ecr europe forum '05. get your basics right global data synchronisation
DESCRIPTION
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, UnileverKees Jacobs, CapgeminiDavid Timberlake, ACNielsenRuud van der Pluijm, AholdFacilitated bythe Global Commerce Initiative (GCI)TRANSCRIPT
Get your basics right:Global Data SynchronisationThe work of the GCIGlobal Data SynchronisationImplementation Team
NigelBagley
Ruudvan der Pluijm
KeesJacobs
DavidTimberlake
Global Data Synchronisation - ECR Europe April 2005 Page 2
eBusiness Value
FOUNDATION
$ R
ETU
RN
CO
MP
LEX
ITY
SharedData
Transactions
SharedInformation
Shared Processes
ReducedErrors
ReducedCosts
BetterCustomer
Service
BetterConsumerResponse
EFFICIENCY
GROWTH
Standards Connectivity Information flow & alignment
Item Maintenance Order to Cash Transaction
CPFR (Forecasting)ECR (Category Management)...
© Unilever 2004 & 2005
Global Data Synchronisation - ECR Europe April 2005 Page 3
Implementation Team Priorities:
Illustrate the Business Case for GDS
Address concerns with potentialduplication between GDS and EPCnetworks
GCI member companies “Get itGoing!”
Resolve industry issue on data quality
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?Data Quality video
Making it Happen!
Conclusion
Global Data Synchronisation - ECR Europe April 2005 Page 5
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 6
Global Data Synchronisation - ECR Europe April 2005 Page 7
Global Data Synchronisation - ECR Europe April 2005 Page 8
DataPool
Manufacturer
1. A manufacturer willpublish item information tothe item’s home data pool(single point of entry).
Global Registry
2. The data pool sendsvery basic informationabout the item to theRegistry
3. The registry holds thisbasic information about alli tems and the location ofeach items’ home datapool.
Retailer
DataPool
4. A retailer will obtain therequired item information (or‘search’ the registry) via theirselected data pool (single pointof entry)
5. The trading partners synchronisethe item information between theirrespective data pools usingsubscription/publication process.
GDS is happening !!
Global Standards• Product identification• Product Attributes• Product Classification• Data Synchronisation
Global Registryis in place
Increasing # of Certified andInteroperable Datapools
IncreasingRetailer Adoption
Programs
IncreasingManufacturer
Adoption Programs
Global Standards exist
Global Data Synchronisation - ECR Europe April 2005 Page 9
Illustrating the BusinessBenefits of GDS
Global Data Synchronisation - ECR Europe April 2005 Page 10
Key Messages From The Report
GDS is no longer just aconcept
GDS is producingmeasureable businessbenefits for both retailers andmanufacturers – across theworld
Early adopters realise GDSprovides a foundation forfuture collaborative commerce
Data is really important – it’san asset
Global Data Synchronisation - ECR Europe April 2005 Page 11
The Basis Is a Simplified But RealisticKPI Model
RetailerManufacturer
Increase Sales
• Speed to Market• On-Shelf Availability
Data Quality = Foundation
Improve Productivity• Item Maintenance & Publication Effort
• Error Reconciliation Effort
Reduce Costs• Transport Costs
• Deductions
Increase Sales
• Speed to Market• On-Shelf Availability
Data Quality = Foundation
Improve Productivity• Item Maintenance & Publication Effort
• Error Reconciliation Effort
Reduce Costs• Transport Costs
•Store Operations Costs•Planogram Management
Collaborative KPIs
Global Data Synchronisation - ECR Europe April 2005 Page 12
The Cases are Convincing…Johnson & Johnson have virtually eliminated dataintegrity-related out-of-stocks at Wal-Mart U.S - resultingin 2.5% fewer out-of-stocksIn Guatemala, Procter & Gamble and retailer La Fraguahave increased purchase order accuracy by 3%At Dutch retailer Albert Heijn, GDS has measured a30% productivity improvement in their data managementdepartment.Leading Japanese retailer AEON has realisedimprovements in their item introduction lead times.Gillette Venezuela improved their order processingproductivity by more than 50%US retailer Wegmans has increased store sales byreducing speed to market on new items by two weeksUnilever Colombia improved new item speed to marketfrom 3 to 4 weeks to just 2 to 3 days, increasing itemsales by 2 to 3 weeks
Global Data Synchronisation - ECR Europe April 2005 Page 13
….and People like the Results !!
