ECR Europe blue book on Shelf Ready Packaging

Summary presentation
15 January 2007
 Agenda

ECR Europe SRP Initiative

SRP Definition

Project Team

Methodological Framework

Framework Highlights

Supporting Tools Developed

Success Factors

Summary

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 ECR Europe has leveraged ECR National and proprietary
initiatives

SRP Landscape

i. Proprietary Initiatives

• Working group to align the multiplication of

initiatives on SRP across Europe.
• Recognising the importance of the topic, and
ii. ECR National Initiatives the need to act at a European level, the ECR
Europe Shelf Ready Packaging (SRP) Project
began in February 2006

ECR Europe Objective

• Provide common perspective on SRP across Europe

• Promote collaboration between Trading Partners involved in SRP initiatives
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 The SRP Project Team has been comprised of more than 40
industry representatives.

• Significant participation, providing high quality SRP insights and content

Co-Chairs & Secretariat

Guiding Principles Business Case Functional Requirements

Project Management

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 The ECR Europe Blue Book provides a practical framework for
collaborative engagements

How does the ECR Europe project differ?

• Methodological framework to support an end-to-end SRP assessment, including:

– Comprehensive set of Guiding Principles *New*

– Business Case evaluation *New*

– Adapted Functional Requirements *Updated*

– In-Store Execution *New*

• Practical Tools to support the methodology and assessment

• Shopper Impact and considerations

However…….

• SRP is not standalone Best Practice

• No Industry ‘Size of the Prize’ is available
• Evaluation is required on a product by product basis

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 The scope of the Shelf Ready Packaging project encompasses
a number of industry recognised definitions.

Project Scope

• Shelf Ready Packaging (SRP) • Ready to Sell or PAV (prêt-à-vendre).

• Retail Ready Packaging (RRP) • Display Ready

The definition is not limited to packaging which goes on the shelf, but includes sales
support mechanisms in all major distribution channels

SRP Types
On-Shelf Tray / Case MUs, Pallet, Dolly Re-usable Plastic Tray

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 An 8-Step approach to evaluating the Business Case for SRP
has been developed

1 Validate with Guiding Principles

2 Adopt Value Chain Impact Approach

3 Perform High Level Assessment

4 Define & Evaluate Alternative Solutions

5 Agree relevant Business Case Drivers

6 Perform Business Case Assessment

7 Implement Solution or Selected Improvements

8 Track / Measure Implementation Success

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 The SRP project has defined a Common set of Principles for
Trading Partners……

• The Principles provide a common language

and shared goals for Trading Partners to
engage in discussions
• Their creation – a combination of best
practice from a variety of sources Headline Guiding Principles

9 Always of Value to the Shopper, Retailer

and Manufacturer
ECR 9 Compliance with Environmental
Nationals ECR
Europe Legislation and Public Policy Concerns
9 Avoid Fragmentation and Complexity
SRP
9 Maintain Brand Identity
ASCS
PROJECT
9 Measure Implementation
Industry
Project
9 Requirement of Long-term Commitment
Team from Retailers and Manufacturers
9 Compliance with total Supply Chain
Efficiency Principles

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 …..whilst the Business Case focuses on assessing the Value
Chain drivers impacted…..

On Shelf
Vehicle Fill Availability Promotion
(OSA)

Shelf Space Product

Complexity Complexity Complexity
/ Density Damage

Manufacturing Warehousing Transportation In-Store Sales

Capital Asset Shelf Advertising / Code Store Cycle Store &

Shrinkage
Investment Utilisation Cleaning Merchandising Rotation Count Brand Image

Labour Time Packaging Replenishment Category Aisle Packaging

Legal
/ Resources Material Labour Reviews Congestion Disposal

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 ….with Functional Requirements to assist in solution design and
assessment, and In-store Execution to support implementation

Functional Requirements
• The Functional Requirements Up-Stream In-Store
move discussions away from
technical solutions, and
support the freedom to
Collate & Protect
innovate
Easy Identification
• Collate & Protect functionality Easy Open
should be considered in Easy Dispose
parallel to SRP requirements, Easy Shelf
(e.g. Efficient Unit Loads) Easy Shop
Pick & Move Locate Replenish Sell

In-Store Execution

• Excellent In-store execution Ensuring Successful In-Store Execution

underpins the success of SRP Preparation Implementation Sustaining
implementations, promoting
training, communication & Communication Adapted in-store Audit and
and Training operations Feedback
regular store auditing.

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 Several tools have been developed to support the Methodology
and collaborative engagements

Supporting Tools
Business Case Solution Assessment & In-Store Audit
High Level Prioritisation Illustrative SRP Solution Assessment **
10%

Case Count (or

Medium High
Focus
20% Area

Facings)
Volume

10% 50%
Low Medium
10%

Shopper Benefit Store Channel /

Opportunity Format / Size

Business Case Evaluation Store Audit & Checklists

** Adapted from ECR UK RRP Tool

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 Finally, implementation success should be measured, not
forgetting the Shopper’s perspective

Success Factors

Shopper Satisfaction Sales Volume On-Shelf Availability

SUCCESS?

Productivity / Cost

• Incorporating Shopper insights, provided by IGD, highlight the need to measure more than
just the efficiencies delivered by SRP solutions.
• In-house surveys or with help of professional services
• Balanced scorecard

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 To Conclude

ECR Europe SRP

• Many of the companies involved are starting to adopt the Methodology and Tools in their
day-to-day activities
• Most of today’s speakers have contributed to the ECR Europe project
• You will see further reference made to the ECR Europe deliverables today
• The ECR Europe Blue Book, incorporating the methodology and tools, will be widely
available at no cost

Publication

January 2007

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