ecr europe board meeting 18 march 2005 2004 / 2005 global scorecard review focus on implementation...

ECR Europe Board Meeting18 March 2005

2004 / 2005 Global Scorecard ReviewFocus on Implementation Measures, Benchmark Results and Objectives

Jim FlanneryManaging Director- Customer Development

Procter & Gamble Global Operations

The Global Scorecard

The Global ScorecardA World Wide Industry Approach to Track and Measure the

Implementation of Standards and the Resultant Business Improvement

• Hard Business Outputs – (KPIs like inventory Levels,

out-of-stocks, order to delivery cycle time, service levels)

• Implementation of Global Standards– (Foundational elements like

barcodes, Electronic communication)

• Implementation of Collaborative Best Practices– (like Category Management,

Data Synchronization or CPFR)

The Global ScorecardA World Wide Industry Approach to Track and Measure the

Implementation of Standards and the Resultant Business Improvement

• Hard Business Outputs – (KPIs like inventory Levels,

out-of-stocks, order to delivery cycle time, service levels)

• Implementation of Global Standards– (Foundational elements like

barcodes, Electronic communication)

• Implementation of Collaborative Best Practices– (like Category Management,

Data Synchronization or CPFR)

For those who have not seen the 2004 changes to the Footprint, you will note the elevation of ECR Europe’s Collaborative Shopper Value Creation work as a Foundational Strategy for Demand Creation Activity

The Global ScorecardA World Wide Industry Approach to Track and Measure the Implementation of Standards and the Resultant Business

Improvement

The Process: Once a year, since 2002, complete the GCI Compliance Scorecard

Winter / SpringCase Studies &

Improvement Plans

Fall Board MeetingReview Results and Progress

July – Sept.Complete Scorecards

Spring Board MeetingReview Improvement Plans &Launch next year cycle

ClickHere

The GCI Compliance Scorecard looks like this…..

QualitativeAssessment of

Capabilities(not going to spend much

time here)

QuantitativeAssessment ofResultant Key Performance

Indicators

88

96

95

22

32

QuantitativeAssessment of the

ImplementationGS-1 Standards and Business Processes

97

94

7

89

92

5

50

75

70

8

40

Global Commerce Initiative

Compliance Scorecard

2004 Benchmark Results

Winter / SpringCase Studies &

Improvement Plans

Fall Board MeetingReview Results and Progress

July – Sept.Complete Scorecards

Spring Board MeetingReview Improvement Plans &Launch next year cycle

So How Did We Do?PARTICIPATION 2002 2003 2004

# of Scorecards

159 183 326 (+78%)

# of Companies

56 60 71 (+18%)

CountriesNAEMEALAAsia

25852525

201102525

45 (+130%)

185 (+68%)

29 (+16%)

67 (+168%)

• Growth of Participation• Was driven by Companies Broadening their geographic representation• To be a better measurement tool, we need to reach out to more companies.

• There are 11 Implementation Measures– The first 4 are focused on the use of

GTINS, or barcodes at various stages in the supply chain.

• The Global Trade Item Number is a globally unique number to identify trade items, and is therefore the foundation for Global e-commerce.

• “Umbrella" term used to describe the entire family of EAN/UCC codes, including EAN/UCC-8, UCC-12 (UPC), EAN/UCC-13, and EAN/UCC/DUN-14.

UCC-12 EAN/UCC-13

EAN/UCC-14

EAN/UCC-8

GTIN

What is a GTIN ?

Product & Shipment Identification – GTIN at Consumer Unit Level Use of EAN/UCC 14 digit Global Trade Identification Number (GTIN) at the consumer item level including (1) the ability to store and

process 14 digit numbers in your interface with your trading partners, (2) the ability of all point-of-sale systems in your company if you have them to scan EAN*UCC-13, UPC-12 and EAN*UCC-8 barcode symbols and (3) application of automatic data

capture (ADC) for bar-coding scanning and/or radio frequency applications (RFID).

