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

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

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Get your basics right: Global Data Synchronisation:...

Get your basics right: Global Data Synchronisation:

It does not matter which value chain process you want to improve, having quality data throughout the supply chain is fundamental as soon as you start using computer systems to help manage them. Implementing Global Data Synchronisation (GDS) in this context can be a major plus. Based on the experience of its member companies, the Global Commerce Initiative will demonstrate how to implement GDS in a collaborative, efficient and standards-based way. The focus will be on information quality and how to get GDS up and running in your company.
Speakers:

Nigel Bagley, Unilever

Kees Jacobs, Capgemini

David Timberlake, ACNielsen

Ruud van der Pluijm, Ahold
Facilitated by
the Global Commerce Initiative (GCI)

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

    • Get your basics right: Global Data Synchronisation The work of the GCI Global Data Synchronisation Implementation Team Nigel Ruud Kees David Bagley van der Pluijm Jacobs Timberlake
    • eBusiness Value Better Consumer Shared Processes Response COMPLEXITY $ RETURN Better GROWTH Customer Shared CPFR (Forecasting) Service Information ECR (Category Management)... Transactions Reduced EFFICIENCY Costs Shared Reduced Item Maintenance Order to Cash Transaction Data Errors FOUNDATION Standards Connectivity Information flow & alignment © Unilever 2004 & 2005 Global Data Synchronisation - ECR Europe April 2005 Page 2
    • Implementation Team Priorities: Illustrate the Business Case for GDS Address concerns with potential duplication between GDS and EPC networks GCI member companies “Get it Going!” Resolve industry issue on data quality Global Data Synchronisation - ECR Europe April 2005 Page 3
    • Agenda Why do GDS? The Project Jury Business Cases What is needed to make it happen? Data Quality video Making it Happen! Conclusion Global Data Synchronisation - ECR Europe April 2005 Page 4
    • Agenda Why do GDS? The Project Jury Business Cases What is needed to make it happen? Making it Happen! Conclusion Global Data Synchronisation - ECR Europe April 2005 Page 5
    • Global Data Synchronisation - ECR Europe April 2005 Page 6
    • Global Data Synchronisation - ECR Europe April 2005 Page 7
    • GDS is happening !! Global Registry 2. T he data pool sends is in place very basic information about the item to the 3. T he registry holds this Registry basic information about all Global Registry items and the location of each items’ home data Global Standards exist pool. Increasing Manufacturer 4. A retailer will obtain the Global Standards Retailer Adoption (or required item information Data ‘search’ the registry) via their Pool • Product identification Programs (single point selected data pool of entry) • Product Attributes • Product Classification 1. A manufacturer will Data publish item information to • Data Synchronisation the item’s home data pool Pool (single point of entry). Increasing 5. T he trading partners synchronise Retailer Manufacturer the item information between their respective data pools using Adoption Programs subscription/publication process. Increasing # of Certified and Interoperable Datapools Global Data Synchronisation - ECR Europe April 2005 Page 8
    • Illustrating the Business Benefits of GDS Global Data Synchronisation - ECR Europe April 2005 Page 9
    • Key Messages From The Report GDS is no longer just a concept GDS is producing measureable business benefits for both retailers and manufacturers – across the world Early adopters realise GDS provides a foundation for future collaborative commerce Data is really important – it’s an asset Global Data Synchronisation - ECR Europe April 2005 Page 10
    • The Basis Is a Simplified But Realistic KPI Model Manufacturer Retailer Collaborative KPIs Increase Increase Sales Sales • Speed to Market • Speed to Market • On-Shelf Availability • On-Shelf Availability Improve Productivity Improve Productivity • Item Maintenance • Item Maintenance & Publication Effort & Publication Effort • Error Reconciliation Effort • Error Reconciliation Effort Reduce Costs Reduce Costs • Transport Costs • Transport Costs • Deductions •Store Operations Costs •Planogram Management Data Quality = Foundation Data Quality = Foundation Global Data Synchronisation - ECR Europe April 2005 Page 11
