AIM Logistics Distribution Trends Survey 2013 (year 2012) High-level analysis of findings January 2014 AIM Industry-Trade Committee

Transcription

1 AIM Logistics Distribution Trends Survey 2013 (year 2012) High-level analysis of findings January 2014 AIM Industry-Trade Committee

2 Scope & Methodology Topic/Scope: logistics behaviour of top 5 retailers in 25 European countries, as reported by manufacturers Methodology: Automated on-line questionnaire hosted by external service provider Participation: supply chain managers via AIM Logistics Committee, Board members and national associations Anti-trust compliance: answers are aggregated and anonymised; only retailers/markets with more than five respondents are retained in the survey results Reporting: Individual benchmarking through on-line tool Detailed aggregated results reported to participants in excel format (possibility to carry out customised analysis) High-level analysis for all, carried out by Logistics Committee chairman and Secretariat

3 Participation 2013 exercise 18 AIM member companies Through 7 national associations we received replies from 55 additional local companies The survey covers 25 countries Category split: Food Non-food Spirits 57 % 25 % 18 %

4 Coverage what things did we ask about? Logistics collaboration - how does the retailer order and you deliver? E.g. VMI, cross-docking, etc. Efficient Planning forecasting (CPFR) POS data sharing On-shelf availability Pallet handling Delivery requirements Technology enablers, e.g. GDSN, EDI Shelf Ready Packaging Lead times Sustainability Logistics penalties approach Logistics focus areas

5 Results A few highlights

6 VMI (Vendor Managed Inventory) No VMI in half of the surveyed countries! Low level of VMI in 8 countries High level of VMI in France & Belgium, driven by Auchan, Carrefour and Delhaize Local retailers in Switzerland also driving VMI

7 Cross-docking 3 leading retailers in Europe Carrefour Metro Rewe 6 countries 9 countries 6 countries Romania: 70% Romania: 60% Romania: 50% 14-70% 14-60% 15-67% 2 «emerging retailers»: Tesco, Auchan Main cross-dock countries: Romania, Spain (Portugal & Czech Republic) Trend: Southern Europe and CEE

8 Consignment stock Consignment stock has not taken off A few retailers are implementing consignment stock with a minority of respondents: Migros in CH El Corte Ingles in ES Casino, Auchan in FR Tesco in CZ Dansk Supermarked in DK (leading with 17%) In Italy all retailers are implementing a low level of consignment stock but only with a minority of respondents Def: Stock belonging to the supplier, assigned to a retailer. The stock remains on the balance sheet of the supplier while it is already physically held by the retailer.

9 Retail Collection / Backhauling Backhauling very strong in UK & Ireland: 45-64% Strong in Sweden with ICA and Coop Metro driving retail collection in Poland and Germany: 43-54% Def: The retailer collects goods from the manufacturer's warehouse. On a delivered price basis (backhauling) On an ex-works price basis (retail collection)

10 Collaborative Planning, Forecasting & Replenishment (CPFR) CPFR is not the norm in Europe Except: UK is far ahead in implementing CPFR (Tesco & local retailers); Tesco leading CPFR effort in Europe (30-82%) Rewe, Metro, Ahold seem to be testing CPFR in Czech Republic (20-30%)

11 POS data sharing More sharing than expected: all large retailers are sharing POS data The trend is led in UK & Ireland by Tesco and local retailers Activity also in CEE, e.g. Poland No pattern as to frequency of sharing differs even across a retailer depending on country

12 On-Shelf Availability 3 leading retailers Carrefour Metro Tesco 7 countries 9 countries 6 countries Romania: 88% Romania: 63% Poland: 100% (not Romania) 22-88% 9-63% 15-67% Large international customers are driving OSA throughout Europe Strong local retailer base in Croatia, Slovenia and UK, as well as Spain

13 Use of enabling technologies (1) Simple DESADV DESADV with SCC EDI RECADV EDI ORDER High in RUS High in DE, NL, UK Tesco, Sainsbury driving use in UK) High use in 14 countries (except for Lidl/Schwarz) Medium in 9 countries Medium in 9 countries (Tesco driving use in IRL) Medium in 7 countries (Tesco driving use in IRL & UK; Metro in RUS) Medium use in 8 countries Low or no use in 15 countries Low or no use in 13 countries Low or no use in 18 countries Low in BUL, CRO, GR

14 Use of enabling technologies (2) RFID EDI invoice Paperless invoice Very low or no use Well established in Western Europe Emerging in CEE Emerging across Europe Strong in France, driven by Carrefour & Auchan GDSN Has not really taken off yet Except Germany which is leading France, Netherlands, Spain - moderate implementation

15 Retail or Shelf Ready Packaging Shelf Ready Packaging has taken off in Europe driven by large customers SRP retailers Tesco Schwarz Group (Lidl/Kaufland) SRP Countries First tier: Croatia, Poland, UK Second tier: France, Denmark, Germany, Norway, Spain Carrefour

16 Lead Times In more than half of the countries, retailers are generally satisfied with current lead times: mainly Day 1 for Day 3 In 8 countries retailers are requesting Day 1 for Day 2: Croatia, Czech Republic, Greece, Hungary, Italy, Netherlands, Slovakia, UK (trend?)

17 Sustainability KPIs / CO2 Retaliers have relatively high interest in sustainability, BUT this does not translate into any CO2 projects or interest in sustainable transport Sustainability Leaders Carrefour Metro Tesco Schwarz Group Sustainability Countries Romania Czech Republic Croatia Sustainability Followers Rewe Spar Auchan Coop Ahold

18 Logistics penalties Largely structural approach Carrefour Metro Tesco Coop Schwarz Group Mixed approach Rewe Auchan Ahold Structural Ad hoc No penalties Czech Republic Croatia Greece Denmark Germany Ireland France Portugal Romania Slovakia Slovenia Poland Netherlands Ireland UK All large retailers have a structural approach to logistics penalties but do not apply this everywhere

19 Main logistics focus areas for retailers Ranking Focus area 1 Inventory 2 Service level / Availability / OTIF 3 Speedy delivery 4 Product Quality 5 Cost

20 Value of the survey What are the benefits of participating? Access to detailed results which you can analyse further internally (individual benchmarking, aggregated results) The more participants, the more accurate the results Allows companies to involve/activate their supply chain network in Europe Allows AIM Logistics Committee to identify trends How to use the survey results in your company and how does it trigger action? Compare retail trends in survey with your own reality ability to have more informed discussions with customers

21 2014 edition in preparation Maintain 25 countries Extension to up to top 10 retailers per country, to include: drug stores discounters super- and hypermarkets List by banners if they are acting differently within one retail group, e.g. Lidl/Kaufland (Schwarz Group) Slight reshuffle of questions: additions & deletions