and 

audits. The glue that holds the organisation together are these non 

-negotiable and the shared values. 

Unilever values 

These are the values Unilever committed 

to…From Nigeria to Netherlands… 

from Uganda to United States.. This is 

the Ying&Yang of developing people 

which create powerful sustainable businesses – building organisational 

capabilities and creating a “purpose driven values led” 

organisation. Organisations are about people but it is good leaders 

that grows good people. 

23 

23

Scott Price PLANET 

PLANET is extremely important to Walmart. 

Every single one of us in this room has a role to play in saving 

our planet. I was delighted when I heard that the ECR Asia Pacific 

team has set up a sustainability committee to share best 

practices in this important area because I believe this is one area 

in which we can collaborate far more than some other areas. 

And if manufacturers and retailers can collaborate on sustainability 

and share best practices, what an impact we can have on saving 

our planet. 

Hunger: 

� Asia will have over 2 Billion Middle class by 2020. We will 

be the largest consumption population region in the world. 

� 542 Million or over 50% of the global population suffering 

from hunger will come from Asia Pacific region 

� By 2025 the demand for energy will increase by 50%, food 

demand will be up 48%. 

Pollution: 

� 75% of Southeast Asia’s original forest cover has been destroyed 

� 500 million people in China lack clean drinking water 

� The total number of cars, trucks and buses in Asia is doubling 

every seven years. 

We have a holistic approach to sustainability involving operations, 

associates, customers, communities and operations. 

Amidst all of these challenges. Walmart has been pursuing a path 

of sustainable growth. In 2005, Walmart set forward three broad, 

long term sustainability goals. 

1. To be supplied 100% by renewable energy 

2. To create zero waste and 

3. To sell products that sustain people and the environment 

Suppliers: 

We have four major areas of work with our supplier partners on 

sustainability. 

1. Joint programs on sustainability 

2. Supplier development programs 

3. MSP sharing 

4. Our sustainability index. 

Joint programs wit Unilever in Asia on sustainability: 

We’ve made it a priority to stock and sell items that are more 

sustainability focused. With Unilever, in addition to the programs 

that Harish talked about, we’ve done key sustainability 

programs including the “Green Lux” program in Asia. This 

campaign is to encourage customers to recycle old shower cream 

bottles India Recycling of plastic bottles and pouches in 30 cities 

Supplier development programs: In China we’ve 

worked with over 300 supplier factories to improve their energy 

efficiency. 143 of these factories have already achieved a 20% 

energy efficiency improvement. This translated to an energy 

savings of 514 Million Kwh equivalent to reducing CO2 of 

411,000 tons. 

MSP sharing: 

Another area of 

best practice is 

our “My Sustainability 

Program 

(MSP). MSP places 

ownership on every individual to have a personal plan to help 

the environment. Given the fact that Walmart employs over 2 

million associates worldwide, this has considerable impact. Japan 

organization is a great example. Over 75 % of our employees 

have a MSP More important however is how our extended 

Walmart family of supplier partners now is being provided access 

to MSP. We now provide a royalty-free license to organizations 

interested in adapting MSP for its employees or stakeholders. 

To date, 35 organizations, including UPS, Unilever, J.B. 

Hunt, United Healthcare and others, have taken advantage of this 

licensing opportunity since its release in September 2011.We are 

always looking for the next big opportunity to partner with Companies 

like Unilever with whom we have a very active sustainability 

partnership. Together we can do more. 

Our sustainability index: Finally, in 2011, we began to 

integrate a Sustainability Index into our business. This new retail 

tool will assess and improve the sustainability of our products. 

We have worked alongside The Sustainability Consortium and 

its more than 90 members – including suppliers, academics, 

NGOs and other retailers – to develop the research and metrics 

behind the index. Over the last year, we used these metrics to 

develop our first category scorecards to help our buyers evaluate 

products, and we expect to develop scorecards in up to 100 major 

categories by the end of 2012. We hope over the next few 

years we continue to partner with you in the area of sustainability. 

We believe this is one of our most important responsibilities 

– to protect the planet we live on. 