    • The Cases are Convincing… Johnson & Johnson have virtually eliminated data integrity-related out-of-stocks at Wal-Mart U.S - resulting in 2.5% fewer out-of-stocks In Guatemala, Procter & Gamble and retailer La Fragua have increased purchase order accuracy by 3% At Dutch retailer Albert Heijn, GDS has measured a 30% productivity improvement in their data management department. Leading Japanese retailer AEON has realised improvements in their item introduction lead times. Gillette Venezuela improved their order processing productivity by more than 50% US retailer Wegmans has increased store sales by reducing speed to market on new items by two weeks Unilever Colombia improved new item speed to market from 3 to 4 weeks to just 2 to 3 days, increasing item sales by 2 to 3 weeks Global Data Synchronisation - ECR Europe April 2005 Page 12
    • ….and People like the Results !! ‘This project provided us ‘GDS will become part of Atsunobu Agata tangible benefits’ every merchandiser’s daily Senior VP IT business’ AEON Julio Quevedo Operations & Logistics VP La Fragua ‘GDS is ‘GDS is driving many internal operational Chuck Hurley, efficiencies, which is so National Account Executive Gillette Company, US my important within an industry that typically has ‘With accurate new friend’ low profit margins’ ‘The benefits are well synchronised data we are worth the costs’ able to improve our supply chain, develop greater trading partner Luis Miguel Da Gama Michael J. Haas collaboration and better VP of IT President serve our customers’ Sander van der Laan Johnson & Johnson Excelsior Gama Exectutive VP Commerce Albert Heijn Global Data Synchronisation - ECR Europe April 2005 Page 13
    • Johnson & Johnson Decrease Out-of-Stocks With GDS at Wal-Mart Scope of GDS Activities Companies Increase J&J and Wal-Mart in US Transora and UCCnet Sales Datapools Assortment 1300 SKU’s in 75 categories •On-Shelf Availability Improve Productivity • Item Set-up & Maintenance Effort Measured Benefits On shelf Availability 2.5 % fewer out-of- Reduce Costs stocks • Transport Costs Item Set-up & Decrease from 10 days Maintenance to 24 hours Transportation Costs Optimised truckload- Data Quality = Foundation planning Global Data Synchronisation - ECR Europe April 2005 Page 14
    • Albert Heijn Reduce Data Management Effort by 30% With GDS Scope of GDS Activities Increase Companies SCA Hygiene, Kimberly-Clark, Ontex & P&G Sales Datapools WWRE and GS1 DAS Assortment Female Hygiene category Improve Productivity • Item Set-up & Maintenance Measured Benefits Item Set-up & Maintenance 30 % reduction in data Reduce Costs Effort management effort Data Quality Elimination of dimension discrepancies (before: 40% of attributes were incorrect) Data Quality = Foundation Global Data Synchronisation - ECR Europe April 2005 Page 15
    • Let’s Not Lose Sight of The Consumer Benefits On-shelf availability Speed to market Better replenishment Competitive pricing Global Data Synchronisation - ECR Europe April 2005 Page 16
    • The Path of Lost Opportunity If innovation is unable to navigate The supply chain… •Manufacturer loses sales •Retailer loses sales •Consumer loses choice Global Data Synchronisation - ECR Europe April 2005 Page 17
    • Agenda Why 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 Global Data Synchronisation - ECR Europe April 2005 Page 18
    • Manufacturer Retailer Internal Alignment Internal Alignment External Synchronisation People & People & Processes Processes Data GDS Data IT IT The Data Perspective Global Data Synchronisation - ECR Europe April 2005 Page 19
    • What is Good Data Accuracy? Developing an agreed version of the truth for item information Within your organisation and across the supply chain with trading partners Good Data Accuracy means that all master data within your business systems 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 accommodate non-standard data in the short term Global Data Synchronisation - ECR Europe April 2005 Page 20
    • Look at The Big Picture - Good Data Quality is Not Just About Supply Chain It’s about aligning data within the organisation to ‘One Version of the Truth’ Global Data Synchronisation - ECR Europe April 2005 Page 21
