ECR Europe Publications

The ECR Europe sustainable transport roadmap & self assessment tool by ECR Europe & Boxwood (2008)

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              the Road Map - Challenges - Case Studies

Road Map - "Inspiring 100's of Companies to Deliver Fewer Friendlier Miles"  
This Road Map Self Assessment Tool contains a list of focus areas that relate to sustainable transport.  Intelligent and varied usage of the tool will allow you to take steps in your own organisation to plan for and seek to deliver savings in the distance travelled on the road, and savings in the cost of operating transport.

Challenges  
In constructing the Road Map the project team have highlighted a number of challenges that may be encountered on the journey to sustainable transport.  The purpose of the challenge papers is not to provide a solution to the issues that will arise.  The challenge papers highlight the potential issues, and offer practical suggestions that will help companies to reduce the environmental impact of transport in Europe , in a way that is socially and economically sustainable.   

Case Studies  
To indicate the ways in which others have overcome some of the challenges whilst moving through the maturity levels of the road map, we have compiled a number of case studies from our own experience.  The case studies provide inspiration to organisations that are seeking to deliver sustainable transport.  These case studies come from practitioners in the FMCG supply chain arena on the project team.  We recognise that each organisation is individual and will need to deal with issues in their own way.  Through the case studies we seek to indicate a way forward, and provide inspiration to your organisation to take up the challenge and make a difference to deliver fewer, friendlier miles now! 

The case studies have been provided by members of the project team with the aim to help other organisations find ways to move towards delivering sustainable transport. The material in this document does not offer any recommendation of the approach that should be taken by an organisation in developing their own sustainable transport activities.  No guarantees of performance or savings realised are made or implied.

Jointly Agreed Growth 

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              the Manual Toolkit  Agreement Templates , The Presentation

Household Consumption in the 27 European Union member states (EU 27) reached in 2006 over 6.6 trillion Euro, an annual 4% value growth (2.1% volume) and a 2.7 trillion Euro growth over the last 10 years. 

In the Eurozone only, household's savings reached 768 billion euro a year in 2006, over 3 & 4 times the level of savings in Japan and USA, demonstrating hereby a huge potential for growth for the grocery industry.

Growing the grocery market, in a sustainable and profitable way for all, by better satisfying shopper and consumer needs is the imperative.

ECR Europe has drafted a user guide for commercial teams, the Jointly Agreed Growth Process (JAG), recommending a 3-year business plan with annual review.

Shelf Ready Packaging (Retail Ready Packaging)
Addressing the challenge: a comprehensive guide for a collaborative approach by ECR Europe and Accenture (2006) 

Click to download:	Full Report (pdf; 1.4 MB)
	Executive Summary (pdf; 107KB)
	Presentation (pdf; 646 KB)
	Front Cover Page (pdf; 9.7 MB)
	Back Cover Page (pdf; 9.7 MB)
	Case studies
	Tools (see under "projects")

Shelf Ready Packaging appears to be one potential solution to address store operations efficiency, shelf replenishment and product availability, visibilty and access. There is currently a multiplication of local and proprietary SRP initiatives in Europe. There is a risk of proliferation of contradictory guidelines, which would endanger the initial vision of bringing more value to the consumer. 

This ECR Europe blue book provides guidance on how to look at the introduction of Shelf Ready Packaging (SRP) collaboratively. It is the culmination of 11 months of work by the ECR Europe Shelf Ready Packaging project team, where manufacturers, ECR national representatives and packaging suppliers worked jointly with retailers, ably supported by Accenture. 

The new blue book provides:

• a set of guiding principles,

• a business case methodology to evaluate the potential of SRP and help find the most appropriate solution, 

• functional requirements to ensure a certain degree of harmonisation of SRP across European retailers 
  guidance on how to make sure that SRP is well implemented in the store.

• A set of supporting tools to apply the methodology.

The project co-chairs, Xavier Hua of Carrefour and Bernard Fradin of Kraft Foods are convinced that “this blue book represents a sound basis for further  retailer-manufacturer collaboration on Shelf Ready Packaging and provides the right balance for delivering value to the consumer”.