Harish Manwani 

“In the next two days you will be hearing about and discussing a 

wide range of ways in which we, as ECR AP members, and as 

manufacturers and retailers, can work together collaboratively to 

improve the lives of our consumers in Asia Pacific. We can do 

this by working both on the supply side of our businesses and by 

creating improved services for our mutual customers, whether 

from improved logistics solutions to On Shelf Availability. Scott 

and I wish you an interesting and fruitful conference in the hope 

and expectation that we can all make a difference in touching the 

lives of our consumers and consistently improving the value we 

give them” 

24 

24

CEOs’ Panel Session with 

Scott Price, CEO Walmart Asia 

Harish Manwani, COO Unilever 

Seah Kian Peng, CEO, NTUC FairPrice 

Glenn Jordan, President, Pacific Group, The Coca-Cola Company 

Moderator :Chris Cave Jones IBM Global Business Services 

Chris: We often hear Asia being described as the growth engine for 

consumer products manufacturers and retailers. How much further 

does this growth engine have to go? 

Scott Price: I am not macroeconomist but I think yes there are areas 

globally where GDP is uncertain but in relative terms, Asia continues 

to have far greater growth than any other continent. I think there 

are even more commitments in Asia: many companies have moved 

their research facilities here; offices are moving to Asia; global 

products, global brands are managed from the region. I think the 

opportunities are still there but the challenges are very similar to the 

ones we had many years ago. They are: 

� Relevant products- everybody tries to customise their portfolio 

to meet the Asian taste 

� Asia is the economy of the largest middle class in the world, the 

highest level poor in the world. It means that the required price 

point is very different from any other region in the world. 

� The impact on the planet. As demand grows how do we ensure 

that it is sustainable to the environment? 

Overall we are very optimistic about Asia. Asia will be the engine 

of growth. I do not think it will change any time soon. 

Chris : Harish, how it is from your perspective? You are doing a 

global role. How important Asia is from your point of view? 

Harish Manwani: It is mission critical. If you look at the developing 

markets it gives 55% of Unilever growth. Unilever is an emerging 

market company even if its roots go back to Europe. The important 

point is: we tend to treat Asian countries as one market, but they are 

all different markets. You have the ability to segment markets and 

the ability to serve consumer at the mass end, middle end and top 

end. This is the winning strategy. The only other thing to add is: 

talent. I do believe it is the major challenge in this growth: you do 

not have the talent base who will take this business where it needs to 

be. 

Chris: I am hearing there is still optimism towards growth in Asia 

but it is complicated. Kian Peng you run a business here in Singapore. 

Could you characterise Singapore as a high growth market? 

Seah Kian Peng: Singapore is a market where customers are very 

sophisticated, very well-travelled and they like to see new products. 

Singapore is a good market for companies like Unilever and Coca- 

Cola to try their products here and then introduce them in different 

countries. But every market is different, different customer segments, 

cultures. Singapore continues to grow, the purchasing power 

is strong therefore I think there is still room to grow further together 

with business partners. We are optimistic about the future. 

Chris: We are in an ECR conference in Singapore, but is ECR relevant 

in Singapore? 

Seah Kian Peng: It is relevant in every market because in the end 

ECR is customer driven, getting the right products to the right 

place on the right time, and we need to do this in the most efficient 

manner possible. We have to eliminate cost and that is the interest 

of all parties. I was impressed with what I heard from Harish: Responsible 

growth; and from Scott: My sustainability plan. These 

are very important prerequisite to what will drive companies going 

forward. If we do it right everybody will win. 

Chris: We heard earlier from you Scott that ECR aims to provide 

better value and eliminate waste. Is it equally valid in this rapidly 

growing market as well? 

Scott Price: Absolutely. We are much focused. It is part of every 

leader’s personal KPI’s and also part of their compensation is tied 

back to sustainability. In developing markets we have the greatest 

opportunity and the highest CAPEX. In India nearly 40% of produce 

is lost, in a country which has 3 time population of the USA 

and one third of the land mass, so there is very little room to have 

wastage. We hope that the Indian government will allow more investment 

in this back end. I think developing markets have huge 

opportunities but even developed markets have CO2 related challenges 

in transport. These are just as relevant as developing market 

challenges. They are different but equally important. 

Chris :We heard that 2 billion people use Unilever product every 

day. Coca-Cola must have a huge number of consumers who nearly 

every day touch its product somehow. 

Glenn Jordan: We believe that current trends in Asia are nonstoppable 

from demographics, economics point of view. We will see 

growth in the next 20 years. Our business in Asia, which includes 

mature markets like Japan, Singapore, Australia, Hong Kong they 

contribute a lot to total company growth. Asia as a whole is 20 % of 

the growth. If we take out those developed countries then it is more 

like 40-50% of the contribution. It is important that we all bring 

learning to the sustainability dimension. We all try to capture more 

income with the right products at lower cost. What is new that we 

need to do it in a sustainable way. Asia has great opportunity and 

the fact that we can do it in a sustainable way is fundamental. And 

you say Harish that is not only building capital but building talent. 

