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GS1 GDSN: ECR Asia Update 2008 Alan C. Hyler and Panel 15 October 2008 ECR Asia Agenda • • • • • © 2008 GS1 GDSN Overview – Mr. Alan C. Hyler GCI Japan Update – Ms. Mami Sou GS1 Taiwan Case Study – Ms. Eva Chang Future Look by 1SYNC – Mr. Luiz Martins Closing and Questions - Everyone 2 Introduction: What is data synchronisation? Synchronising master data Height Width Depth Weight Items per case Cases per pallet GTIN Supply side Product Database © 2008 GS1 = Height Width Depth Weight Items per case Cases per pallet GTIN Trading partners synchronising master data Demand side Product can rely on the information Database in their database 4 Why synchronise data? Without data synchronisation … Catalog Disparities Incorrect: 30% of item data To Correct: $60-$80 per error Cleanse: 25 minutes/SKU/year Invoice Errors Incorrect: 60% have errors Costs: 43% have deductions To Correct: $40-$400 to reconcile Lost Sales Opportunity Product Roll-In: 4 weeks on average Lost Sales: 3.5% due to inaccurate data Industry studies quantify the inefficiencies © 2008 GS1 With data synchronisation … Supply side • Time-to-shelf reduced by an average of 2 to 6 weeks • Order & item administration improved by 67% • Item data issues in sales process reduced by an average of 25% to 55% Demand side • Order & item administration improved by 50% • Coupon rejection at the checkout reduced by 40% • Data management efforts reduced by 30% • Improvement of on-shelf availability, with out-of-stock items reduced from 8% to 3% Industry studies quantify the benefits © 2008 GS1 GDSN creates benefits Increase value in logistics, accounting, customer service & inventory management • • • • • • • © 2008 GS1 Enhanced reporting, order tracking, & planning Simpler additions and changes Fewer complaints and disputes Better accuracy of orders, shipments, and receiving Lower logistics and labour costs Increased sales Much greater confidence in the information sent to and received from trading partners GDSN creates opportunities Enable innovative programmes, collaborative actions and new ways of working together • Make global sourcing a reality • Eliminate expensive redundancies in the IT system and internal business processes • Create the foundation for data sharing • Expand the supplier base • Put an end to many time-consuming processes and manual forms • Launch joint sales initiative programmes • Establish transparency in sourcing and pricing © 2008 GS1 The elements of global data synchronisation The three elements of GDS When combined, they provide a powerful environment for secure and continuous synchronisation of reliable data © 2008 GS1 Data Synchronisation (GDSN) Data Quality (DQF) Product Classification (GPC) Global Data Synchronisation Network Identification in the GDSN Within the GDSN, trade items are identified using a unique combination of GS1 identification keys, Global Trade Item Numbers (GTINs) and Global Location Numbers (GLNs), and GDSN identification keys, Target Market and Global Product Classification (GPC) © 2008 GS1 What is the GDSN? The GS1 Global Data Synchronisation Network connects trading partners via a network of interoperable GDSNcertified data pools and the GS1 Global registry Enables trading partners to share reliable master data © 2008 GS1 14 How the GDSN works © 2008 GS1 Data Quality Framework Good quality master data Good quality master data is: • Complete • Consistent • Accurate • Time-stamped • Based on industry standards © 2008 GS1 GS1 Data Quality Framework • A comprehensive best practice guide to help ensure the proper levels of data quality • A self-assessment procedure • to validate the existence and effectiveness of key • data management business processes may lead to a compliance statement • An inspection procedure to physically validate product attributes © 2008 GS1 Global Product Classification Global Product Classification GDSN uses GS1 Global Product Classification (GPC) • Ensures products are classified correctly and uniformly • Gives buyers