Creating value through global e-business solutions


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Creating value through global e-business solutions

This session will show the benefits of implementing GS1’s e-business standards from the perspective of today’s and future business requirements. The value of implementing global e-business solutions will be introduced by successful case studies from innovative pioneer retailers and their suppliers.

Speakers: Luca Meconi, Coop Italy; Pierre Georget, GS1; Sally Herbert, GS1 GDSN; Renato Di Ferdinando, Kraft Foods Italy; Urs-Ulrich Katzenstein, Metro Group; Bertold Ruffler, Nestlé Germany; Carrefour.

Facilitated by GS1.

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Creating value through global e-business solutions

  1. 1. Creating Value through automated B2B ECR Europe, Berlin, 29 May 2008 Eva Maria Burian-Braunstorfer, CEO GS1 Austria
  2. 2. Global eBusiness solutions - eCom • GS1 eCom provides global standards for Electronic Data Interchange that allows rapid, efficient and accurate automatic electronic transmission of agreed business data between trading partners. • GS1 eCom provides two complementary standards for business messaging: • GS1 XML • GS1 EANCOM ©2007 GS1 US ©2008 GS1 in Europe
  3. 3. Global eBusiness solutions - GDSN • The GDSN is a network that connects data pools, which are regional sources of supplier and retailer data • GDSN allows data pools to exchange standardised data with trading partners on a real-time basis by using GS1 XML messages. ©2007 GS1 US ©2008 GS1 in Europe
  4. 4. Benefits of implementing eBusiness solutions • In the following case studies you will hear practical information and benefits of implementing standardized eBusiness solutions from the major pioneers like: • Metro Group • Nestlé Germany • Kraft Foods Italy • Coop Italy • Carrefour ©2007 GS1 US ©2008 GS1 in Europe
  5. 5. Collaboration is the key for success! ©2007 GS1 US ©2008 GS1 in Europe
  6. 6. Global Data Synchronization An Interoperability Project between METRO Group and Nestlé Urs-Ulrich Katzenstein (METRO Group) Bertold Ruffler (Nestlé Germany) © METRO AG / Nestlé 2008
  7. 7. 1 Data Synchronization Height Height Width Width Depth Depth Weight Weight Pieces/Package = Pieces/Package Packages/Pallet Packages/Pallet GTIN GTIN … … © METRO AG / Nestlé 2008
  8. 8. 2 Impact on Value Chain Maximize retail exposure and Sales Better product information, product posting better consumer satisfaction Optimize logistical handling Reduce order / invoice / Costs and planning shipping discrepancies Less administrative work Focus on generating Focus on core business demand for product, Productivity instead of information growing business, faster disputes listings © METRO AG / Nestlé 2008 Nestlé Data Synchronization METRO Group
  9. 9. 3 The History of Data Exchange Order Unstructured Messaging Catalog, Listing, Mail, Fax, ... National EDI Tradacom, ... Global EDI EANCOM Data Pools UDEX, SA2, 1SYNC ... © METRO AG / Nestlé 2008 Global Data Synchronization
  10. 10. 4 Technical Architecture IBM Data WPC ERP MMS-CAT repository Market Systems extensions Project Phases Phase 1: External Phase Phase 2: Internal Phase © METRO AG / Nestlé 2008 Phase 3: GDS End to End Process
  11. 11. 5 Project Phase 1 - External IBM Data WPC ERP MMS-CAT repository Market Systems extensions Participants: 1SYNC, SA2, METRO Group, Nestlé, P&G, Output: © METRO AG / Nestlé 2008 - Business Requirement Document BRD - Market Extension (SA2) in 1SYNC
  12. 12. 6 Project Phase 2 - Internal IBM Data WPC ERP MMS-CAT repository Market Systems extensions Participants: Nestlé, IBM, 1SYNC, SA2, METRO Group Output: - Market Extension (SA2) in WPC, © METRO AG / Nestlé 2008 - Interface Nestlé-WPC & WPC-1SYNC, - METRO Group system set-up
  13. 13. 7 Project Phase 3 - GDS End-to-End Process IBM Data WPC ERP MMS-CAT repository Market Systems extensions Participants: Nestlé, IBM, 1SYNC, SA2, METRO Group, P&G Output: © METRO AG / Nestlé 2008 1st Go-live with Cereal Partners Germany