The 

only 

constraint 

we have 

at Coca 

-Cola is 

to build 

capabilities. 

Chris Cave Jones, Scott Price, Harish Manwani, Seah Kian Peng , Glenn Jordan 

25 

25

Chris: Touching Live Improving Values: We often hear that branded 

goods companies try to form relationship with consumers and 

individuals recognising the uniqueness of all of us. How do you do 

that when there are billions of us? 

Glenn Jordan: That is a wonderful 

question. We look at the current 

development of technology and 

digital marketing and that is the 

best ever opportunity for a business 

to do marketing. I have so 

many examples. One of our customers 

created a Facebook page 

for us. Our consumers are doing 

our marketing for us 10 to 20 

times over. It is the future. Now it 

is only the beginning. 

Chris: So it seems that digital 

Glenn Jordan 

channels are important and businesses 

have high expectations of 

the benefits from engaging digitally with consumers. So Harish how 

are digital channels treated in Unilever? 

Harish Manwani: There is one single trend what will change the 

world: emergence of digitalization. Both in the way we do business 

and the way we market our brands and talk to consumers. If I take ecommerce 

this is unstoppable and these are trends which will 

change the way all of us do business. Of course it is not that simple 

and you still need fulfillment. The other bit is how we talk to people. 

It is fundamentally changing. It has completely changed comparing 

how we did marketing 3 years ago and how we do it today. 

The big change is the control. We all controlled our environment. 

Now it is all about earning media. Consumers are creating content. 

They take brands into their own hands. It is not in your hand anymore. 

What we are doing is to train people in the organisation who 

are comfortable with these trends and technologies. In the last one 

year we had the most extensive training in what is happening in the 

digital world. I have a mentor who just joined the company. Younger 

people are better in this. So the first important element is Awareness 

in partnering. 

Second: Work together and see whether we can bring some method 

into this fast growing viral environment. Both the way we talk to 

consumers and the way it moves from own to earn are important. 

Last bit is the impact of digital: The importance of organisation reputation 

and character. You do something wrong today the world 

knows it today. The idea of closed door and running business from 

offices are gone. Our business is not owned by us. The consumers 

own the business. 

Chris: I would like to have a retailer view. How can you maintain 

collaboration with suppliers when your goals are not aligned? Isn’t 

conflict inevitable? 

Seah Kian Peng 

26 

Seah Kian Peng: The 

key for parties is to sit 

down to talk and align 

the objectives. If you 

are open and honest 

enough then it is possible. 

It can be win-win 

situation. The key is to 

understand each others’ 

objectives, find the commonalities, align some of these and work 

out the business plan accordingly. This is not new here. Many retailers 

do it. We would like to do even more. It has achieved results. 

With regard to digital, there is no way to get away from online 

trends. Running away from it won’t help. If you get into it you will 

learn from it. If you do good things, the customers will know it also. 

It’s not only about bad things. That is the power of social media. 

Glenn Jordan: Let me jump into potential conflicts between retailer 

and manufacturer: there is a different mental model we call it constructive 

tension. There are always going to be differences but if you 

have the same objectives in your mutual case of serving customers 

better then you always find areas to work on together. We should 

carry a different mental model: not conflict but constructive tension. 

Working together we will come out better. 

Chris: Do you think this has become how we normally do business? 

Do you think that the collaborative model is embedded enough? 

Glenn Jordan: We are all learning. It is happening faster here in 

Asia. Probably in 2 years’ time we will say yes we understand collaboration. 

Scott Price: All of the comments are very relevant. 8 years ago Facebook 

did not exist. The changing behavior is extraordinary. In 

Japan for example 50-60 year old customers are very comfortable to 

go on line. The challenge collaboratively is to manage the digital 

reputation. Trust becomes even more critical. There is huge daily 

vote on branded products whether you should select one product or 

another. There is a big challenge of things spreading very quickly 

even if they are not true. It can harm your reputation very quickly. 

So you have to much more proactively offset. 

Chris: I guess you have to monitor closely what people are saying 

online and be aware of what is being discussed. 

Scott Price: Most multinationals have an emerging social media 

strategy. We have a lot of work to do. Today I do not think that anyone 

is 100% confident that they understand and react properly. 

Glenn Jordan: Back to e-commerce: Asia is leapfrogging in technology. 

Asia is going to be bigger in e-commerce than any other 

continent. We have such a unique opportunity to shape the future. It 

is happening now. 

Chris: IBM surveys say that Asian consumers are far more willing 

to adapt this interaction method. 

