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Copyright © 2016 Accenture All rights reserved.
GS1
Validoo value proposition for
FMCG suppliers
2
Copyright © 2016 Accenture All rights reserved.
Validoos services has realized values for Swedish FMCG suppliers
exceedi...
3
Copyright © 2016 Accenture All rights reserved.
Fast moving consumer goods (FMCG) suppliers has a difficulty of pinpoint...
4
Copyright © 2016 Accenture All rights reserved.
Digital product information’s increase in importance and complexity has ...
5
Copyright © 2016 Accenture All rights reserved.
Suppliers ownership of product information is increasing due to new cons...
6
Copyright © 2016 Accenture All rights reserved.
Digital product information has evolved from a focus on supply chain eff...
7
Copyright © 2016 Accenture All rights reserved.
Standardised and validated product information remains important to ensu...
8
Copyright © 2016 Accenture All rights reserved.
Supply chain efficiency remains critical as supply chains are getting mo...
9
Copyright © 2016 Accenture All rights reserved.
Enabling new digital retailers and service providers with validated prod...
10
Copyright © 2016 Accenture All rights reserved.
Validoos services has realized values for Swedish FMCG suppliers
exceed...
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Ny studie: Hög datakvalitet ger leverantörer miljardvinster

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En ny studie från Accenture har undersökt de ekonomiska fördelarna av Validoo - sett från ett leverantörsperspektiv. Och värdet är påtagligt: För svenska leverantörer inom dagligvaruhandeln, innebär Validoos tjänster årligen 2,5 miljarder kronor (1,3 %) i ökade intäkter och 1,5 miljarder kronor (2-5 %) i minskade kostnader.

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Ny studie: Hög datakvalitet ger leverantörer miljardvinster