  14. 14. 8 Timelines Decision points Dec 06 Go-live dates First real-time data synchronization Alignment of data pools Alignment of internal systems May 04 GDS End-to-End Process Kick-off Meeting at ECR EUR Conference in Brussels Start of data synchronization © METRO AG / Nestlé 2008 2004 2005 2006 2007 2008 2009
  15. 15. 9 Implementation Overview – Nestlé Germany Go Live Dates GLN Nestlé Sales Orgs No of Items Date 4005515000008 Cereal Partners 107 Dec 06 4013413000006 Milasan 70 May 07 4005501000005 Nestlé Professional Beverage 51 May 07 4005513000000 Benedict Lebensmittel 10 May 07 4005504000002 Nestlé Erzeugnisse 766 Aug 07 4005503000003 Nestlé Nutrition 504 Aug 07 4005507000009 Nestlé Professional Food 454 Oct 07 4000487000001 Nestlé Purina Pet Care 436 Nov 07 4005505000001 Maggi 1,090 Dec 07 4026800000008 Nestlé Waters 165 Feb 08 Total 3,653 © METRO AG / Nestlé 2008
  16. 16. 10 Success Factors • Data pool synchronization • System integration • Single source of data • GDSN • Collaboration • Alignment • Reporting • Business Case • Open for others Value Chain • Guiding principles Integration • Data quality • Data policies • Training © METRO AG / Nestlé 2008 • Data ownership • Change Management • International standards • Roles & responsibilities
  17. 17. 11 Benefits METRO Group Single point of contact Fully integrated systems Reliable data for supply chain Simplify and enhance reporting Decrease invoice disputes Nestlé 1SYNC as Nestlé´s Home Data Pool Single Point of Data Entry Fully integrated in existing environment – one solution for all Nestlé markets © METRO AG / Nestlé 2008 Single payment
  18. 18. 12 Outlook METRO Group GDSN implementation Live Start by Q3 Start by Q3 Start by Q3 Germany United Kingdom Russia Poland Live Testing Tests 06 / 2008 Tests 06 / 2008 Trading Partners © METRO AG / Nestlé 2008 Other trading partners:
  19. 19. 13 Outlook Nestlé GDSN implementation Q1/09 UK Russia Spain Q3/08 Belgium Switzerland Italy Q4/08 Q3/08 Q2/08 Q4/08 Q1/09 France Poland Trading Partners © METRO AG / Nestlé 2008
  20. 20. 14 Want to join? Contact your trading partners Start GDSN paring project Strictly follow international standards (GTIN, GLN) Continue process improvement and collaboration for better quality Real synchronization Take an active role in: © METRO AG / Nestlé 2008
  21. 21. 15 Contacts METRO Group Urs-Ulrich Katzenstein Head of Master Data Exchange E-Mail: Nestlé Bertold Ruffler Head of Master Data Germany E-Mail: © METRO AG / Nestlé 2008 Or any GS1 organization
  22. 22. Moving quickly towards Fast Perfect Order (through EDI & GDS) ECR Forum – Berlin 2008 Berlin, 29th May 2008
  23. 23. Main Topics Agenda Storyline New process implementation: the “Before Vs After” picture GDS & EDI integration: a successful synergy KPI and benefits measurement Next steps Key Learning & Deliverables
  24. 24. Storyline Classic effectiveness & efficiency targets Effectiveness Efficiency Traditional EDI + GDS transaction EDI Integration To improve service guaranteed to cooperatives by Coop Customer collaboration: the starting point for new projects
  25. 25. From Traditional Order To Cash To EDI As it was… Manual Order Generation Manual Order Typing Order Printing Order Sent via Fax Manual Invoice Control Invoice Printing Manual Invoice Paper Invoice Registration Mailing
  26. 26. From Traditional Order To Cash To EDI First Step EDI Order EDI Order Generation Processing in ERP Manual Invoice EDI Sales Order Control Confirmation 1° Invoice Printing Manual Invoice Registration Paper Invoice Mailing
  27. 27. From Traditional Order To Cash To EDI Second Step EDI Order EDI Order Generation Processing in ERP EDI EDI Sales Order EDI Invoice Confirmation 1°& 2° Registration EDI Invoice
  28. 28. From Traditional Order To Cash To EDI Main features of EDI roll-out Order and Order Confirmation: regular implementation of standard messages Sales Order Confirmation focus: upgrade with communication of amended quantities EDI Invoice: the electronic flow reaches completion. Credit Note & Debit Note messages are coming soon
