1. The Case for ECR Update to ECR Board 12 November 2004 Implementation Workstream

2. Key Messages for today Study will provide comprehensive understanding of what ECR activity HAS and CAN STILL achieve for your business Examines key linkage between business performance and capabilities Individual business case studies and macroeconomic analysis …. the ECR Board can make a strong contribution to success!

3. Agenda Review: Project Objectives Key Steps Deliverables & Status What we need from you

4. Objectives To understand if the adoption of ECR practices leads to greater efficiency, consumer value and growth in Europe by: (i) measuring the impact of ECR activity for 1994 - 2004 - Has 5.7% saving been realised/re-invested for growth? - Has shopper/consumer benefited? - Has industry benefited? (ii) reviewing changes in culture, mindset, levels of collaboration (iii) understanding future potential and recommending set of simple KPI’s to track progress

5. Project Governance Steering Committee V Belcher, ECR Europe & Gillette C Cave Jones, IBM Prof D Corsten, ECREAP Dr J Hofstetter, ECREAP Project Leader : ECREAP Dr J Hofstetter St Gallen Project Leader : IBM C Cave Jones Athens UEB Prof Doukidis Dr Pramatari Cardiff Prof Jones Simons Zokaei IULM Prof Pellegrini Colacchio St Gallen Prof Corsten Dr Hofstetter Angerer Hamprecht WHU Prof Huchzermeier Burkhardt IBM C Cave Jones IBM Team Data verification & cases Macroeconomic Analysis Project Reporting + Project Co- ordination & Conference Preparation Cost Structure Analysis Macroeconomic Analysis Project Reporting

6. Key Steps 1. Scorecard data analysis Analysis of database University of St Gallen 2. Data Verification & Cases Interviews & Cases Academic Partnership 3. Cost Structure Analysis Analysis of Cases IBM 4. Macro-Economic Analysis Analysis of Databases IBM & Acad. Partnership Case for ECR 5. Results - Blue Book report - Paris Presentation IBM & Acad. Partnership

7. Deliverables and Status 1. Scorecard Data Analysis : Uni of St Gallen Content: Analyze 150 scorecards. Elements: - Capabilities : Demand, Supply, Enablers & Integrators - KPI’s : Business Performance and Implementation Measures Deliverable: Measure relational impact between ECR adoption and business performance over time (2001 - 2004) and across geographies in EU Status: Due to GCI Annual Survey, ECR Board members have already partially completed 120 scorecards : please encourage local teams to complete in at least 3 countries 1. Scorecard data analysis Analysis of database University of St Gallen 2. Data Verification & Cases Interviews & Cases Academic Partnership 3. Cost Structure Analysis Analysis of Cases IBM 4. Macro-Economic Analysis Analysis of Databases IBM & Acad. Partnership Case for ECR 5. Results - Blue Book report - Paris Presentation IBM & Acad. Partnership

8. Summary : Partially Complete Scorecards Capabilities : Demand, Supply, Enablers & ImplementorsKPI’s Ahold Coca-Cola Colgate Palmolive Danone Douwe Egberts Gillette HJ Heinz Henkel ICA Johnson&Johnson Kesa Kesko Kimberley Clark Kraft Mars/Masterfoods Metro Nestle Procter & Gamble Reckitt Benckiser SC Johnson Tesco Unilever Ahold Colgate Palmolive Danone HJ Heinz Henkel ICA Johnson&Johnson Mars/Masterfoods Metro Procter & Gamble Tesco Unilever Please check missing elements on handout, by country, and follow up for your company

9. Handouts We do not want to duplicate work that has already been done…. Handouts show which parts of the scorecard each company has already filled out in 2004, by country Please could all ECR Europe member companies complete all sections of the scorecard for at least 3 European countries For an extract of all data held for your company on www.globalscorecard.net, send an e-mail to chris.cave.jones@sg.ibm.com

