2. CONTENTS
METRO Cash & Carry
September 2014 | Member of METRO GROUP 1
01 SHORT INTRODUCTION
02 GAME HAS CHANGED ā THE OPPORTUNITY!
03 CHALLENGES TO OVERCOME ā DO NOT IGNORE
04 HOW CONNECTIVITY BRINGS CUSTOMER CENTRICITY
05 DIALOGUE
4. Cross-functional companies
METRO CASH & CARRY ā A CORE BRAND OF METRO GROUP
METRO GROUP sales 9M 2013: ā¬46.3 billion
Hypermarkets
Sales 9M 2013 (bn): ā¬7.3
Countries**:
Stores**:
3
324
Status: 30 September 2013
*Status: 31 August 2014
**Status: 30 June 2014
METRO Cash & Carry
September 2014 | Member of METRO GROUP 3
Wholesale
Sales 9M 2013 (bn): ā¬22.6
Countries*: 28ā¦.
Stores*: 764
Department
stores
Sales 9M 2013 (bn): ā¬2.1
Countries**: 2
Stores**: 137
Consumer
electronics stores
Sales 9M 2013 (bn): ā¬14.4
Countries**: 15
Stores**: 988
5. revolutionary ā¦ what a success!
METRO Cash & Carry
September 2014 | Member of METRO GROUP 4
ā¢ 50,000 articles,
Food & Non-Food
ā¢ >15,000m2 net sales area
ā¢ Location in outskirts of city
ā¢ Huge parking lot
ā¢ Aggressive pricing
ā¢ Cardholders only
(business owners)
ā¢ ā¦ a privilege!
HOW IT ALL STARTED
6. Our business is global ā geographies are different!
METRO GROUP 2014: 2,212 LOCATIONS IN 31 COUNTRIES
ļ® Netherlands
METRO C&C
Media-Saturn
17
45
ļ® Pakistan
METRO C&C 9
ļ® Poland
MAKRO C&C
Media-Saturn
41
71
ļ® Portugal
MAKRO C&C
Media-Saturn
10
9
ļ® Romania
METRO C&C
Real
32
4
ļ® Russia
METRO C&C
Media-Saturn
73
62
ļ® Serbia
METRO C&C 10
ļ® Slovakia
METRO C&C 6
ļ® France
ļ® Spain
MAKRO C&C 37
ļ® Switzerland
Media-Saturn 25
Status: 30 June 2014
METRO Cash & Carry
September 2014 | Member of METRO GROUP 5
ļ® Germany
METRO C&C
107
Media-Saturn 416
Real 308
Galeria Kaufhof 122
ļ® Austria
METRO C&C
12
Media-Saturn 47
ļ® Belgium
MAKRO C&C
13
Media-Saturn 23
Galeria Kaufhof 15
ļ® Bulgaria
METRO C&C
14
ļ® China
METRO C&C
78
ļ® Croatia
METRO C&C
7
ļ® Czech Republic
MAKRO C&C
13
ļ® Denmark
METRO C&C
5
METRO C&C
ļ® Greece
93
MAKRO C&C 9
Media-Saturn 10
ļ® Hungary
METRO C&C
13
Media-Saturn 21
ļ® India METRO
C&C
16
ļ® Italy
METRO C&C
49
Media-Saturn 116
ļ® Japan
METRO C&C
9
ļ® Kazakhstan
METRO C&C
8
ļ® Luxembourg
Media-Saturn
2
ļ® Moldova
METRO C&C
3
Media-Saturn
ļ® Sweden
72
Media-Saturn 28
ļ® Turkey
METRO C&C
27
Media-Saturn 41
Real 12
ļ® Ukraine
METRO C&C
33
ļ® Vietnam
METRO C&C
19
7. GAME HAS CHANGED ā THE OPPORTUNITY!
METRO Cash & Carry
September 2014 | Member of METRO GROUP 6
8. What got you here, will not get you thereā¦
METRO Cash & Carry
September 2014 | Member of METRO GROUP 7
GAME HAS CHANGED ā AMAZONFRESH.COM, WAITROSE.COM
PlanetRetailLebensmittelZeitung
9. GAME HAS CHANGED ā ANALYSTS
METRO Cash & Carry
September 2014 | Member of METRO GROUP 8
āRevolution in Lebensmittelhandelā (E&Y)
āConvenience and on-line change the gameā (Planet Retail)
āDigital consumer demandā (SCM World)
PlanetRetail
10. CHALLENGES TO OVERCOME ā DO NOT
IGNORE
METRO Cash & Carry
September 2014 | Member of METRO GROUP 9
11. WHERE DO WE (AND MANY RETAILERS) COME FROM?
brick & mortar ā¦
METRO Cash & Carry
September 2014 | Member of METRO GROUP 10
ā¦ and therefore, delivering homeā¦
ā¢ ā¦ āis not our businessā
ā¢ ā¦ ācannibalizes our storesā
ā¢ ā¦ āis not as profitableā
ā¢ ā¦ āis not part of my bonusā
ā¢ ā¦ āneeds different IT systemsā
ā¢ ā¦ āwe do not have capabilityā
ā¢ ā¦
we had it all!
