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€ 750 million less in transport costs with collaborative logistics

By
fabrizio.gomarasca
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logisticacollaborativa2015_miniIn an industry such as the consumer industry that handles approx. 3 billion parcels each year, collaborative logistics management has an directly measurable impact in terms of efficiency and sustainability. According to data presented yesterday at the conference “Collaborative logistics: an increasingly strategic lever” organised in Milan by GS1 Italy | Indicod-Ecr the potential savings in the entire consumer supply chain with efficient loading units and trip saturation close to 100% is approximately 750 million euros with 600 million kilometres travelled less and a reduction in CO2 emissions of 47%, equal to 510 thousand tonnes per year.

Results that recognise in loading unit efficiency and vehicle saturation the two “collaborative” levers on which the Italian consumer supply chain must focus if it wants to further reduce the industry-distribution system costs, to the benefit of the consumer.

“These are important numbers for consumer companies and for the entire national system”, said Stefano Agostini, Chairman and CEO of Sanpellegrino Nestlé Waters and Director of GS1 Italy | Indicod-Ecr, in his opening speech. “A change of mentality is, however, necessary, we must also have the courage to change and the only way is to discuss with the customer, with the consumer”.

These numbers also summarise the value of supply chain collaboration in logistics and are a reminder of the much wider benefits which, according to Daniel Corsten, Professor at the IE Business School in Madrid, the Italian consumer industry could reap from good Ecr practices to overcome the fragmentation that characterises it. As long as their implementation, says Corsten, is based on a solid alignment of objectives and sound coordination mechanisms.

“Supply chain collaboration in fact requires the company perimeter to be overcome”, said Silvia Scalia, Ecr Coordinator for Italy of GS1 Italy | Indicod – Ecr”and the adoption of models for sharing processes among all industry players. Principles that have always been adopted by the companies participating in Ecr Italy, making the implementation of innovative solutions and operational tools that we are presenting today possible and that will facilitate good practices in collaborative logistics”.

The reference is to the results of the research activities that Ecr Italy has carried out in collaboration with University centres represented by Fabrizio Dallari, Director of the Research Centre on Logistics at the LIUC Cattaneo University, and by Gino Marchet, Professor of Logistics at the Politecnico di Milano:

  • Mapping of logistics flows: a study of the phenomena that characterise the logistics of the Italian consumer system and a photograph of the logistics flows and their morphology, the quantification of their size a specific analysis on the saturation of vehicles, both in plan and in volume.
  • Analysis of the costs of non-optimisation: a quantification of the costs of the order to delivery process which highlighted the cost differentials between different logistic practices and reorder models, and has produced a veritable Simulator of Optimal Industry Reordering – SIRIO. – a tool to estimate the cost differential between different reordering hypotheses for a given product.
  • Logistics atlas: an updated geographical map and a survey of the main logistics hubs – over 1,000 distribution and storage centres of consumer food goods managed by logistics operators in Italy, with the objective of providing an overview of the national distribution network and highlighting opportunities for optimisation along the supply chain and in transport and asset sharing.

 

 

Acquisitions in Food&Drink: 536 worldwide in 2014

By
fabrizio.gomarasca
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acquisitions-chart january2015The record number of 536 acquisitions in the Food&Drink sector has been reached according to the specialised database bevblog.net.
“An average of 10 a week, far more than in 2013”, says Richard Hall, chairman of the specialised consulting firm Zenth International.

 

The largest number of deals was recorded in packaging, dairy products, food, beverages and ingredients.

Acquisiioni per settore

At the global level, Coca Cola, Danone, Anheuser-Busch InBev and DS Services were the groups with the highest number of acquisitions in 2014, each with 6 or more transactions, out of a total of 909 companies involved in 75 countries. The United States and the United Kingdom were the most active in both sales as well as purchase transactions.
Italy was in fifth position among the seller countries, with 17 transactions, compared to 13 in 2013.

Acquisizioni per Paese

 acquisizioni ItaliaSource: bevblog.net

 

Retail: 10 trends for 2015

By
Anna Muzio
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We are at the end of year, it is time to take stock, but also for next year’s forecasts. What can we expect in the near future from retail? Sifting through the various foreign sites we have selected ten trends that we expect will drive retail evolution. Here they are.