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NA EMEA LA Asia Total

2002 2003 2004

Simple Weighted

Total 92.4% 92.2%

NA 86.3% 90.4%

EMEA 94.4% 98.3%

LA 100% 100%

Asia 84.2% 76.3%

NothingPlanned

Plans Agreed

PilotsStarted

Roll-outStarted

FullImplementation

European Analysis- GTIN at Consumer Unit Level

# of Records Business Type Cum. $US Value Wtd. Result

90 Manufacturers $58.4Billion 97.9% of Units allocated a GTIN

28 C&C / Retailers / Wholesalers $76.7Billion 98.6% of Units allocated a GTIN

118 All $138.1Billion 98.3% of Units allocated a GTIN

Discussion – Why Not 100%?• Because there are items transacted that do

not have barcodes today (flowers, bulk, fresh)• These items require RSS technology

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2002 2003 2004

Product & Shipment Identification – GTIN at Trade (Case, Carton) Unit Level

Use of EAN/UCC system (14 digit Global Trade Identification Number (GTIN) at the Trade Unit level (case, carton) and application of automatic data capture (ADC) for bar-coding scanning and/ or radio frequency applications (RFID).

Simple Weighted

Total 86.5% 74.9%

NA 84.7% 69.4%

EMEA 88.3% 91.9%

LA 99.9% 100%

Asia 79.8% 82.3%

NothingPlanned

Plans Agreed

PilotsStarted

Roll-outStarted

FullImplementation

European Analysis- GTIN at Trade Unit Level


89 Manufacturers $57.5Billion 96.4% of Trade Units allocated a GTIN

27 C&C / Retailers / Wholesalers $82.2Billion 88.7% of Trade Units allocated a GTIN

116 All $139.7Billion 91.9% of Trade Units allocated a GTIN

Discussion• The largest GAP is the lack of GTINs application at the “Inner

pack” level.• It appears that the 89 responding manufacturers do a better job

than is “averagely” seen by the retailer segment.

Product & Shipment Identification – Serial Shipping Container Code (SSCC)

Use of Serial Shipping Container Code, at the pallet / container level using the EAN*UCC Company prefix as it’s base for unique identification on a global basis.

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2002 2003 2004

Simple Weighted

Total 42.5% 65.7%

NA 46.8% 75.7%

EMEA 50.8% 39.8%

LA 0% 0%

Asia 16.6% 19.7%NothingPlanned

Plans Agreed

PilotsStarted

Roll-outStarted

FullImplementation

European Analysis- Use of Serial Shipping Container Codes


55 Manufacturers $42.6Billion 78.8% pallets/ UL’s labeled with SSCC

27 C&C / Retailers / Wholesalers $83.2Billion 19.8% pallets/ UL’s labeled with SSCC

82 All $125.8Billion 39.8% pallets/ UL’s labeled with SSCC

Discussion.• It appears that the 55 responding manufacturers do a better job

than is “averagely” seen by the retailer segment.• This is a capability underutilized in Europe.

Product & Shipment Identification (GTIN) Violations

What % of items sold / received have exceptions to the Global Trade Identification Number (GTIN) allocation guidelines?.

Simple Weighted

Total 2.7% 3.0%

NA 2.4% 3.5%

EMEA 2.0% 1.1%

LA 0.9% 2.9%

Asia 5.1% 3.8%

European Analysis- % of items with Know GTIN Allocation Rules Violations


43 Manufacturers $42.2Billion 1.4% of items have know violations

26 C&C / Retailers / Wholesalers $74.3Billion 1.0% of items have know violations

69 All $116.6Billion 1.1% of items have know violations

Discussion.• It appears that far fewer companies are tracking / measuring data

quality. (30% less records than most other measures)• Those that are measuring know they have errors that need to be

fixed.• Since “you manage what you measure” and since “data quality” is

the root of synchronization benefit – this should be a high priority.

Location Identification – Global Location Identification Number (GLN)

Use of EAN/UCC Global Location Identification Number (GLN) to identify either physical or logical locations where Supply Chain events, transactions or hand-offs occur.

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2002 2003 2004

Simple Weighted

Total 50.8% 66.0%

NA 26.4% 62.8%

EMEA 71.6% 82.1%

LA 49.5% 69.6%


Plans Agreed

PilotsStarted

Roll-outStarted

FullImplementation

European Analysis- % Shipping / Receiving Locations Allocated a GLN


85 Manufacturers $57.1Billion 69.8% of ship / Rec. locations allocated a GLN.

28 C&C / Retailers / Wholesalers $85.4Billion 90.3% of ship / Rec. locations allocated a GLN

113 All $142.5Billion 82.1% of ship / Rec. locations allocated a GLN

Discussion.• It appears that Retailer use of the standard is outpacing

manufacturers.• A barrier has been the lack of GLN Allocation rules (like GTIN

allocation rules). These allocation guidelines are set to be published in June 2005.

