"COMET is the power of buying together as ONE METRO"

00:00:00: Metro has a dream that probably every large company has to fully realize the potential of its size.

00:00:06: Less complexity, smarter procurement and savings run into double-digit millions of euros per year!

00:00:13: Comet is making this dream a reality at Metro –.

00:00:16: today we're taking closer look at food offer transformation and finding out what it means for our countries, customers.

00:00:39: Matcha wants to make better use of its scale, simplify sourcing and create more efficient food assortments across our countries.

00:00:46: With the Comade project – Our Food Offer Transformation enters it's next phase!

00:00:51: Our targets are clear stronger common sourcing lower cost-of-good salts & faster ways working.

00:00:57: how this transformation supports our score strategy And what is means in practice Is What you will learn In This Episode Of More Podcasts.

00:01:05: Hold Sale To The Max.

00:01:10: A warm welcome to all of you, dear colleagues.

00:01:13: I am Bernd Röder from Global Internal Communications at Metro AG and responsible for this podcast about Metro's score strategy.

00:01:21: My guest today has spent more than a decade shaping Metro's food business in the wide variety of leadership roles.

00:01:29: since joining Metro almost exactly fourteen years ago he has been responsible possible angle, I warmly welcome METRO's Vice President of Global Food Procurement Jean-Sébastien Blume.

00:01:44: Hello and bienvenue to more podcasts!

00:01:47: Thank you very much for welcoming me here.

00:01:50: Great to have you here.

00:01:51: Jean-Sebastian as mentioned over the past years – You've been responsible nearly every key food category at METro & know our food business inside out.

00:02:02: which change in perspective your career has had the greatest impact on your view of our procurement and also all assortments?

00:02:11: Well, some years ago I would say even before Metro they were a different approach for procurement.

00:02:18: The start let's say twenty years ago was about buying negotiating not only private clubs but also for brands.

00:02:27: so most time we are negotiating with suppliers that is focused to have best price and best promotions.

00:02:34: the category management was quite simple at this time.

00:02:39: What I've changed in a time, three important shift that would say first and particularly in Metro to usage of internal and external data.

00:02:51: so we have a source of data in Metro which is absolutely fabulous with a lot details about customers And We Have A Very Deep Understanding Of The Customer Needs legal environment, which has changed drastically.

00:03:07: So now it's extremely complex and that is something we have to cope with.

00:03:11: And the third one I would say fully about sourcing is volatility of our markets.

00:03:19: We need to adapt our sourcing strategy on this.

00:03:23: Food procurement is a local business at least so far.

00:03:29: What have you learned in recent years about the differences between the metro and macro countries.

00:03:36: that is now helpful to you, in terms of Commit?

00:03:41: What I've learnt at this time... ...is we can work locally indeed but need support from a group behind us.

00:03:52: The chance with Metro is that there are lots of countries representing this group And we have sourcing in those countries.

00:04:00: So when you buy together, we buy better.

00:04:03: Okay yeah and today We are talking about the changes In the course of Metro's food offer transformation... ...we will discuss why the Comade project was launched How it supports our score strategy?

00:04:14: Why Metro sees significant value creation potential.

00:04:19: We will also talk about common sourcing and the future operating model of food procurement.

00:04:24: And, of course this episode we'll also feature two recurring sections for more podcasts The Fundamentals Questionnaire and Jean-Sébastien a very personal sound souvenir.

00:04:37: Before we dive into details let's start with context behind Food Offer Transformation at Metro.

00:04:45: What was your first thought when you started looking closely?

00:04:50: I

00:04:51: don't want to be polemic, but my first opinion was why do we need a consultant?

00:04:59: Very honestly.

00:05:00: Because we had double-digit growing in recent years and we are on track to continue the common sync ramp up with our common sync workshops.

00:05:10: So I was wondering why we need to have a consultant support us.

00:05:13: That's my first thing!

00:05:16: And maybe your second thought?

00:05:18: Second thoughts when they started the project actually, it was very structuring way of tackling this project.