26

Chris: Back to talent development. What do you think it is best 

practice? What should companies do to attract the best talent and 

help them grow in this fast growing market? 

Harish Manwani: I am sure there are many best practices in companies. 

From our point of view: 

1. Recruiting talent: we take 800 

management trainees each year and 

most of them are in emerging markets 

now. We believe that building 

local talents is critical. Also you have 

to understand the 80% of the population 

is here so there are a lot of talented 

people 

2. Making sure that you train people 

a. send them to training etc. b. you 

have to leverage the power of our 

presence in 170 markets. 

The good news is that 90% of our employees are local, but large 

numbers of them have worked outside. 

3. We have to change the way we look at talent: Earlier, multinational 

said Think Global Act Local. It has to change. I do not 

want people sitting in China thinking global. I want them to think 

local. Consumers in China won’t say that I am a global consumer. 

So you have to THINK LOCAL and at the same time ACT GLOB- 

AL. It is very important to build talent with local insight. The balance 

between local and global is absolutely critical. Building local 

insight and thinking local is critical. In India when you join as a 

management trainee from anywhere from the world you spend 2 

months living in a village, actually working on community projects 

in villages. Once trainees do it they love it. This is how you keep in 

touch. You cannot become a marketer unless you sell soap in the 

villages. This is a value system that makes good successful businesses 

and builds talent. 

Chris: I don’t think Harish knows this, but I started my career as 

Unilever Management trainee! How about you Scott? How do you 

attract and retain talent? 

Scott Price: I did not actually start as Unilever Trainee but as Coca- 

Cola trainee! The demographics of workforce and the demand dynamics 

has changed dramatically. You used to have time to develop 

people before they were tasked with financially huge brands. With 

the speed that the multinationals came to Asia they all built multibillion 

businesses. But the education processes was not able to keep 

up. We are all struggling and there is a race for talent. The demographics 

also change dramatically. You have markets where the 

aging of the population is significant. You have markets where females 

are not allowed to engage in the workforce. In Walmart we 

try to address these gaps. We have training programs for females. 

But the net at the end is eventually you need a more locally empowered 

talent pool. 99% of our employees are local but we have higher 

turnover rate. So we try to figure out programs to more engage talent 

in long terms careers. I think it will take 20 years until the 

education and the experience curve caches up with the demand. 

Chris Cave Jones Scott Price Harish Manwani 

Audience question (Ivett Nagy): I am very frustrated as a shopper 

when I do not find my product on the shelf. I know from ECR that 

you spend a lot of money on supply chain and somehow it still does 

not work properly. What are you going to do about it? 

Scott Price: Oops! In fact I met several suppliers on this topic yesterday. 

I feel for them. It is not easy. 

Glenn Jordan: Vice Versa 

Harish Manwani: I think it is such as 

important point. We talk about strategy, 

but execution is strategy in our 

business. If you cannot deliver the 

right product to the right shelf in the 

right channel every day you won’t 

win. I am sure everybody in our business 

understands that our P/L is determined 

by the last mile of our business. 

I really believe that the work 

we do with partners to try to connect our supply chain is helping us 

doing this. I do not say that it is perfect. If it was than we would not 

have a job. This is an on-going thing. Expectation from service level 

is rising and honestly it is good for our businesses to have higher 

and higher expectations. 

Glenn Jordan: It has to be on the top of our agenda. It is an issue of 

capabilities, an issue of dislocation between the speed we are growing 

and the speed we build capabilities and it is a good reminder 

that we have to work collaboratively. It has to be at the top of our 

agenda. 

Seah Kian Peng: We still have to make sure that we do our basics 

better. Going back to Human Capital: It is key in everything. I 

would like to touch this point: we see that people join a workplace 

for a variety of reasons: remuneration, career aspects are important 

but other aspects are increasing: whether they believe in the values 

of the company, such as sustainability. 

Glenn Jordan: 20 years ago we never had this challenge with talent. 

The reality is that there will be a lot of rotation, mobility. So the 

companies that people will choose are the ones who can think differently. 

So companies have to build processes which allow that to 

happen without interrupting the business. 

Harish Manwani: In the past we always talked about loyalty as premium. 

It has to be shifted from loyalty to commitment. 

Glenn Jordan: We think about formation and not organisation. 

