Creating value through global e-business solutions

Creating Value through
automated B2B
ECR Europe, Berlin, 29 May 2008
Eva Maria Burian-Braunstorfer,
CEO GS1 Austria

Global eBusiness solutions - eCom

• GS1 eCom provides global standards for Electronic
Data Interchange that allows rapid, efficient and
accurate automatic electronic transmission of agreed
business data between trading partners.
• GS1 eCom provides two complementary standards for
business messaging:
• GS1 XML
• GS1 EANCOM

©2007 GS1 US
©2008 GS1 in Europe

Global eBusiness solutions - GDSN
• The GDSN is a network that connects data pools,
which are regional sources of supplier and retailer
data
• GDSN allows data pools to exchange standardised
data with trading partners on a real-time basis by
using GS1 XML messages.

©2007 GS1 US

Benefits of implementing eBusiness
solutions
• In the following case studies you will hear practical
information and benefits of implementing standardized
eBusiness solutions from the major pioneers like:

• Metro Group
• Nestlé Germany
• Kraft Foods Italy
• Coop Italy
• Carrefour

©2007 GS1 US

Collaboration is the key for success!

©2007 GS1 US

Global Data
Synchronization

An Interoperability Project
between
METRO Group and Nestlé

Urs-Ulrich Katzenstein
(METRO Group)
Bertold Ruffler
(Nestlé Germany)
© METRO AG / Nestlé 2008

1

Data Synchronization

Height Height
Width Width
Depth Depth
Weight Weight
Pieces/Package = Pieces/Package
Packages/Pallet Packages/Pallet
GTIN GTIN
… …

2

Impact on Value Chain

Maximize retail exposure and Sales Better product information,
product posting better consumer satisfaction

Optimize logistical handling
Reduce order / invoice /
Costs and planning
shipping discrepancies
Less administrative work

Focus on generating Focus on core business
demand for product, Productivity instead of information
growing business, faster disputes
listings

Nestlé Data Synchronization METRO Group

3

The History of Data Exchange
Order
Unstructured Messaging
Catalog, Listing, Mail, Fax, ...

National EDI
Tradacom, ...

Global EDI
EANCOM

Data Pools
UDEX, SA2, 1SYNC ...

Global Data
Synchronization

4

Technical Architecture

IBM
Data WPC ERP
MMS-CAT
repository Market Systems
extensions

Project Phases
Phase 1: External Phase
Phase 2: Internal Phase

Phase 3: GDS End to End Process

5

Project Phase 1 - External

IBM
Data WPC ERP
MMS-CAT
extensions

Participants:
1SYNC, SA2, METRO Group, Nestlé, P&G,
Output:

- Business Requirement Document BRD
- Market Extension (SA2) in 1SYNC

6

Project Phase 2 - Internal

IBM
Data WPC ERP
MMS-CAT
extensions

Participants:
Nestlé, IBM, 1SYNC, SA2, METRO Group
Output:
- Market Extension (SA2) in WPC,

- Interface Nestlé-WPC & WPC-1SYNC,
- METRO Group system set-up

7

Project Phase 3 - GDS End-to-End Process

IBM
Data WPC ERP
MMS-CAT
extensions

Participants:
Nestlé, IBM, 1SYNC, SA2, METRO Group, P&G
Output:

1st Go-live with Cereal Partners Germany

8

Timelines Decision points
Dec 06
Go-live dates
First real-time data
synchronization
Alignment of
data pools

Alignment of
internal systems

May 04
GDS End-to-End Process
Kick-off Meeting at ECR EUR
Conference in Brussels Start of data synchronization

2004 2005 2006 2007 2008 2009

9

Implementation Overview – Nestlé Germany Go Live Dates

GLN Nestlé Sales Orgs No of Items Date
4005515000008 Cereal Partners 107 Dec 06
4013413000006 Milasan 70 May 07
4005501000005 Nestlé Professional Beverage 51 May 07
4005513000000 Benedict Lebensmittel 10 May 07
4005504000002 Nestlé Erzeugnisse 766 Aug 07
4005503000003 Nestlé Nutrition 504 Aug 07
4005507000009 Nestlé Professional Food 454 Oct 07
4000487000001 Nestlé Purina Pet Care 436 Nov 07
4005505000001 Maggi 1,090 Dec 07
4026800000008 Nestlé Waters 165 Feb 08

Total 3,653

10

Success Factors • Data pool synchronization
• System integration
• Single source of data • GDSN
• Collaboration
• Alignment
• Reporting
• Business Case
• Open for others
Value Chain • Guiding principles
Integration

• Data quality
• Data policies • Training

• Data ownership • Change Management
• International standards • Roles & responsibilities

