Overview of Current ECR Europe Projects Situation May 2002

Overview of Projects CPFR (Collaborative Planning, Fore- casting & Replenishment) Shrinkage OSA (Optimal Shelf Availability) CDL (Consumer Direct Logistics) PIETF (Profit Impact of ECR Task Force) POS Data Management (new) CRM (kick-off on 23 May) RTI (Reusable Transport Items)

C P F R Achieved to date: – : how to implement the VICS CPFR model in practice - ‘CPFR Implementation Guide’ released in – : further piloting of CPFR model to report on best practices in Europe - ‘European CPFR insights’ released in –Now : Contribute European perspective to GCI CPFR team through direct participation

C P F R (2) Current situation : –ECR Europe CPFR project completed –Focus should now be on implementation and on global CPFR (GCI) –Further action : ECR Europe companies to become involved in GCI CPFR - meeting on 12/13 June Organisation of European CPFR training sessions (ECR Europe & Accenture)?

Shrinkage Achieved to date: – : roadmap on how to collaborate on shrinkage - ‘Introducing a collaborative approach to reducing stock loss in the supply chain’ released in – : pilots to test roadmap - publication for autumn white paper on intelligent tagging. –Expected end of project : autumn 2002

O S A Achieved to date : Availability survey : average out-of-stock rate in Europe is % Root causes identified Improvement trials started : Albert Heijn, Delhaize, dm-Drogeriemarkt, Pingo Doce, Safeway, Spar, Tradeka. OOS measurement tools under examination

OSA (2) In progress : Improvement trials continuing and being documented Preparation of OSA publication for end of 2002

Consumer Direct Logistics Achieved to date : Consumer Direct Logistics publication released in Barcelona Content : Consumer Direct - big picture Consumer Direct Logistics - focus and framework of report Current practices in CDL Consumer Direct Scenarios Consumer Direct Supporting Concepts Implications and Open Ends

C D L (2) Current situation : CDL project now completed No further action planned

P I E T F In progress : Now focusing on providing support for other ECR projects Reflecting on future role

POS Data Management Achieved : Project brief Definition of POS Data Identifcation of barriers First principles for POS Data sharing Deloitte providing management support POS Data seminar in Barcelona

POS Data Management (2) In progress : Develop best practice recommendations for use of POS Data for every ECR improvement concept What technical standards are needed? Prepare ECR blue book

R T I Issue : lack of retailer/manufacturer interest dominated by RTI providers In progress : Chris Tyas / Nestlé investigating situation with RTI project team