Scott: Price: One customer gave us this feedback in China:” We 

want you to have this cereal. This one but without the raisins.” Customers 

are becoming incredibly demanding. We used to think that 

50,000 SKUs in a store were enough to satisfy our customers. But 

that is why people rushing on-line. Because they can find 100,000 - 

1 million SKUs. So it is not only a supply chain challenge but also 

customers are demanding much more than a retailer could potentially 

provide. So it is an interesting dynamic. Customer demand is a 

very powerful engine of change. 

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27

ECR Asia Pacific Award 

It is a recognized practice in ECR Asia Pacific to recognize 

the best cases around the region which shows exceptional level 

of collaboration and drives value for all of the parties. 

The beginning of 2012 we reached out our companies asking 

them to submit their case studies where they work collaboratively 

with their trading partners. We received 28 exceptional 

examples (see in table). Every of them met the criteria's which 

were: 

� Contribution to the development of ECR. 

� Degree of collaboration demonstrated. 

� Value created for consumers. 

� Benefits realized. 

� Presentation style. 

The judges had a very tough job to reach the 3 finalist. The 3 

cases what we have invited to be presented in the conference 

are the best of the best. 

All 3 cases in their own way demonstrated the spirit of ECR 

In line with our judges decision the ECR AP 2012 Award 

medalists are: 

GOLD medal: e-Commerce Innovation by Procter 

& Gamble China and Yihaodian.com– Page 29 

SILVER medal: Consumer Value Creation 

through Joint Promotion & Event Forecasting by 

Tesco India and HUL India—Page 30 

BRONZE medal: Logistic Distribution Integration 

Drives Supply Chain Optimization by Metro 

China, Procter & Gamble China, Unilever China– Page 31 

We would like to say thanks for all of the submissions and for 

the judges.: for Chris Cave Jones, Wong Tack Wai, Apolonia 

Kersh. 

Anthony Rose, Chris Cave Jones, Wong Tack Wai, Apolonia Kersh, Alex von Behr 

Project Country Companies 

Loss Prevention Program 

End to End Consumer Driven 

Australia 17 companies 

Supply Chain Philippines P&G, Puregold 

Joint Business Planning Singapore 

Creating VALUE to Customer by 

Maximizing 

On-Shelf Availability Philippines 

NTUC Fairprice, 

Nestle 

Customer Implant Project 

Distributors Engagement Initia- 

Thailand 

Watson, Colgate 

Palmolive 

Tesco, Colgate 

Palmolive 

tive: Good Warehouse Practice Malaysia Colgate Palmolive 

Global data synchronization net- 

Metro , Colgate 

work (GDSN) 

End-to-End Supply Chain Promotion 

Management - Win-Win Solution 

for Retailer & Supplier Busi- 

Vietnam Palmolive 

ness Growth China Unilever, Vanguard 

Shelf Ready Pack China Unilever, Metro 

OSA China Unilever, Tesco 

Palletization Delivery China Unilever, Watson 

METRO,P&G, Unilever, 

Vinda, UPM, 

Logistics Distribution Integration 

Supor, Sinotrans 

Drives Supply Chain Optimization China Logisitics 

Retailer/Supplier Synergic Process 

Integration for Joint Value Maximization 

China Vanguard P&G 

Standardized Goods Receiving China P&G Wal Mart 

E commerce innovation China P&G, Yihaodian 

Distributor Supply Network Reinvention 

China P&G 

A master data reinvention journey 

in China retail Industry China GS1, P&G 

BJHL Supply Chain Visibility 

within Collaborative Framework China P&G , BJHL 

Business collaboration & customer 

Metro, P&G and 

availability Pakistan AbuDawood 

Shrinkage Control - Gillette Safer 

Case Project 

Singapore P&G, Watson 

Strategic Partnership - Joint 

P&G , NTUC Fair- 

Business Planning 

Guardian Next shopper based 

Singapore price 

Store Design Project 

Collaboration- Driving Joint Value 

creation for Retailers and Manu- 

Singapore P&G , Guardian 

facturers 

Consumer value creation through 

joint promotion and event fore- 

Thailand Tesco, Diageo 

casting India Tesco, Unilever 

Palletization Delivery China Unilever, Watson 

1 Team India Unilever, Metro 

Homeplus world 1st virtual store Korea Homeplus 

Central Warehouse Project Vietnam Metro, P&G 

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28

ECR AP Award WINNER 

E-commerce Innovation 

Serve more shoppers, in more part of China, more completely 

By Procter & Gamble China and Yihaodan.com 

Eddie Hu-Emerging Channel General Manager Procter & Gamble 

The General status of e Commerce in China: 

China is big and fast growing in e commerce. 