Use of the Electronic Product Code as a unique identification using RFID tags the appropriate level (pallet, container, traded unit or consumer unit) for the industry segment.

Electronic Product Code (EPC)

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2004

Simple Weighted

Total

NA

EMEA

LA

Asia

No Implementatio

n to M

easure ye

t

NothingPlanned

Plans Agreed

PilotsStarted

Roll-outStarted

FullImplementation

Use of the EAN.UCC GPC (Global Product Classification) standards to classify and categorise products in the areas of forecasting, planning, searching, procurement, category management and global data synchronization in the communication both internally within the organizations and between trading partners..

Product Classification Standards

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2004

Simple Weighted

Total 17.0% 10.0%

NA 25.6% 9.9%

EMEA 16.8% 10.1%

LA 15.8% 5.0%


Plans Agreed

PilotsStarted

Roll-outStarted

FullImplementation

European Analysis- GTINs catalogued consistently with GPC Standards


96 Manufacturers $65.6Billion 17.6% consistent with GPC Standards

6 C&C / Retailers / Wholesalers $48.6Billion 0.0% consistent with GPC Standards

102 All $114.2Billion 10.1% consistent with GPC Standards

Discussion.• Product Classification Standards new in Mid-2004• Fast Moving Consumer Goods including Food, Beverage, Tobacco

completed first. Manufacturers just starting to implement.• Gen. Merchandise, DIY, Hardlines, Apparel to follow• Retailers need multiple categories available to use the capability

– This critical mass of categories should be available now.

Global Data Synchronization

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2002 2003 2004

The establishment, loading, registering and synchronizing of item and party data based on EAN.UCC standards (GDS Network)

Simple Weighted

Total 16.3% 12.2%

NA 16.6% 9.9%

EMEA 18.7% 20.8%

LA 10.6% 4.6%


Plans Agreed

PilotsStarted

Roll-outStarted

FullImplementation

European Analysis- % Sales Synchronized via Standards Compliant Data PoolNote: in 2005, measure will be adjusted to read “GS-1 Certified Data Pool”


97 Manufacturers $66.7Billion 21.2% of sales synchronized

11 C&C / Retailers / Wholesalers $65.4Billion 20.4% of sales synchronized

108 All $132.1Billion 20.8% of sales synchronized

Discussion.• Results are probably overstated relative to new “certified” measure

versus simply “standards compliant”• GDSN Roadmap / GlobalRegistry now in place. Results should grow.• Sinfos, WWRE, Transora, GXS, GS-1UK Data Pool, UCCNet (and 4

other) Data Pools now “Certified”• The “work” is to get non-certified data pools “certified” or move to a

certified data pool.• Only 11 (versus average 28) retailers responded to this measure.

Use of Electronic Message Capability

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2002 2003 2004

Use of standard electronic messages to support the product replenishment process between trading partners. These include orders, advanced shipment notices (or despatch advice), receiving advice and invoices. Messages should be transmitted using EDI via EANCOM, web-EDI or XML standard formats.

Simple Weighted Simple Weighted

Total 52.5% 86.9% 44.8% 82.8%

NA 73.0% 94.6% 65.7% 91.2%

EMEA 56.3% 71.7% 51.6% 66.1%

LA 41.5% 39.4% 29.0% 35.8%

Asia 44.2% 48.7% 28.4% 35.1%

% of Orders % of Invoices

NothingPlanned

Plans Agreed

PilotsStarted

Roll-outStarted

FullImplementation

European Analysis- % of Orders & Invoices transacted via EDI or XML


10299

Manufacturers $70.7Billion$67.8Billion

62.2% of orders EDI or XML

57.6 % of invoices EDI or XML

29 C&C / Retailers / Wholesalers $85.4Billion 79.6% of orders EDI or XML

72.9% of invoices EDI or XML

131128

All $156.2Billion$153.2Billion

71.1% of orders EDI or XML

66.1% of invoices EDI or XML

Discussion.• Electronic Messaging for orders and invoices remains an underutilized

capability in Europe.• In this case, it appears that the participating retailers make more use

of the capability than retailers “averagely” seen by suppliers.

Retailer Checkout Capability What % of Checkouts can scan a 13 Digit Barcode?What % of Checkouts can scan Reduced Space Symbology (RSS)?

