Presentatie Vriesvers Platform Nederland. 26 september Lia Josten FUTURE VALUE CHAIN

Transcription

1 Presentatie Vriesvers Platform Nederland 26 september 2013 Lia Josten FUTURE VALUE CHAIN

2 Overview of the Future Value Chain Program

3 Principles of the Future Value Chain Program Runs under the auspices of the Consumer Goods Forum s Emerging Trends Strategic Pillar Repeated every two years; based on 10-year perspective Report published on each two-year iteration By the industry, for the industry: Input comes from workshops, online survey, crowdsourcing with retail and CPG executives Practitioners from marketing, supply chain, sales, commercial and across the business Additional participation from academia, logistics service providers and subject matter specialists Program benefits from the support of consultants but is not a consultant project 3

4 Evolution of the Future Value Chain Program* Helping Shape the Future Vision for the Industry 2016: A Vision of the Future Value Chain 80 executive participants Two global workshops (Utrecht, NL & Chicago, USA) Follow-up: 2016 Future Supply Chain Information Sharing report New Ways of Working Together 2018: Succeeding in a Volatile Market 130 executive participants Global workshop (NL) Asian workshops: Hong Kong (Asian region) Mumbai (Indian market) Tokyo (Japanese market) * Future Value Chain is a joint initiative of Capgemini and the Consumer Goods Forum; for more information please visit : Building Strategies for the New Decade 200 executive participants Global workshop (FR) Regional workshop GS1 in Europe (BE) Country workshops: Australia (Melbourne) France (Paris) Netherlands (Utrecht) US (Chicago) Mexico (Mexico City) 2022: Digital World & Fight for Resources 200+ industry execs Trends research Workshops; online survey Crowdsourcing Three initiatives: Consumer Engagement Protocol Next-Generation Product Identification Sustainable Packaging Consortium 4

5 Participants in the Future Value Chain 2022 Program Co-Chairs, Emerging Trends Steering Committee, CGF Thomas Storck, Metro Group Dr. Peter Florenz, Henkel Co-Sponsors, The Consumer Goods Forum Board of Directors Olaf Koch, CEO, Metro Group Kasper Rorsted, CEO, Henkel

6 Scanning the Trends Identifying the Trends that Matter Most

7 The Trends that Matter Most 7

8 Health Awareness Shoppers want more healthy products and a healthier lifestyle Growing private market for health products and services Stronger engagement of society in health issues and healthy products Growing share of population suffering from illnesses Convergence of industries (healthy cosmetics, functional food) 8

9 Burden of Aging Aging of society and labor force in developed countries Growing cost pressure on public health sector Increasing willingness of healthy and consuming elderly to spend Increasing need for firms to cover aging-induced costs of society Example consequences Changes to business models to meet needs of different population Review products and processes (e.g. wider aisles, largeprint labels) Shrinking workforce challenges 9

10 Environmental sustainability / environmental degradation Environmental degradation Increasing exploitation of scarce resources Ongoing climate change and more severe natural disasters Growing total volume of non-degradable waste Increasing awareness of collateral damage on species Environmental sustainability Rising demand for sustainably produced goods Rising desire for products that are reusable, durable and recyclable Growing need to use carbonfriendly/renewable energy sources More private and standalone energy generation (solar panels) 10

11 Fight for resources Demand larger than supply 2030: World population 8.3 billion Rising world energy demand and energy price levels Greater limitation and speculation of fossil fuels/scarce resources Growing need for food and water security in developing countries Growing need for strategic partnerships to secure resource access Example Consequences Energy revolution New water policies Impact on food prices Pressures on food quality and safety 11

12 Multi polarity / Shifting of economic powers Growing of trade within countries and regions Shifting economic power to developing countries Growing demand for locally produced goods Increasing legislative protectionism in global trade Increasing interdependencies of markets 12

13 Regulations Strengthening of regulations that protect scarce resources Growing involvement of NGOs in public affairs Global collaboration of institutions leads to stronger regulations More restrictions on product range from regulations (choice editing) Greater standardization of products and business processes 13

14 Digital world Shoppers continue to become more empowered using technology Convenient product buying through digitalization (mobile commerce) Rising usage of digital devices at point-of-sale (augmented reality) Growing demand for simple technology with intuitive interfaces Increasing adoption speed of new technologies Connectivity of products and more add-on services (smart TV) Example consequences Growth of mobile interaction and commerce Consumer technology used in stores Addressing social communities Leveraging huge amounts of data Dealing with privacy Becoming more transparent and collaborative towards shoppers 14

15 Informed customers Increasing information exchange between firms and customers Increasing price and value transparency for consumers Opinions more influenced by peer-to-peer referrals (social media) Growing desire to fully understand product/service (customer experts) Customer dissatisfaction spreads faster and has stronger impact Example Consequences More demanding consumers New service models needed 15

16 Five mega trends 16

17 Five mega trends 17

18 Five mega trends 18

19 Three selected initiatives 1. Consumer Engagement Protocol Develop a code of conduct for digital engagement with consumers 2. Next-Generation Product Identification Transform product identification and information/replace the barcode 3. Sustainable Packaging Consortium Improve the sustainability of packaging 19

20 Supply Chain

21 Future Supply Chain key elements Information Sharing Collaborative Warehousing Collaborative Transportation Efficient Assets

22 Future Supply Chain: Information sharing will drive the collaborative supply chain Sharing of standardised (master) data will be the cornerstone Production identification Attributes Classification Information Master data related to locations Demand-signal data, data on item location, quantity and status must be shared in a standard and timely manner Free flow of data and associated information to manage events 22

23 Future Supply Chain Collaborative warehouses are a crucial enabler for realising integrated sustainability improvements Both retailers and manufacturers must be part of the concept Store picking will be done from the shared warehouse A repositioning of warehouses will likely be required to shorten the chain and increase flexibility in allocating inventory to demand Standardisation of data is critical 23

24 Future Supply Chain Collaborative physical logistics / transportation is another crucial enabler to realize integrated improvements A regional consolidation centre can have a similar function as the city hub but is also needed to merge the long-distance streams with the local product streams In contrast with the city hub there could also be some warehouse function Parcels and home-delivery models should be considered in conjunction with the store replenishment models Decreasing Millions of Road miles by Transport Collaboration 24

25 Supply Chain: Efficient Assets Alternative forms of energy Solar, fuel cells, anaerobic digestion, tidal, wind,... Efficient/aerodynamic vehicles, Euro V engines, streamlined vehicles... Switching modes Barge, train, new infrastructures Green buildings Reducing energy consumption of buildings. Diageo Perfect Plant initiative Reckitt Benkiser Perfect Building 25

26 Summary

27 Key messages Future Value Chain 2020 Digital World and Fight for Resources megatrends stand out as having the greatest potential to significantly alter the industry landscape and are not already addressed by CGF Collaboration is imperative: The industry needs to address these megatrends with collaborative (non-competitive) initiatives; three initiatives were proposed: Consumer Engagement Protocol: develop a code of conduct for digital engagement with consumers Next-Generation Product Identification: transform product identification and information Sustainable Packaging Consortium: improve the sustainability of packaging across the different value chain stages Action is essential: The Consumer Goods Forum s Board of Directors has approved the action plans to move the initiatives forward Participation will be a critical success factor: CGF encourages industry companies to join the initiatives to help ensure a strong Future Value Chain 27

28 Lia Josten Principal Consultant Capgemini Nederland B.V. Mobile: lia.josten@capgemini.com