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Les Gueules Cassées, the fight against food waste coming from France

The fight against food waste is making headway in many countries. While the French law sanctioning the destruction of unsold products by distribution is raising some concerns related primarily to the fact that large-scale distribution in France already has good anti-waste practices in place, so much so as to be responsible for (only) 11% of waste, compared to the 67% of households, from France comes an initiative worthy of examination.

base line changé_PASTILLE_OKAn anti-waste system called Les gueules cassées (broken faces, which could be translated as “ugly but good”) that involves putting products (vegetables, packaged products, cheese, etc.) on the market that are ugly looking but definitely edible. The initiative, financed in crowdfunding, was founded by two sons of farmers, has created its own label and in just eight months of operation has sold more than 10 thousand tonnes of fruit and vegetables. Of course, the pears are a bit spotted and the carrots and eggplants are not perfect and are not of the same size, but they are nevertheless edible. The same is also true for the raw milk Camembert produced in Normandy which, because of its irregular shape, cannot use the designation mark or the breakfast cereals which are  too large or too small compared to the standard. All, however, have a common denominator. They cost the consumer 30% less than the normal prices. Which explains its rapid increase of notoriety throughout France and the inclusion of this range of products in the major retailers: Carrefour, Leclerc, Monoprix, Franprix, Casino, Spar and Vival.

7778640852_1The latest introduction is fresh products. With the Les Gueules Cassées label they cost 50% less, remain on the shelf until the expiry date and retailers do not have to incur the withdrawal costs.

The initiative will soon be extended to traditional retail and has attracted the attention of as many as 18 foreign countries and by June a meeting with a delegation from the United States has been announced.


 

 

 

 

Conad Adriatico chooses JDA to optimise warehouse management

With the aim of reducing operating costs by optimising warehouse management operations and increasing the level of service provided to its members, Conad Adriatico has chosen the JDA Advanced Warehouse Replenishment solution by JDA Software Group, Inc. The Cooperative of retailers adhering to the National Conad Consortium, with 355 stores in Marche, Abruzzo, Molise, Puglia, Basilicata and, abroad, in Albania and Kosovo, thus intends to identify and renew processes to achieve greater integration of the entire goods supply chain, from the store to the manufacturer, with a consequent reduction in logistics and stock costs and an increase in the level of service provided.

Conad Adriatico has chosen the JDA solution to reduce stock and warehouse logistics costs. JDA Advanced Warehouse Replenishment will in fact provide a unique overview of warehouse and store replenishment requirements, based on accurate forecasts of demand patterns for each product. Using these forecasts as input, the JDA solution will define the most profitable stock policy, including new forms of delivery from the supplier to peripheral warehouses that optimise the productivity of warehouse operations and the level of service, while reducing logistics and stock costs.

“Our goal is to implement a supply chain transformation that leads to the right balance between ownership of the stock and store requirements – explained Mirco Papili, Chief Information and Logistics Officer of Conad Adriatico -. In addition, we will minimise the fragmentation of orders, determining the right purchase frequency for each product, while taking into account logistical constraints, such as use of the load capacity of vehicles and minimum order quantity. Obviously keeping the increased level of service to be provided to members as the primary objective”.

 

 

Supermercato24, the alternative to click and collect, soon in the UK and France

Supermercato24 is a start-up from Verona founded in September 2014 that allows you to do your shopping online in a supermarket of your choice and have it delivered at home within one hour or one day. A kind of contract e-commerce, which uses 1200 delivery staff today activated in 58 Italian provinces of Central-Northern Italy (including Rome). E-commerce in the grocery sector, as we know, has never taken off in Italy. So what is the meaning of this project? We spoke to the founder and CEO, Enrico Pandian, 35 years old and with a series of on-line initiatives implemented since he was a boy to his credit.

