SHELF READY PACKAGINGECR Operating Board Update

27th June 2006

2

Agenda

Project Summary

Agreed Scope of ‘SRP’ Project

Project Structure & Participation

Work Plan timeline

Progress Report

Blue Book structure

Headline Guiding Principles

Discussion Points

Next Steps

3

As set out in the Project Brief, the Project was mobilised at a European Level

ii. ECR National Initiatives

i. Proprietary Initiatives • Working group to align the multiplication of initiatives on SRP across Europe.

• The ECR Europe project on SRP will publish it’s findings in an ECR Europe “Blue Book”.

– Define Common Principles & Functional Requirements

– Formulate Business Case

– Facilitate Optimal Implementation

Recognising the importance of the topic, and the need to act at a European level, the ECR Europe Shelf Ready Packaging (SRP) Project began in February 2006

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The scope of the ECR Europe project incorporated a variety of localised definitions of SRP

Re-usable Plastic TrayMUs, Pallet, DollyOn-Shelf Tray / Case

• SRP will be the term used by ECR Europe throughout the project. It is equivalent to RRP (retail ready packaging), ready to sell or PAV (prêt-à-vendre). SRP covers all types of shelf ready packaging, including promotional displays, pallets, etc. The definition is not limited to packaging which goes on the shelf, but includes all sales support mechanisms which are visible to the shopper in all major distribution channels

• Unlike other ECR concepts, SRP is not a standalone best practice – it has to be considered in the context of existing best practice recommendations

SRP Types

Scope

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The Project Team has been arranged in three Work Streams

Guiding Principles Business Case Functional Requirements

Project Management

• Project Team comprised of 40+ industry representatives, including Retailers, Manufacturers, Packaging Suppliers, and ECR Nationals

• Split across 3 Work Streams, aligned to the Project Deliverables

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Project Timeline

Planned ECR Europe Meetings

Kick-Off

OperatingBoard(27/06)

Blue BookFinalisation

OperatingBoard(05/09)

Key CommunicationsCompleted ECR Europe Meetings

Dec 06

Guiding Principles

Functional Requirements

Fine Tuning, Review & Pilot

Mobilisation & planning

24/04

Business Case

Nov 06Oct 06Sep 06Aug 06Jul 06Jun 06May 06Apr 06Mar 06

23/05 29/06

Blue Book Production

ECRConference

OperatingBoard(23/11)

Holiday Period

Project Management

Completed Work streamconference calls

10/04 09/05 13/0630/03 29/08 28/09 24/10 29/11

20/03

• The Project Team have met once a month for progress reports, testimonials, and work stream break-out sessions

• Each work stream also has a monthly conference call to discuss progress

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The Blue Book is on schedule, with the subject matter receiving significant interest at the Annual Conference

Basic Assessment Tool

Methodology

KPIs

Shopper Research (inclusion of)

Industry-wide “size of the prize”

Solution Assessment Tool

In-Store Execution

Functional Requirements

Guiding Principles

0%

100%

100%80%

50%

95%60%

50%

0%

Guiding Principles

Business Case

Functional Requirements

Work Stream Deliverables ECR Conference - Stockholm

• SRP Break-Out session: Role-Play, Presentations & Panel Questions

• Full Room (235 attendees)

• Very Positive Feedback(Excellent: 46, Up to my expectations: 82,

Below average: 10, Very poor: 1) = 8.1/10

Breakout score

8,5

8,4

8,3

8,1

8,1

8,1

8,0

7,9

7,9

7,8

7,7

7,7

7,4

6,9

6,9

6,7

6,4

6,4

6,1

5,8

BO3.2 GDSBO4.1 Shrinkage

BO1.1 Lean thinkingBO2.2 SRP

BO4.3 Data sharingBO4.2 EPC

BO4.4 JVCBPBO2.4 Innovation

BO3.3 CPFRBO2.3 Category MgmtBO3.1 Dem Driven SC

BO2.5 Case for ECRBO4.5 Health & Wellness

BO2.1 GUSIBO1.4 What is ECRBO1.3 TraceabilityBO3.5 Technology

BO1.2 OSABO3.4 Idea factory

BO3.6 I nno packaging

Excellent progress attributed to aggressive targets, good attendance & participation in work streams, and support provided by Accenture in content creation & driving the project forward.

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Agreed structure of the final Blue Book deliverable

Foreword

Introduction

Executive Summary Contributors & Acknowledgements Guiding Principles Business Case

Functional Requirements and Best Practice for Execution

Conclusions & Next Steps

Appendices & Glossary

6 Pages Co-Chairs

6-7 Pages Work stream

15 Pages Work stream

15 Pages

Co-Chairs1-2 Pages

Project TeamAs necessary

Work stream

Estimate Responsibility

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All Work Streams are leveraging existing material, where available, in the creation of their output

1) Always of Value to the Shopper, Retailer and Manufacturer

2) Compliance with Environmental Legislation and Public Policy Concerns

3) Avoid Fragmentation and Complexity

4) Maintain Brand Identity

5) Measure Implementation

6) Requirement of Long-term Commitment from Retailer and Manufacturer

7) Compliance with total Supply Chain Efficiency Principles

Headline Guiding Principles

ASCS

ECR Nationals ECR

Europe

Project Team

Industry

SRP PROJECT

The creation of the Guiding Principles combined input from a variety of sources

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Discussion Points

• Alignment & Visibility of ECR Nationals– France & Spain ECR Blue Books published. Netherlands and Belgium working Groups, & Nordic Packaging standards– No prior visibility of content or opportunity to ensure alignment

• “Size of the Prize”– It will not be possible to provide an Industry evaluation of the opportunity when it is acknowledged that SRP is not always

Best Practice

Hot Spots

• How to communicate the Blue Book content on SRP?– Plenary Presentation in Milan with Case Studies– Possible interim ECR forum (Milan will be some time after Blue Book created)– Inclusion in ECR Global Scorecard– ICI Learning Forum– ECR Nationals members ‘mailshot’– Press Release in Trade publications

Communication

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Next Steps

• Business Case Work Stream– Finalise Methodology and Pilot with

volunteer organisations– Continue to develop Business Case

calculation tool– Finalise KPIs– Incorporate IGD Shopper Research

where relevant• Functional Requirements Work Stream

– Adapt IGD Assessment Tool to be in line with ECR Europe content

– Finalise In-Store execution recommendations

• All– Ratify Draft version of Blue Book

content

Work Streams

• Blue Book Content– Create Foreword, Introduction &

Executive Summary, Conclusions & Next Steps

– Align work stream deliverables– Compile Appendix & References

• Communication– Agree suitable communication

opportunities and channels

Project Leadership