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              the Executive Summary or the Full Report or the Presentation

In 2004, ECR Europe was preparing to celebrate its 10^th anniversary. The ECR Europe Board commissioned a study – The Case for ECR . The purpose of the study was to review ECR achievement in Europe, to report the progress which had already been made and to estimate the further benefits which could be achieved. In the report presented here you will see that

• since 1995 3.6% of consumer sales value has been saved through successful ECR adoption in Europe or a €18 billion benefit in cost and inventory reduction
• a further 3.3% of retail sales value could be saved by full adoption of ECR ,a €28 billion benefit in cost and inventory reduction by adopting fully ECR business practices
• potential sales growth of 5% - €42 billion - is available by better meeting shoppers and consumers needs through new product, improved information and service offerings in store .
• top tier ECR adopters enjoy 6% better service levels, 5% higher on shelf availability and 10 days lower finished goods inventories than low or non adopters of ECR practices.

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With recent food crises in Europe during these past years consumer confidence in product and food safety has become an important issue for manufacturers and retailers. The EU Product Safety Directive and the new regulation on food law require businesses to account for the origin of their products and to track them throughout the supply chain.

This ECR blue book describes best practices at pan-European level to trace products through the supply chain and to allow for efficient crisis management, based on commonly accepted EAN•UCC standards, such as unique identification of products and locations, pallet labelling, standardised messaging and information exchange. It describes product traceability as a supply chain end-to-end process from goods arriving at a manufacturer's factory (e.g. raw material, packaging material) to the finished product purchased by a consumer in an outlet and vice versa. It also includes a section on crisis management between manufacturers and retailers. The blue book is addressed to quality managers, supply chain/ logistics managers, factory and warehouse managers, customer and consumer services, legal departments, communication managers and IT departments.  It will help companies of all sizes comply with current legislation and represents the common denominator of best practices already applied in Europe .  The following subjects are excluded from the scope of this ECR Blue Book: internal traceability systems, feedstuff, allergy inducing substances, agricultural practices including the use of GMO’s, contamination prevention (e.g. pesticides). 

Optimal Shelf Availability - Increasing shopper satisfaction at the moment of truth
by Roland Berger Strategy Consultants (2003) 

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The ECR guidebook on Optimal Shelf Availability shows retailers and manufacturers the importance of improving product availability and the right approach to making significant improvements.

Despite efforts to improve product availability for shoppers and consumers, a satisfactory level has not yet been achieved. A study of seven European countries showed that product availability is between just 90 and 93 percent. At the same time, consumer surveys have shown that consumers consider product availability to be a very important factor. This affects both retailers and manufacturers, as it could potentially lead to considerable financial losses. After all, when consumers find themselves faced with an out-of-stock, they don't necessarily simply switch to another size or form of the product in question; instead, they may switch brand, or even leave the store without buying anything. If that is the case, then retailers lose out on the entire basket.

The report describes how a holistic approach can improve on-shelf availability by as much as 50 percent. The approach consists of seven improvement levers to address the specific root causes identified. However, for any approach to be successful, regular measurement and issue awareness on the part of store management are essential. Successful approaches are described based on case examples at Kraft, Dehaize, dm, spar, L'Oreal, Cora, Auchan, Nestlé, and many others.

Collaborative POS Data Management
by Deloitte Consulting (2003)

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The area of collaborative POS data management between retailers and manufacturers to leverage the full potential of ECR is still relatively unexplored, although everything seems to be available from the technological point of view to exchange POS data successfully.

The ECR Blue Book on Collaborative POS Data Management outlines best practice recommendations that provide a pragmatic approach to POS data management, i.e.:

• Showing where POS data management is necessary (ECR concepts)
• Giving examples of POS data management (case studies)
• Serving as an implementation guide by highlighting how to get started, how to develop, and what to bear in mind

As a result, it will provide guidance for companies interested in setting up starting or enhancing POS data exchange, irrespective of their starting point or size. It will also bridge the gaps that still exist in demonstrating that POS data management is one of the key enablers for almost any ECR activity.

Reusable Transport Items – Organisational recommendations
by Centrale für Co-organisation – CCG (2003)

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Reusable Transport Items (RTI), crates, pallets and roll cages, represent the "Nuts and Bolts" of the European Fast Moving Consumer Goods (FMCG) Supply Chain. At the end of the previous millennium an increasing variety of equipment, managed in a variety of different ways, was used to handle an expanding catalogue of products, all with the aim of reducing supply chain costs for individual elements within the total supply chain. But different incompatible management systems for RTI have led to market fragmentation and supply chain inefficiencies - standardised methods are needed to organise their distribution and return.