12. ā¦ WE ALMOST FORGOT WHAT WE ALSO HAD ā AND HAVE!
METRO Cash & Carry
September 2014 | Member of METRO GROUP 11
13. ā¦ WE ALMOST FORGOT WHAT WE ALSO HAD ā AND HAVE!
METRO Cash & Carry
September 2014 | Member of METRO GROUP 12
20 million customers (card holders) ā¦
ā¢ Addresses, emails, business details
ā¢ Intimacy with our A- and B-customers
A massive, unrivaled opportunity to create value,
provide targeted solutions!
14. Internal
ā¢ āStore is Coreā
ā¢ Store vs. Headquarter
ā¢ Other channels are not just āincrementalā
ā¢ Seamless shopping experience?
ā¢ Assortment & Solutions
ā¢ Sales Force
ā¢ Logistics Network (& stocking policies)
ā¢ IT & processes
AND IT WOULD BE WRONG TO CLAIM THAT WE HAVE IT ALL
METRO Cash & Carry
September 2014 | Member of METRO GROUP 13
15. HOW CONNECTIVITY BRINGS CUSTOMER
CENTRICITY
METRO Cash & Carry
September 2014 | Member of METRO GROUP 14
16. THROUGH CROSS-FUNCTIONAL EXERCISE CONNECTIVITY INTENDS TO
BREAK THE VERTICAL FUNCTIONAL PERSPECTIVE
Marketing Master Data Offer Merchandise Supply Chain Operations
Supplier Customer
END-TO-END PROCESSES
END-TO-END CUSTOMER CENTRICITY
VALUE-CHAIN
HR
Finance
METRO Cash & Carry
September 2014 | Member of METRO GROUP 15
17. FOCUS ON CUSTOMER, OFFER AND SUPPLIER:
TO BE MASSIVELY IMPROVED BY WELL CONNECTED PROCESS STEPS, GOOD
SYSTEM CONNECTIVTY AND CLARITY IN ROLES AND RESPONSIBILITY.
METRO Cash & Carry
September 2014 | Member of METRO GROUP 16
Three areas appear to be offering
greatest opportunities
OrderManagement
ProductLifeCycle
Management
PromotionManagement
18. THROUGH CROSS FUNCTIONAL EXERCISE CONNECTIVITY INTENDS TO BREAK THE
VERTICAL FUNCTIONAL PERSPECTIVE
(Central)
Order
Management
Product Life
Cycle
Master Data
Mgmt
Logistics Flows
Delivery
conditions
Supplier
performance
Stock
Management
Considering the āstone in the water effectā, we
agreed to focus first on Order Management
OrderManagement
ProductLifeCycle
Management
PromotionManagement
Three areas appear to be offering
greatest opportunities
METRO Cash & Carry
September 2014 | Member of METRO GROUP 17
19. Wave 1
Wave 2
Wave 3
METRO Cash & Carry
Cluster 1
Cluster 2
Cluster 3
ā¦
Remove duplicates and cluster
pain points into key
statements
Listing pain points
Cluster 1
Cluster 2
Cluster 3
Must-do
Postpone
Consider
Understandable and
consistent description
Cluster pain points in
problem situation
Process Mapping and
pain point collection
Assign to customer /
company value
Document pain
points in list
1
2 3 4
Cluster Id Cluster Name(optional) ProblemSituations Pain points
ID Painpointsrelatedto that cluster
2 Orderentrytoolateinthesystem
17 Wedon't havetheproduct instock
Deliverytoo late
11 Our replenishmentistoolowfrequent/ highvolume
19 Wehavetopaypenaltiesdueto toolatedeliveries
13 Wedon't knowwhatthecustomerwantstoorderinthenext weeks
8 Noinsightinphasingin/ out of products(promoandNPD)
3 Pickingerrors
7 Stockdifferencesbetweensystemandwarehouse
Deliverynot 4 Promoproductsoftenaresoldout
A
Deliveryis notontimeor
complete
<situation 3>
in full
Pain Points
Prioritize clusters;
where to put the
(initial) focus
Absolute impact
calculation
5 6
Define solutions and (if
solutions hard to find): root
cause analysis.
Estimate which impact might
be solved implementing the
solution(s)
Finding solutions
7
SCI: situation,
consequence, impact.