00:05:26: We'll talk about that little bit later so you will see what is going on.

00:05:29: but yes i think the consultant needed for that.

00:05:32: Yeah okay yeah.

00:05:33: and now many colleagues already heard the name Komid.

00:05:36: If you had to explain it to our colleagues in less than one minute, why commit is important?

00:05:42: What would we say.

00:05:44: OK We give three reasons.

00:05:46: first One It's a federating project which is co-created with countries that the fund Is not a corporate projects.

00:05:53: Second Its complete new operating model and an offer transformation.

00:05:58: Ok second

00:05:59: one Third We create value In structured and systematic way.

00:06:06: And why did Metro launch this project in the first place?

00:06:10: So what are their main targets.

00:06:13: The target, now we enter inside the hard part.

00:06:16: so it's actually not that complicated to leverage a group scale and reduce the cost of goods sold.

00:06:24: We call these the cocks.

00:06:28: That is power buying together as one metro.

00:06:31: So that's the first part.

00:06:32: Indeed, it is most important to reduce the cocks but also optimize the range and having a clearer offer by increasing all brands To ensure an optimal supply chain flow so thats very important And secure the sourcing.

00:06:49: Finally this enable group have more attractive prices for customers.

00:06:55: Our CEO, Stefan Greubel described Komet as one of the major opportunities to make better use off metro scale.

00:07:01: As you already mentioned and strengthen also our one Metro approach.

00:07:06: in which areas is this scale not yet being utilized sufficiently?

00:07:11: That's exactly in the procurement actually.

00:07:14: so um...as we may know uh..we need focus on the largest cost driver Which are the cocks.

00:07:19: So by buying together has opposition to buying individually.

00:07:24: The cox being the biggest spending of our company, if we make some percentage of savings then we have a huge impact.

00:07:32: It has an impact on our habit but it's also critical level for improving our cash flow.

00:07:38: So that's why it is very important.

00:07:40: And

00:07:40: we will also talk about what really behind this and go into the details, but I would like to stay a little bit more on these surfrace and give you an overview.

00:07:49: so management board speaks of potential savings which significantly exceedes the official stated figure of twenty million euros per year... Why does our Board believe Comate has such significant impact?

00:08:03: Yes!

00:08:03: We spoke about twenty million but only for pilot categories.

00:08:07: So when we speak about the total, We rather talk of a three-digit million euros reduction.

00:08:13: Okay so that's why this is significantly impacting.

00:08:17: Well it's a scoop but uh...we are on our way to overshoot our twenty million euro for the pilot categories.

00:08:26: Jean-Sebastian, such a large scale project like Commit A Transformation Project is also a lot about working together.

00:08:35: And whenever we talk about how we work together in the future one topic has never far away our Metro fundamentals.

00:08:43: so let's make this personal for moment.

00:08:46: as always in more podcast I'll ask you five questions about our Metro Fundamentals and i would appreciate short and spontaneous answers.

00:08:54: Are you up for this challenge?

00:08:55: I will

00:08:56: try.

00:08:56: Okay, then let's start with the first question which of our five fundamentals is your favorite one?

00:09:04: i have two.

00:09:05: i'm shitting a bit okay so

00:09:07: no problem.

00:09:08: my first one is no fear.

00:09:10: that's the one i prefer.

00:09:11: actually i have seen but i see less and less and it's good thing.

00:09:15: uh lot of hesitation in the company when not taking decision was better than taking.

00:09:22: We cannot change the set.

00:09:23: you can improve our station if we don't move forward and that requires to take some risks.

00:09:28: So without changes, how a company would probably disappear in the coming years?

00:09:34: You need to take courage with decisions on their strategy which are paying off already.

00:09:40: The second one as I said...we do not have time so speed matters.

00:09:47: two favorite fundamentals, and let's come to the second question.

00:09:50: Where in your working environment do you think simplification is most needed?

00:09:56: I would say... In my own environment it's outside metro actually.

