Measuring Your Success
Heidi Ho, Principle ConsultantGS1 Hong Kong
19th November, 2015
GS1 Hong Kong Supply Chain Management Excellence Summit
© GS1 Hong Kong 2015
Increased Impact of Consumer Technology
Adoption
Increase in Consumer Service Demands
Increased Importance of Health
and Wellbeing
Shoppers continue to become more empoweredusing technology. This drives significant changesin consumers’ behavior and buying behavior andnew levels of service demands.Shoppers want more healthy products and a healthierlifestyle
The Evolving Shopping Landscape
Source: Future Value Chain 2020, TCGF, Capgemini, HP, Microsoft
3
© GS1 Hong Kong 2015
• Consumer technology ... Changes lives of consumers Changes shopping journey Increases marketplace
transparency
• Consumers ... Demand personalized dialogues
and offerings anytime, anywhere Embrace technology quicker
than the industry Digital natives are increasingly
big consumer base
• Success will come when we understand how to
maintain a true dialogue with consumers via their preferred channels and
technologies
The Move
4
© GS1 Hong Kong 2015
Four Strategies
Source: Are You Ready? How to Create an Always-On, Always-Open Shopping Experience, Capgemini Consulting and GS1 US
High quality andtrusted (i.e., complete,accurate, timely)information andimages about theproducts and servicesthey sell.
Unique product code(GTIN) attributedcustomer information iscollected, stored andutilized to anticipateneeds based on pastbehaviors
Accuracy, location and inventory management by utilization of EPC-enabled RFID to create precision in the inventory accuracy.
Provide the customerwith the products theydesire via a consistentshopping, purchasingand fulfillment experience
6
© GS1 Hong Kong 2015
WEB READY PRODUCTS
Products are brought to market more rapidly throughenhanced attribute sharing. Retails are demanding highquality (i.e., complete, accurate, timely) information andimages about the products and services they sell. Thestated goal for all respondents is to improve the quality ofthe information and reduce the amount of time and laborrequired for their organization to bring an item to market.
How to React?
7
© GS1 Hong Kong 2015
• Data attribution: Items are accurately defined, easy to find and comparable through all channels.
• Images: Getting high-quality images of the products in a timely fashion is critical to their omni-channel strategy.
• Data accuracy and completeness: The omni-channel customer now expects that information—such as extended attributes, images and other value-added information—will be readily available and reliable.
• Online search management: The ability to more effectively present and refine presentations to the consumer, based upon historical preferences and algorithms and the items are uniquely identified.
8
Web-Ready Products
8
© GS1 Hong Kong 2015
Impact of the Bad Data
• 74% of consumers consider it important that product information is trustworthy
• 38% would not purchase the product if they did not trust the product information displayed about it on their smartphone
• 35% would never use an app again if it contained incorrect product information
• 26% would never use an app again if it contained no product information
• 91% of mobile barcode scans returned incorrect or incomplete product descriptions
9
© GS1 Hong Kong 2015
Importance of a Trusted Product Data Source
GS1 Trusted Data Repository
Barcode as the key data attribute
Retailer Platform A
E-tailer Platform B
Ecommerce Platform C
10
© GS1 Hong Kong 2015
PREDICTIVE CUSTOMER ANALYTICS
Attributed customer information is being collected, storedand utilized to anticipate needs based on past behaviors inan effort to enhance the continuity of the omni-channelexperience. Although the data security issues, retails faceare causing some challenges in this area, retails areutilizing the information in the form of targeted promotionsand offers or enhanced services for the life of the productsthey buy.
How to React?
11
© GS1 Hong Kong 2015
Customer Big Data
12
Today, over 5 billion barcodes are scanned everyday around the world. …
Global Trade Item Number (GTIN) – The unique product identifier
QR Code with GTIN embedded
12
© GS1 Hong Kong 2015
• eBay, Google and Walmart endorse GS1 Standard for Improving Online Commerce
Global eCommerce Players adopt GS1 Standard to facilitate trusted data source and big data analytics
“As we continue to create a seamless shopping experience across online, mobile and stores, we rely on accurate and consistent product information” said Jeremy King, Chief Technology Offier, Walmart Global eCommerce
“GS1 Standards have been invaluable in our efforts to improve the online shopping experience by harmonizing product data and eliminating inaccuracies.” said Eric Tholome, Product Management Director, Google Shopping
• Online Retailers Can Leverage Unique Identifiers & Structured DataGoogle filed a patent published on Oct 4, 2012, on aggregating product review information. “A product catalog includes information regarding products for sale online by various merchants, including product review information. An analysis module collects product reviews and determines whether each product review includes a product identifier, such as a Global Trade Item Number (“GTIN”)……”
13
© GS1 Hong Kong 2015
FULFILLMENT STRATEGY
Including physical and technological infrastructure. Tosupport the roll-out of the omni-channel consumerexperience, retails are revising processes, modernizingtechnologies and updating physical infrastructure. In fact,this area of focus received the most emphasis by therespondents. While the current status of their efforts variesbroadly, all respondents agreed that the goal is to providethe customer with the products they desire via aconsistent research, shopping, purchasing and fulfillmentexperience—regardless of channel or channels.
