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Valerian dunin barkovsky. kraft foods
Valerian dunin barkovsky. kraft foods
Valerian dunin barkovsky. kraft foods
Valerian dunin barkovsky. kraft foods
Valerian dunin barkovsky. kraft foods
Valerian dunin barkovsky. kraft foods
Valerian dunin barkovsky. kraft foods
Valerian dunin barkovsky. kraft foods
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Valerian dunin barkovsky. kraft foods

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  • 1. Master Data Management and Global Data Synchronization (GDS) FIRST CASE IN RUSSIA Управление Мастер-данными и Глобальная Синхронизация Данных ПЕРВЫЕ В РОССИИ Kraft Foods/Metro Group
  • 2. How to save a few million dollars at the touch of a button? Valerian Dunin-Barkovskiy Kraft Foods CEEMA ECR Forum 2010 Moscow June, 2, 2010
  • 3. Is EDI alone, enough? <ul><li>External factors </li></ul><ul><li>Almost all EDI customer orders contain errors </li></ul><ul><li>Customers do not accept/pay invoices with incorrect information </li></ul><ul><li>Up to 30% customer refusals caused by missing/incorrect data </li></ul><ul><li>Weak EDI practice leads to multiplicity of standards and approaches, hampering development </li></ul>Internal factors <ul><li>Customer overdue levels impact cash flow </li></ul><ul><li>Huge manual workload for order corrections = wasted overhead </li></ul><ul><li>Low Invoice Accuracy and CFR due to non synchronized master data </li></ul>With growth of the Modern Trade we estimated future issues would explode >>> solutions became an imperative.
  • 4. Pilot GDS project with Metro C&C Starts in July 2009 <ul><li>Usage of GDSN technology </li></ul><ul><li>Product Master Data synchronization through global data pools 1SYNC (US) and SA2 (Germany) </li></ul><ul><li>Full termination of manual listing forms </li></ul><ul><li>Loading and enrichment of Metro systems from SA2 catalogue </li></ul>
  • 5. First GDS implementation in Russia Benefits were instant. Process Before GDS After GDS Order processing 20% of orders with errors in Master Data 0% of orders with errors in Master Data Up to one hour to fix errors in orders (incorrect EAN-code etc) Not an issue. Time saving up to one hour daily per person Product Launch <ul><li>Average product roll-out took up to 2 months </li></ul><ul><li>Up to 2 weeks to enter new product into retailer systems </li></ul><ul><li>Big risk of human errors on both sides </li></ul><ul><li>Increase speed to market for new products up to 50% </li></ul><ul><li>Only 30 minutes to publish, accept and synchronize new item </li></ul><ul><li>Errors minimized </li></ul>Refusals due to incorrect master data 28% (from total refusals) 0 Credit notes due to incorrect master data 5.7 % (from total invoices) 30 minutes/day 0% Listing errors RUB >0.5M/year per customer 0
  • 6. GDS accelerates new product launches by 50% <ul><li>New item listing procedure significantly simplifies communication between Sales and Buyer and allows to focus on business instead of copying information from one template/system to another </li></ul><ul><li>However, this process does require strict procedures on both sides </li></ul>Item introduction <ul><li>Details partially sent by e-mail </li></ul>2W Product analysis <ul><li>Category department access to all details </li></ul><ul><li>Briefing </li></ul><ul><li>Approval </li></ul><ul><li>Further requests </li></ul>1 W Completion <ul><li>Sales dept. fills in various questionnaires </li></ul><ul><li>Send information to retailers category manager </li></ul>1 W Store Product information <ul><li>Category manager checks info and pass it to database operator </li></ul>2 D Edit & Publish <ul><li>Manual editing/entry </li></ul><ul><li>Info to Stores </li></ul><ul><li>All details via GDS </li></ul><ul><li>Category department access to all details (excluding price) within buying system (MMS CAT) </li></ul><ul><li>Approval via MMS CAT </li></ul><ul><li>Access to all details via MMS CAT </li></ul>
  • 7. GDS+EDI: successful combination <ul><li>During listing process all mistakes or delays are dropped-out </li></ul><ul><li>All master data extensions/changes are immediately visible on retailer’s side </li></ul><ul><li>Orders and Invoices are based on SYNCHRONIZED DATA </li></ul><ul><li>Synchronized data is used in various B2B projects like E2E and Scorecard </li></ul><ul><li>AND FINALLY WHEN WE RECEIVED SALES REPORT FROM METRO POS WE DID NOT FIND ANY MASTER DATA ERRORS THERE! </li></ul>
  • 8. Call to Action….. <ul><li>Current Savings in the $ millions. Future Potential = tens of millions </li></ul><ul><li>Huge Qualitative benefits especially in TIME & COMPLEXITY </li></ul><ul><li>Technology and standards are readily available (ECR) </li></ul><ul><li>Is there any reason why we aren’t all doing GDS as routine? </li></ul><ul><li>>>> Get into ECR and get your brands moving in the 21 st Century. </li></ul>

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