1. Within next couple years e commerce will be 9% of total 

retail what is huge 

2. The potential is very big. 1/3 of Chinese people is using internet. 

1/3 of them are e shoppers. 

3. However if you compare it with USA or Korea we still have 

a huge room to grow. 

The conclusion is: the absolute number is big but the potential is 

even bigger. China is #1 Internet/eShopper Market, with huge 

potential. 

Understanding our shopper is basic. Why people shop online? 

1. Convenience- To avoid going to the store costumer save 

time. To shop anytime :Our peak hours are 10-11 PM at 

night. 

2. Value– To compare prices and save money 

3. Selection- To buy things not available in your local area To 

buy things not available in China. For example in Tibet 

what is 5000 KM away- we sell Vidal Sassoon hair product 

on line what we can hardly see there in the shops. 

How P&G as a company works in the e-commerce? 

� Broader coverage- work with most of the e commerce retailers 

� Model to fulfil the e-shoppers need: 4 C model Catch- 

Connect-Close-Continue 

4C MODEL: 

It is like a wheel. Integrated brand 

building plus sales model on line 

It is to talk to online shoppers in each 

critical moment: 

•When they generate purchasing intention 

•When the make up their mind 

•When they decide which brand they 

buy 

•Recommend anything else what they 

can buy 

•Hook them back to make them a loyal shopper 

SALES = Traffic (PV) * Conversion * Basket Size * Repeat 

This formula explains how this cycle generate sales 

Catch is to help to drive traffic in your website 

Connect is to drive the connection with the shoppers 

Close is to offer 360 degree offers to make sure they buy something 

at least 1 item. Beyond this 1 item we want to expand their 

basket. 

Continue: We do expect to come back and shop again 

Liu Jun 

Ling CEO 

Yihaodan.com 

Alex von Behr, Liu Jun Ling, Eddie Hu, Anthony Rose 

Yihaodian is an online supermarket that provides its customers 

with a superior customer experience, a vast selection of products 

and low prices. Yihaodian offers its 20 million-plus users more 

than 250,000 SKUs over 13 product lines. 

Yihaodian enjoys a reputation as the fastest growing e-commerce 

company in China. 

We are only 4 years old but having a complex model. Yihaodian 

sources product , develops system and even deliver goods itself 

with 6000 employees. 

How do we use 4 C model to make business better? 

CATCH: Drive high quality traffic together. Website union: 

P&G and us did co branded campaign. In 2 months we managed 

10 million page view and doubled the sales 

We have EDM/SM/DM system. At the same time P&G had a 

huge campaign in a big show called China Got Talents. We integrated 

that campaign in our EDM system. As a result Head & 

Shoulders sales went up by 70 % and the whole haircare product 

category with 60 %. 

CONNECT: Provide Best e -Content to Shoppers 

Once you have traffic we have to make it attractive. First we 

focused to FMCG products. Initially we took pictures ourselves, 

put them to the website and started to sell them. 

But we had to do it better. It has to be more vivid with all information 

costumers might need. 

And now it comes the moment of true: CLOSE 

We have to close the deal. Trade in Trade Up and Trade Across 

During the Olympics where P&G was one of the major sponsor 

we had specific campaign and offered limited edition of product 

for a few weeks. The result was amazing. The sales was tripled. 

Customers can do DIY Virtual bundeling to save money and also 

Virtual Gift Packs 

We have to CONTINUE: the 2 team has to work together very 

closely share a lot of data together. 

75% of orders coming from old customers, 25% from new. That 

shows loyalty. We have driven the traffic, We have converted, 

we have enhanced the content. we have closed the deal and continue 

to drive customer loyalty. But this is still the very beginning. 

A lot is still coming. 

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29

ECR AP Award Silver 

Consumer value creation through Joint Promotion & Event Forecasting (JPEF) 

“Being each others’ best business partner” By Hul India and Tesco India 

Ganesh Ananthanarayanan General Manager Modern Trade 

HUL 

In 2011 when we started the project we said our common intent 

is to move to share of wallet to share the heart of the shoppers. 

That is what will give us value on the long run. 

Background In India: 

Modern Trade business in India has close to “TRIPLED” in the 

last 5 years. At the moment it is 8-9%. There are a lot of demand 

and supply drivers for this growth. 

Operational Complexity in India: 

� MRP: India is amongst 3-4 countries in the world having 

MRP (maximum retail price) regime: none of the product 

can be sold above a maximum price. The band of operation 

is very narrow. 