and sellers a common language for grouping products in the same way, everywhere in the world © 2008 GS1 GPC and UNSPSC Under the leadership of the user community, GS1 is aligning GPC with another classification system managed by GS1 US, the United Nations Standard Products and Services Code - UNSPSC. UNSPSC is a global, multisector classification system supporting primarily spend analysis and procurement © 2008 GS1 Interoperability has already been established; the associated mapping tool will be available in Q4 2008 A powerful environment Global data synchronisation enables a single point of truth for master data in the supply chain © 2008 GS1 Data Synchronisation (GDSN) Data Quality (DQF) Product Classification (GPC) GDSN Today Solid Base of Standards in Place Business Messaging Standards Trade Item Synchronisation Extended Attributes Package Measurement Rules Cataologue 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 programme © 2008 GS1 Increased Adoption Momentum Items registered in the Global Registry 2,500,000 Trading Partners: from 200 in 2005 to 15,561 in 2008 2,000,000 Certified Data Pools: from 7 in 2005 to 23 in 2008 1,500,000 1,000,000 500,000 0 2004 © 2008 GS1 2005 2006 2007 2008 Broad Geographic Coverage = countries with local support for GDSN Global Reach – Local Reach Local support for GDSN in 50+ countries © 2008 GS1 The GDSN is in place The infrastructure is there… The standards are there… It is journey to get there, but the benefits are and will be substantial © 2008 GS1 27 Ms. Mami Sou GCI Japan Update Industry-wide GDS Implementation in Japan part 2 GCI Japan – GDS Working Group Much More Penetration in 2008? GDS Implementation Why? ? Internet Manufacturers Wholesalers from 4 to 16 from 4 to 6 © 2008 GS1 Retailers from 1 to 1 30 Agenda • What is GCI Japan? • Review GCI Japan’s Approach • Key Learning from 2007 – 2008 Activities • Current “Data Sync” in Japan © 2008 GS1 31 What is GCI Japan? Foundation • April, 2002 started as a voluntary GCI Study Group Mission and Objective • To build a more effective and efficient distribution system Member Companies (as of Jul. 2008) • 79 companies consists of manufacturers, wholesalers, retailers, and service providers 4 Working Groups • • • • EDI GDS Business Measure Future Value Chain GS1 Standard GCI Japan (FMCG users) GS1 Japan ( secretariat ) 4 WGs Local Needs © 2008 GS1 32 Review GCI Japan’s Approach DS 2004 SN 2003 Proof-of-concept Proof-of-concept Business Process Technical 2005 Pilot of G Global Registry virtual environment DSN 2006 Pilot of National Registry real environment 2007 Rising Sun 2007 © 2008 GS1 GDSN GO LIVE 33 First Target : “Rising Sun 2007” Step-by-step, Long Term Project 2002 2003 2004 Proof of Concept Proof of Concept Study Technic al Busine ss Proces s 2005 2006 Pilot of Pilot of real virtual environm ent environme nt 2007 - RisingSun 2007 Collaboration © 2008 GS1 34 Rising Sun 2007 : GO LIVE National Registry 2DPs : Planet, Bizmart Source Data Pool Recipient Data Pool For Manufacturer For Retailers Source Data Pool For Wholesalers Manufacturers Wholesalers 4 Companies 4 Companies © 2008 GS1 Retailers 1 Company 35 PLANs Before “Rising Sun 2007” Based on Complexity • 3-Tier + Fragmented Market + Manual Process Creating Industry-wide Readiness • Collaboration! Collaboration! Collaboration! among 3-Tier • Objective and Effective Approach on GDS – Main Objective – Overseas : Improve Accuracy of Product Catalog – Japan : Reduce Labor Cost among 3-Tier companies – Approach – Overseas : Start with Basic attribute (Several Dozens Attribute) – Japan : Start with Complete attribute (212 attribute) Establish Standard Management Process Roll out company-by-company with full attributes Not roll out attribute-by-attribute with all companies © 2008 GS1 36 Review GCI Japan’s Approach DS 2004 SN 2003 Proof-of-concept Proof-of-concept Business Process Technical 2005 Pilot of G Global Registry virtual environment DSN 2006 Pilot of National Registry real environment 2007 Rising Sun 2007 © 2008 GS1 GDSN GO LIVE 