© ECR France 2009 The 2012 supply chain is sustainable and starts today Massification, Mutualisation, Multimodality
© ECR France 2009
The 2012 supply chain is sustainable and starts today
Massification, Mutualisation, Multimodality
© ECR France 2009
People quality of life
4 ECR France objectives until 2012
Environmental
impacts
Logistics
costs
Service levelto consumer
© ECR France 2009
Our future supply chain is a mosaic of solutions, of best practice implementations,
of companies’
initiatives in a continuous improvement approach
© ECR France 2009
21 ECR France supply
chain
best practices «
blue
books
» and recommandation to Public Authorities
including
© ECR France 2009
ECR France Project organisation
Supply Chain 2012: common languageDefinition, optimization levers, KPI, mutualisation
specifications
…
Products typology Road workshop Rail workshop River workshop
High volumes
(beverages,
petfoods, milk
…)
Road transport
optimisation
Tools:–Cartography–Ecometer
&
Ecosimulators–Transport
shortage –ECR Europe
sustainable
transport
radmap–…
Speed dating
of road
transport
With rail transport
providers
Short best by
date (yogurt,
ham …)
Controlled
temperature
8°
to 22°
(chocolate,
biscuits …)
Others
products
Committee work
Implementation Pilots
© ECR France 2009
5 tools
to support initiatives
ECRTransport Web dating
ECRTransport Web dating
© ECR France 2009
How to identify easily potential manufacturers or retailers partners
in order to optimize together the road transport?
ECRTransport Web dating
ECRTransport Web dating
ECRTransport Web dating
ECRTransport Web dating
© ECR France 2009
63 companies and 343 distribution centres
20TH CENTURY FOX HOME VIDEO, AUCHAN, BARILLA, BEIERSDORF, BÉNÉDICTA, BIC, BLEDINA, BONCOLAC, BONGRAIN SOPARIND, Brasseries
KRONENBOURG, CADBURY, CARREFOUR CASCH, CARREFOUR
SPC, CASINO, COCA‐COLA, COLGATE PALMOLIVE, CORA, DANONE EAUX, DANONE France, DOUWE EGBERTS, DR. OETKER, ECKES GRANINI, FERRERO, FLEURY MICHON, FROMAGERIES BEL, GEMEY MAYBELLINE GARNIER, GENERAL MILLS, GEORGIA PACIFIC, HEINEKEN, HENKEL, ITM, KELLOGG'S, KRAFT FOODS, L’OREAL, LASCAD, LESIEUR, LOTUS, LU, LUSTUCRU Frais, MARIE, MARIEBEL, MARS, MC CORMICK, MCBRIDE, MERALLIANCE, METRO CASH AND CARRY, MHD, NESTLE, ORANGINA‐SCHWEPPES, PIERRE HENRY, SAINT HUBERT, SAUPIQUET, SCA, SCACHAP,SCAPARFUMERIE, SDV Les marchés
du monde, SOCAMIL (CENTRALE
LECLERC), SODIAAL, SODEBO, SOLINEST, SYSTEME U, UNILEVER, VANIA EXPANSION
ECRTransport Web dating
ECRTransport Web dating
ECRTransport Web dating
ECRTransport Web dating
© ECR France 2009
2 speed datings
a year
Which have lead to better
optimizations of load capacity – Between manufacturers
•
Upstream transport mutualisation•
…– Between retailers
•
Backhauling•
…– Between manufacturers and retailers
•
Backhauling•
…
© ECR France 2009
How to measure the environmental impacts reduction and choose the best solution?
© ECR France 2009
Liters of
gasoline
Tons of CO2
saved
Vehicles x km
Multiplayer optimisations
to diminish greenhouse gas emissions, oil consumption and road congestion
© ECR France 2009
© ECR France 2009
Current
Network: non performant network
Plant A DC
manufacturer A DC
Retailer
X
PoS
DC Retailer
X
DC Retailer
YPlant B DC
manufacturer B
DC
manufacturer
A
Local suppliers
PoS
PoS
PoS
PoS
© ECR France 2009
The potential optimized networks
Selection of the target network(s) depending on product types
(rotation, use by date …), store formats …
© ECR France 2009
Plant A DC Manufacturer A
DC Retailer
X
DC Retailer
X
DC Retailer
YPlant B DC
Manufacturer B
Network B: MdC
–
PoS
DC
Manufacturer A
PoS
PoS
PoS
PoS
PoS
Multipick
variant, Multidrop
variant
© ECR France 2009
Nouveaux entrepôts
Direct Service Delivery
‐ List of hypermarkets
‐ Skus
(full pallets)
‐ Frequency and lead time
‐ Optimized network for the 3 partners
© ECR France 2009
Direct Service Value: added value and key factors of success
Added value:
•Save one stop at Retailer Distribution
Centers
•Reduce level of stocks on important skus
•Reduce kms
: +/‐
20% (France vision)
•Reduce CO2 emission
•Reduce total delivery costs
•Accelerate reactivity and new innovation
presence
Added value:
•Save one stop at Retailer Distribution
Centers
•Reduce level of stocks on important skus
•Reduce kms
: +/‐
20% (France vision)
•Reduce CO2 emission
•Reduce total delivery costs
•Accelerate reactivity and new innovation
presence
Key factors of success:
•Maintain a right delivery frequency (it’s a
store !)