RTI are considered as assets, which need to be tracked & traced through the supply chain to enable their efficient use for all involved parties. RTI may have commercial implications if they are subjected to deposits or fees related to their use. For invoicing purposes RTI have to be accounted separately. To do this, a unique identification of RTI and standardised communication of the related information is required. This report explains how the EAN.UCC-system should be used for this purpose.

ECR Europe's Guide to Collaborative Consumer Relationship Management
by the ECR Europe project team on collaborative CRM (2003)

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CRM, which ECR Europe has defined as Consumer Relationship Management, is not currently a collaborative activity engaging retailers and manufacturers within the consumer goods industry. Instead, each party focuses on isolated, mainly internal, CRM activities, which deliver only a fraction of the potential value available. The current economic climate, in which the consumer goods industry is losing share of wallet to other sectors, has led ECR Europe to look deeper into the benefits of a collaborative approach to managing consumer expectations and fulfilling their wishes. The objective of collaborative CRM as a key concept within ECR is to stimulate market differentiation by encouraging the consumer goods industry to adopt and apply a collaboration framework which seeks to create and offer customised personalise consumer value.

The purpose of this ECR Europe guidebook is: to create clarity and transparency in our industry about the concept of collaborative CRM; to define the components of collaborative CRM; to provide direction on how to deploy CRM jointly; to demonstrate the business case for doing this; to provide retailers and manufacturers with evidence that collaborative CRM will become a key differentiating component of consumer value in the industry; and to encourage retailers and manufacturers to start working together on this demand side strategy.

Shrinkage – a collaborative approach to reducing stock loss in the supply chain – now tried & tested! by Leicester University & Cranfield Business School (2003 )

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Back in 2001, the first edition of the ECR Europe shrinkage report quantified the scale and scope of shrinkage due to stock loss in the European consumer goods sector, which amounted to 2.3 % of annual turnover in 2003. The ECR Europe project on shrinkage subsequently analysed the causes of stock loss and proposed a systematic and collaborative approach to reducing the phenomenon throughout the supply chain ("shrinkage roadmap"). This second edition of the ECR Shrinkage Blue Book updates the original report with the introduction of tried and tested methods for shrinkage reduction, including an improved roadmap and the necessary tools to carry out its various steps. The effectiveness of this collaborative approach is demonstrated through its application in five case studies at retailer and manufacturer locations across Europe.

 Consumer Direct Logistics
by Fraunhofer Application Centre for Transport and Logistics (2002)

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This publication explores the impact of Consumer Direct Operations on companies’ logistics. It analyses current consumer direct operations and establishes a number of scenarios and their requirements and consequences – a useful guide for those companies looking to establish themselves on the consumer direct market.

European CPFR Insights by Accenture (2002)

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This report builds on the 2001 ECR Europe CPFR implementation guide and demonstrates how companies are increasingly implementing CPFR in practice. It consists of a series of case studies and provides valuable CPFR insights for companies intending to implement CPFR.

International Council for RTI – Recommendation for the Compatible Stacking of Crates by Centrale für Coorganisation (2001)

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There is currently an increasing variety of reusable transport equipment, managed in a variety of different ways, being used to handle an expanding catalogue of products, all with the aim of reducing Supply Chain costs for individual elements within the Supply Chain. In their drive to meet the ever increasing and varied demands of their customers, the RTI designers and service providers were introducing more and more mutually incompatible designs, which created barriers to the wider acceptance and use of the very products their customers were demanding. This document tackles the issue of physical compatibility of RTI, with focus on the basic 600 mm x 400 mm crate and it's sub-modules, and the way in which different designs can be made compatible with each other to provide safe handling and stacking throughout the Supply Chain. In future, by following the guidelines outlined in this recommendation, which define the dimensions of the stacking interface between crates, there will be major commercial benefit to the users of RTI, including :

• No longer having to transfer merchandise from one crate to another to achieve safe loading.
• A reduction in product handling damage
• Being able to select the right crate for the product from a variety of designs and suppliers, in the certain knowledge that it will not cause handling problems with other equipment.

Guide to CPFR Implementation by Accenture (2001) 

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The 9 step VICS model for CPFR® is relatively well known in the ECR community. However, actual implementation of this model is not as far-advanced in Europe as one may believe. With the emergence of the B2B exchanges and their focus on CPFR as among the first services to provide, the ECR Europe project team on CPFR® thought that advice on how to implement CPFR® in practice may be useful for the ECR community. To this end the project team has examined the VICS model and has adapted it to business and market conditions in Europe. The result is a hands-on implementation guide which provides companies, at different levels of readiness, with easy to understand advice on how to make CPFR® operational. Particular attention has been paid to the importance of promotions in Europe and the extension of the CPFR® concept to upstream suppliers.

