1. New Ways of Working Together
Pat Conklin, Chief Customer Officer, Procter & Gamble- Asia
The light bulb was not invented from continuous
Innovation of a Candle
The case for change
• We have been talking about Collaborative Commerce and
Collaboration for years.
• Efficient Consumer Response was founded on the
Strategies of:
– Efficient Assortment
– Efficient Replenishment
– Efficient Promotion
– Efficient New Item Introduction
Yet today’s Supply Chain is
STILL filled with waste….
The Case
for Change

2. “Stores are over SKU’d”
New SKUs
Registered
1980 2,899
2005 10,651
2007 85,000
Average Items in a
Typical Supermarket
1987 24,500
1997 30,000
The Case
for Change
2007 45,000
Source: Global Commerce Initiative New Ways of Working Together
Inventories are
too high
“There is too much of
the stuff consumers
don’t want and not
The Case enough of what they
for Change
do.”

3. Out-of-stocks
persist
The Case
for Change
Trading partners
continue to focus on
The Case business minutiae
for Change
instead of shoppers

4. “The best way to
predict the future is
to invent it.”
– Alan Kay, noted
computer scientist
Forces and trends that have
the potential
to significantly alter the
industry’s value chain
over the next decade.
The industry must
Redefine the 2016 Value Chain
Trading Partners must more readily and freely
Share Information
In their Bi-Lateral relationships
The industry must
Develop New Ways of Working Together

5. New Ways of Working Together –
A Consumer Goods Forum Initiative Colleen GOGGINS
Worldwide Chairman,
Consumer Group
Jean-Paul AGON
JOHNSON & JOHNSON
Chief Executive Officer
L’OREAL
Bob MCDONALD
Chairman, President &
Brenda C. BARNES Chief Executive Officer
Chairman & Chief Project Leaders THE PROCTER &
Executive Officer GAMBLE COMPANY
SARA LEE
CORPORATION Manufacturers Retailers
Sir Terry
Warren F. BRYANT JOHNSON & JOHNSON CARREFOUR LEAHY
Chairman Chief Executive
NATIONAL Officer
ASSOCIATION OF
NESTLÉ KROGER CO. TESCO PLC
CHAIN
DRUG STORES PROCTER & GAMBLE METRO GROUP
Eckhard CORDES KRAFT FOODS WAL-MART Mike DUKE
Chairman of the President &
Management Board CEO
& Chief Executive Officer
UNILEVER TESCO Wal*Mart
METRO AG
J.M. SMUCKER WEGMANS
Lars OLOFFSON Stefano PESSINA
Chief Executive COCA-COLA SAFEWAY Executive
Officer Chairman
CARREFOUR Legal Counsel ALLIANCE
GROUP BOOTS
John RISHTON
Motoki OZAKI Michael KOK Paul POLMAN
Chief Executive Officer
President Kao Group CEO Chief Executive
Royal Ahold
Dairy Farm Officer
UNILEVER
New Ways of Working Together
Eliminate supply chain disruptions, enable growth
Industry Track (Collaborate)
Best Documentati Guiding
Share
Practices/ on, Education, Principles and
Communication Frameworks Results
Standards
Focus Connect Prepare Share
on ed Business People for Our Supply Consumer/
Consumer Information New World Chain Shopper
• • • • Satisfaction
Strategy Common Knowledge, Sustainability
Alignment Goals & Skills &
Measures • Cross
• JAG Capabilities Industry
Framework • Information • Incentives & Integration
Sharing* Rewards • Integrated
• EPC • organisation Supply Chain
• Data Sync Design
Strategic Common Specific Other
Issues Between Goals, Common Measures & Data Sharing
Trading Partners Measures Priorities Opportunities
Trading Partner Track (Competitive Advantage)
*Note: Utilizations of Industry Standards

6. New Ways of Working Together
Eliminate supply chain disruptions, enable growth
Industry Track (Collaborate)
Best Documentati Guiding
Share
Practices/ on, Education, Principles and
Communication Frameworks Results
Standards
Focus Connect Prepare Share
on ed Business People for Our Supply Consumer/
Consumer Information New World Chain Shopper
• • • • Satisfaction
Strategy Common Knowledge, Sustainability
Alignment Goals & Skills &
Measures • Cross
• Joint Capabilities Industry
Business • Information • Incentives & Integration
Planning Sharing* Rewards • Integrated
• EPC • organisation Supply Chain
• Data Sync Design
Strategic Common Specific Other
Issues Between Goals, Common Measures & Data Sharing
Trading Partners Measures Priorities Opportunities
Trading Partner Track (Competitive Advantage)
*Note: Utilizations of Industry Standards
• Encourage bi-lateral collaboration
– Based on clear, fact-based
understanding of market context and
trends
– (P&G) Establish True Scorecards based
on trading partners strategies as well as
operational and financial objectives
• Embrace joint long-term planning
Focus – Annual planning is often insufficient
– IP protection and trust
on
Consumer • Implement longer term planning
processes
J AG proces s
• Five step process building a
three-yea r rolling JAG plan
• Ann ual milestones to be set
Step 1
• Prog ra m reviewed Step 2
Review the ec onomic and
throughout the year Review
shopper environment
• Buyer-Seller accountable for sales and
functional l iaison, pla nning agree on
coordination , agreement and prioritized
execution follow-up growth
• Cross-funct ional teams dr ive levers
analysis and planning to Step 5
support Buyer-Seller Monit or & Condit ions
adapt for succe ss
Step 3
Define and
Fact based
agree on
3-year
• Help trade p ar tners b uild JAG plan
rationale for their growth Step 4
strategy Execute the
• Demonstrate the objective JAG plan
selection of relevant growth
levers
• Al low re liable quan tification
of the o pportunities and
expected ROI