•Be able to order full trucks from different
suppliers
‐
Stock vision‐
Anticipation
•100% quality of service in physical delivery
•The right specifications between partners
and an agreed governance
•A permanent link with Business teams and
stores management
Key factors of success:
•Maintain a right delivery frequency (it’s a
store !)
•Be able to order full trucks from different
suppliers
‐ Stock vision‐ Anticipation
•100% quality of service in physical delivery
•The right specifications between partners
and an agreed governance
•A permanent link with Business teams and
stores management
A win win
situation (Share savings)
Information flows are the key issues
A win win
situation (Share savings)
Information flows are the key issues
© ECR France 2009
Plant A DC
Manufacturer A
DC Retailer
X
DC Retailer
X
DC Retailer
YPlant B DC
Manufacturer B
Network C : Plant – RdC
DC
Manufacturer A
PoS
PoS
PoS
PoS
PoS
Multipick
variant, Multidrop
variant
© ECR France 2009
I. Optimized
network before
/ after
Plant A DC Retailer
X
DC Manufacturer A
PoS
PoS
© ECR France 2009
PoSPlant A DC Retailer
X
DC Manufacturer A
PoS
II. Optimized
network before
/ after
© ECR France 2009
III. ResultsBefore
After
Liters of
gasoline
Tons of CO2
saved Vehicles x km
Liters of
gasoline
Tons of CO2
saved
Vehicles x km
© ECR France 2009
Plant A DC
Manufacturer A
DC Retailer
X
DC Retailer
X
DC Retailer
YPlant B DC
Manufacturer B
Network D : « Plant – Store »
DC
Manufacturer A
PoS
PoS
PoS
PoS
PoS
Multipick
variant, Multidrop
variant
© ECR France 2009
Plant A DC Retailer
X
DC Retailer
X
DC Retailer
YPlant B
Network E : « Shared MdC »
DC
Manufacturers
A & B
PoS
PoS
PoS
PoS
PoS
Multipick
variant, Multidrop
variant
© ECR France 2009
Summary
and results
The mutualisation
isn’t just a customer answer but is the result of a
company’s strategy
It requires large concertation
between partners in order to share a plural
future
Competition is not inside the lorry…
&…
what about saving the planet !!!
1 000 a year
Litre of gasoline kg CO2 Vehicles.km
Initial situation 753 598 2 005 890 1 902 413
Multiplayer solution 618 278 1 645 703 1 426 632
Savings 135 320 360 187 475 781
% of savings 18% 18% 25%
© ECR France 2009
Plant A DC
Manufacturer A
DC Retailers
X & Y
Plant B DC
Manufacturer B
Network F : «
Shared
RdC
»
DC
Manufacturer A
PoS
PoS
PoS
PoS
PoS
Multipick
variant, Multidrop
variant
© ECR France 2009
Plant A
DC multi
manufacturers
and multi retailers
Plant B
Network G : Shared
MdC
& RDC
PoS
PoS
PoS
PoS
PoS
Multipick
variant, Multidrop
variant
© ECR France 2009
I. Optimized
network before
/ after
© ECR France 2009
II. Optimized
network before
/ after
© ECR France 2009
© ECR France 2009
Key Factors of Success
For each problem, one solution
Collaboration– New mindset: don’t wait for the future, act now!
– Clear specifications and governance
Commitment– CEOs support– Trust in your partner(s)
© ECR France 2009
Conclusion
Don’t wait for the big picture, built it up
Every little helps
The best solution for tomorrow is not the one of today. Have a continuous improvement approach
The toolbox is available (best practices, measurement tools, “dating”
website, EDI messages
…). Pick the ones adapted to your current situation
Collaboration is the output of a supply chain strategy
Our challenge is sustainable development: consumers’
satisfaction, citizens’
wellness, planet
protection and durability of our industry
© ECR France 2009
For more information
www.ecr‐france.org