37 Lessons Learned in 2008 G Global Registry 2006 DSN National Registry Pilot of real environment 2007 Rising Sun 2007 GDSN © 2008 GS1 GO LIVE 38 Lessons Learned in 2008 2006 DSN National Registry Pilot of real environment 2007 Rising Sun 2007 GO LIVE G Global Registry © 2008 GS1 2008 Many things to do for more implementation GDSN 39 Why SLOW? Manufacturers Manual Processes Wholesalers Existing Common Product Database Required 3 Steps 1. More Companies which follows Standard Attributes, and more food safety attributes 2. Standard Way of Interchange 3. “GDSNization” Retailers Required 3 Steps 1. More Companies which can handle electronic sync 2. Standard Way of Interchange 3. “GDSNization” Manufacturers More Electronic Sync Wholesalers More Manufacturers and Wholesalers © 2008 GS1 Retailers 40 GDSN Model Transition Registry GDSN GDD Full GDSN 2007 Model Interim Step Global National NONE 2008 Pub/Sub ANY AS2 ANY XML Format ANY Attributes GTIN, GLN © 2008 GS1 41 2008 Interim Case - 1 Manufacturers Retailers Wholesalers National Registry 2008/12~:non-Registry Model Pub-Sub SDP XML RDP AS2 GDD Standard Attributes with GTIN, GLN © 2008 GS1 42 2008 Interim Case - 2 Manufacturers Wholesalers Retailers Retailers Retailers SDP ANY ANY ANY GDD Standard Attributes with GTIN, GLN © 2008 GS1 43 GCI Japan GDS-WG Focus Area in 2008 Main Objective : More Implementation <3 Focus Area> 1. For future Implementation • Develop RDP Business Model technically and financially for more retailers’ implementation • Develop SME model for more manufacturers’ implementation 2. For more early adopters from companies who know GDS • Develop GDS Benefit Calculator • Share Implementation Experience • Ensure Importance of Data Accuracy, especially Item Descriptions 3. For more adopters from “GDS beginner” companies • Conduct GDS Seminars continuously © 2008 GS1 44 GDS Implementation Guideline “How to use” 2 2 .マスタ項目一覧表の説明 • マスタ項目一覧表とは、GDSにおいてデータの受け渡し を行うための項目を定義したもの • 3 -2 -2 . 商品記述情報 <統一ルール> 「GDS商品名称項目 統一登録ルール」 Point • 3 -2 .項目の説明 3 2 -1 . マスタ項目一覧表とは マスタ項目一覧表とは、GDSにおいてデータの受け渡しを行うため の項目を定義したものです。 本ガイドラインでは、ヘッダーの項目の説明と、各項目の概要につ いて説明します。 <マスタ項目一覧イメージ> <商品名称の分解> 商品パッケージより名称項目を下記に分解を行います。 ①メーカー名 ②ブランド名 ③商品名 ④容器説明 ⑤内容量 次のような商品の場合は下記のように分解されます。 項目 酒類・加工食品 日雑 ヘッダ 商品 メーカー名 ブランド名 アサヒ 商品名 スーパードライ 容器説明 内容量 缶 350ml × 6 ユニリーバ ダヴ アドバンストダメージケア コン ディショナー 詰替え用 400ml 注意事項 ・メーカー名・・・メーカー政策で表示したくない場合は省略が可能です。 ・ブランド名・・・商品名と分解できる場合のみ分解します。 ※分解できない場合は商品名とする。 ・容器説明・・・同一商品で複数の容器形態がない場合は登録が不要 です。 ・内容量・・・パッケージに容量掲載がない場合は登録が不要です。 ※シュリンクパック商品は 単品容量 × 入数 で登録。 各項目 12 20 GCI Japan will issue this guideline for GCI Japan member companies. © 2008 GS1 45 Thank you very much For follow-up questions, please feel free to contact Mami Sou at [email protected] Ms. Eva Chang GS1 Taiwan Case Study GDSN in Taiwan Eva Chang GDSN project manager GS1 Taiwan 15 OCT. 2008 Outline • • • • • • © 2008 GS1 A brief introduction of GS1 Taiwan GDSN in Taiwan Case Study What We Have Learned Carrefour Case What you need to know 49 A brief introduction of GS1 Taiwan GS1 Taiwan established in 1985 formerly named EAN Taiwan and is the 23rd member organization in GS1 • BarCode Membership: 12,606 (22 Aug. 2008) • EPC membership:31 (22 Aug. 2008) © 2008 GS1 50 GDSN in Taiwan © 2008 GS1 • Helping trading partners to realize the benefits • Assist trading partners to find solutions to implement GDS • Make sure the implementation is fully in compliance with GDSN standard The environment for global data synchronization Standardized, reliable data for effective business transactions © 2008 GS1 Present status • Certified: 2005 • Service provider: GXS • Interoperability: Connecting with 3 certified GDSN DP • 1SYNC • Big Hammer • KOEB (Korea data pool) • Providing batch uploading service • Communicating GDSN with TW retailers to get more insights about it • Carrefour Asia, RT-Mart – Hyper Mart • 7-11, Family Mart- convenience Chain store © 2008 GS1 Milestones © 2008 GS1 # MILESTONE #1 TASKS Progress Date 1 GDSN service preparations Completed April 04 2 Data pool certified Completed May 05 3 The