‘GDS ismy
new friend’
Chuck Hurley,National Account ExecutiveGillette Company, US
‘This project provided ustangible benefits’
Julio QuevedoOperations & Logistics VPLa Fragua
‘GDS will become part ofevery merchandiser’s daily
business’
Atsunobu AgataSenior VP ITAEON
‘GDS is driving manyinternal operational
efficiencies, which is soimportant within an
industry that typically haslow profit margins’
Luis Miguel Da GamaPresidentExcelsior Gama
‘The benefits are wellworth the costs’
Michael J. HaasVP of ITJohnson & Johnson
‘With accuratesynchronised data we are
able to improve our supplychain, develop greater
trading partnercollaboration and better
serve our customers’ Sander van der LaanExectutive VP CommerceAlbert Heijn
Global Data Synchronisation - ECR Europe April 2005 Page 14
Johnson & Johnson DecreaseOut-of-Stocks With GDS at Wal-Mart
Data Quality = Foundation
Improve Productivity• Item Set-up
& Maintenance Effort
Increase Sales
•On-Shelf Availability
Reduce Costs• Transport Costs
AssortmentDatapoolsCompanies
Scope of GDS ActivitiesJ&J and Wal-Mart in USTransora and UCCnet1300 SKU’s in 75 categories
Measured Benefits
Optimised truckload-planning
Transportation Costs
Decrease from 10 daysto 24 hours
Item Set-up &Maintenance
2.5 % fewer out-of-stocks
On shelf Availability
Global Data Synchronisation - ECR Europe April 2005 Page 15
Albert Heijn Reduce Data ManagementEffort by 30% With GDS
Increase Sales
Data Quality = Foundation
Improve Productivity• Item Set-up
& Maintenance
Reduce Costs
Assortment
Datapools
Companies
Scope of GDS ActivitiesSCA Hygiene, Kimberly-Clark, Ontex & P&G
WWRE and GS1 DAS
Female Hygiene category
Measured Benefits
Elimination of dimensiondiscrepancies (before: 40%of attributes were incorrect)
Data Quality
30 % reduction in datamanagement effort
Item Set-up & MaintenanceEffort
Global Data Synchronisation - ECR Europe April 2005 Page 16
Let’s Not Lose Sight of TheConsumer Benefits
On-shelf availability
Speed to market
Better replenishment
Competitive pricing
Global Data Synchronisation - ECR Europe April 2005 Page 17
The Path of Lost Opportunity
•Manufacturer loses sales
•Retailer loses sales
•Consumer loses choice
If innovation is unable to navigate The supply chain…
Global Data Synchronisation - ECR Europe April 2005 Page 18
AgendaWhy 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 19
The Data Perspective
Data
People & Processes
IT
Data
People & Processes
IT
Internal Alignment Internal Alignment
External Synchronisation
GDS
Manufacturer Retailer
Global Data Synchronisation - ECR Europe April 2005 Page 20
What is Good Data Accuracy?What is Good Data Accuracy?
Developing an agreed version of the truth for item informationWithin your organisation and across the supply chain with tradingpartnersGood Data Accuracy means that all master data within your businesssystems 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 accommodatenon-standard data in the short term
Global Data Synchronisation - ECR Europe April 2005 Page 21
Look at The Big Picture - Good DataQuality 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 22
Focus Areas
Global Data Synchronisation - ECR Europe April 2005 Page 23
Good Data Quality Needs a Blend ofGood Data Quality Needs a Blend ofThe Right IngredientsThe Right Ingredients
Data
Quality
Process
Data
Content Standard
s
Technology
Global Data Synchronisation - ECR Europe April 2005 Page 24
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 25
Industry Standards
What standards exist?Where do I find the standards?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 26
The IT Perspective
Data
People & Processes
IT
Data
People & Processes
IT
Internal Alignment Internal Alignment
External Synchronisation
GDS
Manufacturer Retailer
Global Data Synchronisation - ECR Europe April 2005 Page 27
Selecting your datapool
Consider the following criteria:Is the datapool meeting your internal business and ITrequirements ?