7. New Ways of Working Together
Eliminate supply chain disruptions, enable growth
Industry Track (Collaborate)
Best Documentati Guiding
Share
Practices/ on, Education, Principles and
Communication Frameworks Results
Standards
Focus Connect Prepare Share
on ed Business People for Our Supply Consumer/
Consumer Information New World Chain Shopper
• • • • Satisfaction
Strategy Common Knowledge, Sustainability
Alignment Goals & Skills &
Measures • Cross
• JAG Capabilities Industry
Framework • Information • Incentives & Integration
Sharing* Rewards • Integrated
• EPC • organisation Supply Chain
• Data Sync Design
Strategic Common Specific Other
Issues Between Goals, Common Measures & Data Sharing
Trading Partners Measures Priorities Opportunities
Trading Partner Track (Competitive Advantage)
*Note: Utilizations of Industry Standards
• Common Goals and
Common Measures
– Based on a common language
Connecte
• GS1 “Trading Partner d Business
Performance Management” Information
Standard
• Global Data Synchronization

8. New Ways of Working Together
Eliminate supply chain disruptions, enable growth
Industry Track (Collaborate)
Best Documentati Guiding
Share
Practices/ on, Education, Principles and
Communication Frameworks Results
Standards
Focus Connect Prepare Share
on ed Business People for Our Supply Consumer/
Consumer Information New World Chain Shopper
• • • • Satisfaction
Strategy Common Knowledge, Sustainability
Alignment Goals & Skills &
Measures • Cross
• JAG Capabilities Industry
Framework • Information • Incentives & Integration
Sharing* Rewards • Integrated
• EPC • organisation Supply Chain
• Data Sync Design
Strategic Common Specific Other
Issues Between Goals, Common Measures & Data Sharing
Trading Partners Measures Priorities Opportunities
Trading Partner Track (Competitive Advantage)
*Note: Utilizations of Industry Standards
Five Elements of Change?
Change
Vision Skills
Measures /
Resources
Action Change
Rewards
Plan
Measures / Action
Skills Rewards Resources Confusion
Plan
Vision
Measures /
Resources
Action Anxiety
Prepare Rewards
Plan
People for Action Gradual
Vision
NewSkills
World Resources
Plan Change
Vision Skills
Measures / Action Frustration
Rewards
Plan
Measures / False
Vision Skills Rewards Resources
Starts

9. • Understand the Barriers and
Enablers to long term, shopper
focused business planning
• Transform people performance
Prepare incentives and rewards
People for
New World • Build knowledge, skill and
capability sets
• Design organisational structure
around consumer needs and
drivers
New Ways of Working Together
Eliminate supply chain disruptions, enable growth
Industry Track (Collaborate)
Best Documentati Guiding
Share
Practices/ on, Education, Principles and
Communication Frameworks Results
Standards
Focus Connect Prepare Share
on ed Business People for Our Supply Consumer/
Consumer Information New World Chain Shopper
• • • • Satisfaction
Strategy Common Knowledge, Sustainability
Alignment Goals & Skills &
Measures • Cross
• JAG Capabilities Industry
Framework • Information • Incentives & Integration
Sharing* Rewards • Integrated
• EPC • organisation Supply Chain
• Data Sync Design
Strategic Common Specific Other
Issues Between Goals, Common Measures & Data Sharing
Trading Partners Measures Priorities Opportunities
Trading Partner Track (Competitive Advantage)
*Note: Utilizations of Industry Standards

10. • Industry and trading
partners must do things
differently
• Adopt more sustainable Share
business practices Our Supply
Chain
• Collaborative Transport
Management, Empty Miles
• Focus on the Consumer will not work if goals and measures are not
shared, or if supporting rewards and structures are not in place
• Connect our Business will not work if the connection point is not the
shopper or if there are no mutual goals or the supply chain is still viewed as
“yours versus mine”
• Prepare our People will be insufficient if there is not a clear, shopper
focused business plan focusing the organization, or if there are not the
commonFocus common Connected andPeoplePrepare visibility toShare Our
goals,
on Consumer
measures
Business
information
for New
act on.
Supply
• Share our Supply Chain will not be possible without understanding how
Information World Chain
every decision impacts the shopper, or if the way we measure success is
different. Too often we optimize components of the supply chain, but sub-
• Strategy • Common • •
optimize the whole Goals & Measures
Alignment Knowledge, Skills Sustainability
• JAG Framework • Information & Capabilities • Cross Industry
Sharing* • Incentives & Integration
• EPC Rewards • Integrated Supply
• Data Sync • organisation Chain
Design
An Integrated Approach to
Better Business Results

11. New Ways of Working Together will require:
– Leaders who inspire by example
– Honesty, Integrity and Credibility
– Transformation of Business information
• Visible
• Connected
• Accurate
• Informative
• Actionable
• Relevant
So, what
do we do
about it?
The NWWT Opportunity
• Take responsibility for the current state
• Expand your view to include all stakeholders
• Collaborate effectively across the supply chain in
the name of the customer experience.
• Change outdated structures.
• Modify incentives or rewards that do not result in
behaviors that positively impacts the consumer.
• Seek to understand and adjust non-compatible
processes.
So, what
do we do
about it?