2004-5 Work Plan 2004-5 Work Plan

ECR EuropeShrinkage Team

Where we started ….

• Zero collaboration around a difficult subject• No common definition on scale or impact• Blinkered approach, focussed on

technology solutions• Crisis driven

What we did ….

• Created a unique forum for ECR member retailers and manufacturers

• Created common definitions • Quantified scale and scope of issue• Identified opportunities to lose less and sell more• Pioneered the ECR Road map approach• Realised benefits of collaboration• Generated new knowledge on key issues

The Team

Supply Chain and Logistics Expertise

The Academic Support

Excellence in Crime and Security

Management

Specific Deliverables

• ECR conferences: 2 Plenaries & 4 Breakouts • 2 Blue Books• 2 Surveys• 3 White papers (RFID, Hot Spots & KPI’s)• 5 European seminars• Outreach to international ECR bodies in:

– Korea / Singapore / South Africa / North America / Australia• Road Map won 2004 VICS award (Wal-Mart / Gillette)

Hall of Fame

- 40% losses + 10% salesUKSainsbury’s spirits category

- 50% losses + 33% salesUKB&Q & Plasplugs

- 45% total shrinkPortugalFeira Nova & Danone

- 85% losses + 18% salesBelgiumMakro & Gillette

- 74% losses + 288% salesHungaryTesco & Gillette

- 25% losses + 10% salesUKSainsbury’s & Menzies

€1.5m savingUKTesco mobile phones

- 7% lossesUKWickes & GET

- 29% lossesPortugalSonae & Colgate Palmolive

- 42% lossesPolandAhold & sausage suppliers

ResultsLocationOrganisations

The ‘Road Map’0. Wake Up

2. Map &Measure

4. Develop Solutions

5. Implement

6. Evaluate

1. Plan

3. Analyse

From Projects to Programmes

Where we’re going ….

2004-5 Objectives:– Increase awareness / use of ECR Road Map– Launch collaborative projects across nations– Maintain European team momentum– Run breakout session at Paris conference

Work Plan Elements

1 Shrinkage Across Europe - National ECR Initiative partnership

2 European Shrinkage Seminar Series

3 Shrinkage Team Project Meetings & Paris Conference Breakout Session

Work Plan Elements

1. National ECR Initiative partnership:

Objective:– Leverage National ECR organisations to help disseminate shrink learnings / Road Map

Action:

– Sponsor & help organise 10 local awareness seminars

Planned Outcomes:

1. National body launches a GLP programme

2. National body launches a national shrinkage project

3. Seminar inspires joint retailer / supplier projects using learnings acquired at the seminar / blue book with a

view to sharing findings through ECR / winning the coveted shrinkage award.

Generic National Seminar

• Introduction - Local retailer CEO• Scale of Problem- Adrian Beck• Hot Concept - Adrian Beck• Road Map - Paul Chapman• Interactive session - Paul Chapman• Case studies - Local Organisations• Close seminar• Plan projects - Paul & Adrian & ECR Nationals

Partnership

ECR Europe• Provide materials /

speakers• Part fund the academic

fee’s / travel expenses • Encourage and motivate

projects

National ECR• Promote• Manage local logistics• Translate materials

Benefits

ECR Europe• Engage national bodies• Encourage adoption of

Road map• Raise interest in

Shrinkage Team• Increase nominations for

Shrinkage award• Promote collaboration• Help launch national GLP

initiatives

National ECR• Raise profile on a hot topic• Create networking

opportunity• Provide momentum for GLP

initiative• New members• Make national initiative

vibrant• Enhance credibility• Generate revenue (?)

Build cohesiveness between Europe and the Nationals

ECR Nationals

Super Hot Prospects• Holland• Spain• Sweden / Norway• Italy• Belgium• Hungary• Ireland• Turkey• Austria• UK• Switzerland• Portugal• Germany• Czech Republic / Slovakia

Hot Prospects• Denmark• Finland• France• Greece• Iceland• Russia

Work Plan Elements

2. European Shrinkage Seminars #6 and #7:

Objective:– Promote ECR to a wider audience and leverage these delegates to “test” new theories and learn more

about specific issues.

Action:

– Design, organise, promote and facilitate 2 European level seminars, target 50-70 delegates per event

Planned Outcomes:

1. Produce an increased quantity of “public domain” materials supporting the collaborative approach

2. Identify new trends / build evidence for new ideas

3. Attract new “recruits” to the Road Map / collaborative approach

Potential Seminar Themes

• Projects to Programmes - How to hold the gains from encouraging pilot projects

• Hot Stuff - New tools & techniques to win with the vital few

• Baking in solutions - How good design in both store layouts and hot product packaging can deliver results

Work Plan Elements

3. European Shrinkage Team Meetings & Paris Conference:

Objective:– Continue support for highly successful and growing forum promoting collaboration and best practice.

Showcase this forum and the tangible outcomes at the Paris conference

Action:

– Design, organise, promote and facilitate 5 European meetings and 1 Paris breakout seminar

Planned Outcomes:

1. Develop new ideas and best practice

2. Keep alive this healthy network of Europe’s leading thinkers on shrink - “all that’s good about ECR”

3. Develop the 2006 work plan, which is likely to call out the need for new research projects

Work Plan KPI’s

• Input measures:– Number of events– Attendance at events

• Output measures:– Number of collaborative projects launched

between companies– Number of GLP initiatives launched– Value of loss reduction & sales increase

Shrinkage and GLPShrinkage project:

•Contributes to high-level awareness raising through national seminars

•Builds momentum for GLP initiative on shrinkage at local level

GLP:

•Benefits from the momentum created by national shrinkage seminar

•Takes Shrinkage Findings one step further into companies through GLP initiatives

Work Plan Cost

€60,942

€17,442

€28,500

€15,000

Cost to ECR

€23,250

€8,250

---

€15,000

Cost to ECR

Nationals

Shrinkage Team Project Meetings & Paris Conference Breakout SessionTravel costs

Shrinkage Across Europe- National ECR Seminar Series (10)

Work Plan Element

Is It Worth It?

- Shrinkage Director UK Retailer