Transport Optimisation by Item HSG (2000)

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This report recommends best practices and techniques to make best use of available transport capacity. It aims to maximise vehicle fill and productive time whilst minimising empty runnings. Techniques, such as unit loads optimisation (including pallet height standards), multi-modal transport, vehicle technology, EDI, Supply Chain Optimisation Systems, Consolidation or Efficient Network Design, will help to reach these goals. The report concludes that in today’s environment it is no longer possible to ignore the transport implications of ECR supply chain concepts. Any supply chain decision has to take account of its effect on transport.

Consumer Direct – Shopping in the New Millennium
 – A collaborative r-e-volution
by Roland Berger & Partner (2000)

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The Consumer Direct market is still at an early stage and is therefore characterised by a high level of dynamic change and considerable uncertainty about its future shape. Companies may develop new value chains, form alliances with new entrants in the grocery market or choose to raise substantial capital while the appetite for Internet investments is still healthy.

To shed light on this phenomenon, Roland Berger & Partners conducted two studies: the Consumer Direct Europe Study and the Consumer Direct Evolution Industry Survey. The first of these assessed the potential for on-line grocery shopping in Europe and was the largest study of its kind undertaken in Europe. Eleven leading companies from different industries took part, and interviews with over 6,000 consumers from six European countries were conducted.

The Consumer Direct Evolution Industry Survey complements the findings of the Consumer Direct Europe study as it aimed to determine the general awareness of Consumer Direct developments in the FMCG industry in Europe, and ascertained the extent to which the industry is taking active part in this new channel.

The top-line findings of both studies are described in this publication.

Unit Loads Identification & Tracking by Item HSG (2000)  

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This ECR Europe Supply Side Project was set up to tackle Unit Load Identification and Tracking (ULIT), a subject vital in any supply chain, not only in the Fast Moving Consumer Goods (FMCG) industry but also in many other sectors. The identification of unit loads is necessary at any point at which they are moved from one location to another along the supply chain or even within a warehouse. Identification then is the natural prerequisite for tracking any kind of goods at any point in time.

The ULIT team - consisting of various representatives of both major manufacturers and retailers – has identified and described the best practice in the field of identification and tracking of unit loads establishing the ECR Europe Report on Unit Load Identification and Tracking. Starting from the basis of industry standards, this document also reports on the actual use of these standards and current practices for ULIT. The observed current processes have been depicted in an comprehensive and substantial cost model, serving as the foundation and the decision tool for the group’s conclusion in identifying and recommending the best practice.

Integrated Suppliers – ECR is also for suppliers of ingredients, raw materials & packaging
by Fraunhofer Applications Centre for Transport Logistics and Communications Technology (2000)

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Integrated Suppliers is a concept for improving the part of the supply chain between manufacturers and their tiers of suppliers of ingredients, raw materials and packaging. By sharing information both parties are able to exercise judgement on costs, quantities and timing of deliveries and production in order to streamline the product flow and to move to a collaborative relationship. The goal of this booklet is to promote the application of the key concepts of Integrated Suppliers in the supply chain. Based on existing case studies spread over Europe and supply chain theory it is demonstrated that suppliers play an important role in "working together to fulfil consumer wishes better, faster and at less costs". 

The Essential Guide to Day to Day Category Management
by Andersen Consulting (2000)

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The Essential Guide to Day-to-Day Category Management is the outcome of the ECR Europe Day-to-Day Category Management project, a team of retailers, manufacturers and marketing information providers from across Europe, who pooled their expertise and have transformed category management from a project based approach to a day to day business process.

A "one size fits all" solution is unlikely to work given the widely varying levels of resource, data availability and experience in countries, companies and categories across Europe. The Guide therefore identifies a "continuum solution" whereby a set of key business questions can be answered in different ways - and with different levels of sophistication - appropriate to the situation at hand; guidance is also given on how to find an appropriate position on this continuum.

Although the focus is on answering these key business questions, rather than slavishly filling out templates, a core set of 25 templates is provided as a starting point, along with suggestions for additional and alternative means of analysis. Considerable guidance is also given in the crucial areas of implementation and review. All templates are included in the guide, and they are also freely available to download from the ECR website.

