Global Data Synchronisation

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Global Data Synchronisation
Management Guide through the World of
GDS September 25, 2003
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Introduction on GDS
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The Challenges
Retailer
Manufacturer

• Collaborative Planning, Forecasting and
  Replenishment (CPFR)
• Radio-Frequency Identification(RFID)

• Global / Regional sourcing
• Collaborative Planning, Forecasting and
  Replenishment (CPFR)
• Scalable Category Management

Collaborative Processes

• Faster new product introductions
• Accounts Payable time spend resolving disputes
• Merchant time spent on data distribution

• Faster new product introductions
• Sales time spent on basic data distribution,
  validation and follow-up
• Sales time spent on resolving order errors and
  disputes

Buy/Sell Process

• Out-of-stocks due to bad orders
• Deductions due to errors
• Increased Days Sales Outstanding
• Sales force time for data distribution

• Out-of-stocks due to bad orders
• Merchant time for data distribution
• Time spent resolving disputes
• Time spent fixing bad orders

Order to Cash Process
Both Retailers and Manufacturers at present deal
with significant in-efficiencies and
arerestricted in further collaboration
improvements due to poor, non-standardised
product-data management within and between
trading partners.
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Why a Global Approach ?

• ..demand a Global Approach that will
• Give more consistency in trading partner
  communication
• provide synergies within multi-regional
  organisations
• facilitate harmonisation of local and
  proprietary standards and
• Integrate with a wide array of new and existing
  decision support tools

• Current Future Trends
• Cross-border trading
• Multi-regional coverage of retailers and
  manufacturers
• Increased collaboration
• e-business developments

• ... delivering
• Value for both local, regional and global
  operations
• Value for both retailers and manufacturers
• Value for companies of all sizes

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GDS is the Foundation for Current and Future
Initiatives
Benefits
7. Collaborative Insight Product Development
6. Collaborative Sales Promotion Planning
5. Collaborative Supply Chain Management
4. Collaborative Transaction Management
3. Item Synchronisation
2. Single Item Registry
1. Common Data Standards
Time/Degree of Trust and Complexity
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The GDS Vision

• A fundamental infrastructure for a seamless flow
  of product information through the supply chain
  (within and across borders)
• Seamless?
• Ensuring all supply chain partners use common
  product descriptions and classification
• Establishing a consistent process and workflow to
  ensure systems remain synchronised as products
  continue to change and evolve

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The GDS Network Vision
Global Data Synchronisation Network (GDSN)
Single Point of Entry
Single Point of Entry
Global
to the Network
to the Network
Registry
Final Data
Data Source_1
Recipient_1
Data Pool
Exchange
Data Pool
Final Data
Data Pool
Recipient_2
Data Source_2
Data Pool
Exchange
Exchange
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How Real is the Vision Today? VERY!

• All the information you communicate today should
  be communicated in accordance with the EAN.UCC
  Global Standards.

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The Benefits of adopting GDS
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GDS delivers Value
Success measures on Value Enhancement Initiatives
Collaborative Decisions Reduced Errors and
Rework Improved Data Quality, Accessibility,
and Automation
Increased Revenues Margin Improvement ROI
Value Enhancement Initiatives
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Competitive Advantages of GDS

• First-mover advantages are in the form of
• Improved trading partner relationships
• Earlier, faster understanding of what it takes to
  succeed
• Sustainable competitive advantage
• Platform for broader, deeper, more productive
  collaboration
• Sustainable cost disadvantage from late, no
  participation

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GDS Benefits

• Near-term benefits from improved order to cash
  processes
• Mid-term benefits from improved buying and
  selling processes
• Longer-term benefits from improved trading
  partner collaboration

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Order-to-Cash Process Benefits

• BENEFITS
• 8 reduction in order errors
• OOS reduction of 3-5
• Modest reduction
• 7-13 reduction in time spent sharing data
• 5-10 reduction in accounting, sales time
  resolving issues
• Significant reduction from 8 of orders needing
  re-work today
• Significant reductions noted

• ISSUES
• Deductions due to errors
• Out-of-stocks due to bad orders
• Increased Days Sales Outstanding due to disputes
• Sales force time spent on data distribution
• Organisation time spent resolving disputes
• Organisation time spent fixing bad orders
• Elevated Days Sales Outstanding

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Sales/Merchandising Benefits

• BENEFITS
• New item data shared across trading partner
  organisation in hours, not weeks
• 10,000s of hours saved in data distribution,
  follow-up, store audit time
• Reduced call center effort addressing data issues
• Item Data errors eliminated on the 8 of orders
  that have them
• Additional 20 of orders with price or promotion
  errors eliminated with new functionality

• ISSUES
• 2 weeks or more for new item introduction
• Sales time spent on basic data distribution,
  validation and follow-up
• Sales time spent on resolving order errors and
  disputes

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Supply Chain Benefits

• ISSUES
• Excess safety stocks due to system errors
• Transportation inefficiencies due to bad item
  weight/cube

• BENEFITS
• 0.5 reduction in safety stock
• 0.2 to 0.7 reduction in outbound freight due to
  higher utilisation

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GDS Just Do it
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Critical Elements of a GDS Roadmap
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Who needs to be Involved?
Manufacturer
Retailer
Strategy
Strategy

• Top Management / Senior Executives
• CEO
• Buying Category Management
• Supply Chain
• Finance
• IT

• Top Management / Senior Executives
• CEO
• Sales Marketing
• Supply Chain
• Finance
• IT

Establish commitment. Set Targets. Achieve
Mobilisation. Drive the adoption.
IT Enabling
IT Enabling

• IT / Data Management
• IT Management (incl development/maintenance)
• Data Management

• IT / Data Management
• IT Management (incl development/maintenance)
• Data Management

Implement, integrate and maintain enabling
solutions. Facilitate the process.
Business Operation
Business Operation

• Business Execution
• Buying
• Category Management
• Supply Chain
• Administration

• Business Execution
• Sales Marketing
• Supply Chain
• Administration

Embed consistent data- management and
data exchange in daily operations. Achieve
Business Benefits
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Top 5 Management Actions to Take

• Decide if you are going to do this -Communicate
  this decision
• Commit Resources Budget
• Identify Appoint leader team
• Set targets and incentives for success
• Measure Reward progress

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Business and Technical Actions to Take

• Integrate it into your business processes
• Define who owns what
• Define performance metrics and make people
  accountable
• Integrate Data Sync into existing systems
• Transactions systems Better orders/invoices
• Collaborative solutions More accurate plan data
• Planning applications Better supply chain mgt.

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List of References

• Report, Presentation, FAQ ATKearney/GMA/FMIE-Co
  llaboration May 2002
• GDS Case Studies ATKearney/GMA/FMI May 2003
• Business Case Report and Summary GCI/CGEY,
  October 2002

All information is available at www.gci-net.org
(Working Group/GDS Implementation Team) or on a
CD. Please contact Natascha Pottier, GCI
atNatascha.Pottier_at_gci-net.org.
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List of References

• GDS Roadmap GCI/CGEY, May 2003
• GDS Video GCI/IBM, May 2003
• Various presentations
• CEO Call for action, May 2003

All information is available at www.gci-net.org
(Working Group/GDS Implementation Team) or on a
CD. Please contact Natascha Pottier, GCI
atNatascha.Pottier_at_gci-net.org.
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Thank you

• www.gci-net.org