Enrico Pandian
Enrico Pandian, founder of Supermercato24

“We started last September in Verona to see people’s reaction, then we expanded to other provinces in Veneto and Lombardy and in January we arrived in Rome. We entered a market area currently unoccupied: in Italy there is only one supermarket doing e-commerce, Esselunga, and some experimentation. Our model was the American Instacart. Our strength? Delivery in one hour”. Can you explain how it works? We are not a supermarket but a logistics network that works in crowdsourcing. The customer goes to the website (there is no app but it is optimised for tablets and smartphones) and finds all the supermarkets of at least 600 square metres within a radius of ten kilometres. He can choose from 8/15 thousand products of the chosen supermarket and delivery at home in one hour (requested by 25% of customers) or one day (requested by 9 out of 10 customers). Thanks to an algorithm, the delivery man closest to the supermarket is contacted, who takes the order, does the shopping and takes care of delivery. Today we have 1200 delivery men that will soon become 2000, small businesses but also private individuals who start with a few deliveries and then open their own business. The customer can pay cash and recently also by debit card. The average expenditure has in fact recently increased from the initial 40 euros to more than 130, a sign that customers have tried the service, trust it and buy more. In short, a kind of shopping Uber. But what do you gain? We have various types of agreements with the supermarkets, ranging from communication to sharing: each supermarket has its own approach. Our goal is to ensure the customer the best possible service. We take a percentage of the expenditure, ranging from 5 to 15%, while the delivery man gets the delivery fee that depends on the volume and the amount spent. The prices are indicative, we cannot change them in real time, but the customer can choose the supermarket he knows and so he is already aware of the price at that store. Your strength? Above all, speed. People see the fridge empty and want the shopping to cook the next meal. Even the few supermarkets that do e-commerce deliver the next day. Our delivery men have priority access to the check out, but we have the flow data of the store and so we know at what time to arrive to avoid queues. We have also seen that the provinces, which are not covered by e-commerce, are very receptive. We can deliver even in the most remote villages. And that’s not all. We are beginning to expand the offer with new types of products, such as lunch or dinner. In Verona we are testing an agreement with a fast food chain. And we are also thinking of over-the-counter drugs. It’s the customers who are telling us what they need, and our idea for the future is to deliver any type of goods, in one hour. Are not you afraid that the supermarkets will “wake up” and begin to think seriously about e-commerce? No, because they are not structured to make deliveries in one hour, so much so that many of our customers ask us to do the shopping at Esselunga. On the contrary, we have had requests from companies who want to use us to deliver their goods. How do you use the data? It is our most valuable asset because we know what kind of shopping our customers do and where they do it. In the future we will use it to make targeted and customised proposals on the website, in one month we will launch the new and completely revamped website. But we could also sell the non-aggregated data to the supermarkets, for example. What are your plans for the future? We are already working on opening in London by June and starting with the service in September, also making agreements with similar situations such as Just Eat (home deliveries for restaurants, ed) and focusing on two areas: central London and the surrounding area, which has an approach similar to that of Italy. Then we will start up in Paris, because one of our investors is asking us to do so, the French fund 360 Capital (in January, supermercato24 won 360 thousand dollars in the 360by360 competition, ed). In Italy for now we will consolidate the provinces we have. But we are studying the South, in particular Puglia where we see potential.

For JDA, 8 out of 10 companies segment the supply chain, but not always in an innovative way

The growing complexity of the supply chain requires precise choices and manufacturing companies and retailers are aware of this, so much so that 80% said they had adopted advanced processes and methods such as the segmentation of the same: this is what emerges from the JDA Vision 2015 Supply Chain Market Study, a new report produced by Talant for the JDA Software Group which involved 255 business decision makers of retailers and manufacturing companies in 17 countries.

The strategies, moreover, are different and do not always use advanced technology solutions and proven best practices. “The supply chains of retailers and manufacturers have become increasingly complex, often distributed across multiple geographies, with dozens of commercial partners involved – said Kevin Iaquinto, Chief Marketing Officer of JDA -. Our report shows that, while decision makers recognise this complexity, in practice there is slow adoption of advanced technology practices and solutions to manage the challenges in key areas such as production planning and scheduling, supply chain planning and execution and demand and transport management”.

58% mentioned “the integration of Sales and Operations Planning (S&OP ) processes” as a strategic priority for the next 12 months, while 46% indicated “improvement of the agility of planning and production processes” among the strategic priorities.

Three major trends emerged from the survey.

1- Supply chain planning and execution: innovation necessary but not supported
Which are the priorities in terms of inventory management? Few doubts and nuances, given that 93% of Executives responded “Improve service levels” and 88% “Align inventory with demand”. A clear method of measuring and improving effectiveness in this area is, however, missing: respondents indicated at least 25 different parameters to evaluate performance in the inventory management area. In addition, most companies do not have advanced technology and specific tools. 59% of respondents believe that “Implementing automation” to manage inventory is a key initiative for the future.  The three main objectives indicated concerning planning and execution of the supply chain are: integration of S&OP processes with the inventory planning process (indicated by 100%); improvement of the productivity of planners through improved exception management and increased automation (indicated by 93%); rationalisation of the product portfolio (indicated by 90%).

2- Demand management: frequent launches and promotions require more accurate forecasts
To meet the needs of today’s price-conscious and innovation-driven consumers, retailers and manufacturers have made significant investments to frequently launch new products and support more aggressive promotional campaigns. From the JDA survey, however, it emerges that companies do not have advanced solutions for forecasting the effects of these costly initiatives. For the launch of new products, 59% of companies surveyed do not use forecasting tools or rely on retrospective estimates developed by sales and marketing teams, and only 3% of managers interviewed indicated that their organisation uses technology to support statistical methods to forecast the results of sales promotions.

3- Transport management: lower costs through partnerships and technology
The management of transport processes represents the moment of truth in terms of profitability, yet, on average, the panel of the JDA survey indicated that 33% of orders require additional expediting actions, significantly reducing margins. A surprising number of companies employ neither advanced tools nor best practices to solve this problem. Only 26% of organisations adopt a model based on shared services for centralised management of transport and only 46% have established a carrier programme. Moreover, only 43% of companies use software solutions to optimise the management of transport processes and operations.