Is the datapool covering the current and future demands ofyour trading partners ?
Is the datapool compliant with the Global Standards, and isit interoperable with the datapools your trading-partners areusing ?
How strong is the support-structure of the datapool ?
How competitive are the costs ?
Global Data Synchronisation - ECR Europe April 2005 Page 28
Today’s Reality onProduct Data Management
Product information is collected, maintained,and replicated across multiple systems
Item information is manually entered inMULTIPLE systems
Cleansing takes a lot of effort; nevertheless:
Item information is NOT consistent acrosssystems
Lead times of data-recording are not managed
Item information lacks integrity and standards
Internal Data Alignment
Global Data Synchronisation - ECR Europe April 2005 Page 29
Tomorrow’s Vision ofProduct Data Management
Single source of truth for item information
Single entry and maintenance of item information
“Synchronization” of item informationTransora, WWRE etc.
Streamlined and standardized item data managementprocesses
Clear rules and responsibilities for item management
Workflow support for relevant processes (new productintroduction, promotions, end-of-life-cycle)
monitoring of lead times
Utilization of global data standardsGTIN, GLN, GPC, GDD, GDS
Internal Data Alignment
Global Data Synchronisation - ECR Europe April 2005 Page 30
IT Growth Path
GDSNDatapools
Trading Partners
Sales /BuyingSystem
SupplyChainSystem
F & ASystem
OtherSystems
Synchronisation-only
GDSNDatapools
Trading Partners
Sales /BuyingSystem
SupplyChainSystem
F & ASystem
OtherSystems
GDSNDatapools
Trading Partners
Sales /BuyingSystem
SupplyChainSystem
F & ASystem
OtherSystems
Aggregation &Synchronisation
Product Data Management
& Synchronisation
Global Data Synchronisation - ECR Europe April 2005 Page 31
The Perspective
Data
People & Processes
IT
Data
People & Processes
IT
Internal Alignment Internal Alignment
External Synchronisation
GDS
Manufacturer Retailer
People&
Processes
Global Data Synchronisation - ECR Europe April 2005 Page 32
People and Process
Current Processes are Duplicated andFragmented
Be Prepared for Organisational Impact andResource
Establish and Maintain Governance
GDS - Establishing a Way of Doing Business
Global Data Synchronisation - ECR Europe April 2005 Page 33
Current Processes Are Duplicated & Fragmented
Product dimensions Need re-measuring
Manual data key-in repeated
Bar codes don’t scan Data blocked,
returned, changedManaging
invoice queries
Missing data standardsMissing attributes
Re-keying of marketing codes and descriptions
for supply chain
Data returned For completion of
attributesErrors
InPromo.Detail
Global Data Synchronisation - ECR Europe April 2005 Page 34
Eddie
Global Data Synchronisation - ECR Europe April 2005 Page 35
Be Prepared for Organisational Impact &Resource
• Establish a business sponsor
• Dedicate a team of IT and business specialists
• Recruit local process and data champions
• 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
1. Become Data Centric
2. Establish Data Governance
Global Data Synchronisation - ECR Europe April 2005 Page 36
GDS GDS –– Establishing a Way of Doing Establishing a Way of DoingBusinessBusiness
• Organisation• Technology• Process
Data Quality - The Responsibility of Every Stakeholder
Data Producer
Data Manager
SystemsOwner
DepartmentController
Regard Data Attributes as Part of Your Brand Value
Global Data Synchronisation - ECR Europe April 2005 Page 37
Agenda
Why do GDS?
What is needed to make it happen?
