Innovation and Productivity. Stanislas de Gramont Paul Gardner Martin Powell

Transcription

1 Innovation and Productivity Stanislas de Gramont Paul Gardner Martin Powell

2 Innovation and Productivity OVERVIEW PACKAGING RAWS / RECIPES INDUSTRIAL DESIGN CUSTOMER SERVICE AND LOGISTICS CONCLUSION

3 Productivity COGS, non-cogs, cash & Capex Change the Model Stretch the Model M Cost & cash Opportunity M 2011 Danone brand target Best in class Benchmark SUPPLIERS MANUFACTURING LOGISTICS CUSTOMERS WAREHOUSES CUSTOMERS SHOPS SHOPPER / CONSUMER 3

4 Each Division has it s own COGS focus Dairy Waters Raw materials Packaging Baby Industrial Medical Logistics 4

5 Innovation and Productivity OVERVIEW PACKAGING RAWS / RECIPES INDUSTRIAL DESIGN CUSTOMER SERVICE AND LOGISTICS CONCLUSION

6 Lightweighting PET Bottles using new technologies Evolution of Hayat 0,5 L bottle weight New bottle 12.9 Shortneck 12.1 Weight optimisation 11.4 Preform technology 10.9 New elimination bottle 6 4 Driven by technology upgrades

7 Ensure consumer preference and logistics performance Thickness and weight distribution Thickness & weight distribution 12.7 gr & 11.3 gr Adana blowing 1.9 gr 2.1 gr 2.9 gr 1.4 gr 4.5gr 1.4 gr 1.7 gr 2.8 gr 1.3 gr 4 gr Key Success factors: - Keep the same consumer preference - Lightweight to the max thanks to new technologies Outputs: - 7,500T of PET saved in ,000T CO 2 emission reduction 7

8 Push to the max the Technologies to lightweight our Actimel Bottles Bottle weight evolution Started at 9g of HDPE in 1995 today produced in 6.0g and with a worldwide target of 5.5g (Poland already at 5.2gr)? Combined with High speed blowing machine developed by our Partner (Graham Packaging) to meet our growth Optimizing cardboard surfaces and label thickness Key Success factors: - Consumers studies to permanently check the preference - State of the art technical management at Graham & Danone Side (R&D/Ind) Outputs: -Bottle weight divided by 2 since the Actimel Launch in 1996 ( 39kt HDPE saved) - CO 2 reduction equivalent 130 KT saved since

9 Push to the max the Technologies to lightweight our Polystryrene Cups: FOAM project A 3 layer PS Two standard layers Density 1.05 The middle one is expanded thanks to a Foaming agent Density 0.65 Foam Volumes Evolution Europe Foam (T) 16% 4,830 % lines 38% 28% 13,400 9,000 54% 23, Key Success factors: - State of the art in bubble size & repartition management at the supplier stage - Machines well equiped & maintained to deliver the best performing cups Outputs: - 12 to 14% less plastic for the same performance & Consumers preference -19% less CO 2 emission for the Packaging, 40 KT to date. 7 mln COGS savings 9

10 Removing the carton pick ups - a project that required massive 360 communication to consumers Visite PDB KOLs Teasing Press Packaging CRM Distribution TV Web 10

11 Removing the carton pickups - a real business success story +4% +9% +16% +15% 11

12 Innovation and Productivity OVERVIEW PACKAGING RAWS / RECIPES INDUSTRIAL DESIGN CUSTOMER SERVICE AND LOGISTICS CONCLUSION

13 Project Jumbo baby food Project JUMBO: Recipe/Formula upgrades Anticipate reglementation evolution nutrition ingredients 81 Recipes, 1000 labels for 35 CBUs in 9 months PRODUCT DEVELOPMENT & OPERATIONS 81 Recipes improved, 12,000 hrs R&D/PD Complexity reduction (15 recipes and 5 base-powders less) No impact on customer service and low write-offs 13

14 Innovation that improves patient compliance at a lower cost price and less packaging Innovation in Protein Technology Reduction in size of protein fraction reduces viscosity of high protein nutrition Same nutrition in 125ml bottle as in original 200ml bottle Less packaging material Reduced conversion costs 20% reduction in carbon footprint at production level Smaller volume Improved patient compliance Improved intake 14

15 Transformation Traditional use of milk Cream Ł Butter Skimmer Skimmed milk SMP Blends 1Lt for each 1kg of product Acid whey Feed Directly to cheese Sweet whey WPCs Whey Powders 15

16 What is Membrane technology? SKIMMED MILK MEMBRANE FILTRATION PROTEINS Other optional filtration step LACTOSE + MINERALS Other optional filtration step CASEIN WHEY PROTEINS LACTOSE MINERALS 16

17 Transformation Todays use of milk Cream Ł Butter Cracking milk Casein Minerals Lactose Water Skimmer Skimmed milk SMP Blends Whey Excess Components By-Products Innovation Drinks Cream desserts Optimise sales Eg cream Directly to cheese Whey WPCs Whey Powders 17

18 Innovation and Productivity OVERVIEW PACKAGING RAWS / RECIPES INDUSTRIAL DESIGN CUSTOMER SERVICE AND LOGISTICS CONCLUSION

19 Danone Eaux France Carrefour Miramas case 1st common warehouse between 1 supplier & 1 customer in France, supplied by full trains Warehouse with 2 functions: - Deliver 123 Carrefour stores Just In Time - Deliver other Danone customer warehouses Benefits: CO 2 reduction/ Service / Innovation/ Customer intimacy/ positive media coverage 19

20 FOR ALL Increasing on-shelf availability Shopper behaviour when product is missing on shelf (ECR Europe) 30% sales lost by the Retailer s product later 17% 21% s in other store another flavour 16% 9% Doesn t buy at all 37% other brand 46% sales lost by the Manufacturer 4 bn of sales lost in Europe 20

21 FOR ALL OSA proven solutions Store Order Control E-Pos Data Danone Store Order Danone Warehouse Customer Warehouse To Store Delivery Store or Field Alert E-Pos Data Customer Store Team In Store Execution Danone Store Alert Danone Sales Force 21

22 Innovation and Productivity OVERVIEW PACKAGING RAWS / RECIPES INDUSTRIAL DESIGN CUSTOMER SERVICE AND LOGISTICS CONCLUSION

23 Innovation & Productivity Summary Change the Model Stretch the Model A track record of delivery Innovation and productivity go together Inno gives sustainable productivity perspectives Our culture of labbing and landing provides vivid pipeline filling and roll out Innovative and cost efficient formulas will provide ground for further growth opps in emerging AND developped market SUPPLIERS MANUFACTURING LOGISTICS CUSTOMERS WAREHOUSES CUSTOMERS SHOPS SHOPPER / CONSUMER 23