For those new to Category Management, the Guide offers all they need to get started, and for more experienced companies, it offers a new, pragmatic and flexible approach to integrating category management into day-to-day business life.

Promotion Tactics - Adding Focus, Adding Value
by PricewaterhouseCoopers (1999)

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Research undertaken by PricewaterhouseCoopers, on behalf of ECR Europe, concluded that promotions are difficult to plan, expensive to execute and complicated to evaluate. As a result, trading partners are beginning to ask themselves why they do them (objectives), whether they are appropriate (tactics) and what they achieve (evaluation). PricewaterhouseCoopers have developed and tested, in 4 pilot projects, an 8-step process that can answer the questions above by enabling trading partners develop, undertake and evaluate tailored Promotion Tactics. Details of the research, the 8-step process and the 4 pilot projects are contained within the ECR Europe report entitled 'Promotion Tactics, Adding Focus, Adding Value'.

How to implement Consumer Enthusiasm Strategic Consumer Value Management
by Roland Berger & Partner (1999)

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"How to implement Consumer Enthusiasm" addresses the challenge of the FMCG industry's declining share of wallet. It identifies the need for FMCG manufacturers and retailers to counteract this challenge in order to generate sustainable and profitable growth. A holistic strategic approach to value creation for consumers is described and a roadmap for its implementation provided.

The holistic approach to Strategic Consumer Value Management brings together the best-practice approaches of leading European FMCG companies in a three-step approach to Consumer Value generation. This approach was jointly developed in workshops and interviews with representatives of leading European FMCG companies and is based on numerous case studies which provide useful industry insights.

It identifies the superior consumer value understanding in its two dimensions of value delivered to the consumer and value received from the consumer as the starting point. On this basis, rule-breaking strategies differentiating four strategic levers can be derived: communication, information, co-innovation and co-revolution. Co-innovation implies cooperation of several partners with the joint objective of bringing about substantial growth to a market by collaborating across the innovation process. Valuable insights into this process are featured in a case study on Johnson & Johnson and Mothercare. Co-revolution implies the involvement of internal and external partners in the management of relevant parts of the value chain in order to achieve broader growth opportunities at reduced costs for all partners. This strategic lever is illustrated by two case studies on Kraft Jacobs Suchard and the Swiss based Le Shop, which is applying co-revolution to its Consumer Direct business.

Following the selection of the applicable rule-breaking strategy levers, excellence in implementation has to be secured. Three areas of excellence have to be distinguished: Employee Enthusiasm, business transformation and in-store implementation. The two fields of effective promotions and efficient merchandising are then detailed and illustrated by case studies on Kraft Jacobs Suchard, GB, L'Oréal, Promodès and others.

Assessing the Profit Impact of ECR
by ATKearney & PAP Consulting (1999)

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The objective of this guidebook is to help ECR partners assess the impact their ECR supply or demand side activities have on operating costs and profits, both internally and for the whole supply chain. The book is intended to be a practical and easy-to-use guide for people with different backgrounds and at different levels in the organisation. To this end it includes:

1. a simple and logical "6-step methodology" which is illustrated by pilot project experiences or business cases and

2. an "activity list and electronic wizard" which is a tool facilitating the mapping of supply chain processes and activities.

This guidebook reflects the work, findings and output of the Profit Impact of ECR task force. Fourteen companies -retailers, wholesalers and manufacturers- with the support of consultants have developed and tested the methodology and tools to endure their applicability in day-to-day business.

Efficient Replenishment Project Phase II: “Working three-gether” - Transport consolidation with the involvement of Logistics Service Providers
by Roland Berger & Partner (1999)

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The first phase of the ECR Europe Efficient Replenishment project focused on co-operation between manufacturers and retailers. The second phase of the project, the results of which are documented in this publication, integrated third party logistics service providers (LSP) in the replenishment process, with particular focus on transport. ER-techniques need to be applied with due regard for total supply chain efficiency in order to avoid shifting costs from one part of the chain to another. LSP are indispensable partners for true supply chain integration and network management. This publication describes the theory of supply chain integration, the techniques and enablers, as well as a migration path for the integration of LSP. Particular focus is given to three different approaches to consolidation of shipments via LSP, supported by trial simulations.

