ECR Europe Forum '05. Get Your Basics Right Global Data Synchronisation

Get your basics right:Global Data SynchronisationThe work of the GCIGlobal Data SynchronisationImplementation Team

NigelBagley

Ruudvan der Pluijm

KeesJacobs

DavidTimberlake

Global Data Synchronisation - ECR Europe April 2005

eBusiness Value

FOUNDATION

$ R

ETU

RN

CO

MP

LEX

ITY

SharedData

Transactions

SharedInformation

Shared Processes

ReducedErrors

ReducedCosts

BetterCustomer

Service

BetterConsumerResponse

EFFICIENCY

GROWTH

Standards Connectivity Information flow & alignment

Item Maintenance Order to Cash Transaction

CPFR (Forecasting)ECR (Category Management)...

© Unilever 2004 & 2005


Implementation Team Priorities:

Illustrate the Business Case for GDS

Address concerns with potentialduplication between GDS and EPCnetworks

GCI member companies “Get itGoing!”

Resolve industry issue on data quality


Agenda

Why do GDS?The Project Jury Business Cases

What is needed to make it happen?Data Quality video

Making it Happen!

Conclusion


Agenda

Why do GDS?The Project Jury Business Cases

What is needed to make it happen?

Making it Happen!

Conclusion


DataPool

Manufacturer

1. A manufacturer willpublish item information tothe item’s home data pool(single point of entry).

Global Registry

2. The data pool sendsvery basic informationabout the item to theRegistry

3. The registry holds thisbasic information about alli tems and the location ofeach items’ home datapool.

Retailer

DataPool

4. A retailer will obtain therequired item information (or‘search’ the registry) via theirselected data pool (single pointof entry)

5. The trading partners synchronisethe item information between theirrespective data pools usingsubscription/publication process.

GDS is happening !!

Global Standards• Product identification• Product Attributes• Product Classification• Data Synchronisation

Global Registryis in place

Increasing # of Certified andInteroperable Datapools

IncreasingRetailer Adoption

Programs

IncreasingManufacturer

Adoption Programs

Global Standards exist


Illustrating the BusinessBenefits of GDS


Key Messages From The Report

GDS is no longer just aconcept

GDS is producingmeasureable businessbenefits for both retailers andmanufacturers – across theworld

Early adopters realise GDSprovides a foundation forfuture collaborative commerce

Data is really important – it’san asset


The Basis Is a Simplified But RealisticKPI Model

RetailerManufacturer

Increase Sales

• Speed to Market• On-Shelf Availability

Data Quality = Foundation

Improve Productivity• Item Maintenance & Publication Effort

• Error Reconciliation Effort

Reduce Costs• Transport Costs

• Deductions

Increase Sales

• Speed to Market• On-Shelf Availability


Improve Productivity• Item Maintenance & Publication Effort

• Error Reconciliation Effort


•Store Operations Costs•Planogram Management

Collaborative KPIs


The Cases are Convincing…Johnson & Johnson have virtually eliminated dataintegrity-related out-of-stocks at Wal-Mart U.S - resultingin 2.5% fewer out-of-stocksIn Guatemala, Procter & Gamble and retailer La Fraguahave increased purchase order accuracy by 3%At Dutch retailer Albert Heijn, GDS has measured a30% productivity improvement in their data managementdepartment.Leading Japanese retailer AEON has realisedimprovements in their item introduction lead times.Gillette Venezuela improved their order processingproductivity by more than 50%US retailer Wegmans has increased store sales byreducing speed to market on new items by two weeksUnilever Colombia improved new item speed to marketfrom 3 to 4 weeks to just 2 to 3 days, increasing itemsales by 2 to 3 weeks


….and People like the Results !!

‘GDS ismy

new friend’

Chuck Hurley,National Account ExecutiveGillette Company, US

‘This project provided ustangible benefits’

Julio QuevedoOperations & Logistics VPLa Fragua

‘GDS will become part ofevery merchandiser’s daily

business’

Atsunobu AgataSenior VP ITAEON

‘GDS is driving manyinternal operational

efficiencies, which is soimportant within an

industry that typically haslow profit margins’

Luis Miguel Da GamaPresidentExcelsior Gama

‘The benefits are wellworth the costs’

Michael J. HaasVP of ITJohnson & Johnson

‘With accuratesynchronised data we are

able to improve our supplychain, develop greater

trading partnercollaboration and better

serve our customers’ Sander van der LaanExectutive VP CommerceAlbert Heijn


Johnson & Johnson DecreaseOut-of-Stocks With GDS at Wal-Mart


Improve Productivity• Item Set-up

& Maintenance Effort

Increase Sales

•On-Shelf Availability


AssortmentDatapoolsCompanies

Scope of GDS ActivitiesJ&J and Wal-Mart in USTransora and UCCnet1300 SKU’s in 75 categories

