1. PROFESSIONAL TRADING RELATIONSHIP Advisory Group – May 24, 2005

3. HOW TO IMPLEMENT A CULTURE OF CHANGE Within Companies Between Companies PEOPLE MANAGEMENT PROJECT

4. HOW TO IMPLEMENT A CULTURE OF CHANGE (recruit, motivate, reward, train) Corporate culture Organisational structure Reward mechanisms and performance measures Knowledge and skills PEOPLE MANAGEMENT PROJECT

5. Sales Rep Buyer Senior Management A / PR & D Finance MIS Manufacturing & Distributions Customer Service Marketing Sales Rep Trading Relationship - Interface Senior Management Planning FinanceA / P MIS Warehousing Store Operations Merchandising Buyer

6. ECR SCORECARD Demand Management Enablers Demand Strategy and Capabilities Common Identification Standards Collaborative Shopper Value Creation Standard Electronic Messages Optimiz e Assortm ents Optimize Promotions Optimize New Product Introduction s Global Data Synchronization Supply Management Integrators Supply Strategy and Capabilities Collaborative Planning and Forecasting Resppon sive Supply Integrated Demand Driven Supply Operational Excellence Cost/Profit and Value Measurement PEOPLE MANAGEMENT EFFICIENT TRADING RELATIONSHIP Staffing -Recruit -Reward -Motivate -Organise Way Of Working SHARED LEARNING PROGRAM - GLP - PMP

7. Demand Side: from transactional model to joint business development People & Organization ScoreGeneral Meaning The degree to which the structure, knowledge, HR planning and culture of the organization, as well as people skills and remuneration policies have changed to support Consumer Focused Demand Management. 0Nothing plannedTraditional organizational structures - (e.g. not category focused). 1 Plans agreed but have not yet started implementation Separate departments with plans to change. Traditional barriers understood with buyers moving to category focus and sellers incorporating a multi-channel vision. 2 Pilot tests being conducted Category/Channel managers/teams assume responsibility for category/channel planning. Plans in place to restructure organization. External relationships with trading partners starting to emerge. 3 Roll-out of implementation started Category/Channel managers/teams assume responsibility for total system for their categories/channels. Structural changes being made. External relationships based on trust and knowledge sharing in place. 4Fully implemented Category/Channel managers / teams assume responsibility for total system for their categories/channels. Changes to structure, HR planning, culture and remuneration policies are completed. Decisions made in context of overall demand management strategy. Preferred partnerships are considered the way of doing business. Employees work actively with trading partners and are often swapped on project teams.

8. Towards an integrated supply chain People & Organization ScoreGeneral Meaning The degree to which the structure, knowledge, HR planning and culture of the organization, as well as people skills and remuneration policies have changed to support supply management. Decisions and rewards based on overall services levels, balanced with cost and inventory. 0Nothing planned Traditional organizational structures - (e.g. silo management at each stage of supply chain). 1 Plans agreed but have not yet started implementation Silo Management of the supply chain but with plans to change. Traditional barriers understood and organization moving towards an integrated supply chain focus. 2 Pilot tests being conducted Total Supply Chain teams assume responsibility for logistics planning. Plans in place to restructure organization. Relationships with trading partner's logistics organization starting to emerge. 3 Roll-out of implementation started Total Supply Chain teams assume responsibility for total logistics system. Building direct links with counter-part teams in key trading partners. 4Fully implemented Joint Total Supply Chain teams assume responsibility for total supply chain for items of common interest. Changes to structure, HR planning, culture and remuneration policies are completed. Decisions made in context of overall supply management strategy. Preferred partnerships are considered the way of doing business. Employees work actively with trading partners and are often swapped on project teams.

9. People and Organisation 0: Traditional organisation 1Plan to change toward more integrated focus structure 2. Internal teams assume responsability. Relationship w/ trade partner emerging 3. Structural change 4. HR planning, culture and remuneration policies completed ECR Global Scorecard 2.452.3

10. Survey Manufacturer Retailer Personnel Structure Degree of Success or Failure Profile Personnel Structure Profile Long-term gain? alignment Practices win – win win – lose lose - win Age, experience, job rotation, knowledge of market, training, time analysis, types of incentives etc. Frequency of contacts, prep time, type of projects, length of project etc.

11. Staffing: talent sourcing Key questions:  what is talent  What career-paths exists  turnover levels (by grade & function)  how to drive talent and keep it  how to encourage cross-fertilisation Possible actions: 1. Research: (a) review current/existing benchmarking (b) define a new competency framework (c) compare appraisal, evaluation & business need measures (d) assess joint work/education (personal qualities, integrity, …) 2. Case studies: (a) retailer approach (eg job rotation every two years, performance/ reward system) (b) continuity approach (c) optimum recommendation by function 3. Define functional requirements for professional trading relationships ECR Europe – March PTR Workshop Summary

12. WOW- Trust Assessment : companies interviews How you view the status of trade relationship Identify the issues that impact behaviours in trading relationship Establish guidelines to change and test the application in specific (companies) relationships Recommendations of actions to management ECR Europe – March PTR Workshop Summary – PDG Proposal