creating value through global e-business solutions

Creating Value through automated B2BECR Europe, Berlin, 29 May 2008 Eva Maria Burian-Braunstorfer,CEO GS1 Austria

©2007 GS1 US©2008 GS1 in Europe

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


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.


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


Collaboration is the key for success!

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Global Data Synchronization

An Interoperability Project between METRO Group and Nestlé

Urs-Ulrich Katzenstein (METRO Group) Bertold Ruffler (Nestlé Germany)

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=

Height

Width

Depth

Weight

Pieces/Package

Packages/Pallet

GTIN

…

Height

Width

Depth

Weight

Pieces/Package

Packages/Pallet

GTIN

…

Data Synchronization

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Impact on Value Chain

Productivity

Costs

Sales

Data Synchronization

Better product information, better consumer satisfaction

Maximize retail exposure and product posting

Optimize logistical handling and planning

Less administrative work

Reduce order / invoice / shipping discrepancies

Focus on core business instead of information

disputes

Focus on generating demand for product, growing business, fasterlistings

Nestlé METRO Group

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The History of Data Exchange

Unstructured MessagingCatalog, Listing, Mail, Fax, ...

Global Data Synchronization

Global EDIEANCOM

Data PoolsUDEX, SA2, 1SYNC ...

National EDITradacom, ...

Order

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Technical Architecture

Phase 1: External Phase

Phase 2: Internal Phase

Phase 3: GDS End to End Process

Data repository

IBM WPCMarket

extensions

MMS-CAT ERPSystems

Project Phases

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Project Phase 1 - External

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

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

Data repository

IBM WPCMarket

extensions

MMS-CAT ERPSystems

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Project Phase 2 - Internal

Participants: Nestlé, IBM, 1SYNC, SA2, METRO Group

Output: - Market Extension (SA2) in WPC, - Interface Nestlé-WPC & WPC-1SYNC, - METRO Group system set-up

Data repository

IBM WPCMarket

extensions

MMS-CAT ERPSystems

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Project Phase 3 - GDS End-to-End Process

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

Output: 1st Go-live with Cereal Partners Germany

Data repository

IBM WPCMarket

extensions

MMS-CAT ERPSystems

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Timelines

2004 2005 2006 2007 2008 2009

May 04Kick-off Meeting at ECR EUR Conference in Brussels

Decision points

Go-live dates

Alignment of internal systems

Dec 06First real-time data synchronizationAlignment of

data pools

GDS End-to-End ProcessStart of data synchronization

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Implementation Overview – Nestlé Germany Go Live Dates

GLN Nestlé Sales Orgs No of Items Date4005515000008 Cereal Partners 107 Dec 06

4013413000006 Milasan 70 May 074005501000005 Nestlé Professional Beverage 51 May 074005513000000 Benedict Lebensmittel 10 May 074005504000002 Nestlé Erzeugnisse 766 Aug 074005503000003 Nestlé Nutrition 504 Aug 07

4005507000009 Nestlé Professional Food 454 Oct 074000487000001 Nestlé Purina Pet Care 436 Nov 074005505000001 Maggi 1,090 Dec 074026800000008 Nestlé Waters 165 Feb 08

Total 3,653

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Success Factors • Data pool synchronization• System integration

• GDSN

• Business Case• Open for others

• Guiding principles

• Training• Change Management

• Roles & responsibilities

• Data quality• Data policies• Data ownership• International standards

• Single source of data• Collaboration• Alignment• Reporting

Value Chain Integration

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Benefits

METRO Group

Single point of contact

Fully integrated systems

Reliable data for supply chainSimplify and enhance reportingDecrease invoice disputes

Nestlé1SYNC as Nestlé´s Home Data Pool

Single Point of Data Entry

Fully integrated in existing environment – one solution for all Nestlé markets

Single payment

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Outlook METRO Group

GDSN implementationLive

Germany

Start by Q3

RussiaUnited Kingdom Poland

Tests 06 / 2008 Tests 06 / 2008

Trading Partners

Start by Q3 Start by Q3

Live

Other trading partners:

Testing

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Outlook Nestlé

GDSN implementation

Trading Partners

ItalyUK

Poland

Russia Spain

France

Belgium Switzerland

Q1/09

Q2/08Q3/08Q4/08 Q4/08

Q3/08

Q1/09

http://images.google.de/imgres?imgurl=http://www.wolfcraft.ch/wpix/ch/flagge_italien.gif&imgrefurl=http://www.wolfcraft.ch/&h=256&w=384&sz=3&hl=de&start=7&tbnid=FLzlHTR8Qz6H4M:&tbnh=82&tbnw=123&prev=/images%3Fq%3DFlagge%2BItalien%26gbv%3D2%26hl%3Dde