Measured Benefits

Optimised truckload-planning

Transportation Costs

Decrease from 10 daysto 24 hours

Item Set-up &Maintenance

2.5 % fewer out-of-stocks

On shelf Availability


Albert Heijn Reduce Data ManagementEffort by 30% With GDS

Increase Sales


Improve Productivity• Item Set-up

& Maintenance

Reduce Costs

Assortment

Datapools

Companies

Scope of GDS ActivitiesSCA Hygiene, Kimberly-Clark, Ontex & P&G

WWRE and GS1 DAS

Female Hygiene category

Measured Benefits

Elimination of dimensiondiscrepancies (before: 40%of attributes were incorrect)

Data Quality

30 % reduction in datamanagement effort

Item Set-up & MaintenanceEffort


Let’s Not Lose Sight of TheConsumer Benefits

On-shelf availability

Speed to market

Better replenishment

Competitive pricing


The Path of Lost Opportunity

•Manufacturer loses sales

•Retailer loses sales

•Consumer loses choice

If innovation is unable to navigate The supply chain…


AgendaWhy do GDS?

What is needed to make it happen?The DATA perspective

Data Quality video

The IT perspective

The PEOPLE & PROCESS perspective

Making it Happen!

Conclusion


The Data Perspective

Data

People & Processes

IT

Data

People & Processes

IT

Internal Alignment Internal Alignment

External Synchronisation

GDS

Manufacturer Retailer


What is Good Data Accuracy?What is Good Data Accuracy?

Developing an agreed version of the truth for item informationWithin your organisation and across the supply chain with tradingpartnersGood Data Accuracy means that all master data within your businesssystems and across operating companies is

Complete ('all required values are electronically recorded')Consistent ('no different attribute-values in different business systems')Accurate ('right values at right time')Available ('the data can be deployed without manual interference)Time stamped ('the validity-timeframe of the data is clear')Industry standards based - but flexible enough to accommodatenon-standard data in the short term


Look at The Big Picture - Good DataQuality is Not Just About Supply Chain

It’s about aligning data within the organisation to‘One Version of the Truth’


Focus Areas


Good Data Quality Needs a Blend ofGood Data Quality Needs a Blend ofThe Right IngredientsThe Right Ingredients

Data

Quality

Process

Data

Content Standard

s

Technology


Why Use Industry Standards??

Because Different Standards = Cost and Complexity

Issues such as:• Non-alignment of data• Interoperability problems with trading partners• More invoice disputes• More wasted sales and accounting time


Industry Standards

What standards exist?Where do I find the standards?Global Data Synchronisation –GDS

Global Data Dictionary – GDD

Global Product Classification –GPC

Extensible Markup Language –XML

Find the standards at:www.gs1.org


The IT Perspective

Data

People & Processes

IT

Data

People & Processes

IT



GDS



Selecting your datapool

Consider the following criteria:Is the datapool meeting your internal business and ITrequirements ?

Is the datapool covering the current and future demands ofyour trading partners ?

Is the datapool compliant with the Global Standards, and isit interoperable with the datapools your trading-partners areusing ?

How strong is the support-structure of the datapool ?

How competitive are the costs ?


Today’s Reality onProduct Data Management

Product information is collected, maintained,and replicated across multiple systems

Item information is manually entered inMULTIPLE systems

Cleansing takes a lot of effort; nevertheless:

Item information is NOT consistent acrosssystems

Lead times of data-recording are not managed

Item information lacks integrity and standards

Internal Data Alignment


Tomorrow’s Vision ofProduct Data Management

Single source of truth for item information

Single entry and maintenance of item information

“Synchronization” of item informationTransora, WWRE etc.

Streamlined and standardized item data managementprocesses

Clear rules and responsibilities for item management

Workflow support for relevant processes (new productintroduction, promotions, end-of-life-cycle)

monitoring of lead times

Utilization of global data standardsGTIN, GLN, GPC, GDD, GDS

Internal Data Alignment


IT Growth Path

GDSNDatapools

Trading Partners

Sales /BuyingSystem

SupplyChainSystem

F & ASystem

OtherSystems

Synchronisation-only

GDSNDatapools

Trading Partners

Sales /BuyingSystem

SupplyChainSystem

F & ASystem

OtherSystems

GDSNDatapools

Trading Partners

Sales /BuyingSystem

SupplyChainSystem

F & ASystem

OtherSystems

Aggregation &Synchronisation

Product Data Management

& Synchronisation


The Perspective

Data

People & Processes

IT

Data

People & Processes

IT



GDS


People&

Processes


People and Process

Current Processes are Duplicated andFragmented

Be Prepared for Organisational Impact andResource

Establish and Maintain Governance

GDS - Establishing a Way of Doing Business


Current Processes Are Duplicated & Fragmented

Product dimensions Need re-measuring

Manual data key-in repeated

Bar codes don’t scan Data blocked,

returned, changedManaging

invoice queries

Missing data standardsMissing attributes

Re-keying of marketing codes and descriptions

for supply chain

Data returned For completion of

attributesErrors

InPromo.Detail


Eddie


Be Prepared for Organisational Impact &Resource

• Establish a business sponsor

• Dedicate a team of IT and business specialists

• Recruit local process and data champions

• Master data is owned by the organisation – not the individual • Governance needs to be inclusive of all major functions