first Pilot run Completed with 1SYNC 2006 4 The uploading tool ready for use Upgrade with standards constantly 5 Data Pools connecting test Completed with KOEB Sep. 07 7 Data Pools connecting test Completed with Big Hammer Feb. 08 Case Study Lowe’s supplier in Taiwan © 2008 GS1 Background Project Case: Lowe’s GDS roll out project What GS1 Taiwan do? • helps Lowe’s suppliers in Taiwan understand the standard and benefits • GDSN on-boarding service © 2008 GS1 User Profile Clairhome International Inc, Profile: • Established in 1978 • Leading manufacturer and exporter of household hardware in Taiwan • Focus on foreign sales • Trading with Lowe’s for more than 10 years • Annual revenue: US$16,000K © 2008 GS1 Benefit revealing Immediate benefit: 1. The work flow of product data maintain is simplified 2. data modification is timely and consistently Gradual benefit: 1. The number of the synchronized GTIN with the specific retailer continues to grow • © 2008 GS1 From 80+ to 446 since 2006 till now 58 What we have learned • Training is a must • Should be held periodically • Internal data cleansing takes time and effort • First 40+ items take nearly 1 month to finish uploading • It’s a learning process for both ends • Not a turn key solution – Lowe’s Implementation Guide 140+ pages © 2008 GS1 Carrefour Case Carrefour Asia © 2008 GS1 Back Ground • Carrefour Group engage GDS activity • Carrefour France already have 636 suppliers live with Carrefour's solution • Price Synchronization for Carrefour France • Many Carrefour countries have already started local initiatives: Spain, Belgium, and Colombia with CABASNET • Carrefour Asia contact GS1 Taiwan for benefits and standards regards of GDS © 2008 GS1 The process of communication with Carrefour Asia 2007.10 2007.11 2007.12 2008.3 Special promotion of GLN application First Contact with Carrefour Asia POC plan discussion & Solution briefing Existing attributes Matching with GDSN POC plan proposal © 2008 GS1 Carrefour internal master data analysis Carrefour Taiwan situation analysis • After careful review of Carrefour Taiwan internal system layout and functionality, we found data maintenance within Carrefour Taiwan is done manually but also has multiple entry points Speed, cost and quality of data maintenance and data accuracy issues. • Hundred of thousands times master data update required each month • 10 full-time employees required for data maintenance. • Average life-spam short = Cost for training high © 2008 GS1 GDS POC scope/focus on helping Carrefour Taiwan in: • reduce the master data maintenance cost • Was the major priority for Carrefour Taiwan in the beginning • More and more potential benefits revealed after numerous discussions • “one source” of data = internal data alignment POC timeline and details TBD Once Project Completed, will have more benefits for Asia SME in the near future © 2008 GS1 What you need to know • GDSN is a new tool to improve the efficiency. • Need to gather more people to involved at the fist stage – To get the total consensus – To eliminate the roadblocks in the future © 2008 GS1 Contact Details GS1 Taiwan 4F, NO.10, LIN SEN S. RD., Taipei, Taiwan, R.O.C. T + 886 2 2393 9145 # 127 E [email protected] W www.gs1tw.org Data Synchronization Future Look Luiz Martins – 1SYNC Agenda • About 1SYNC • GDSN changing Business Practices • GDSN changing Consumer Experience © 2008 GS1 70 About 1SYNC™ • A not-for-profit subsidiary of GS1 US™; 1SYNC was formed in August 2005, through the combination of Transora and UCCnet • 1SYNC is the leader in establishing and promoting standards and tools for the GDSN with over 85% of the Global Registry activity • 1SYNC works with more than 5,000 leading manufacturers and retailers in 37 countries to synchronize supply chain data © 2008 GS1 Sampling of 1SYNC Customers © 2008 GS1 Vision for the Future of GDSN Short term – 1 to 2 years • • • • • Large corporations will have data sync as part of their business processes and leverage this data for critical mission activities Small and Medium business