  1. Customised approach thanks to technology. The customer feels chosen and understood thanks to communications transmitted via apps and the possibility for retailers to interpret his desires and choices. But also…
  2. Time is crucial. On and offline time for a certain range of customers (20-50 years old, working women, families with children) is a crucial factor in choosing where to buy. Which means fast deliveries and devices for quick shopping in the store (fast check out, fast payment, shopping list apps, click and drive and click and collect, product availability or fast shipping in the case of missing products).
  3. Virtual and digital assistants. Especially in the high-end of the market, consumers will expect increasing support from hi-tech devices which guide their choice. RFIDs, beacons and touchscreens will abound in the store.
  4. Price polarisation. The middle class is disappearing and so is the average price. The trend is increasingly towards the two extremes, low-cost and luxury. The novelty is that the same person can draw from either of the two extremes indifferently: for example, low cost yoghurt from the discount store and traditional balsamic vinegar from Eataly.
  5. Cross-sector sales. Coffee in libraries, insurance in supermarkets, music in coffee shops, it has got to the point where everyone is selling everything. An advanced example? Monop’lab in Paris gare Montparnasse (in the photo) which changes its range every month depending on consumer desires, in partnership with the caterer Elior.
    Monopl'lab Monoprix
  6. Product customisation or mass customisation. Mass production no longer meets the needs of consumers who can almost never afford real tailor-made. Which means in the future limited edition products created thanks to customer input, or those for market niches (the spread of gluten free products is one example).
  7. “Over forties” revival. The population is ageing and the offer will adapt. Fewer teenagers, more and more older people who require products “for the home”, home delivery, easy-to-open packaging and large and legible text.
  8. Women. The largest market in the world is still largely ignored by brands and retailers. But things are changing and sooner or later even they will realise it. Already today, in 65% of cases women decide which car and in 81% which financial products to buy. The opportunities for those who are the first to “talk” to the other half of creation are immense. An example? The Nike women-only store in Newport Beach, California (in the photo below), with annexed fitness centre that also offers yoga classes
    Nike-FI_Store_11.19.14-12_native_600
  9. Emotion and brand. To have connected and informed consumers perceive the pluses of a brand will be fundamental and therefore arousing emotions will be the lever to win their hearts and wallets. An example? WHSmiths, historic UK stationery chain, which sells cookery courses and hot air balloon rides.
  10. Emotional values and storytelling will also guide positioning, differentiation and the ability to tell the story of a brand. Provided it is genuine and linked to its deepest essence, not just entertainment but actually able to win the customer over to the brand.

Anna Muzio

Pedon Group winner of the 2014 Assiteca award for the approach to foreign markets

By
fabrizio.gomarasca
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Remo_Pedon
Remo Pedon, Ceo of Gruppo Pedon

The Pedon Group has won the prestigious 2014 Assiteca award for the Large Companies category, as an example of excellence for its strategy towards exports and ability to take on the risks that derive from operating in foreign markets.

“We are truly honoured to have received this recognition that acknowledges our activities in foreign markets – said Remo Pedon, CEO of the brand with the same name that recently celebrated its 30th anniversary – confirming the validity of our industrial and commercial strategy. The value chain that we have created allows us to increase our market share while maintaining a distinctive position”.

Distinctive point and strength of the Pedon Group, today one of the leading global players in the cereal and legume processing, packaging and distribution market, is the global procurement network which, through the Acos Division, manages to ensure constantly high quality levels and total control of the supply chains with its factories. The business model of the Pedon Group is characterised by vertical integration of the production chain, from field to shelf. A model implemented in Italy and replicated in several countries that has allowed the company to become a leader in cereals and legumes in the span of just a single generation.

“In Ethiopia alone – the CEO told inStore – we work with 20 thousand smallholders, whose production we collect and seeds we provide, to guarantee constant quality of the next harvest. Soon we will be directly involved in agricultural production: in Mozambique we are concluding an agreement for the concession of areas for planting legume crops. And we will also do the same in Argentina, always respecting the local populations and with the sole objective of ensuring consumer quality”.