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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:

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Contacts

METRO Group

Urs-Ulrich Katzenstein Head of Master Data Exchange E-Mail: [email protected]

Nestlé

Bertold Ruffler Head of Master Data Germany E-Mail: [email protected]

Or any GS1 organization

mailto:[email protected]

mailto:[email protected]

Moving quickly towards Fast Perfect Order (through EDI & GDS)

ECR Forum – Berlin 2008

Berlin, 29th May 2008

Storyline

New process implementation: the “Before Vs After” picture

GDS & EDI integration: a successful synergy

KPI and benefits measurement

Next steps

Key Learning & Deliverables

Main Topics Agenda

Storyline

Classic effectiveness & efficiency targets

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

Traditional transaction EDI

EDI + GDS

Integration

Effi

cien

cy

Effe

ctiv

enes

s

From Traditional Order To Cash To EDI

As it was…Manual Order

Generation

Order Printing

Order Sent via Fax

Manual InvoiceControl

Manual InvoiceRegistration

Manual Order Typing

Invoice Printing

Paper InvoiceMailing


First Step

EDI OrderProcessing

in ERP

EDI Sales OrderConfirmation 1°

Invoice Printing

Paper Invoice Mailing

EDI OrderGeneration

Manual InvoiceControl

Manual InvoiceRegistration


Second Step

EDI

EDI OrderGeneration

EDI OrderProcessing

in ERP

EDI InvoiceRegistration

EDI Sales OrderConfirmation 1°& 2°

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 DataThe time needed to manage the information within Coopwas about 20 min per documentInformation on products communicated by different means, such as fax, mail, phone...EDI Orders could be in error status due to Master Data mismatchesImprecise 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 ofimprovements

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

Itemintroduction

Product analysis Completion

StoreProduct

info

Edit &Publish

DetailsPartiallysent viae-mail

CategoryDept.:

briefing

approval

further requests

Kraft Sales Dept.:

completeproductinformationretrieval &transmission

Category Dept.:

Infocollection

doc sent to Assistant

Manualediting

Info to Affiliates

1W 1W 2DD

New process implementation

Itemintroduction

Product analysis Completion

StoreProduct

info

Edit &Publish

All details via GDS

CategoryDept.: access to all info via GDS-Pim (exc.Price)approval via Pim

Kraft Sales Dept.:

completeproductinformationretrieval &transmission

Category Dept.:

Infocollection

doc sent to Assistant

access to all info via GDS-Pim (exc. Price)

approval via Pim

1W 1W

Steps of the process > From 5 to 3

1DD

GDS+EDI: a successful synergy

During the Listing process, information requests andmanual typing delays are eliminated

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

Orders and Invoices are based on complete and alignedMaster Data features

GDS KPI’s:GDS assures quality checks: the supplier needsto cleanse his Master Data to avoid technical blocksMaster 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 savingMaster Data harmonization, no template to fill

GDS KPI’s Measurements:

Data Consistency% item data with Correspondentattribute in KraftCoop Master data

Time to market (dd)Time needed for aproduct to be storedinto master data

ParametersTime to market is related to all the activities of the process (eg. Sendinformation, Manual data entry, paper production)

50% of timesaving

Data qualityIncrease

100%

75%

50%

25%

0%

21

14

7

0

27%

16 8

Source: Coop assessment

Focus on consistency

Parameters1/3 of total product as sample15 common critical attributes

Gtin Consumer unitNet content

Product DescriptionSupplier internal code

Each in a TITI per layer

Layers per palletTI per pallet

Gtin CaseTrade item Weight

Packaging (Trade Item)Total Shelf life

Trade item VolumePackaging (C.U.)

Each Volume

100100100989693878578504631242117

Source: Coop assessment

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 everythingbecomes “0”!

Project timingKraft joins Coop into GDS ....

