Title: Global Data Synchronisation
1Global Data Synchronisation
Management Guide through the World of
GDS September 25, 2003
2Introduction on GDS
3The 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.
4Why 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
5GDS 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
6The 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
7The 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
8How Real is the Vision Today? VERY!
- All the information you communicate today should
be communicated in accordance with the EAN.UCC
Global Standards.
9The Benefits of adopting GDS
10GDS 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
11Competitive 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
12GDS 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
13Order-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
14Sales/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
15Supply 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
16GDS Just Do it
17Critical Elements of a GDS Roadmap
18Who 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
19Top 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
20Business 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.
21List 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.
22List 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.
23Thank you