00:10:02: In our environment inside metro we are quite lean.

00:10:05: We have a cross-functional which is working properly.

00:10:08: We're working normally with the countries but outside metro regulation for us is nightmare to handle.

00:10:18: It's very difficult to see what is going on around.

00:10:23: And I would say that there always a good intention behind, when you speak about sustainability or trustability.

00:10:30: however the implementation is complicated and regulation is not harmonized between countries so it creates burdens for producers particularly in packaging.

00:10:42: The consequences of packaging are very complicated.

00:10:44: we cannot move goods from country-to-country.

00:10:47: Yeah, I see.

00:10:48: And let's go a step further...I think this is not something you can abolish but…

00:10:54: I would abolish the U-directors!

00:10:56: Sorry to say that!

00:10:58: This really affects the freedom of move of goods inside Europe.

00:11:02: so if there is one which isn't efficient then it will be

00:11:04: the other way around.

00:11:05: Okay yeah fair enough How do you create an open working environment where your colleagues bring our fundamentals into life?

00:11:15: In how we work together we try to make that there is no hierarchy.

00:11:21: So, um... We don't put distance between the layers of management and will allow any kind of initiative which would support the creation of value.

00:11:32: The second thing was trying to support each other.

00:11:34: so even if it's not our field of competence There are always somebody who can help you.

00:11:38: That's a nice thing.

00:11:39: And finally I'd say No blaming policy.

00:11:45: You're making mistakes?

00:11:45: That's okay.

00:11:46: I don't make it three times, but that's okay to make a mistake.

00:11:49: Okay?

00:11:50: If you do nothing there will be no mistakes.

00:11:51: Yeah

00:11:52: yeah absolutely.

00:11:54: and the last question of our Metros Fundamentals Questionnaire which three words best describe?

00:12:01: one metro to you ?

00:12:03: That would be a little bit related to Comet as well.

00:12:06: The ICT is the first one ICT.

00:12:08: You Don't Know This One.

00:12:09: No Metro used to put a lot of abbreviations.

00:12:12: Yeah,

00:12:13: so

00:12:14: I

00:12:16: see it is the international category team

00:12:18: okay?

00:12:19: So Unlike what we did in the past where you could have corporate projects and you have countries project now We have an international team which is in charge of deciding the assortments deciding The sourcing policy who do things together And that's five countries with represent the group.

00:12:37: Okay, so that's the first one.

00:12:39: yeah The second one for One Metro, I would say KPI having the same KPIs.

00:12:45: Another abbreviation?

00:12:47: But that's not what everybody knows!

00:12:50: And third when we're saying...

00:12:53: Why KPIs?

00:12:53: Well

00:12:54: if people have different targets then it is sometimes difficult to go in this direction.

00:13:00: So with a common goal and speak about One Metro We should be focused on the same things like sales service level, so working together in the same direction.

00:13:14: Okay

00:13:16: And third one would be no ping-pong.

00:13:18: So when you have male sex changes after the third one You should just stop it Take your phone or go to a neighbor and use speakers.

00:13:26: Yeah

00:13:28: Then all right, Jean Sebastian Thank you for sharing Your perspective.

00:13:32: What I like about this section most is that It always shows how strategy and culture goes hand-in-hand here at Metro.

00:13:40: And now we have learned what matters to you, Jean-Sebastian when it comes to leadership collaboration and our fundamentals in general.

00:13:48: but there's one thing that I haven't talked about yet – What inspires you beyond the business context?

00:13:53: That is exactly what we are going to explore later with your Sounds of an Year!

00:14:06: Sounds interesting.

00:14:07: As always, we will find out what it is towards the end of this episode.

00:14:16: Jean-Spartan now that we've clarified the strategic background of The Commit Project let's talk about implementation.

00:14:25: one of Metro long term ambitions in food procurement Is to grow common sourcing from around?

00:14:31: One point five billion euros today.

00:14:33: two three point five Billion Euros by twenty thirty.