Fight against food waste: Carrefour France has extended the expiry date of 350 products

The fight against food waste also involves the tons of expired products sent to landfills every year. Various solutions have been found by the supermarket chains to counter the phenomenon: recently many are offering discounts close to the date, a sort of last minute on yoghurt or cream cheese, or are sending damaged or food about to expire to charities (such as the “Ugly but Good” of Coop).

Carrefour in France has gone further. After the vote of the French Senate that effectively suppressed the use of the wording “Best before” (the one on non-perishable products), and a series of quality controls and food tests, it has taken a stand by changing the expiry date on 350 commercial brand products. Among these, the date of the wording “Best before” has been extended on 135 products such as cereals, rice, nuts, preserves; and there is no date at all on 50 products, including salt, sugar and vinegar. On fresh produce the “Best before” date has been extended from 7 to 10 days on yoghurt and from 2 to 8 days on spoon desserts.

A contrasting position comes from Denmark, where two of the major chains, Dansk Supermarked and Coop, have said they are against the new rule issued by the DVFA, the Danish Veterinary and Food Administration, which has lifted the obligation on retailers to remove all products with an expired “Best before” date from the shelves. The justification is that if the product is properly preserved and has not been opened, it can be safely consumed beyond the date indicated. The goal is, also in this case, the fight against waste.

Meanwhile, technology enters the arena, with a plethora of Apps that alert the user that in the shop or bar near their home there are products or sandwiches at discounted prices since close to the expiry date. Like the Turin start-up LastMinutesottocasa.

In any case, in May the EU had already proposed to abolish the expiry of certain non-perishable products such as pasta, rice and coffee. We will see whether Italy will decide to follow suit.

Convenient e-commerce at Christmas! But one out of three orders in the UK didn’t arrive according to JDA

The number of people turning to e-commerce is increasing, especially in very busy periods such as the festive season, but so too are the difficulties of retailers in meeting the demands of online customers without problems. This is what emerges from a survey carried for JDA, a company that provides retail solutions in a market much more mature than ours, such as that of the UK, where almost half (47%) of consumers made at least 50% of their Christmas shopping on line. During the 2014 Christmas period in fact, the survey shows, 31% of Britons who chose e-commerce had problems with their order: 49% had no delivery, while 45% never received the parcel or received it late. It went better in 2013, when only one customer out of five reported problems.

The rise of click and collect

39% of consumers, more careful, opted for in-store collection, citing two reasons: the absence of shipping costs (61%) and greater convenience (53%). A generally satisfactory experience, so much so that 34% said they would use it again next Christmas. And a quarter said they had given preference precisely to retailers offering this service, compared to those who did not provide the possibility of collecting the order in the store. Also in this case, however, there were complaints regarding the long wait in the store due to staff shortages, lack of a dedicated collection area and the excessive time taken by store staff to retrieve the products ordered on line.

The e-shopper is impatient…

“The growth of e-commerce in the UK shows no sign of slowing down. In parallel, customer expectations concerning the service have never been so high, so much so that the customer is ready to buy elsewhere (another website or physical store) when his demands are not met. And this puts great pressure on retailers, especially during the Christmas season when demand soars” concludes Jason Shorrock, retail strategy director of JDA.

€ 750 million less in transport costs with collaborative logistics

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.

 

 

First candle for Supply Chain Initiative, good practices in the supply chain

Created to promote good practices along the agrifood supply chain, Supply Chain Initiative celebrates its first year of operations with the presentation of its first annual report. A stock take of the situation and an incentive to continue with the actions and welcome new members.

The industry associations and companies participating in SCI sign a commitment to implement correct practices vis-a-vis all players in the agrifood supply chain, from farmers to end distributors. 14 months from its launch, 164 groups representing 860 companies have signed such commitments, including the big retail chains Lidl, Sisa, Carrefour and Auchan, as well as the multinationals Ferrero, Coca Cola, Nestle and Unilever.

Registered companies are invited to participate in an annual survey to verify that the commitments have been fulfilled. The first survey has revealed that 18 thousand employees have been trained, and among these nearly four out of ten used the SCI e-learning. Participant satisfaction of is high at 73%.

The General Manager of EuroCommerce, Christian Verschuere, commented: “We believe that voluntary compliance is the right way. SCI ensures that good practices filter down from Brussels to company management and to sellers and buyers. It is a system that offers a cost-effective, rapid and less antagonistic mechanism to promote good practices as the basis for commercial relations and company progress”.

What is meant by “good practices” is explained in the document just published. Among these, we find transparency of every part of the contract, including any penalties, which presupposes that they are written and agreed between the parties in advance, the provision of important information to the other party and the use of terms and conditions in contracts which facilitate activities and contain fair clauses.

 

 

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