  29. 29. EDI Outstanding Issues The flow was electronic but... Product details were manually keyed into both Master Data The time needed to manage the information within Coop was about 20 min per document Information on products communicated by different means, such as fax, mail, phone... EDI Orders could be in error status due to Master Data mismatches Imprecise item details lead to a deterioration of invoice accuracy
  30. 30. GDS: The Missing Link A review of obsolete processes: not only a technical tool, but the base to improve performance Full awareness of the process across all functions New KPI sharing to assure common understanding of improvements Reduction of IT systems redundancy: all relevant info on a single site Shorter product introduction Lead Time Less time spent on complaints/disputes: Invoice Accuracy, “Order Accuracy”, Returns
  31. 31. Before GDS implementation: critical areas 1W 1W 2DD Item Store Product Edit & introduction Completion Product analysis Publish info Details Category Kraft Sales Category Manual Partially Dept.: Dept.: Dept.: editing sent via briefing e-mail complete Info Info to approval product collection Affiliates information further retrieval & doc sent to requests transmission Assistant
  32. 32. New process implementation Steps of the process > From 5 to 3 1W 1W 1DD Item Store Product Edit & introduction Completion Product analysis Publish info All Category Kraft Sales Category access details Dept.: Dept.: Dept.: to all info via GDS access to all via GDS- info via GDS- complete Info Pim (exc. Pim (exc. product collection Price) information Price) retrieval & doc sent to approval approval via transmission Assistant via Pim Pim
  33. 33. GDS+EDI: a successful synergy During the Listing process, information requests and manual typing delays are eliminated New Listing additions and Master Data changes details are quickly notified via digital protocol Orders and Invoices are based on complete and aligned Master Data features
  34. 34. GDS KPI’s: GDS assures quality checks: the supplier needs to cleanse his Master Data to avoid technical blocks Master Data harmonization and fine tuning, according to GS1 requirements and partners agreements (e.g. naming convention) Data Consistency: Assure that COOP receives what Kraft sends in their systems Time To Market: Streamlining the process assures time saving Master Data harmonization, no template to fill
  35. 35. GDS KPI’s Measurements: 100% Data Consistency 27% 75% % item data with Data quality Correspondent Increase 50% attribute in Kraft 25% Coop Master data 0% Time to market (dd) 21 Time needed for a 50% of time product to be stored 14 16 8 saving into master data 7 0 Source: Coop assessment Parameters Time to market is related to all the activities of the process (eg. Send information, Manual data entry, paper production)
  36. 36. Focus on consistency Gtin Consumer unit 100 Net content 100 Product Description 100 Supplier internal code 98 Each in a TI 96 TI per layer 93 Layers per pallet 87 TI per pallet 85 Gtin Case 78 Trade item Weight 50 Packaging (Trade Item) 46 Total Shelf life 31 Trade item Volume 24 Packaging (C.U.) 21 Each Volume 17 Source: Coop assessment Parameters 1/3 of total product as sample 15 common critical attributes
  37. 37. Focus on consistency Gtin Consumer unit 100 Net content 100 Product Description 100 Supplier internal code 98 Each in a TI 96 TI per layer 93 Layers per pallet 87 TI per pallet 85 Gtin Case 78 Trade item Weight 50 Packaging (Trade Item) 46 Total Shelf life 31 Trade item Volume 24 Packaging (C.U.) 21 Each Volume 17 Source: Coop assessment Parameters 1/3 of total product as sample 15 common critical attributes
  38. 38. Performance Improvement Indicators General Master Data Discrepancies.... Up to 20% of EDI Orders in error ! Up to 1h per Day to fix Orders anomalies ! More than 2000 Credit Notes per Year ! Up to 30mins per Day to reconcile Invoices ! ..... after full GDS implementation everything becomes “0”!