11

Benefits

METRO Group
Single point of contact
Fully integrated systems
Reliable data for supply chain
Simplify and enhance reporting
Decrease invoice disputes

Nestlé
1SYNC as Nestlé´s Home Data Pool
Single Point of Data Entry
Fully integrated in existing environment – one solution for all Nestlé markets

Single payment

12

Outlook METRO Group

GDSN implementation
Live Start by Q3 Start by Q3 Start by Q3
Germany United Kingdom Russia Poland

Live Testing Tests 06 / 2008 Tests 06 / 2008

Trading Partners

Other trading partners:

13

Outlook Nestlé

GDSN implementation

Q1/09
UK Russia Spain
Q3/08 Belgium Switzerland Italy
Q4/08 Q3/08 Q2/08 Q4/08
Q1/09
France
Poland

Trading Partners

14

Want to join?

Contact your trading partners
Start GDSN paring project
Strictly follow international standards (GTIN, GLN)
Continue process improvement and collaboration for better
quality
Real synchronization
Take an active role in:

15

Contacts

METRO Group
Urs-Ulrich Katzenstein
Head of Master Data Exchange
E-Mail: urs-ulrich.katzenstein@metro-mgs.com

Nestlé
Bertold Ruffler
Head of Master Data Germany
E-Mail: bertold.ruffler@de.nestle.com

Or any GS1 organization

Moving quickly towards Fast Perfect Order
(through EDI & GDS)
ECR Forum – Berlin 2008

Berlin, 29th May 2008

Main Topics Agenda

Storyline
New process implementation: the “Before Vs After” picture
GDS & EDI integration: a successful synergy
KPI and benefits measurement
Next steps
Key Learning & Deliverables

Storyline

Classic effectiveness & efficiency targets

Effectiveness
Efficiency

Traditional EDI + GDS
transaction EDI

Integration

To improve service guaranteed to cooperatives by Coop
Customer collaboration: the starting point for new projects

From Traditional Order To Cash To EDI
As it was…
Manual Order
Generation
Manual Order
Typing
Order Printing

Order Sent via Fax

Manual Invoice
Control Invoice Printing

Manual Invoice Paper Invoice
Registration Mailing


First Step

EDI Order EDI Order
Generation Processing
in ERP

Manual Invoice EDI Sales Order
Control Confirmation 1°

Invoice Printing
Manual Invoice
Registration
Paper Invoice Mailing


Second Step

EDI Order EDI Order
Generation Processing
in ERP

EDI

EDI Sales Order
EDI Invoice Confirmation 1°& 2°
Registration
EDI Invoice


Main features of EDI roll-out

Order and Order Confirmation:
regular implementation of standard messages

Sales Order Confirmation focus:
upgrade with communication of amended quantities

EDI Invoice:
the electronic flow reaches completion.
Credit Note & Debit Note messages are coming soon

EDI Outstanding Issues

The flow was electronic but...

Product details were manually keyed into both Master
Data
The time needed to manage the information within Coop
was about 20 min per document
Information on products communicated by different
means, such as fax, mail, phone...
EDI Orders could be in error status due to Master
Data mismatches
Imprecise item details lead to a deterioration of invoice
accuracy

GDS: The Missing Link
A review of obsolete processes: not only a technical
tool, but the base to improve performance
Full awareness of the process across all functions
New KPI sharing to assure common understanding of
improvements
Reduction of IT systems redundancy: all relevant info on
a single site
Shorter product introduction Lead Time
Less time spent on complaints/disputes: Invoice Accuracy,
“Order Accuracy”, Returns

Before GDS implementation: critical areas

1W 1W 2DD

Item Store
Product Edit &
introduction Completion Product
analysis Publish
info

Details Category Kraft Sales Category Manual
Partially Dept.: Dept.: Dept.: editing
sent via briefing
e-mail complete Info Info to
approval product collection
Affiliates
information
further retrieval & doc sent to
requests transmission Assistant

New process implementation
Steps of the process > From 5 to 3

1W 1W 1DD

Item Store
Product Edit &
introduction Completion Product
analysis Publish
info

All Category Kraft Sales Category access
details Dept.: Dept.: Dept.: to all info
via GDS access to all via GDS-
info via GDS- complete Info Pim (exc.
Pim (exc. product collection Price)
information
Price)
retrieval & doc sent to approval
approval via transmission Assistant via Pim
Pim

GDS+EDI: a successful synergy

During the Listing process, information requests and
manual typing delays are eliminated

New Listing additions and Master Data changes details
are quickly notified via digital protocol