� Tax situation is different in every state which means both 

retailers and manufacturers have to have Distribution Centers 

in every state. Unilever have 42 DC s in India. Having 

over 1000 SKU we have 40 -45 thousand SKU DC combination 

to work with 

� Challenging infrastructure 

All these factors make it a complex country to operate in. 

As a plus the Indian Consumer is a very demanding lot who 

wants the “Best Deals Everyday” 

Uday Varma (Commercial Director, TESCO India) 

From retailer point of view price and promotion are very important. 

Modern trade is still only 9 %. Driving the shift from 

traditional trade to modern trade is the value what costumers get 

in large stores like TESCO. This was fueled by macroeconomic 

factors also so consumers wants to save more and looking for 

promotions. 

Different research shows also : 

� Customers are actively looking for promotions going from 

25% to 39% 

� Customers shopping at 2 or more shops consistently is growing 

from 11% to 29% 

That leads us to the criticality of promotion planning and improved 

forecasting of major promotions/events These are the key 

to drive up :Service levels, Availability/ OSA, Customer satisfaction 

and Market share. 

Seeing all of the external and internal factors you can imagine 

that forecasting is extremely difficult. That forced us to see how 

we could do this part of the business collaboratively. Unilever 

and Tesco has decided to do joint promotion and event forecasting 

with the following objectives: 

� Minimalistic forecasting error 

� Reduce opportunity loss 

� Reduce excess inventory 

� Customer delight through high availability of promotions 

that have a unique value proposition 

Vijay Nehra Customer Service Director Modern Trade HUL 

We looked the promotion planning from technical and adaptive 

aspects. Technical aspect is easier. The adaptive part where you 

start to share information with transparency is more challenging. 

Joint Promo Plan – Guiding principals 

� Common focus to grow specific categories, based on 

improved consumer and shopper satisfaction, 

greater volume 

greater turnover 

higher profits 

� Common goals, objectives and decisions must be based on 

facts and data 

� Parties must be committed to implement it & willing to 

spend the resources necessary 

Erika Vida (Supply Chain Director, TESCO India) 

As a result of our Joint Promotion and Event Forecasting: 

For Consumers: 

� TESCO ranked No. 1 by shoppers in CQT Tests on Promotion 

/ Price perception 

� Higher loyalty seen through better promotion purchase 

� Better savings for the family in a volatile macroenvironment 

For TESCO 

� TESCO gains market share – move up from 5.6% to 6.2% 

post execution of JPEF 

� OSA & Service Level > 97% 

� 10% improvement in “days on hand” through forecast accuracy 

improvement of 2100 bps 

For UNLIVER: 

� Unilever gains market share in TESCO – improvement of 

170 bps 

� Higher brand loyalty / stickiness to Unilever brands 

� 2% sales growth through the collaboration 

Alex von Behr , Anthony Rose , Vijah Nehra , Erika Vida , Ganesh Ananthanarayanan 

30 

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ECR AP Award Bronze Integration of Logistics Distribution Drives Supply Chain 

Optimization - Collaboration among producer, retailer, and 3PL to drive change in FMCG & retail industry 

By Metro China, P&G China, Unilever China 

Denny Yang Head of Supply Chain and Logistics METRO China Alfons Van-Woerkom Customer Service Director Unilever 

In China, most big producers already have their distribution network, 

while recently many retail giants have started to build up 

their own distribution network. 

Is there any chance to integrate the distribution networks and 

build up the supply chain excellence for both parties? 

Metro China raised a challenge: Can big producers’ existing 

distribution be integrated into retailer’s distribution network and 

change 

the existing 

model 

as below? 

With logisticsintegration 

we 

could 

have continuous 

Supply Chain Performance Improvement like: 

� Leaned supply chain & better chance for profitability for 

both parties: no need for distributor 

� Simplified and efficient ordering, order processing, invoicing, 

payment & administration 

� Efficient goods receiving at DC & store 

� Backhaul sharing & pallet delivery 

� Master Data and GDSN 

For This initiative Metro reached out several suppliers including 

big, medium and small sizes. 

Lin Hu METRO Customer team Director Procter & Gamble 

P&G is the pioneer and the first leading supplier to work on 

changing the distributions center system in China with Metro. 

Metro has 54 stores across 39 cities. This is already a mass distribution. 

But in 2-3 year Metro will open 100 stores in multiply 

cities . Can you imagine what type of mass supply chain would 

be needed? 

That brings DC integration idea comes necessary. 

For P&G this is a 

learning journey 

rather than a project. 

In the last 3 

years we have 

been working together 

as a team. 

As a result of these 

3 year: we improved 

our supply 

chain KPI’s These 

KPI will become a joint scorecard of the 2 companies. 

