The document discusses master data synchronization between retailers and suppliers. It proposes that EDI (electronic data interchange) combined with GDS (global data synchronization) can provide a successful solution. GDS allows automatic interchange of product information between partners using a central data pool to store standardized attributes. Implementing GDS reduces errors from inaccurate master data and makes the new item listing process more efficient. The presentation promotes a GDS working group between Baltic retailers and vendors to develop industry standards and a collaboration model.

1. Master Data Synchronization
Mihhail Ralkin,
General Manager, Edisoft Baltic
ECR Baltic Forum ,2010, Edisoft

2. Content
 EDI+GDS = successful combination
 Main concepts of GDS
 Project Roll-out in Baltic countries, when, how?
ECR Baltic Forum ,2010, Edisoft

3. EDI process chain today
GDS
ORDERS
Master Data
INVOICE DESADV
……… RECADV
ECR Baltic Forum ,2010, Edisoft

4. EDI process chain as it should be
GDS
INVOICE
Master Data
……… ORDERS
RECADV DESADV
ECR Baltic Forum ,2010, Edisoft

5. Is EDI alone, enough?
Some facts from EDI practise
• 20% of orders with errors in product data
• Huge manual workload for order corrections = wasted
overhead
• Low Invoice Accuracy due to non synchronized master data
• Up to 30% refusals caused by missing/incorrect master data
• Customers do not accept/pay invoices with incorrect
information
• High cost of truck downtimes due to long goods receipt
procedure at customer warehouses (up to 9% of cost)
• Weak Master Darta synchronization practice leads to multiplicity
of standards and approaches, complicating development and
support
ECR Baltic Forum ,2010, Edisoft

6. Content
 EDI+GDS = successful combination
 Main concepts of GDS
 Project Roll-out in Baltic countries, when, how?
ECR Baltic Forum ,2010, Edisoft

7. GDS scheme
Global Data Synchronization, continuous coordination of product
data flow between partners
Validation rules
GDS Data pool
Standard attributes:
• Product codes (GTIN)
• Sales unit, packaging unit
Supplier/ • Product attributes (size, colour)
• Marketing information (logo,
Retailer/
Seller picture) Buyer
• Weight, height, etc
Specific • Logistics and transport
Specific
attributes
attributes attributes
Local attributes:
by • Product name, by relation
category • Prices, taxes , etc
ECR Baltic Forum ,2010, Edisoft

8. GDS - automatic master data interchange
Product information interchange TODAY
Fax Excels Email Paper
SUPPLIER RETAILER
Product information interchange with GDS
Standard, mutual solution.
Automatic, machine to machine.
ECR Baltic Forum ,2010, Edisoft
SUPPLIER RETAILER

9. Master Data synchronization process
before…
BEFORE... • New item listing procedure is
too long and complicated
• Vendors have to support
different product catalogue
formats for different retailers
• Retailers need considerably
more information than business
applications of vendors can
offer.
• Inaccuracy of data in retailers’
catalogues, since catalogues
are not kept up-to-date by
suppliers.
ECR Baltic Forum ,2010, Edisoft

10. Master Data synchronization process is
more efficient and accurate by:
• Reducing time and costs of new
product launch and maintenance.
• Providing a single, consistent,
accurate source of product
information from all suppliers by
any type of product.
• Automating the process of
validating, distributing, receiving,
and maintaining key product
information in one single point.
• Reducing errors resulting from
inaccurate or out-of-date product
information.
• Ensuring a high level of data
AFTER.. content quality through numerous
automatic validations.
ECR Baltic Forum ,2010, Edisoft

11. Content
 EDI+GDS= successful combination
 Main concepts of GDS
 Project Roll-out in Baltic countries, when, how?
ECR Baltic Forum ,2010, Edisoft

12. Who is involved?
Data Pool
ECR Baltic Forum ,2010, Edisoft

13. Edisoft Data pool
Ready-to-use solution
EDI Master Data solution provide 3 ways of communication for
each side: retailer, supplier and distributor
• Web solution for catalogue management,
browse/maintenance
• Business application integration with automatic update.
• Work Flow module with added value features.
Local support and integrations
• onsite integration
• providing expert consulting and training, experienced
support personnel to assist with value-added solutions,
implementation, customer support and testing services.
ECR Baltic Forum ,2010, Edisoft

14. GDS working group
• 3 retailers from 3 countries (EE, LV, LT)
• 2 international vendors and 3 local (SME) from 3
countries
• ECR Baltic and GS1
• Edisoft
• Objectives:
– Fix standards and business requirements
– Propose live collaboration model for the market
– Understand ROI and prepare roadmap
ECR Baltic Forum ,2010, Edisoft

15. Will You participate?
YES!!!
ECR Baltic Forum ,2010, Edisoft

16. Thank you!
Mihhail Ralkin
Edisoft Baltic
Jõe 9, 10151 Tallinn
Tel: +372 6 116 750
Mob:+372 5 102 626
E-mail: mihhail[at]edisoft.ee
www.edisoft.ee
ECR Baltic Forum ,2010, Edisoft