00:14:37: What role does Comet play in helping Metro achieve this ambition?

00:14:41: That's a very good question.

00:14:44: Yeah, three point five was probably before Comet.

00:14:47: so the target is rather seven billion euro and that's what we have identified as addressable cocks for common sourcing.

00:14:53: okay So

00:14:55: I think you don't need to explain more.

00:14:56: You see it?

00:14:57: yeah Okay Yes!

00:14:58: It will play a huge role shows that commit is a large-scale transformation and it will bring about significant changes, so food sourcing would be different under commit.

00:15:17: What exactly are the key changes we'll see in the future?

00:15:21: So there were three key factors to commit change... First of all, it's an analytics which will be outsourced or what you'd see as well.

00:15:35: Outsource means could be internal, but it's not done by the category team.

00:15:40: So there is a data team which is in charge of taking the data crunching the data analyzing them and giving some output off that one okay?

00:15:49: That's the first one.

00:15:51: then...

00:15:52: And I have not been before.

00:15:54: so this quite..

00:15:55: No!

00:15:57: In the past the expert was doing everything.

00:16:00: The experts were analyzing the data mainly internal data having his own conclusions.

00:16:05: So there were discussions also with the countries, countries where making their own calculations as well.

00:16:09: We all came with a discussion and that was what we call the command sourcing workshop.

00:16:13: Yeah And now the experts are taking care of analyzing these data in the future?

00:16:18: Not really so.

00:16:19: thats why they don't do anymore.

00:16:21: There's a data team who is not supposed to know very much the category.

00:16:25: So it only fact based approach Taking the data, analyzing them on a very structured way Then trying to harmonize products

00:16:33: Okay, and then give it back their information to the category managers.

00:16:37: Exactly!

00:16:37: Then when they have these analytics... They give them to a group of ICT which is working on the specifications for products in charge of finding harmonized assortments.

00:16:53: When we see this same product together It

00:16:57: sounds simple.

00:16:59: Another key change?

00:17:01: Yeah, and I would say the last one.

00:17:03: When you know what to buy then there's a next step with the ICT To find the best solutions to answer those needs.

00:17:10: Okay so we check the pricing between countries.

00:17:13: We see also What is the best solution logistically talking to offer Those products.

00:17:19: okay And i will tell that The interest of group should be higher than individual interests.

00:17:27: A key issue is the question of what will be managed centrally in future and what by the country.

00:17:32: So, what would continue to be decided locally?

00:17:36: What criteria do you use to define this?

00:17:40: That's exactly this harmonized structure on matrix where a product falls into these metrics then it becomes global.

00:17:49: Okay so that means mainstream.

00:17:50: basically

00:17:51: Do we have an example?

00:17:53: Yeah, shrimp You've got certain size of shrimp.

00:17:56: And then you say, OK.

00:17:57: This is the same product for all countries who identify some products with differences?

00:18:02: You see that it's three hundred and fifty grams somewhere at four hundred gram somewhere else.

00:18:06: You see there this it's not treated.

00:18:09: so you have to criteria on based.

00:18:11: in that you said okay if that's the same project that we have in fifteen countries let's buy together as very simple as its.

00:18:20: if you haven't eat which he's matching exactly what is in these metrics you buy it commonly.

00:18:27: If it's not in the matrix, we can buy locally.

00:18:29: but we could decide and with that some of our products give a mandate to one country.

00:18:34: so when they see their countries have more knowledge let say for instance Italian products The Italian team might buy from all groups.

00:18:43: That is what I said global versus local.

00:18:45: So its buying together

00:18:50: How will ensure Standardization does not compromise the local customer needs.

00:18:58: Yeah, there are a lot of specific local needs which exist and will still exist.

00:19:03: so food is like this when we don't intend to buy everything.

00:19:07: Food is local.

00:19:08: it's what

00:19:08: depends on.

00:19:09: you say yeah So they have lots of local needs.

00:19:12: but take your french fries or gouda.

00:19:15: What is local in this?

00:19:16: Nothing!