Simple Weighted Simple Weighted

Total 97.6% 99.9% 17.8% 6.3%

NA 99.8% 99.8% 1.7% 0.3%

EMEA 96.6% 99.9% ** **

LA

Asia 99.0% 99.8%

% can scan 13 Digit GTIN % can read RSS

European Analysis- Check-Out Capability to read barcodes


29

<5

C&C / Retailers / Wholesalers $85.4Billion

**

99.9% checkouts can scan 13 Digit barcode

N/A% of checkouts that can read RSS

Discussion.• RSS Standards are new – Sunrise 2008 Date Establishes

Implementation Measures 2004Benchmark

GoalTimeframe

% of consumer units allocated GTIN % 92.2 95 Jan 2008 Requires RSS

% of cases/cartons/inners allocated a GTIN % 74.9 95 Jan 2007 Gap is “inners”

% of pallets/unit loads labeled with SSCC % 65.7 80 Jan 2007

% of item exceptions to GTIN allocation guidelines % 3.0 < 1 Jan 2006 This is all about clean data

% of shipping or receiving locations that have been allocated a GLN

% 66.0 80 Jan 2007 Requires GLN allocation rules

% of orders transacted via EDI or XML % 86.9 85 Jan 2005

% of invoices transacted via EDI or XML % 82.8 85 Jan 2006

% of sales with synchronized master data between trading partners via standards compliant data pools

% 12.2 50 Jan 2007From 13 – 26 in 05, 26 – 50 in 06

% of GTINs that are catalogued consistently with Global Product Classification Standards

% 10.0 80 Jan 2007

% of checkouts that can scan a 13 digit barcode % 99.9 99 Jan 2005

% of checkouts that can scan Reduced Space Symbology (RSS)

% 6.3 99 Jan 2008

We now have Benchmark Data to Establish GLOBALGoals, Timelines and Measure Real Progress

Implementation Measures WW 2004Benchmark

WWGoal

Europe 2004Benchmark Europe goal

% of consumer units allocated GTIN % 92.2 95 (1/08)

98.3

% of cases/cartons/inners allocated a GTIN % 74.9 95 (1/07)

91.3

% of pallets/unit loads labeled with SSCC % 65.7 80(1/07)

39.8

% of item exceptions to GTIN allocation guidelines

% 3.0 <1(1/06)

1.1


% 66.0 80(1/07)

82.1

% of orders transacted via EDI or XML % 86.9 85(1/05)

71.7

% of invoices transacted via EDI or XML % 82.8 85(1/06)

66.1


% 12.2 50(1/07)

20.8

% of GTINs that are catalogued consistently with Global

Product Classification Standards % 10.0 80

(1.07)10.1

% of checkouts that can scan a 13 digit barcode % 99.9 99 100.0


% 6.3 99(1/08)

**

What Goals, Timelines and Measures Will You Set for European Manufacturers Objectives?

A Quick Look at Key Performance Indicators

Criterion – EUROPE Totals Units

Sample total

revenue US$m # Records

2004Sample

Weighted Avg

2003 Simple

Average

2002 Simple

Average

Key Performance Indicators

Service Level / Unit Fill Rate % 132401 87 95.2 96.9 96.1

On-Time Delivery % 128720 80 90.6 88.4 93.4

Manufacturer/Supplier's Finished Goods Inventory Cover

days 43605 55 39.2 39.2 42.3

Retail Distribution Centre Inventory Cover

days 98083 41 19.1 19.1 15.7

Retail Store Inventory Cover days 68219 35 37.9 14.4 17.0

On-Shelf/Point-of-Sale Out-of-Stocks

% 76469 48 5.1 4.0 4.3

Lead Time hours 124601 82 61.7 37.1 48.3

Distribution Costs (% of sales value)

% 123743 69 4.0 3.6 4.3

Invoice Accuracy - Master Data % 84613 52 94.9 96.4 91.3

Invoice Accuracy % 98055 75 86.3 91.7 88.4

Criterion – EUROPE MANUFACTURERSKey Performance Indicators Units

Sample Weighted Avg

Sample total revenue US$m # Records

Service Level / Unit Fill Rate % 98.5 47005 58

On-Time Delivery % 96.3 43324 51

Manufacturer/Supplier's Finished Goods Inventory Cover days 39.2 43605 55

Retail Distribution Centre Inventory Cover days 22.0 17468 18

Retail Store Inventory Cover days 6.7 7823 7

On-Shelf/Point-of-Sale Out-of-Stocks % 5.9 31751 26

Lead Time hours 60.4 39205 53

Distribution Costs (% of sales value) % 5.1 40856 44

Invoice Accuracy - Master Data % 98.6 29160 27

Invoice Accuracy % 92.6 38083 48Criterion EUROPE C&C / RETAILERS / WHOLESALERSKey Performance Indicators Units