will engage and begin their data sync journey Large global retailers will have their data depending on GDS feed Large review on local attributes will be incorporated into standards Data quality will be a major issue in many different countries Mid term – 3 to 4 years • • • GDS Progress in markets around the world will continue unbalanced Some mature markets will have engaged significant SME community players from specific industries New services/functionalities will be available leveraging GDS data Long term – 5+ years • © 2008 GS1 No discussions on data sync but on additional services that leverage accurate data Changes with GDSN To Corporations © 2008 GS1 Streamlined Data Management Descriptions Categorization Technical Attributes Specification Sheets Images Promotional Info Editorial Content Shipping Terms SKU Number Pricing Product Associations Marketing Claims Safety Information Logistics Contract Information Units of Measure Physical Specs… © 2008 GS1 Looking Forward Nestlé will be “Managing Data As a Company Asset”! Peter Brabeck-Letmathe Chairman and CEO of Nestlé Group © 2008 GS1 GDSN Changing Business Practices • Sharing accurate information via the GDSN will be a business standard process required to operate in multiple markets and with multiple retailer customers • GDSN accelerates today the launch of new products, it will become a necessary platform for faster innovation • Agreement on standards will support complex reporting/comparison between multiple trading partners • It will be easy to monitor progress (or lack thereof) on specific issues, i.e. data quality, resupply time, product availability etc © 2008 GS1 77 GDSN Changing Business Practices • Improved shipping and storage methods • GDSN may provide the data platform for further collaboration on shipping and distribution (shared facilities and trucks) © 2008 GS1 78 Changes with GDSN To Consumers © 2008 GS1 GDSN Changing Consumer Behavior • After providing the B2B savings on logistic, invoicing, shortage costs, GDSN will simply enable B2C Solutions as a hub for rich and accurate content • Coupling GDSN capabilities and new technologies, organizations have the possibility to change costumer experience in a big way • Let’s look at 2 possibilities: © 2008 GS1 80 GDSN Changing Consumer Behavior • Massive distribution of accurate product data + internet • Accurate data will be available to consumers on websites. Orders will be more precise and accurate • Intelligent house appliances will use the GDSN data on RFID chips or scanning technologies to interact with retailers and manufacturers to auto-order products or request additional product information • GDSN data will interact with house appliances to prepare and store goods (temperature, cooking time, appliance settings etc) © 2008 GS1 81 GDSN Changing Consumer Behavior • Massive distribution of accurate product data + cell phones: • Cell phones will be able to incorporate full shopping lists from consumers • Cell phones will have the capability of scanning product bar codes and provide consumers with detailed product information • People with product restrictions (sugar, nuts etc) will be able to program their cell phones to warn them if products are not suitable for them • Cell phones will allow easy payment on store and via the internet • Cell phones with GPS will be able to locate products needed by consumers around the neighborhood or within a store • Cell phones could be used as marketing tools to advertise products and/or combine products (upsell) © 2008 GS1 82 Summary • Companies will change the way they manage data • Companies will use this data to impact consumers on different ways • Consumers will leverage new technologies using GDSN data • Consumers will benefit from new technologies coupled with GDSN data to make life & the shopping experience easier and simpler © 2008 GS1 83 Contact Details Luiz Martins [email protected] www.1SYNC.org Questions GS1 Global Office Avenue Louise 326, bte 10 B-1050 Brussels, Belgium T + 32 2 788 78 00 W www.gs1.org © 2008 GS1