Efficient Product Introductions – The development of value-creating relationships
by Ernst & Young (1999) 

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According to this research, manufacturers spend as much as 8 to 16% of net revenues on innovation. Enormous numbers of new products are introduced to the market each year yet within 12 months most have failed. The challenge, and a key aim of this study, lies in knowing how to translate good ideas into successful new products.
The report reviews current practices in new product introduction in the European consumer goods industry, and recommends a new process for Efficient Product Introduction - EPI. The findings are based on a number of sources, including extensive data analysis made possible by the participation of AC Nielsen-Bases, interview-based fieldwork, and the involvement of an EPI Core Team representing major manufacturers and retailers across Europe. This is one of the most extensive projects of its kind to date.
The EPI process is not a "one size fits all" tool. Companies can choose to apply it either selectively or comprehensively. A comprehensive approach has the greatest potential to create brand and category value as well as cost savings, but it involves close collaboration between the trade partners which may or may not be realistic. A selective approach typically involves collaboration in step 4 (joint planning of product launch) and this alone can bring both retailers and manufacturers considerable benefits.
Test results from two pilot projects with European manufacturers and retailers in Italy and Sweden are reported. These projects demonstrate that the EPI process requires some investment in terms of people and time - especially when it is applied for the first time - and therefore requires full support from top management. But after the retailer and manufacturer teams involved have done it once, the lessons learned allow them to repeat the process more swiftly and efficiently in future cycles.

Efficient Assortment Best Practices Report
by the Partnering Group (1998)

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This report describes a method whereby retailers and suppliers can determine the optimal product offering needed to achieve target consumer fulfilment and enhanced business results within a particular category. A model is proposed comprising four main components:

• assortment as a tactical element in category management
• a six-step process to efficient assortment
• integration of consumer, market, financial and operational data
• co-operative trading partner relationships

The central six-step process explanation shows how to set turnover coverage percentage targets in a category; validate products for deletion, retention or addition; finalise the assortment based on this evaluation, and quantify the end result compared with that of the current assortment. Several case studies of actual results achieved through using the model are discussed.

A primary advantage of following this procedure is said to be that consumer needs can better be met by ensuring that the right products are in the right stores at the highest efficiency. Retailers and suppliers alike can then achieve faster stock turns, reduced out-of-stock occurrences, improved asset utilisation and more efficient replenishment.

Retailers also profit from a more effective strategic differentiation of their stores – while suppliers learn more about consumer needs, and can streamline their manufacturing and logistics infrastructures.

How to Create Consumer Enthusiasm – Roadmap to growth
by Roland Berger & Partner (1998)

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This report considers the growing challenge posed by sectors such as entertainment, sports, health and beauty care for share of disposable incomes. It addresses the necessity for moving beyond immediate satisfaction of existing consumer demands, towards an ability to anticipate or create needs and desires.

A 'Roadmap to Growth', based on case studies, research, workshops and interviews, summarises the strategies adopted by a number of best-in-class organisations, both inside and outside the FMCG sector.

It identifies innovation, reliable information, communication of an emotional dimension and 'co-revolution' along and across the value chain as key strategic levers.

Co-revolution implies co-operation at all levels – involving consumers, employees, alliance partners, and even the social community and the environment – to multiply the opportunities for growth. In this context, cross-strategies between the various sectors are said to be particularly important. These can provide completely new perspectives for the companies involved, and act as catalysts for innovation.

The report concludes that the creation of consumer enthusiasm depends upon employee enthusiasm. Equally, loyal or enthusiastic consumers reward the company with better financial and image results, which in turn have an impact on employee motivation. Success, it maintains, demands total commitment from the whole organisation.

Efficient Unit Loads
by A.T. Kearney (1997)

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Efficient Unit Loads are absolutely key in improving transport, storage and handling efficiency across the total supply chain.

Unit loads play a key role across the supply chain, grouping primary and transport products to facilitate transport and handling.

Used by manufacturers. retailers and service providers, unit loads are key cost drivers. They impact on transport, storage, handling and packaging, which together, represent 12-15% of retail sales price. Developing more Efficient Unit Loads is critical to the success of ECR and is estimated to save 1.2% of retail sales price.

• Efficient Unit Loads impact 12-15% of retail sales price. Savings opportunities represent 1.2% of retail sales price.

The Efficient Unit Loads (EUL) project is one of three ECR Europe supply side projects, whose ultimate objective is supply chain integration. This can only be achieved by harmonising physical aspects of the supply chain.