Sample Weighted Avg

Sample total revenue US$m # Records

Service Level / Unit Fill Rate % 93.4 85396 29

On-Time Delivery % 87.7 85396 29

Retail Distribution Centre Inventory Cover days 18.5 80615 23

Retail Store Inventory Cover days 41.9 60396 28

On-Shelf/Point-of-Sale Out-of-Stocks % 4.5 44718 22

Lead Time hours 62.4 85396 29

Distribution Costs (% of sales value) % 3.5 82887 25

Invoice Accuracy - Master Data % 92.9 55453 25

Invoice Accuracy % 82.3 59972 27

Criterion Units Sample Avg # Records My Avg

Key Performance Indicators

Service Level / Unit Fill Rate % 94.6 826 98.7

On-Time Delivery % 89.6 582 96.2

Raw Materials Inventory Cover days 27.6 257 17.5

Manufacturer/Supplier's Finished Goods Inventory Cover days 37.3 484 51.9

Retail Distribution Centre Inventory Cover days 16.1 474 15.3

Retail Store Inventory Cover days 17.1 435 17.3

On-Shelf/Point-of-Sale Out-of-Stocks % 5.4 617 3.5

Lead Time hours 48.6 717 55.2

Distribution Costs (% of sales value) % 4.6 657 5.5

Invoice Accuracy - Master Data % 92.6 399 97.3

Invoice Accuracy % 89.5 524 96.4

Perfect Order Rate % 80.7 120 88.4

Implementation Measures

% of consumer units allocated GTIN % 92.3 223 100.0

% of checkouts that can scan a 13 digit barcode % 97.6 53 99.9

% of checkouts that can scan Reduced Space Symbology (RSS) % 14.1 22 0.0

% of cases/cartons/inners allocated a GTIN % 86.5 225 88.5

% of pallets/unit loads labeled with SSCC % 43.0 165 88.9

% of item exceptions to GTIN allocation guidelines % 3.3 141 1.5

% of shipping or receiving locations that have been allocated a GLN % 50.6 240 25.9

% of orders transacted via EDI or XML % 52.5 260 83.1

% of invoices transacted via EDI or XML % 44.8 254 70.9

% of sales with synchronized master data between trading partners via standards compliant data pools % 16.7 233 10.6

% of GTINs that are catalogued consistently with Global Product Classification Standards % 17.7 220 82.2

Key Performance Indicators and Implementation Measures

QUESTIONS ?

Implementation Measures WW 2004Benchmark

WWGoal

Europe 2004

BenchmarkPossible Europe goals

% of consumer units allocated GTIN % 92.2 95 98.3 100 % by Jan 2008

% of cases/cartons/inners allocated a GTIN % 74.9 95 91.3 95 % by Jan 2007

% of pallets/unit loads labeled with SSCC % 65.7 80 39.8 57 % by Jan 2007 (weighted average)West 60, East 30

% of item exceptions to GTIN allocation guidelines

% 3.0 <1 1.1 < 1 by Jan 2006


% 66.0 80 82.1 80 % by Jan 2007(under discussion)

% of orders transacted via EDI or XML % 86.9 85(2005)

71.7 75 % by Jan 2007 (weighted average)West 80, East 30

% of invoices transacted via EDI or XML % 82.8 85(2006)

66.1 65 % by Jan 2007(weighted average)West 70, East 20


% 12.2 50 20.8 35 % by Jan 2007 (via certified data pools)

% of GTINs that are catalogued consistently with Global Product Classification Standards

% 10.0 80 10.1 90 % Jan 2007

% of checkouts that can scan a 13 digit barcode % 99.9 99 100.0 to be confirmed by retailers


% 6.3 99 10.1 Under discussion

Proposed Targets for e-commerce standards (manufacturer perspective)

ecr europe board meeting 18 march 2005 2004 / 2005 global scorecard review focus on implementation...

Documents

global scorecard slide

implementation of standards

cpfr slide

global scorecard review

year cycle slide

global ecommerce

implementation measures

implementation gs