Orders and Invoices are based on complete and aligned
Master Data features

GDS KPI’s:
GDS assures quality checks: the supplier needs
to cleanse his Master Data to avoid technical blocks
Master Data harmonization and fine tuning, according
to GS1 requirements and partners agreements
(e.g. naming convention)

Data Consistency:
Assure that COOP receives what Kraft sends in their
systems

Time To Market:
Streamlining the process assures time saving
Master Data harmonization, no template to fill

GDS KPI’s Measurements:
100%
Data Consistency 27% 75%
% item data with Data quality
Correspondent Increase 50%

attribute in Kraft 25%
Coop Master data 0%

Time to market (dd) 21
Time needed for a 50% of time
product to be stored
14
16 8 saving
into master data 7

0
Source: Coop assessment
Parameters
Time to market is related to all the activities of the process (eg. Send
information, Manual data entry, paper production)

Focus on consistency
Gtin Consumer unit 100
Net content 100
Product Description 100
Supplier internal code 98
Each in a TI 96
TI per layer 93
Layers per pallet 87
TI per pallet 85
Gtin Case 78
Trade item Weight 50
Packaging (Trade Item) 46
Total Shelf life 31
Trade item Volume 24
Packaging (C.U.) 21
Each Volume 17
Source: Coop assessment

Parameters
1/3 of total product as sample
15 common critical attributes

Performance Improvement Indicators

General Master Data Discrepancies....

Up to 20% of EDI Orders in error !

Up to 1h per Day to fix Orders anomalies !

More than 2000 Credit Notes per Year !

Up to 30mins per Day to reconcile Invoices !

..... after full GDS implementation everything
becomes “0”!

Project timing
Kraft joins Coop into GDS ....

2nd 3th 4th 1st 2nd 3th 4th
Q2006 Q2006 Q2006 Q2007 Q2007 Q2007 Q2007
Collaboration ECR/Coop/Kraft
on attribute set
Pilot phase with manual
upload in 1Sync
Project requirements and
resources allocations
Interface design and
implementation
Massive upload test
and Go-Live

Next Steps

Roll-Out to new Suppliers for Coop and new Retailers
for Kraft

Complete adoption of the new processes by Sales
Managers (Kraft) and Category Managers (Coop)

Improvement of P.I.M. functionalities on existing
products updating

Automating KPI’s calculation

Key Learning & Deliverables

The importance of moving together

Involve the business side in the project
from the beginning

Mutual trust in a profitable project

The leverage effect of multiple innovation

ECR Europe
Carrefour’s BtoB Strategy
Key link for a new relationship

Jean Lecomte
Carrefour BtoB/BtoC Competency Center

Content

BtoB Strategy

Examples of achievements

2

May 2008 Carrefour BtoB Strategy : key link for a new relationship

Carrefour Overview

Carrefour BtoB figures per year

>60B€* >2M >60 000
Merchandise Purchase Products Sourced Merchandise Suppliers

>30M >150M
Invoices EDI Messages

3
* Without Tax

BtoB Strategy

BtoB: key link for better collaboration
• eSourcing
• Private labels development
Optimize
Assortment • Quality tests Private labels
and Price • Auctions

Speak the same
Langage Supplier
Manage Commercial
Transactions
• Standards
• EDI Order
• Master Data
• EDI – Dispatch / Reception
• BtoB Portal • EDI - Invoice
• Payment report/advance

Grow our Retailer
Ensure On-Shelf
Business
Availability
• Joint Business Plan
• Scorecard • DataSharing Operational
• DataSharing Merchandise
• EDI Sales/Inventory
• DataSharing Client

4


BtoB Strategy

3 levels of BtoB Integration

High Level of Integration with Shared Responsibilities

Strategic Transactional Information by sku / store / day 20 int’l
Partnership suppliers
Associated to results commitment on turnover and margin
for the category

Medium Level of Integration

Advanced 20% of
Collaboration suppliers

Transactional Information by sku / DC / week

Structured and standardized processes
80% of
Entry Ticket suppliers
Static/Aggregated Information : indicators
5


BtoB Strategy

2008-2010 : 7 priorities
Domain Integration Level

1 Implement the supplier portal Master Data Entry Ticket
« CarrefourNet »
2 Deploy Data Synchronization Master Data Entry Ticket
Advanced
Collaboration
3 Finalise dematerialization of orders and Supply Chain Entry Ticket
invoices (EDI messages) Finance

4 Relaunch use of reverse auctions and Buying Entry Ticket
develop eSourcing for Indirects
5 Systematically share performance Supply Chain Entry Ticket
scorecards Buying