  39. 39. Project timing Kraft joins Coop into GDS .... 2nd 3th 4th 1st 2nd 3th 4th Q2006 Q2006 Q2006 Q2007 Q2007 Q2007 Q2007 Collaboration ECR/Coop/Kraft on attribute set Pilot phase with manual upload in 1Sync Project requirements and resources allocations Interface design and implementation Massive upload test and Go-Live
  40. 40. Next Steps Roll-Out to new Suppliers for Coop and new Retailers for Kraft Complete adoption of the new processes by Sales Managers (Kraft) and Category Managers (Coop) Improvement of P.I.M. functionalities on existing products updating Automating KPI’s calculation
  41. 41. Key Learning & Deliverables The importance of moving together Involve the business side in the project from the beginning Mutual trust in a profitable project The leverage effect of multiple innovation
  42. 42. ECR Europe Carrefour’s BtoB Strategy Key link for a new relationship Jean Lecomte Carrefour BtoB/BtoC Competency Center
  43. 43. Content BtoB Strategy Examples of achievements 2 May 2008 Carrefour BtoB Strategy : key link for a new relationship
  44. 44. Carrefour Overview Carrefour BtoB figures per year >60B€* >2M >60 000 Merchandise Purchase Products Sourced Merchandise Suppliers >30M >150M Invoices EDI Messages 3 * Without Tax May 2008 Carrefour BtoB Strategy : key link for a new relationship
  45. 45. BtoB Strategy BtoB: key link for better collaboration • eSourcing • Private labels development Optimize Assortment • Quality tests Private labels and Price • Auctions Speak the same Langage Supplier Manage Commercial Transactions • Standards • EDI Order • Master Data • EDI – Dispatch / Reception • BtoB Portal • EDI - Invoice • Payment report/advance Grow our Retailer Ensure On-Shelf Business Availability • Joint Business Plan • Scorecard • DataSharing Operational • DataSharing Merchandise • EDI Sales/Inventory • DataSharing Client 4 May 2008 Carrefour BtoB Strategy : key link for a new relationship
  46. 46. BtoB Strategy 3 levels of BtoB Integration High Level of Integration with Shared Responsibilities Strategic Transactional Information by sku / store / day 20 int’l Partnership suppliers Associated to results commitment on turnover and margin for the category Medium Level of Integration Advanced 20% of Collaboration suppliers Transactional Information by sku / DC / week Structured and standardized processes 80% of Entry Ticket suppliers Static/Aggregated Information : indicators 5 May 2008 Carrefour BtoB Strategy : key link for a new relationship
  47. 47. BtoB Strategy 2008-2010 : 7 priorities Domain Integration Level 1 Implement the supplier portal Master Data Entry Ticket « CarrefourNet » 2 Deploy Data Synchronization Master Data Entry Ticket Advanced Collaboration 3 Finalise dematerialization of orders and Supply Chain Entry Ticket invoices (EDI messages) Finance 4 Relaunch use of reverse auctions and Buying Entry Ticket develop eSourcing for Indirects 5 Systematically share performance Supply Chain Entry Ticket scorecards Buying 6 Implement Operational DataSharing Supply Chain Advanced Buying Collaboration 7 Deploy solutions for payment report and Finance Advanced advance Collaboration 6 May 2008 Carrefour BtoB Strategy : key link for a new relationship
  48. 48. Content BtoB Strategy Examples of achievements 7 May 2008 Carrefour BtoB Strategy : key link for a new relationship
  49. 49. Examples of achievements Standards - Data Quality vision Data Quality Retailer Supplier DataSync 8 May 2008 Carrefour BtoB Strategy : key link for a new relationship
  50. 50. Examples of achievements BtoB Portal - sharing our strategy 9 May 2008 Carrefour BtoB Strategy : key link for a new relationship
  51. 51. Examples of achievements GDS - foundation for collaborations Standard DataModel CONTENT Carrefour figures on LOGISTICS Standard DataSync MARKETING 160 suppliers in France, DESCRIPTION 280 suppliers in Columbia Standard messages and Roll-out plan for Europe infrastructure S R Over 10B€ sales managed S R S R 10 May 2008 Carrefour BtoB Strategy : key link for a new relationship
  52. 52. Examples of achievements EDI – towards operational excellence Carrefour figures on EDI MERCHANDISE RETURN MASTER DATA 15 EDI messages used in 18 countries RELIABLE INVOICING ORDER PRODUCTS Over 150M messages per SUPPLY - CHAIN year Over 90% orders in value RECEIVING PROCESS through EDI (Food) DISPATCH ADVICE 11 May 2008 Carrefour BtoB Strategy : key link for a new relationship
  53. 53. Our BtoB vision Implementing standards is the best way to ensure global use and reliable information flows Ensuring Data Quality is key for business processes reliability The road is long, but the first benefits are already there 12 May 2008 Carrefour BtoB Strategy : key link for a new relationship
  54. 54. Synchronising Data: Heading for the Future ECR Europe, Berlin, 29 May 2008 Sally Herbert, President, GDSN Inc.