• Prepare initially for a project - plan for a way of life

1. Become Data Centric

2. Establish Data Governance


GDS GDS –– Establishing a Way of Doing Establishing a Way of DoingBusinessBusiness

• Organisation• Technology• Process

Data Quality - The Responsibility of Every Stakeholder

Data Producer

Data Manager

SystemsOwner

DepartmentController

Regard Data Attributes as Part of Your Brand Value


Agenda

Why do GDS?


Making it Happen!

Conclusion


Key Implementation

Enablers

The challenge for retailers and manufacturers:how to implement GDS successfully ?

Clear strategic plan for business and partners

Platform selection & implementation

Defined processes,scenarios and pilots

Validated Business Case linked to KPIs

LOGISTICSSALES UNITEVERYWHERE

CENTRAL

Outgoing information flow channel

TRANSORA

DistributorShipping

Wholesale

LOCAL

Home

shopperSupplier

Sales R&DFinance &

Admin

Qualty

control

...

...Expedition

planning

...

...

Process

invoice

Monitor

stock

Feeding B2C

catalogues

Report

locally

Report to

corporate

...

Profil

consumer

needs

...

Replenish

stock

Manage

waste

... ...

Retailer Supplier

NORMALIZATION

UDEX

Marketing Quality controlProduct info

service

Admin &

Finance

Product

introduction

Do inbound

logistics

DATA POOL

Data pool system

Data

warehousing

Category/

promotionsReceive order

Incoming information flow channel

...

Behavioural assessment and change management

Product Data Quality & Standards

RoI

Time

Programme Management


You can use the GDS Roadmap

Start Small and Build … begin with adoption of Industry Standardsand small scale pilots with trading partners


Awareness within theOrganisation

Before you Start – Are you Ready?

Senior ManagementBuy-in

Cross Functional Co-Operation

Investment budgeted

Data Pool Selection

Experience with Pilots

Readiness IndexSelf-Assessment Factors


Focus on the following aspects:

Develop Clear Business Case / Concrete KPI’sMeasure the business improvements of GDS

Focus on Internal Data AlignmentProvide on-going, high quality data, i.e., complete,consistent, accurate, etc., etc.,

Establish a Connected IT PlatformIntegrate internal and external systems

Drive Trading Partner AdoptionCollaborate with trading partners


Agenda

Why do GDS?


Making it Happen!

Conclusion


Conclusion

GDS is working in the Real Worldthe benefits have been measured

Proven benefits for both retailers and manufacturersall over the world

Data accuracy is a key requirement.This needs alignment of people, processes and technology

How can you reap these benefits ?Prioritise it

Resource it

Organise for it Get Started Now !!


Collaboration is key


Organise yourself a GCI GDS workshop

Objective is to support Retailers andManufacturers in their GDS Activities byoffering tailored workshops that

Raise Awareness

Educate (GCI GDS Vision, GDS Standards,…)

Focus on Critical Areas (Typical challenges,Success Factors)

Help planning the right Activities (Individual GDSRoadmap)


GCI GDS workshops will make yourorganisation enthousiastic about GDS

Session Concept

SCANGDS Business Case

GDS (Best) Practices

Retailer Demands

Current Status & Issues

FOCUSEvaluation of input

Define Critical Issues for GDSimplementation in your company

ACTDefine & Argument Actions to takeforward


Please let us know…

Sabine Ritter, GCI at [email protected]


Final Remarks

The Benefit is there!Project Jury proves the business case

The Infrastructure is thereGlobal Registry and GDSN are a reality

There is help to get startedGCI GDS Workshops

Publications and Videos


eBusiness Value

FOUNDATION

$ R

ETU

RN

CO

MP

LEX

ITY

SharedData

Transactions

SharedInformation

Shared Processes

ReducedErrors

ReducedCosts

BetterCustomer

Service

BetterConsumerResponse

EFFICIENCY

GROWTH

Standards Connectivity Information flow & alignment

Item Maintenance Order to Cash Transaction

CPFR (Forecasting)ECR (Category Management)...

© Unilever 2004 & 2005

ECR Europe Forum '05. Get Your Basics Right Global Data Synchronisation

Business

Transcript of ECR Europe Forum '05. Get Your Basics Right Global Data Synchronisation