How to React?
14
© GS1 Hong Kong 2015
15
Fulfillment Logistics Challenges
Can system ready to manage online orders?
Multi-channel eCommerceorder placement
Can consumer track and trace delivery status?
Proof of delivery and on time delivery
How to appoint suitable local courier or freight forwarder for order delivery?
How to assign orders to courier and forwarder?
Flexible scheduling tool for order distribution and delivery
15
© GS1 Hong Kong 2015
DESTINATIONHONG KONGSOURCE
Supply
Manufactures 3PL Warehouse 3PL Retailers
Ports Ports Custom Demand
EPCDataflow
EPCDataflow
EPCDataflow
ezTrack Visibility Cloud (EPCIS Standard)Enab
ling
Infr
astr
uctu
re
Product Movement - What, Where, When, Why
Fulfilment Strategy - Traceability
16
© GS1 Hong Kong 2015
Consumer
Consumer can scan and retrieve e‐pedigree of the product to gain trust
Retailer to receive products with label for accelerating product receiving
End-to-end Traceability
Case Sharing:Fulfilment Strategy - Traceability
17
© GS1 Hong Kong 2015
Through the adoption of global traceability standards, DCHLogistics can monitor the entire visibility of the product flow toensure order fulfillment and traceability data well ahead.
PO StatusLocation StatusShipment Status
Reference screens:
Captured Information1. Birth Date2. Country of Birth3. Product4. Item Gross Weight5. Item Net Weight6. Harvest Date7. Supplier Batch Number8. Ship-Out Date9. Inbound Date to DCH HK
Processing Centre10. Storage Location
Case Sharing:Fulfilment Strategy - Traceability
18
© GS1 Hong Kong 2015
Temperature/ Humidity Tracking if Applicable
Riding on the global standards, DCH Logistics can furthermonitor the product quality (Temperature and Humidity) ifapplicable.
Case Sharing:Fulfilment Strategy - Traceability
19
© GS1 Hong Kong 2015
Enhance product traceability andboost business confidence
Enable data interoperability betweenstakeholders in their supply chain
Better management on supplierswithin the supply chain
Monitor the product quality in termsof Temperature and Humiditythroughout the supply chain
Increase shipment status visibility
Estimated Savings:2% higher supplier service
level10% less out of stock rate+ service fulfillment
Case Sharing:Fulfilment Strategy - Traceability
20
© GS1 Hong Kong 2015
INVENTORY VISIBILITY
Including accuracy, location and inventory management.Retails are building out systems and processes toaccurately track and manage inventory in the network.The desire among the majority of respondents was tomake this information of high enough quality/certainty toshare with the customer. The apparel industry is making abig push in the utilization of EPC-enabled RFID to createpinpoint precision in their inventory accuracy, in a morereal-time, dynamic way.
How to React?
21
© GS1 Hong Kong 2015
• Brick & Mortar Store• Website• Mobile devices• Interactive TV
Real-time Inventory Visibility
Omni-channel fulfilment complexity arise from MULTIPLE selling channelsand NUMEROUS shipment destinations
• It requires 100% inventory accuracy, which is supported by item-level tagging
EPC/RFID enabled Item Level Tagging is THE key enabler in OMNI-CHANNELfulfilment
• Telephone order• Direct Mail / Catalogue• Comparison shopping
sites
22
© GS1 Hong Kong 2015
Real-time Inventory Accuracy
23
Warehouse
RFID Tagged
Retail Shops
Real-time Inventory Accuracy
RFID Tagged
Most cost effective and efficient fulfillment to customers
23
© GS1 Hong Kong 2015
• Apparel 590+• FMCG 1,300+• F&B 2100+• Healthcare 550+
Hong Kong
Total 6,500+
© 2013 GS1 Hong K
(as of April 2013)
25
ABOUT GS1
TRUSTED BY THOUSANDS OF COMPANIES
25
© GS1 Hong Kong 2015
GS1 Supply Chain Maturity Model
Collaboration
Optimized
Integrated
Managed
Operational
Initial
A maturity model is a model that can measure the readiness/completeness of a system, an organization and so on.
GS1 Supply Chain Maturity Model:
To assess the readiness of supply chain in adoption of proven supply chain models and best practices
To provide a framework for companies to improve and facilitate adoption of proven supply chain models and best practices
29
Supp
ly C
hain
Mat
urity
Mod
el
© GS1 Hong Kong 2015
Measuring Your Success
GS1 Supply Chain Maturity Workshop
Schedule:5th Jan & 12th Jan, 201612th Apr & 19th Apr, 20167th Jul & 14th July, 2016
VTC NTTS EndorsedUp to 50% subsidy
30
© GS1 Hong Kong 2015
Thank you
GS1 Hong KongMs. Heidi HoE: [email protected]/ [email protected]: (852) 2863-9728/ 2861-2819F: (852) 2861-2423W: www.gs1hk.org
32