• EUL Mission: To improve the efficiency and effectiveness of current and future supply chains by promoting harmonisation and integration of transport and storage items.

The traditional approach to supply chain management has been for each player to optimise his part, often to the detriment of 'total' chain efficiency. Thus, manufacturers have typically used pallets to optimise space utilisation and retailers have improved handling productivity by using roll cages. This disjointed approach has resulted in unnecessary, non-value added handling, where loads are often reassembled more than 10 times, at different stages in the supply chain.

• 'The challenge is to break the half chain view, where each participant focuses on his part rather than on a total optimum.' L. Henner Klein, A.T. Kearney, Geneva 1996.

The problem is compounded by a wide variety of unit load dimensions across Europe. There are too many standards and they differ from country to country. Established international standards are not always used and a widely applied, consistent set of European standards is required to achieve EUL harmonisation. This should be based on the modularity principle as this dramatically improves space utilisation. Within the European grocery industry the 600x400 mm master module is widely accepted and is recommended in this Report as the basis for unit load dimensions. To achieve breakthrough results, all variable constraints must be challenged, although fixed or genuine constraints are recognised.

• Unit load harmonisation is key to supply chain integration and breakthrough results.

A wide range of secondary unit load dimensions is currently in use, driven by primary product size This proliferation adds complexity and should be rationalised. Since space utilisation is key to EUL, available spaces across the supply chain should be based on seven modules: five based on strict modularity with the 600x400 and two additional modules, representing shelf replenishment needs.

Secondary reusable transport items (RTI), such as boxes and crates, offer significant potential savings for selected category flows. In order to limit burgeoning proliferation and complexity, the EUL team recommends establishing a RTI council to develop European standards.

Tertiary items are critical to the success of ECR.

More than 30 different pallet sizes and types are in use across Europe. These should be rationalised to four recommended plan dimensions.

Current pallet heights make poor use of vehicle inner heights, often based on previous design. As a result, 15% additional grocery trucks are required. As vehicle technology develops and extra inner truck height is made available, pallet height standards need to be increased. High cube and double stacking technologies should also be monitored and pallet heights adapted to reflect developments.

• Pallet height should be derived from inner truck height.

The current situation, in which manufacturers typically use pallets and retailers favour roll cages, is a barrier to Efficient Replenishment. As cross-docked volume increases, the need for an integrated tertiary item – used across the total supply chain – becomes critical.

Suppliers of tertiary items need to develop a tertiary item which combines the advantages of pallets with those of roll cages to enable effective cross-docking. The Dolly is one such item but it is only suitable for those applications using RTI.

• Technical developments are required to integrate pallets and roll cages.

EUL projected savings of 1.2% of retail sales price are not evenly spread among manufacturers and retailers. Retailers expect to gain three quarters of the savings, mainly through more efficient assortment creation and shelf replenishment. However, retailers' operational gains are likely to be manufacturers' investment needs. For example, switching to RTI to achieve more efficient retail shelf operations will require manufacturers to invest in the production line.

• EUL opportunities are not equally spread between manufacturers and retailers.

Future pricing must incorporate a suitable compensation mechanism to ensure that such investment takes place.

A clear vision, leadership and a long-term perspective are required to ensure that projected ECR savings become a reality.

• Efficient Unit Load developments require a process- and category-oriented approach.

In order to make best use of spaces available in the supply chain and to minimise the overall handling along the chain, the unit loads design must be very process-oriented, together with the principal replenishment flow modules, allowing category-specific increases in cross docking and break bulk operations.

• EUL make optimal use of spaces available in the supply chain and minimise handling.

This Report provides guidelines rather than standards. It should be used by standards bodies, and by manufacturers, retailers and service providers, working together to design and operate Efficient Unit Loads supply chains. This will 'fulfill consumer wishes better, faster and at less cost.'

ECR Europe Category Management Best Practices Report
by The Partnering Group & Roland Berger & Partners (1997)

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Category Management offers a means of managing the complex changes that are occurring in consumer needs and shopping behaviour. Integrating four central strategies of ECR - Replenishment, Promotion, Store Assortment and Product Introduction - it provides a working environment whereby the benefits achievable for particular categories can be maximised within a framework of supplier/retailer cooperation. This can act as a driver for change that not only provides cost savings, but also increases turnover, profit and market share.

 ECR Europe Efficient Replenishment & EDI User Guide
by  Roland Berger & Partners (1996) - All reports soon available!