Making it Happen!
Conclusion
Global Data Synchronisation - ECR Europe April 2005 Page 38
Key Implementation
Enablers
The challenge for retailers and manufacturers:how to implement GDS successfully ?
Clear strategic plan for business and partners
Platform selection & implementation
Defined processes,scenarios and pilots
Validated Business Case linked to KPIs
LOGISTICSSALES UNITEVERYWHERE
CENTRAL
Outgoing information flow channel
TRANSORA
DistributorShipping
Wholesale
LOCAL
Home
shopperSupplier
Sales R&DFinance &
Admin
Qualty
control
...
...Expedition
planning
...
...
Process
invoice
Monitor
stock
Feeding B2C
catalogues
Report
locally
Report to
corporate
...
Profil
consumer
needs
...
Replenish
stock
Manage
waste
... ...
Retailer Supplier
NORMALIZATION
UDEX
Marketing Quality controlProduct info
service
Admin &
Finance
Product
introduction
Do inbound
logistics
DATA POOL
Data pool system
Data
warehousing
Category/
promotionsReceive order
Incoming information flow channel
...
Behavioural assessment and change management
Product Data Quality & Standards
RoI
Time
Programme Management
Global Data Synchronisation - ECR Europe April 2005 Page 39
You can use the GDS Roadmap
Start Small and Build … begin with adoption of Industry Standardsand small scale pilots with trading partners
Global Data Synchronisation - ECR Europe April 2005 Page 40
Awareness within theOrganisation
Before you Start – Are you Ready?
Senior ManagementBuy-in
Cross Functional Co-Operation
Investment budgeted
Data Pool Selection
Experience with Pilots
Readiness IndexSelf-Assessment Factors
Global Data Synchronisation - ECR Europe April 2005 Page 41
Focus on the following aspects:
Develop Clear Business Case / Concrete KPI’sMeasure the business improvements of GDS
Focus on Internal Data AlignmentProvide on-going, high quality data, i.e., complete,consistent, accurate, etc., etc.,
Establish a Connected IT PlatformIntegrate internal and external systems
Drive Trading Partner AdoptionCollaborate with trading partners
Global Data Synchronisation - ECR Europe April 2005 Page 42
Agenda
Why do GDS?
What is needed to make it happen?
Making it Happen!
Conclusion
Global Data Synchronisation - ECR Europe April 2005 Page 43
Conclusion
GDS is working in the Real Worldthe benefits have been measured
Proven benefits for both retailers and manufacturersall 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 44
Collaboration is key
Global Data Synchronisation - ECR Europe April 2005 Page 45
Organise yourself a GCI GDS workshop
Objective is to support Retailers andManufacturers in their GDS Activities byoffering 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 GDSRoadmap)
Global Data Synchronisation - ECR Europe April 2005 Page 46
GCI GDS workshops will make yourorganisation enthousiastic about GDS
Session Concept
SCANGDS Business Case
GDS (Best) Practices
Retailer Demands
Current Status & Issues
FOCUSEvaluation of input
Define Critical Issues for GDSimplementation in your company
ACTDefine & Argument Actions to takeforward
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Please let us know…
Sabine Ritter, GCI at [email protected]
Global Data Synchronisation - ECR Europe April 2005 Page 48
Final Remarks
The Benefit is there!Project Jury proves the business case
The Infrastructure is thereGlobal Registry and GDSN are a reality
There is help to get startedGCI GDS Workshops
Publications and Videos
Global Data Synchronisation - ECR Europe April 2005 Page 49
eBusiness Value
FOUNDATION
$ R
ETU
RN
CO
MP
LEX
ITY
SharedData
Transactions
SharedInformation
Shared Processes
ReducedErrors
ReducedCosts
BetterCustomer
Service
BetterConsumerResponse
EFFICIENCY
GROWTH
Standards Connectivity Information flow & alignment
Item Maintenance Order to Cash Transaction
CPFR (Forecasting)ECR (Category Management)...
© Unilever 2004 & 2005