The Pedon Group was proclaimed winner following the vote by the jury on Tuesday, December 2, at the premises of the Sole 24 Ore during the Conference “Export Excellence: strategies, plans and safeguards”.

Now in its fifth edition, the Assiteca award, which recognises the best practices of Italian companies in risk management, is dedicated to Export Excellence. The Technical Committee identified the Export Champions, i.e. the Italian companies, large and small, which in recent years have managed to grow by developing their business in foreign markets, often in complex geographies, facing the risks that this entails.

For the 50th anniversary of Metro a big global flash mob

By
fabrizio.gomarasca
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In 28 countries, Metro Cash and Carry celebrated in october half a century of history and success with its customers, suppliers and employees. And it is the latter who are the protagonists of the biggest flash mob in the Distributor’s history: a virtual event consisting of videos shot individually or in groups to the rhythm of dance music and the sound of Wild.

It was 1964 when the first Metro Cash and Carry store opened its doors in Germany, in Mülheim an der Ruhr: a sales area of 14,000 sqm, a new and revolutionary concept of food and non-food procurement which was immediately appreciated by the trade. Then from 1968, the international development took off, first in Central European countries and then in the Mediterranean area: on 27 April 1972 Metro began its Italian adventure, opening its first store in Cinisello Balsamo, near Milan, also revolutionising the wholesale trade format in our country for ever. Worldwide: after 50 years, the company is now present in 28 countries worldwide, with over 700 stores, 120,000 employees and a turnover of approx. € 32 billion in 2012.

 

Anniversaries, Companies, Employees, Metro AG

Sales branch in China for Granarolo

By
fabrizio.gomarasca
-

The opening of the first sales branch in Shanghai represents for Granarolo, the most important agrifood operator with Italian capital (993 million euros turnover in 2013), a direct presence in an area with very interesting development and growth prospects. The company already exports UHT milk, mascarpone cheese and other cheeses (mozzarella) to China.

The Chinese market, in fact, over the past 5 years has recorded an average growth rate of foodstuff imports in excess of 20% and it is estimated that by 2018 it could become the largest import market of foodstuffs with a value exceeding 80 billion dollars.

The opening of the branch in Shanghai is also a first step towards further investment and development opportunities in the area and is part of a commercial development plan in the Chinese market, characterised by a significant demand for foodstuffs (milk and dairy products) that meet high standards, in particular in terms of food safety, as well as quality and authenticity.

The Granarolo Group represents the most important Italian milk supply chain directly owned by associated producers in the form of a cooperative. It in fact brings together approximately 1,000 milk farmers, an organisation for collection of the raw material from the cow sheds with 70 vehicles, 1,200 distribution vehicles that handle 750 thousand tonnes/year and serve daily more than 60 thousand sales outlets at which 11 million families buy Granarolo branded products.

In its laboratories, the Group performs daily analyses on the entire production chain, from raw materials to the finished product, in order to provide consumers with quality products and high safety standards. The controls are carried out by qualified international certification bodies and guaranteed by the International Food Standard (IFS), the British Retail Consortium (BRC) and the EU organic food certification body (CCPB).

BRF: from Brazil to conquer the world with hi-tech food

By
Anna Muzio
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The booth of BRF at Sial Paris.