00:19:17: The product specifications are the same.

00:19:19: They require global solution.

00:19:20: Okay, so these are some products where really the needs from the countries is more or less the same then.

00:19:26: Exactly!

00:19:27: So that's what we identify?

00:19:28: What is the same and different?

00:19:29: That's why I say food can stay local when it has a local need And there're lots of local needs in food.

00:19:36: This will not change.

00:19:37: Yeah okay Do you have other examples for this kind of standardization way to find out These local needs almost all the same in our country?

00:19:48: Let us buy them centrally.

00:19:50: Is there something else?

00:19:52: Yeah, frozen vegetable.

00:19:53: Frozen vegetables

00:19:54: when you see a corn or strawberry I mean that's the same.

00:19:59: You might have some very specific products in France and for strawberries but... ...you have much less specificities than this kind of product.

00:20:06: Okay interesting.

00:20:09: So about these kinds of standardization?

00:20:11: That brings us to the topic of efficiency And also simplification.

00:20:15: Comet is designed As you already explained a little bit, to simplify and speed up our procurement processes.

00:20:23: In your opinion where do we currently lose the most time?

00:20:27: And face of the greatest complexity

00:20:31: You know that's always the problem about fact based approach.

00:20:34: When everybody is trying to defend his customer and saying that my customer wants but at the end when We have this data team checking outside our scope They have analyzed the market, we trust what they found and also analyze what is doing in competition.

00:20:54: With this full view... ...they come with facts to say that's a product we propose you.

00:21:00: And then there are discussions of course but discussion is much less than

00:21:05: before.

00:21:05: Why?

00:21:06: Because

00:21:06: it's fact-based.

00:21:07: You speak about data which has been provided.

00:21:09: So when you see that the products can be found at competitions In almost all countries Is this content?

00:21:18: And it could be a zero point two micron difference of size or something makes no difference.

00:21:22: It's not even reported on the packaging, so... ...it is not an advantage for the customer.

00:21:26: So when the product is same we don't have any reason to discuss.

00:21:32: That simplifies whole process and stops conversations and discussions?

00:21:36: Yes!

00:21:37: Less discussion which were frequently based in gut feelings.

00:21:44: Where does this gut feeling come from?

00:21:46: It's not bad intention.

00:21:47: In most of the case, when you sell something in big quantities... ...you think that they have a right offer and wouldn't consider to change slightly their specifications because what your offers is best.

00:22:01: but if it shows that this product is quite the same than other countries are doing there just some very slight differences You take risks And you think that's really dangerous for your business.

00:22:18: But when the facts are in front of you and it shows, look... It is not under packaging or a USP.

00:22:27: You need to admit okay but on top of this sometimes products were also overqualified.

00:22:36: so we had some product with specifications which made absolutely no sense at all.

00:22:41: So thats something we double check.

00:22:43: Yeah, so this is also some kind of mindset shift.

00:22:46: then for the category managers right?

00:22:48: Absolutely.

00:22:49: I confirm and for all the company that's what we speak about.

00:22:55: these offer transformation at a new operating model.

00:22:58: yeah So could you describe this in little more detail?

00:23:03: In which way should we change our behavior on the future?

00:23:07: Behaviorist on their own to change due to his new approach By first of all having these intentional category team working and talking on behalf off our countries.

00:23:21: There is a responsibility which has given to them.

00:23:24: And They don't represent only their country they represent all countries.

00:23:28: hmm so it makes A role, which is at the very higher level than what you do today.

00:23:35: Yeah That's the first one.

00:23:37: then the system that we have about this externalized data.

00:23:43: It's a big word externalized because as I said, it is internal.

00:23:46: But okay outside the scope of offer community having these people putting us to reality in front of this that something you cannot fight

00:23:57: and finally let look ahead.

00:23:59: so imagine we are sitting here again two years time recording another episode more podcasts talking about the Comade initiative.

00:24:08: Which outcomes would you like to highlight as the greatest success of Komet?