Decision Management
Board
8
Proposal defined solutions
to Board and get approval
to start TO BE)
Closure AS-IS
CONNECTIVITY ES METHODOLOGY (AS āIS)
September 2014 | Member of METRO GROUP 18
20. Work out detailed
Project plan per area
2 3 4
5
AS IS: Board approval
project brief per solution
1
6
Impact on RACI
or structure
Explain and train
(pilot group)
Securing
7
Board Discharge
8
Work out the plan to
implement the solutions
One A4 to get Board
approval for the
preferred solutions
Prepare for required
changes
Pilot the solution(s)
Go live with the solution
in part of the business
to understand the effect
Adapt
process /
Work
Instruction
Adapt
tools &
systems
Learn, adapt and
prepare for rollout
Adapt
tools &
systems
Explain and
train
(involved
employees)
METRO Cash & Carry
September 2014 | Member of METRO GROUP 19
Implementation
Go live with the solution(s)
in the speed as agreed in
the plan
Adherence and performance
are monitored with periodical
performance reviews
Adapt
process /
Work
Instruction
CONNECTIVITY ES METHODOLOGY (TO-BE)
21. SITUATIONS: DELIVERY VS. ORDER MANAGEMENT
ORDER MANAGEMENT DELIVERY
MASTER DATA INCOMPLETE
& INACCURATE
STOCK NOT UPDATED FOR
ORDER RELEASE
OPL PARAMETRES NOT ACCURATE
DELIVERY CONDITIONS & FLOW TYPES
NOT ADAPTED TO STORE NEEDS
SYSTEMS NOT ALIGNED
WITH BUSINESS NEEDS
1.
2.
3.
4.
5.
MASTER DATA INCOMPLETE
& INACCURATE
STOCK NOT UPDATED FOR
ORDER RELEASE
DELIVERY CONDITIONS & FLOW TYPES
NOT ADAPTED TO STORE NEEDS
SYSTEMS NOT ALIGNED
WITH BUSINESS NEEDS
1.
2.
3.
5.
DELIVERY CONDITIONS & FLOW TYPES
NOT ADAPTED TO CUSTOMER NEEDS
4.
BE AWARE: BOTH STREAMS HAVE SAME SITUATIONS, BUT HAVE DIFFERENT
CONSEQUENCES WITH DIFFERENT PROBLEMS!
METRO Cash & Carry
September 2014 | Member of METRO GROUP 29
23. ASSUMPTIONS FOR POTENTIAL IMPACT CALCULATIONS
METRO Cash & Carry
September 2014 | Member of METRO GROUP 22
ļ§ Time expressed in Hours. (Possible evaluation in FTE / ā¬ as well)
ļ§ Other Impact are expressed in ā¬.
ļ§ In case of possible different āmagnitudeā, the conservative approach prevails.
ļ§ If the same impact appears twice or more, it has been divided by each consequence
proportionally
ļ§ Period: either year 2013 or 1 rolling year.
ļ§ Perimeter considered:
ļ¼ Division: Dry Food, Non Food, Fresh. (Ultra fresh excluded)
ļ¼ Store : All 37 ES stores
Goal of the potential impact calculations:
ļ§ measure the āAs isā situation (e.g. DILO)
ļ§ measure the undesired effects/consequences (e.g. Assumptions)
24. Supply Chain
Operations Offer
METRO Cash & Carry
September 2014 | Member of METRO GROUP 23
DOT
Free up re-ordering
time of store
Improve availability
Optimize stock
DARWIN
Better availability
Optimized stock
Flow types & delivery
conditions adapted to
store needs
PILLAR
Guarantee quality
Master Data accuracy
ICARUS
Process adherence
Performance management
Continuous improvement
Guidance and stimulation
of change
25. ļ§ Maintain the Focus during Projects
Implementation and Development.
ļ§ To ensure Sustainability along the time and
departments involved.
ICARUS
Customer Satisfaction
improvement
Efficiency enabler
Working Capital
Focus
ļ§ Improve service level
ļ§ Become preferred supplier for independent
HORECA customer
ļ§ Ensure FSD development without interfering
C&C development.
PERFECT
ORDER
PROFIT.
GROWTH
Customer Satisfaction
improvement
Operational efficiency
BENEFITS
METRO Cash & Carry
September 2014 | Member of METRO GROUP 24
DO T ļ§ Free up time in stores for customer added
value tasks
ļ§ Increase Stock Availability for customers
PILL AR ļ§ Increase efficiency for on-shelf availability
by accurate information.
DAR
W
IN ļ§ Appropriate stock levels and stock quality
ļ§ Develop flexible sourcing process as per
business development needing
29. METRO Cash & Carry
September 2014 | Member of METRO GROUP 28
30. Patrick Dittli
Tel: +49.211.969.1317
Mob: +49.151.582.24888
Patrick.dittli@metro.de
METRO AG
Metro-Strasse 1
40235 Duesseldorf
Germany
CONTACT
METRO Cash & Carry
September 2014 | Member of METRO GROUP 29