  1. 1. 1 Copyright © 2016 Accenture All rights reserved. GS1 Validoo value proposition for FMCG suppliers
  2. 2. 2 Copyright © 2016 Accenture All rights reserved. Validoos services has realized values for Swedish FMCG suppliers exceeding 2,5 bSEK in increased sales and 1,5 bSEK in reduced costs Conclusion Key findings • The business case shows that Validoos services has realized values for suppliers in the range of • 1-3% increased revenue and • 2-5% reduced cost • depending on the suppliers capabilities to manage product data quality Revenue Costs > 1’5 bSEK* 2-5% > 2,5 bSEK* 1-3%MSEK *Realized value related to Validoo for the Swedish food industry, ILLUSTRATIVE 20162010 2030 Traditional value Digital value Traditional value Digital value
  3. 3. 3 Copyright © 2016 Accenture All rights reserved. Fast moving consumer goods (FMCG) suppliers has a difficulty of pinpointing the value of Validoos services Introduction Background • Validoo is mainly associated with efficiency gains for retailers while suppliers has a difficulty of pinpointing the value for them • Product master data is also undergoing a shift from only being seen as a tool to reduce cost in the supply chain to include potential in revenue gains when controlling and maintaining high quality in product master data. Business case • What values do Validoos service bring to suppliers? • What values are linked to traditional supply chain benefits and what other benefits does the service bring? Digital Retail Trends • What are the key trends impacting digital product information? • How do the trends impact suppliers? • What impact does the trend have on the future value of Validoos service?
  4. 4. 4 Copyright © 2016 Accenture All rights reserved. Digital product information’s increase in importance and complexity has created a shift in how suppliers and retailers are working with digital product information Digital product information trends Consumers are adopting quickly to the digital transformation, their behaviour is increasingly liquid and they want to be empowered… … thus consumers behaviour is driving an explosion of new services and product information creating a more complex digital world… …creating a shift in how both retailers and suppliers are working with product information. Digital consumer trends Product information complexity Managing product information
  5. 5. 5 Copyright © 2016 Accenture All rights reserved. Suppliers ownership of product information is increasing due to new consumer behavior and increased data complexity Shift how suppliers work with product information Sources: Interviews, Accenture, HBR SuppliersRetailers • Increased pressure on supplier to provide digital product info, driven by new regulations (EU) 1169/2011 and the increased awareness of product safety in the industry • Retailers are also pushing the ownership of merchandising to suppliers - suppliers provide product marketing content to enable retailers online business • Suppliers today realize the value of product information, many invest in new master data roles to ensure product information quality • Product information value has broadened from being mainly a SCM/IT interest to marketing, example PIM clients today are CMOs • To keep up with the quickly shifting consumer behavior retailers are focusing on increasing traffic and distribution • Retailers are trying to take control of the customer journey by creating new roles, example “Journey Product Manager” • Category managers wants to spend more time on tactics than managing product information - publishing the suppliers product information directly online
  6. 6. 6 Copyright © 2016 Accenture All rights reserved. Digital product information has evolved from a focus on supply chain efficiency to satisfy consumer needs Evolution of product information 1970-1989 Efficient retailing 1990-2009 Digitalization and e-commerce 2010- Mobility, transparency and traceability 1st barcode scanned Consumervalue Barcodes on outer case High Value Basic GS1 launch system to improve supply chain efficiency 1st global EDI standard 1974 1977 1983 1989 Open standards to consumers EU 1169/2011 is effective 2014 1st price comparison site 1995 Omni-channel concept is introduced 2007 2003 Supplier product information is utilized to innovate new digitalized services to empower consumers 2010-
  7. 7. 7 Copyright © 2016 Accenture All rights reserved. Standardised and validated product information remains important to ensure supply chain efficiency but is also a basis to secure digital business Summary of trends Traditional values are driven by ensuring an efficient supply chain Digital values are driven by changing consumer behaviour
  8. 8. 8 Copyright © 2016 Accenture All rights reserved. Supply chain efficiency remains critical as supply chains are getting more complex, integrated and automated and more vulnerable to product information errors Traditional value tree Business driverBusiness aspect Increased service level to retailer Increased Customer Satisfaction Reduced transportation cost Reduced warehousing cost Reduced transactional costs Value levers • Reduced barcode errors at point of sale • Customer pays correct price for product including relevant discounts • Products available in-store • Products are displayed correctly in-store • Reduced late delivery due to incorrect master data* • Manual problem handling when processing invoices • Manual error handling in warehouse • Reduced damaged goods in warehouse • Efficiency in automated processes • Increased fill rate in transportation • Reduced cost of damaged goods in transportation Traditional value linked to product information • Reduced shrinkage costs due to incorrect product information Reduced cost of shrinkage 0,6%-1,2% 0,5%-1,8% * Value linked to Validoo but not part of business case 0,6%-1,1% <0,1%-0,1% <0,1%-1,0% 0,3%-0,6% ≈0,00% 0,1%-0,2% Realized revenue increase Realized cost reduction Validoo contribution • Improved barcode readability • Barcode linked to correct product information • Improved product information quality • Correct dimensions help planogram • N/A* • Improved barcode readability • Correct barcode and product shape • Correct date format and storage temp. • Correct dimensions and barcode readability • Correct dimensions and weight • Correct max and min storage temp. • Improved product information quality
  9. 9. 9 Copyright © 2016 Accenture All rights reserved. Enabling new digital retailers and service providers with validated product information secures trust from the consumer for the supplier Digital value tree Realized revenue increase Digital value linked to product information Realized cost reduction Reduced risk regarding product safety • Ability to provide consistent product info across all channels • Access to product information for new trade partners and services* • Marketing focus on strategic work with e- channels/new markets* • Products are displayed with richer content, e.g images* • Reduced incoming calls regarding product safety, health, sustainability • Product information is compliant with regulations • Increase early ID and containment of quality issues, e.g. product recall* Increased Customer Satisfaction • Improved product safety • Increased customer trust • Improved trust thru third party validation* • Improved traceability* • Decreased effort to create and maintain product information, complexity • Decreased effort to publish content • Reduced rework* Improved Process Efficiency 0,1%-0,2% 0,3%-0,6% 0,8%-1,8% 1,4%-3,0% * Value linked to Validoo but not part of business case Increased Omni-channel capabilities 0,7%-1,6% 1,1%-2,4% Business driverBusiness aspect Value levers Validoo contribution • Correct information in “Livmedelsbilagan” • N/A* • N/A* • N/A* • Correct information in “Livmedelsbilagan” • Correct information in “Livmedelsbilagan” • N/A* • Correct information in “Livmedelsbilagan” • Improved product quality • N/A* • N/A* • Products standards reduce labor • Decreased effort to publish content • N/A*
  10. 10. 10 Copyright © 2016 Accenture All rights reserved. Validoos services has realized values for Swedish FMCG suppliers exceeding 2,5 bSEK in increased sales and 1,5 bSEK in reduced costs Conclusion Key findings • The business case shows that Validoos services has realized values for suppliers in the range of 1-3% increased revenue and 2-5% reduced cost depending on the suppliers capabilities to manage product data quality • Some of the largest contributors to the business case are tied to the reduction of OOS levels, improved ability to provide consistent product info across all channels and the reduced risks of product recalls. • Trends indicate that the future value of Validoo will increase, driven mainly from the digital content values: − A larger market share of online grocery sales will increase digital product information's influence on sales in all channels − Increasing number of receivers and number of attributes will increase the cost of creating and distributing product information • Interviews with suppliers confirms that despite Validoos relevance, suppliers often focus on the administration connected to using Validoo rather than on the output of the service. • Additional values not quantified in the business case should also be taken into account, e.g . improved traceability and improved brand credibility through third party validation. Revenue Costs > 1’5 bSEK* 2-5% > 2,5 bSEK* 1-3%MSEK *Realized value related to Validoo for the Swedish food industry, ILLUSTRATIVE 20162010 2030 Traditional value Digital value Traditional value Digital value

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