00:24:15: One metro and this cox reduction is a success.

00:24:20: So these three digits, millions euro cost reductions that I think will show big success.

00:24:25: And then buying together if we are getting close to seven billion I'll be super happy.

00:24:30: Okay!

00:24:30: And beyond those figures...

00:24:32: Yeah i'm very much in the figure indeed A mindset change.

00:24:37: We're on a good track to have this one metro done and buying together, not trying to find excuse.

00:24:45: Not do things together.

00:24:46: so that's what I expect And it is really in the way.

00:24:51: How will our colleagues be able to say that Komet is a success?

00:24:57: The same because Viscose projection isn't for us but them.

00:25:01: So we support their cash flow having more attractiveness to the customers.

00:25:09: So I think they would say the same.

00:25:15: Dear colleagues, before we continue with today's episode i'd like take a moment talk about something that is just as important as great products strong sales or ambitious growth targets for people behind them.

00:25:29: As part of The Big Fresh our year of AlterFresh We have launched this years employee recognition program who has got the biggest fresh vibes!

00:25:40: Celebrate colleagues who bring energy, team spirit ownership and passion to their work every single day.

00:25:47: So think about the people who inspire others Who help that team succeed?

00:25:52: Who live our fundamentals And consistently give the extra mile for customers and colleagues.

00:25:58: These are the people we want to recognize and make visible across Metro.

00:26:03: so who comes to your mind?

00:26:05: You can nominate a colleague in just a few minutes and help us celebrate the people who bring real fresh vibes to Metro every day.

00:26:13: Nominations are open until the end of September, you'll find all information on the Nomination link on United and show notes for this episode!

00:26:23: And now let's get back to our guest – and off course today's Sansevignia!

00:26:40: But as all of our listeners know, every transformation story has a personal side and that's exactly what this final section now is about.

00:26:48: Like every guest on more podcasts you've brought us a sound souvenir – A Sound That Is Important To You Personally Tells Us A Little More About Who Sebastian Blum Is Beyond All The Figures And Food Procurement In General.

00:27:02: So Jean-Sebastian Let's Press the Play Button.

00:27:05: What Sound Did You Bring With You?

00:27:20: It's somewhere outside.

00:27:22: I can hear the wind, what is it?

00:27:24: What

00:27:25: do you think?

00:27:26: this is no idea.

00:27:27: No So its not a cow in the mountain.

00:27:30: Okay!

00:27:31: Its sound of boats on the seaside.

00:27:36: When there are little bit of winds You're nervous

00:27:38: about the

00:27:39: boat.

00:27:39: Yeah so your some kind sailor or something like that.

00:27:43: I'm small sailor but i was born at sea side in Marseille and grew next to seaside like a passionated by the seaside.

00:27:53: And this sound is from your hometown, from Marseille?

00:27:57: From

00:27:58: my home town in France not Marseilles it's La Rochelle.

00:28:02: Okay and what does that mean to you?

00:28:04: so... What are your feelings about these sounds?

00:28:08: It could be irritating for some people because of its relaxing.

00:28:12: When I hear them they seem much better.

00:28:14: Yeah!

00:28:15: Why ?

00:28:16: What gives us to you?

00:28:18: Because I have the image of sea, boards and seagulls.

00:28:25: So that's for me.

00:28:27: Holidays calm serenity is relaxing!

00:28:32: Okay yeah nice what a great sound.

00:28:35: thanks for sharing it with us.

00:28:39: That wraps up today episode more podcasts.

00:28:42: A big thank you to all your insights into Komet and Metru's food offer transformation.

00:28:47: Jean-Sébastien, all the best to you.

00:28:49: Thank you very much!

00:28:52: And do all our colleagues listening.

00:28:54: – thank you for joining us.

00:28:56: and don't forget to subscribe to more podcasts on your favorite podcast platform, catch up on all past episodes and recommend more podcasts to all of your colleagues.

00:29:05: I'm looking forward to next episode.

00:29:07: Bye bye.