What collaboration delivers? It delivers sustainability. This is 

one of the key driver why Unilever want to collaborate. 

One of the 

component 

we consider 

in Sustainability 

is logistics 

In China 

we had a 

complex 

situation 

what we 

had to change: 

As a result: 

� Increase of on-time delivery , order fulfillment, 

� decreased quantities of order and invoice 

� Better chance and flexibility (e.g. to consolidate goods via 

multiple DCs) to serve business of urgent orders, promotion, 

peak season and etc. 

� Enable further supply chain optimization (e.g. palletized 

delivery, selective check, speed-up store goods receiving 

OSA etc.) 

� Simplified and efficient OTC processing 

� Shorter stock days 

� Order scale increase helps to gain more discount from manufacturer. 

Metro has successfully implemented this approach with smaller 

suppliers also like Vinda, UPM and Supor. 

Summary: 

� Building skills and capabilities: Skills might not be there 

yet. Unilever and Metro HR teams meet together to understand 

how we can develop people in their supply chain career. 

� Supply chain is learning journey 

� Supply chain is not only logistic work but a multifunctional 

effort 

� Being partner we want to delight our end customer 

� Strong support from supplier Metro is driving the change in 

China. We can create more value and change the life of 

customers. 

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31

Singapore, May 18 th , 2012 

On the occasion of the 13 th ECR Asia-Pacific conference held in Singapore this week, it was announced 

that Francois Gay-Bellile, Coca-Cola Pacific’s Vice President Customer Leadership is to become ECR 

Asia-Pacific’s new manufacturers’ co-chair. 

Francois, who succeeds Alex von Behr, will work alongside Anthony Rose, ECR AP’s retailers’ co-chair, 

to continue to promote collaboration between retailers and manufacturers, in order to deliver improvements 

across the industry and ensure it delivers on the needs and growing expectations 

of the hundreds of millions of people it touches every day in Asia- 

Pacific. 

“I am honored to have been appointed to this role by my colleagues from 

ECR Asia-Pacific. Following the strategic alignment with the Consumer 

Goods Forum agreed last year, it has become clear that ECR AP is the perfect 

forum to accelerate the adoption of best practices across our industry, as 

demonstrated this week at the 13 th ECR AP conference. Our priorities for the 

future remain the same, to have a positive impact on the whole industry, 

whether on supply chain or on the fulfilling demand from consumers, by 

working better together and sharing more actively insights and knowledge.” 

“I am delighted to welcome Francois as co chairman. The focus of the ECR 

AP. Council understands emerging trends, sharing best practices and encour- 

aging productive collaboration between retailers and manufacturers. This will finally benefit our customers 

and consumers." said Anthony Rose, who is VP, Public Affairs at Wal Mart in addition to his 

ECR AP role. 

ECR AP New Member: Fonterra has joined to ECR AP on the 1 st of June 

2012. Antony Moess-Regional Supply Chain Manager AMEA -will be the 

member of the Council. He has also joint to our Operational Excellence Committee 

ECR AP News 

ISSUE 02 Summer 2012 

Efficient Consumer Response Asia Pacific 

(ECR AP) is an independent joint trade and 

industry body, which is co-chaired by representatives 

from the retail sector and the manufacturing 

sector. It promotes the use of Efficient 

Consumer Response techniques in Fast Moving Consumer Good (FMCG) retailing 

to remove unnecessary costs from the supply chain and make the sector, as a 

whole, more responsive to consumer demand. 

For more information please visit our website: www.ecr-all.org or contact us at 

Ivett@ecr-all.org 

ECR ASIA PACIFIC NEWS 

Editorial: 

Francois Gay-Bellile 

Anthony Rose 

If you have any topic, article, news what you would like to share in the next issue please do not 

hesitate and send it to us (Ivett@ecr-all.org) until the 1 st of October. 

Also we would like to make sure that this newsletter is 

useful for you therefore if you have any feedback please let us know. 

Editor: Ivett Katalin Nagy 

Contributors: Alex von Behr, Stephanie 

Penning, Chris Cave Jones, Heidi 

Ho, Marc Van Der Liet, Samantha 

Blake, Ringuet Claude, Michael Haas, 

James Layard, Nadjah Azimidini, 

Alina Goretskaya, Nigel Bagley, Ivett 

Katalin Nagy, Anthony Rose, Francois 

Gay-Bellile, Anna Vinogradova 

Designer: Ivett Katalin Nagy 

32 

32

ECR AP - The need for collaboration - ECR Community

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