    • Focus Areas Global Data Synchronisation - ECR Europe April 2005 Page 22
    • Good Data Quality Needs a Blend of The Right Ingredients d s ar D te C nd at nt on a a St Data Quality o gy Pr ol oc h n es ec s T Global Data Synchronisation - ECR Europe April 2005 Page 23
    • 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 Global Data Synchronisation - ECR Europe April 2005 Page 24
    • Industry Standards Where do I find the standards? What standards exist? Global Data Synchronisation – GDS Global Data Dictionary – GDD Global Product Classification – GPC Extensible Markup Language – XML Find the standards at: www.gs1.org Global Data Synchronisation - ECR Europe April 2005 Page 25
    • Manufacturer Retailer Internal Alignment Internal Alignment External Synchronisation People & People & Processes Processes Data GDS Data IT IT The IT Perspective Global Data Synchronisation - ECR Europe April 2005 Page 26
    • Selecting your datapool Consider the following criteria: Is the datapool meeting your internal business and IT requirements ? Is the datapool covering the current and future demands of your trading partners ? Is the datapool compliant with the Global Standards, and is it interoperable with the datapools your trading-partners are using ? How strong is the support-structure of the datapool ? How competitive are the costs ? Global Data Synchronisation - ECR Europe April 2005 Page 27
    • Internal Data Alignment Today’s Reality on Product Data Management Product information is collected, maintained, and replicated across multiple systems Item information is manually entered in MULTIPLE systems Cleansing takes a lot of effort; nevertheless: Item information is NOT consistent across systems Lead times of data-recording are not managed Item information lacks integrity and standards Global Data Synchronisation - ECR Europe April 2005 Page 28
    • Internal Data Alignment Tomorrow’s Vision of Product Data Management Single source of truth for item information Single entry and maintenance of item information “Synchronization” of item information Transora, WWRE etc. Streamlined and standardized item data management processes Clear rules and responsibilities for item management Workflow support for relevant processes (new product introduction, promotions, end-of-life-cycle) monitoring of lead times Utilization of global data standards GTIN, GLN, GPC, GDD, GDS Global Data Synchronisation - ECR Europe April 2005 Page 29
    • IT Growth Path Trading Partners Trading Partners Trading Partners GDSN GDSN GDSN Datapools Datapools Datapools Sales / Sales / Sales / Other Other Other Buying Buying Buying Systems Systems Systems System System System Supply Supply Supply F&A F&A F&A Chain Chain Chain System System System System System System Product Data Aggregation & Synchronisation-only Management Synchronisation & Synchronisation Global Data Synchronisation - ECR Europe April 2005 Page 30
    • Manufacturer Retailer Internal Alignment Internal Alignment External Synchronisation People & People & Processes Processes Data GDS Data IT IT People The & Perspective Processes Global Data Synchronisation - ECR Europe April 2005 Page 31
    • People and Process Current Processes are Duplicated and Fragmented Be Prepared for Organisational Impact and Resource Establish and Maintain Governance GDS - Establishing a Way of Doing Business Global Data Synchronisation - ECR Europe April 2005 Page 32
    • Current Processes Are Duplicated & Fragmented Re-keying of marketing codes and descriptions for supply chain Missing data standards Product dimensions Manual data Missing attributes Need re-measuring key-in repeated Data returned Errors For completion of In attributes Promo. Detail Managing Bar codes Data blocked, don’t scan invoice queries returned, changed Global Data Synchronisation - ECR Europe April 2005 Page 33
    • Eddie Global Data Synchronisation - ECR Europe April 2005 Page 34
    • Be Prepared for Organisational Impact & Resource 1. Become Data Centric • Establish a business sponsor • Dedicate a team of IT and business specialists • Recruit local process and data champions 2. Establish Data Governance • 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 Global Data Synchronisation - ECR Europe April 2005 Page 35
