Arla Foods Annual Report 2020
Management Review Our Strategy Our Brands and Commercial Segments Our Responsibility Our Governance
Our Performance Review
Our Consolidated Financial Statements Our Consolidated Environmental, Social and Governance Data
CREATING EFFICIENCIES
WITH CALCIUM PROGRAMME (alcium
We saved in total 105* EURm through
initiatives in Logistics - and reduced our
carbon emissions.
By making Logistics' cost to serve more
transparent, we will step-change our perfor-
mance management infrastructure and enable
cross-functional decision-making. As an example,
we have so far saved 12 EURm by enabling
reason codes in our systems identifying where
the finished goods waste comes from.
By reducing our material losses we saved in
total +70 EURm and decreased our waste.
We continuously optimise our sites, and despite
the challenging year, as an example, we
conducted online workshops at 10 UK sites to
understand the opportunities of reducing
material losses. We identified potential savings
of 1.1 EURm within our focus topics.
Our new trade investment
management tool called Alice is now.
live in UK, Sweden and Denmark.
Alice optimises trade investment
management in Arla and empowers our
sales organisation with improved
transparency, planning, forecast
accuracy and on-shelf availability during
promotions.
Good service
and more
sustainable
products
OWNER/FARMER
LOGISTICS
E
PRODUCTION
€
☐ ☐
SUPPLIER
ADMINISTRATION/
SALES AND MARKETING
CUSTOMERS
AND CONSUMERS
Savings and
efficiencies
contribute to
improving the
milk price
17 ARLA FOODS ANNUAL REPORT 2020
By continuously reducing
the number of SKUs and
relentlessly harmonising
product components, such
as ingredients and packaging,
we simplify the supply chain
and increase our speed to
market.
We have reduced our
number of SKUs by 13 per
cent and our plastic usage
by +400 tonnes in total.
We are improving our governance and
compliance around purchasing processes
and have reduced our number of suppliers.
We increased our purchasing order
compliance by 6 percentage points and
spend compliance by 2 percentage points.
Among others, this was a result of all new
white collar employees participating in
learning sessions on how to buy and order
in Arla.
In total, +560 contracts have been
negotiated and signed, creating savings of
196 EURM.
Adding a new market, Germany, to our
in-house agency, The Barn, we success-
fully continue to build strong digital
capabilities internally while delivering
significant efficiencies in marketing
spend to fund our journey.
We embarked on a journey to make
The Barn our number one digital agency
in terms of size and performance.
* All figures on this page are accumulated gross figures from 2018-2020.View entire presentation