10. 2. Scorecard Data Verification & Mini-Case Studies : (Academic Partnership) Content Academic Partnership supports in-depth scorecard completion and discussion with 30 mini case study companies - Targeted mix of ECR adopters and “new to ECR” companies - Mix of large and local : retailers & suppliers : geographies Deliverable: In-depth understanding of ECR adoption, barriers, enablers & effect on category performance Status: Academic Partnership currently approaching companies, your support requested! 1. Scorecard data analysis Analysis of database University of St Gallen 2. Data Verification & Cases Interviews & Cases Academic Partnership 3. Cost Structure Analysis Analysis of Cases IBM 4. Macro-Economic Analysis Analysis of Databases IBM & Acad. Partnership Case for ECR 5. Results - Blue Book report - Paris Presentation IBM & Acad. Partnership Deliverables and Status

11. 2. Scorecard Data Verification & Mini-Case Studies : Academic Partnership Targeted Suppliers : - Dr Oetker (D), Elgeka (GR), Gillette, Procter & Gamble, Rivella (CH), Unilever - Coca-Cola, Kraft, Marie (F), Bonduelle (F) Targeted Retailers : - France : Auchan, Carrefour, Casino - Germany : Metro, dm, Globus - Greece : Veropoulos, Metro (local), Carrefour - Italy : Interdis, Co-op, GS - Spain : Carrefour, Metro - Switzerland : Manor, Co-op, Spar - UK/Ireland : Asda, Tesco, Superquinn Note: Identifying resources for Sweden to join Red = Confirmed/Completed, Green = Invited to participate Deliverables and Status 1. Scorecard data analysis Analysis of database University of St Gallen 2. Data Verification & Cases Interviews & Cases Academic Partnership 3. Cost Structure Analysis Analysis of Cases IBM 4. Macro-Economic Analysis Analysis of Databases IBM & Acad. Partnership Case for ECR 5. Results - Blue Book report - Paris Presentation IBM & Acad. Partnership

12. 3. Cost Structure Analysis : IBM Content: Updated Value Chain Analysis Model - 6 companies complete new cost structure analysis and compare with IBM Industry Model : one week of financial analysis in company Deliverable: Quantified size of opportunity for 3 retailers, 3 manufacturers via Value Chain Analysis model - Industry level report based on typical cost structures & capability levels Status: - Companies currently being targeted in France, Germany and UK aligning to original 1994 study parameters Deliverables and Status 1. Scorecard data analysis Analysis of database University of St Gallen 2. Data Verification & Cases Interviews & Cases Academic Partnership 3. Cost Structure Analysis Analysis of Cases IBM 4. Macro-Economic Analysis Analysis of Databases IBM & Acad. Partnership Case for ECR 5. Results - Blue Book report - Paris Presentation IBM & Acad. Partnership

13. 4. Macroeconomic Analysis : Academic Partnership & IBM Content: - Review of individual product and category performance via 30 mini case studies - Consumer satisfaction indices - Government statistics/Industry data analysis eg Shopping Basket reports Deliverable: - Growth : Interpretation of economic indices and company data 1994 - 2004 - Collaboration : Interpretation of correlations of business performance to ECR activity Status: - Initial framework under design Deliverables and Status 1. Scorecard data analysis Analysis of database University of St Gallen 2. Data Verification & Cases Interviews & Cases Academic Partnership 3. Cost Structure Analysis Analysis of Cases IBM 4. Macro-Economic Analysis Analysis of Databases IBM & Acad. Partnership Case for ECR 5. Results - Blue Book report - Paris Presentation IBM & Acad. Partnership

14. Project Strategy 150 companies 30 companies 6 companies Interviews Step 1 : GCI Scorecard Step 2 : Scorecard Verification Step 3 : Cost Structure Analysis Step 4 : Macro Economic Analysis Step 5 : Results

15. Project Schedule Step 1 : GCI Scorecard Step 2 : Scorecard Verification Step 3 : Cost Structure Analysis Step 4 : Macroeconomic Analysis Step 5 : Reporting SEPT OCT NOV DEC JAN FEB Data Collection Pre-Analysis Case Identification Case Studies Data Analysis Reporting Report & Presentation Reporting Case Identification Case Studies Reporting

16. Summary : How you can help! Step 1 : GCI Scorecard (Entire ECR Board) Please encourage local teams in at least 3 countries to complete all scorecard elements and submit to database: - Capabilities : Demand, Supply, Enablers & Integrators - KPI’s : Business Performance & Implementation Measures Step 2 : Mini-case study (Target companies) Assign a point person/lead team : 4 hour workshop - informants from demand and supply side - for one business partner and one category