    • GDS – Establishing a Way of Doing Business- The Responsibility Data Quality of Every Stakeholder Data Manager Department Controller Data Systems Producer Owner • Organisation • Technology • Process Regard Data Attributes as Part of Your Brand Value Global Data Synchronisation - ECR Europe April 2005 Page 36
    • Agenda Why do GDS? What is needed to make it happen? Making it Happen! Conclusion Global Data Synchronisation - ECR Europe April 2005 Page 37
    • The challenge for retailers and manufacturers: how to implement GDS successfully ? Programme Management Key Implementation Validated Business Enablers Case linked to KPIs RoI Platform selection Clear strategic plan & implementation Time for business and partners Product Data Quality & Standards Defined processes, Behavioural assessment scenarios and pilots and change management CENTRAL Marketing Quality control Product info service Admin & Finance DATA POOL Data pool system TRANSORA LOCAL Home shopper Supplier NORMALIZATION UDEX EVERYWHERE SALES UNIT LOGISTICS Finance & Qualty Wholesale Sales R&D Retailer Supplier Admin control Shipping Distributor Incoming information flow channel Category/ Receive order Product Monitor Data Feeding B2C Manage promotions introduction stock warehousing catalogues waste Replenish Report ... ... ... stock locally ... Do inbound Report to ... ... logistics corporate Profil Expedition ... ... consumer planning needs Process ... invoice Outgoing information flow channel Global Data Synchronisation - ECR Europe April 2005 Page 38
    • You can use the GDS Roadmap Start Small and Build … begin with adoption of Industry Standards and small scale pilots with trading partners Global Data Synchronisation - ECR Europe April 2005 Page 39
    • Before you Start – Are you Ready? Senior Management Buy-in Awareness within the Readiness Index Organisation Self-Assessment Factors Cross Functional Co- Operation Investment budgeted Data Pool Selection Experience with Pilots Global Data Synchronisation - ECR Europe April 2005 Page 40
    • Focus on the following aspects: Develop Clear Business Case / Concrete KPI’s Measure the business improvements of GDS Focus on Internal Data Alignment Provide on-going, high quality data, i.e., complete, consistent, accurate, etc., etc., Establish a Connected IT Platform Integrate internal and external systems Drive Trading Partner Adoption Collaborate with trading partners Global Data Synchronisation - ECR Europe April 2005 Page 41
    • Agenda Why do GDS? What is needed to make it happen? Making it Happen! Conclusion Global Data Synchronisation - ECR Europe April 2005 Page 42
    • Conclusion GDS is working in the Real World the benefits have been measured Proven benefits for both retailers and manufacturers all 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 !! Global Data Synchronisation - ECR Europe April 2005 Page 43
    • Collaboration is key Global Data Synchronisation - ECR Europe April 2005 Page 44
    • Organise yourself a GCI GDS workshop Objective is to support Retailers and Manufacturers in their GDS Activities by offering 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 GDS Roadmap) Global Data Synchronisation - ECR Europe April 2005 Page 45
    • GCI GDS workshops will make your organisation enthousiastic about GDS Session Concept SCAN GDS Business Case GDS (Best) Practices Retailer Demands Current Status & Issues FOCUS Evaluation of input Define Critical Issues for GDS implementation in your company ACT Define & Argument Actions to take forward Global Data Synchronisation - ECR Europe April 2005 Page 46
    • Please let us know… Sabine Ritter, GCI at Sabine.Ritter@gci-net.org Global Data Synchronisation - ECR Europe April 2005 Page 47
    • Final Remarks The Benefit is there! Project Jury proves the business case The Infrastructure is there Global Registry and GDSN are a reality There is help to get started GCI GDS Workshops Publications and Videos Global Data Synchronisation - ECR Europe April 2005 Page 48
    • eBusiness Value Better Consumer Shared Processes Response COMPLEXITY $ RETURN Better GROWTH Customer Shared CPFR (Forecasting) Service Information ECR (Category Management)... Transactions Reduced EFFICIENCY Costs Shared Reduced Item Maintenance Order to Cash Transaction Data Errors FOUNDATION Standards Connectivity Information flow & alignment © Unilever 2004 & 2005 Global Data Synchronisation - ECR Europe April 2005 Page 49