  55. 55. Open the door to a multitude of opportunities Numerous opportunities to improve exchange of information between suppliers and retailers Enable effective collaborative action between trading partners Establish new ways of working together ©2008 GS1
  56. 56. GDSN is a reality … Synchronising accurate data with your trading partners through the GS1 Global Data Synchronisation Network ©2008 GS1
  57. 57. Solid base of standards in place Business Messaging Standards Trade Item Synchronisation Extended Attributes Package Measurement Rules Catalogue Item Synchronisation Data Quality Framework Data Pool Certification Price Synchronisation Global Product Classification and more … Solid base of Standards and Guidelines in place to build a reliable Master Data Management program ©2008 GS1
  58. 58. Increased momentum towards adoption Itemsregistered in the Global Registry 2,500,000 Trading Partners: 2,000,000 from 200 in 2005 1,500,000 to 15,400 in 2008 1,000,000 Certified Data 500,000 Pools: 0 from 7 in 2005 2004 2005 2006 2007 2008 to 23 in 2008 ©2008 GS1
  59. 59. Broad geographic coverage = countries with local support for GDSN Global Reach – Local Reach Local support for GDSN in 50+ countries ©2008 GS1
  60. 60. European Growth Existing Certified Data Pools: GS1 France + GS1 Netherlands + GS1 Slovakia + GS1 Spain + GS1 UK + GXS + 1SYNC + SA2 New EU Certified Data Pools: GS1 Belgium/Luxembourg + GS1 Croatia + GS1 Hungary + GS1 Sweden Plans for GDSN Certified DPs in: Denmark, Estonia, Ireland, Poland, Romania, Russia ©2008 GS1
  61. 61. Driving Implementation Project Etoile 11 leading retailers and 22 suppliers in: • France, Germany, Netherlands, Spain, UK, US • Belgium / Luxembourg & China expansion Active connections between participants increased from 34 to 96 in less than a year Proven base GDSN infrastructure is in place Breakthrough in Data Pool Interoperability Data Quality and Business Process Improvements ©2008 GS1
  62. 62. About Data Quality… GDS reveals data problems Enables “bad data” to be sent faster Unreliable information can be very costly • Purchase order rework • Reloading of trailers • Fines / chargebacks Data Quality Framework Version 2.0 Trading partners need to develop a sustainable data quality program to ensure reliable data is created by suppliers and maintained by retailers Complete …Standards-based…Consistent…Accurate…Time-based ©2008 GS1
  63. 63. Trading Partner Growth Path ©2008 GS1
  64. 64. Looking Forward Continued momentum in adoption is anticipated in 2008/9 • 6 recently certified data pools getting active • Data Pools are offering more services for their customers • Continue overcoming challenges for implementation, including interoperability, data quality, and internal business processes • New growth opportunities in consumer electronics, mobile commerce, healthcare GDS Network in place … the standards are in place … Data Pools are trusted resources for trading partners ©2008 GS1
  65. 65. Questions & Answers •Eva Maria Burian-Braunstorfer, •GS1 Austria •T +43 1 505 8601, •W ,