In a press conference, held May 9, Peter Brabeck-Letmathe, CEO of Nestlé, and Anders Moberg, CEO of Ahold, answered questions on the subject of collaboration in the food retail industry. Moberg and Brabeck-Letmathe are co-chairs of the ECR Executive Board.

Moberg opened the conference by saying, “The industry focus over the past 5 to 7 years was and is still optimizing our supply operations to offer our business solid foundations, integrating global industry standard and best practices. Those foundations are there to support us in generating sustainable growth and developing a new level of collaboration between retailers and manufacturers, integrating innovation in products, services and work relationships.”

Brabeck-Letmathe added, “The consumer, or shopper, of today is more sophisticated in her or his behaviour and expectations, is different from the one we had yesterday and will be again different tomorrow. We have to anticipate this evolution…and look at this from a broad perspective.”

Specifically, both men cited data sharing as something that should be part of collaboration and not negotiation. Brabeck-Letmathe gave the specific example of being able to see within minutes in which Ahold supermarket a bottle of Nestea Iced Tea was being sold. He clarified that he, of course, did not have access to his competitor’s information, but both Nestlé and Ahold gained in sharing this arrangement, as it aided in shortening the supply-demand chain.

Brabeck-Letmathe pointed that one of the main tasks of the ECR was to aid in increasing collaboration between retailers and manufacturers. One way this is done is through the ECR Progressive Management Programme, which offers cross-training of senior manufacturing and retail management. (Click here for PDF of programme brochure.)

Moberg indicated that there was a great deal of responsibility on the CPG manufactures, more so that the retailers, to work together in terms of collaboration, such as sharing product transport. Both men encouraged retailers and manufacturers alike to become part of the ECR in order to assist in shortening the global supply-demand chain, and better serve consumers.