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

2ndQ2006

3thQ2006

4thQ2006

1stQ2007

2ndQ2007

3thQ2007

4thQ2007

Next Steps

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

Complete adoption of the new processes by SalesManagers (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

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

2

Content

BtoB

Strategy

Examples of achievements

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Carrefour BtoB figures per year

>2M Products Sourced

>150MEDI Messages

>60B€*Merchandise Purchase

>60 000 Merchandise Suppliers

>30M Invoices

Carrefour Overview

* Without Tax

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BtoB: key link for better collaboration

Supplier

RetailerEnsure OnEnsure On--ShelfShelfAvailabilityAvailability

Manage CommercialManage CommercialTransactionsTransactions

Grow our Grow our BusinessBusiness

• Joint Business Plan• Scorecard• DataSharing Merchandise• DataSharing Client

• EDI Order• EDI – Dispatch / Reception• EDI - Invoice• Payment report/advance

• DataSharing Operational

• EDI Sales/Inventory

Speak the same Speak the same LangageLangage

• Standards

• Master Data

• BtoB Portal

Optimize Optimize Assortment Assortment and Priceand Price

• eSourcing

• Private labels development

• Quality tests Private labels

• Auctions

BtoB Strategy

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3 levels of BtoB Integration

Entry Ticket

Structured and standardized processes

Static/Aggregated Information : indicators

Advanced Collaboration

Medium Level of Integration

Transactional Information by sku / DC / week

Strategic Partnership

High Level of Integration with Shared Responsibilities

Transactional Information by sku / store / day

Associated to results commitment on turnover and margin for the category

80% of suppliers

20% of suppliers

20 int’l suppliers

BtoB Strategy

6


2008-2010 : 7 priorities

BtoB Strategy

7

6

5

4

3

2

1


FinanceDeploy solutions for payment report and advance


Supply ChainBuying

Implement Operational DataSharing

Entry TicketSupply Chain Buying

Systematically share performance scorecards

Entry TicketBuyingRelaunch use of reverse auctions and develop eSourcing for Indirects

Entry TicketSupply ChainFinance

Finalise dematerialization of orders and invoices (EDI messages)

Entry TicketAdvanced

Collaboration

Master DataDeploy Data Synchronization

Entry TicketMaster DataImplement the supplier portal « CarrefourNet »

Integration LevelDomain

7

6

5

4

3

2

1


FinanceDeploy solutions for payment report and advance


Supply ChainBuying

Implement Operational DataSharing

Entry TicketSupply Chain Buying

Systematically share performance scorecards

Entry TicketBuyingRelaunch use of reverse auctions and develop eSourcing for Indirects

Entry TicketSupply ChainFinance

Finalise dematerialization of orders and invoices (EDI messages)

Entry TicketAdvanced

Collaboration

Master DataDeploy Data Synchronization

Entry TicketMaster DataImplement the supplier portal « CarrefourNet »

Integration LevelDomain


7

Content

BtoB

Strategy


8


Standards - Data Quality vision

Supplier

Retailer

Data Quality

DataSync


9


BtoB Portal - sharing our strategy


10


GDS - foundation for collaborations

S

S

S

R

R

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DESCRIPTIONDESCRIPTION

MARKETINGMARKETING

LOGISTICSLOGISTICS

CONTENTCONTENT

DESCRIPTIONDESCRIPTION

MARKETINGMARKETING

LOGISTICSLOGISTICS

CONTENTCONTENTStandard DataModel

Standard messages andinfrastructure


Carrefour figures on Standard DataSync

160 suppliers in France, 280 suppliers in Columbia

Roll-out plan for Europe

Over 10B€ sales managed

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EDI – towards operational excellence

Carrefour figures on EDI

15 EDI messages used in 18 countries

Over 150M messages per year

Over 90% orders in value through EDI (Food)


MASTER DATAMERCHANDISE RETURN

ORDER PRODUCTS

DISPATCH ADVICE

INVOICING

RECEIVING PROCESS

MASTER DATAMERCHANDISE RETURN

ORDER PRODUCTS

DISPATCH ADVICE

INVOICING

RECEIVING PROCESS

RELIABLERELIABLE

SUPPLY SUPPLY -- CHAINCHAIN

12


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

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

©2008 GS1

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 and Guidelines in place to build a reliable Master Data Management program

Solid base of standards in place

Package Measurement Rules

Trade Item SynchronisationBusiness Messaging Standards

Data Pool Certification

Data Quality Framework

Price Synchronisation

Catalogue Item Synchronisation

Global Product Classification

Extended Attributes

and more …

©2008 GS1

Increased momentum towards adoption

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2004 2005 2006 2007 2008

Items registered in the Global Registry

Trading Partners: from 200 in 2005 to 15,400 in 2008

Certified Data Pools: from 7 in 2005 to 23 in 2008

©2008 GS1

Global Reach – Local ReachLocal support for GDSN in 50+ countries

Broad geographic coverage

= countries with local support for GDSN

©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 ImplementationProject 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 placeBreakthrough in Data Pool Interoperability

Data Quality and Business Process Improvements

©2008 GS1

About Data Quality…

GDS reveals data problemsEnables “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

retailersComplete …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

Questions & Answers

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

http://www.gs1.eu/

http://www.gs1austria.at/