6 Implement Operational DataSharing Supply Chain Advanced
Buying Collaboration

7 Deploy solutions for payment report and Finance Advanced
advance Collaboration
6


Content

BtoB Strategy


7



Standards - Data Quality vision

Data Quality

Retailer

Supplier

DataSync

8



BtoB Portal - sharing our strategy

9



GDS - foundation for collaborations
Standard DataModel
CONTENT
Carrefour figures on
LOGISTICS Standard DataSync

MARKETING
160 suppliers in France,
DESCRIPTION
280 suppliers in Columbia

Standard messages and Roll-out plan for Europe
infrastructure

S R Over 10B€ sales managed

S R

S R
10



EDI – towards operational excellence

Carrefour figures on EDI

MERCHANDISE RETURN MASTER DATA

15 EDI messages used in
18 countries

RELIABLE
INVOICING ORDER PRODUCTS Over 150M messages per
SUPPLY - CHAIN year

Over 90% orders in value
RECEIVING PROCESS
through EDI (Food)
DISPATCH ADVICE

11


Our BtoB vision

Implementing standards is the best way to ensure
global use and reliable information flows

Ensuring Data Quality is key for business processes
reliability

The road is long,
but the first benefits are already there
12


Synchronising Data:
Heading for the Future
ECR Europe, Berlin, 29 May 2008
Sally Herbert, President, GDSN Inc.

Open the door
to a multitude of opportunities
Numerous opportunities to improve
exchange of information between
suppliers and retailers

Enable effective collaborative action
between trading partners

Establish new ways of working together

©2008 GS1

GDSN is a reality …

Synchronising accurate
data with your trading
partners through the
GS1 Global Data
Synchronisation
Network

©2008 GS1

Solid base of standards in place

Business Messaging Standards Trade Item Synchronisation Extended Attributes

Package Measurement Rules Catalogue Item Synchronisation Data Quality Framework

Data Pool Certification Price Synchronisation Global Product Classification
and more …

Solid base of Standards and Guidelines in place
to build a reliable Master Data Management program ©2008 GS1

Increased momentum towards adoption

Itemsregistered in the Global Registry
2,500,000
Trading Partners:
2,000,000 from 200 in 2005
1,500,000
to 15,400 in 2008

1,000,000
Certified Data
500,000
Pools:
0
from 7 in 2005
2004 2005 2006 2007 2008 to 23 in 2008

©2008 GS1

Broad geographic coverage

= countries with local support for GDSN

Global Reach – Local Reach
Local support for GDSN in 50+ countries ©2008 GS1

European Growth

Existing Certified Data Pools:
GS1 France + GS1 Netherlands + GS1
Slovakia + GS1 Spain + GS1 UK + GXS +
1SYNC + SA2

New EU Certified Data Pools:
GS1 Belgium/Luxembourg + GS1 Croatia +
GS1 Hungary + GS1 Sweden

Plans for GDSN Certified DPs in: Denmark,
Estonia, Ireland, Poland, Romania, Russia

©2008 GS1

Driving Implementation
Project Etoile
11 leading retailers and 22 suppliers in:
• France, Germany, Netherlands, Spain, UK,
US
• Belgium / Luxembourg & China expansion

Active connections between participants
increased from 34 to 96 in less than a
year

Proven base GDSN infrastructure is in place
Breakthrough in Data Pool Interoperability
Data Quality and Business Process
Improvements

©2008 GS1

About Data Quality…

GDS reveals data problems
Enables “bad data” to be sent faster
Unreliable information can be very costly
• Purchase order rework
• Reloading of trailers
• Fines / chargebacks
Data Quality Framework Version 2.0

Trading partners need to develop a sustainable data quality program
to ensure reliable data is created by suppliers and maintained by
retailers
Complete …Standards-based…Consistent…Accurate…Time-based

©2008 GS1

Looking Forward

Continued momentum in adoption is anticipated in
2008/9
• 6 recently certified data pools getting active
• Data Pools are offering more services for their customers
• Continue overcoming challenges for implementation, including
interoperability, data quality, and internal business processes
• New growth opportunities in consumer electronics, mobile
commerce, healthcare

GDS Network in place … the standards are in place …
Data Pools are trusted resources for trading partners

©2008 GS1

Questions &
Answers
•Eva Maria Burian-Braunstorfer,
•GS1 Austria
•T +43 1 505 8601,
•W www.gs1.eu , www.gs1austria.at

Creating value through global e-business solutions

Recomendados

Recomendados

Más contenido relacionado

Destacado

Destacado (20)

Similar a Creating value through global e-business solutions

Similar a Creating value through global e-business solutions (20)

Más de ECR Community

Más de ECR Community (20)

Último

Último (20)

Creating value through global e-business solutions