A demanding and globalised consumer with very specific tastes who increasingly demands from the food industry “easy”, fast but also tasty products, customised and localised to his tastes but with an international touch, with health needs that can no longer be ignored, needs not so much new (since new products often do not have much new to say, as can be seen from the flop of most launches on the market) but innovative products. This is the demand: the supply, on the other hand, can now come from the global market, from the big manufacturers of countries once developing but now in the global arena. This is the consumer which BRF, a name we will probably hear much of in the future, is looking towards. The seventh producer of food worldwide, based in Brazil, specialising in frozen foods, mainly fish and chicken, mostly in the form of raw materials, has in fact decided to embark on conquering the global market. With a new strategy that focuses on innovation and commercialisation of high added-value products. In Europe, one of the areas where the company intends to develop, BRF aims to become among the top five producers of frozen meat and fish, transforming itself from a supplier of standard solutions to one of custom and branded solutions, with a strong focus on quality and innovation, as explained by Marcos Delorenzo, the new Marketing Manager for Europe and Eurasia. “Europe is in fact a mature market – adds General Manager West and South Europe, Cristophe Vasseur – with consumers who want convenience and eat take away or in fast-food chains. And it is a diversified market with, in the West, chains with very strong private labels and an Eastern part where the retail offer is fragmented and private labels are still weak. In short a diversified market, to which BRF intends to propose customised solutions for both BtoB and catering chains. The new internationalisation process will be based on three pillars: brand, distribution and local production. A strategy involving acquisitions of manufacturers and distributors on the international market, but also the construction of its own facilities and development of products and marketing campaigns tailored to the various local cultures and needs. The first structure of the “new deal” will be built in Abu Dhabi at the beginning of 2015, in an emerging market with great potential.

The new products come about in a 12,500 sqm centre
The company, included by “Forbes” among the 100 most innovative in the world, focuses on research and development thanks to the BRF Innovation Center (BIC) in Jundiaí, Brazil, a 12,500 square metre complex where meat, pasta and vegetable products, but also new types of packaging, are created and tested and where 180 researchers and technicians work. It has 40 brands in its portfolio (the most important being Sadia, Perdigao, Qualy, Batavo and Elegê), which sell meat (chicken and pork), pasta, margarines, frozen pizzas and vegetables. Production, on the other hand, takes place in 58 factories, of which 47 in Brazil, 9 in Argentina and two in Europe, in the Netherlands and the United Kingdom. The 22 sales offices manage customers in 110 countries. It is the seventh food company in the world and accounts for 20% of the global poultry market. In 2013 its turnover was 9.9 billion euros. Anna Muzio

Findus (Iglo Gropup) wants to “freeze” food waste

By
Anna Muzio
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Capitan Findus diventa green per la campagna contro lo spreco alimentare

A social campaign with a precise objective: reduce food waste, which every day disperses into the environment over one third of food produced, 89 million tonnes in the European Union alone. It’s called Forever Food Together (the emphasis is on sustainable personal behaviour) and has been launched by the Iglo Group, a leading frozen food group in Europe, which in Italy controls Findus.

The awareness campaign with which the brand undertakes to provide correct information to all consumers but also, for its own benefit, promote the use of frozen food, now sees the legendary Captain Findus, since 1967 the character of countless TV commercials, take the field.

42% of food waste takes place in the home and, according to Findus, food waste could be reduced by 47% by using frozen foods rather than fresh products

The Iglo Group, and Findus in Italy, undertake to offer consumers between now and 2020, “100% of new products that contribute to a balanced diet”, in addition to responsible procurement and raw material processing. And that’s not all: the company has also proposed an “anti-waste” guide. Interesting, because it concerns not only consumers but also distribution, which does not consume food but sells it (and in turn wastes it), manufacturers and institutions. For example, it recommends large-scale distribution to replace “Two for the price of one” promotions with “Take one and freeze the other” and, together with manufacturers, select a product group with the aim of achieving 100% of resources used, from the primary source to the plate.

Italians, big wasters “in disguise”
Virtuous in words but in reality just as wasteful if not more than other Europeans. This is the image of Italians that emerges from a survey conducted in several countries (Italy, Germany, Austria, France and the United Kingdom) by Iglo Group in August and September.

If, in general, one in three people said they buy too much food and 77% has thrown away food that they did not get round to consuming before its deterioration, Italian consumers apparently seem to be oriented towards rational shopping.

In fact, they diligently abide by the shopping list when they go to the supermarket (second only to the Germans), and are among the first in consuming food purchased within 24 hours (11.9% do so). Other elements, however, are in contrast with this green, almost pastoral image.

Although the sample of respondents said they buy the right amount of food when they go shopping (74.6%), Italian consumers are those who more than others waste food for an overall value of between €10 and €25 per week (approx. 18% of the sample interviewed), while the average value of wasted food is €5 per week. The most common reason given to justify such waste is to have eaten out more often than expected (28.8%).

 

 

 

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