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GS1 GDSN: ECR Asia Update 2008. Alan C. Hyler and Panel 15 October 2008 ECR Asia. Agenda. 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.

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Gs1 gdsn ecr asia update 2008

GS1 GDSN:ECR Asia Update 2008

Alan C. Hyler and Panel

15 October 2008

ECR Asia


Agenda

Agenda

  • 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


Introduction what is data synchronisation

Introduction:What is data synchronisation?


Synchronising master data

Synchronising master data

Demand side Product Database

Supply side Product Database

Height

Width

Depth

Weight

Items per case

Cases per pallet

GTIN

Height

Width

Depth

Weight

Items per case

Cases per pallet

GTIN

=

Trading partners synchronising master data can rely on the information in their database


Why synchronise data

Why synchronise data?


Without data synchronisation

Incorrect: 30% of item data

To Correct: $60-$80 per error

Cleanse: 25 minutes/SKU/year

Catalog

Disparities

Incorrect: 60% have errors

Costs: 43% have deductions

To Correct: $40-$400 to reconcile

Invoice

Errors

Product Roll-In: 4 weeks on average

Lost Sales: 3.5% due to inaccurate data

Lost

Sales

Opportunity

Without data synchronisation …

Industry studies quantify the inefficiencies


With data synchronisation

With data synchronisation …

  • Demand side

  • Order & item administration improved by 50%

  • Coupon rejection at the check-out reduced by 40%

  • Data management efforts reduced by 30%

  • Improvement of on-shelf availability, with out-of-stock items reduced from 8% to 3%

  • 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%

Industry studies quantify the benefits


Gdsn creates benefits

GDSN creates benefits

  • Increase value in logistics, accounting, customer service & inventory management

    • 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

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


The elements of global data synchronisation

The elements of global data synchronisation


The three elements of gds

Data Synchronisation (GDSN)

Data Quality (DQF)

Product Classification (GPC)

The three elements of GDS

When combined, they provide a powerful environment for secure and continuous synchronisation of reliable data


Global data synchronisation network

Global Data Synchronisation Network


Identification in the gdsn

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)


What is the gdsn

What is the GDSN?

The GS1 Global Data Synchronisation Network connects trading partners via a network of interoperable GDSN-certified data pools and the GS1 Global registry

Enables trading partners to share

reliable master data


How the gdsn works

How the GDSN works


Data quality framework

Data Quality Framework


Good quality master data

Good quality master data

  • Good quality master data is:

    • Complete

    • Consistent

    • Accurate

    • Time-stamped

    • Based on industry standards


Gs1 data quality framework

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


Global product classification

Global Product Classification


Global product classification1

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 productsin the same way, everywhere in the world


Gpc and unspsc

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.

Interoperability has already been established; the associated mapping tool will be available in Q4 2008

UNSPSC is a global, multi-sector classification system supporting primarily spend analysis and procurement


A powerful environment

Data Synchronisation (GDSN)

Data Quality (DQF)

Product Classification (GPC)

A powerful environment

Global data synchronisation enables a single point of truth for master data in the supply chain


Gdsn today

GDSN Today


Solid base of standards in place

Solid Base of Standards in Place

Business Messaging Standards

Trade Item Synchronisation

Extended Attributes

Package Measurement Rules

Cataologue Item Synchronisation

Data Quality Framework

Global Product Classification

Data Pool Certification

Price Synchronisation

and more …

Solid base of Standards and Guidelines in place

to build a reliable Master Data Management programme


Increased adoption momentum

Increased Adoption Momentum

Trading Partners:

from 200in 2005

to 15,561in 2008

Certified Data Pools:

from 7in 2005

to 23 in 2008


Broad geographic coverage

Broad Geographic Coverage

Global Reach – Local Reach

Local support for GDSN in 50+ countries


The gdsn is in place

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


Ms mami sou gci japan update

Ms. Mami SouGCI Japan Update


Industry wide gds implementation in japan part 2

Industry-wide GDS Implementation in Japanpart 2

GCI Japan – GDS Working Group


Much more penetration in 2008

Manufacturers

Wholesalers

Retailers

from 4 to 16

from 4 to 6

from 1 to 1

Much More Penetration in 2008?

GDS Implementation

Must be ..

Why??

Internet


Agenda1

Agenda

  • What is GCI Japan?

  • Review GCI Japan’s Approach

  • Key Learning from 2007 – 2008 Activities

  • Current “Data Sync” in Japan


What is gci japan

GS1 Standard

GS1 Japan

GCI Japan

4 WGs

(FMCG users)

( secretariat )

Local Needs

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


Review gci japan s approach

DS

SN

2004

2003

Proof-of-concept

Business Process

Proof-of-concept

Technical

2005

Pilot ofvirtualenvironment

G

2007

2006

Rising Sun 2007

Pilot ofreal environment

GO LIVE

Global Registry

Review GCI Japan’s Approach

DSN

National Registry

GDSN


First target rising sun 2007

First Target : “Rising Sun2007”

Step-by-step, Long Term Project

2002

2003

2004

2005

2006

2007 -

RisingSun

2007

Study

Proof of Concept

Technical

Proof of Concept

Business

Process

Pilot of virtual environment

Pilot of real environment

Collaboration


Rising sun 2007 go live

Rising Sun 2007 : GO LIVE

National Registry

2DPs : Planet, Bizmart

Source Data PoolFor Manufacturer

Recipient Data PoolFor Retailers

Source Data PoolFor Wholesalers

Manufacturers

Wholesalers

Retailers

4 Companies

4Companies

1Company


Plans before rising sun 2007

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


Review gci japan s approach1

DS

SN

2004

2003

Proof-of-concept

Business Process

Proof-of-concept

Technical

2005

Pilot ofvirtualenvironment

G

2007

2006

Rising Sun 2007

Pilot ofreal environment

GO LIVE

Global Registry

Review GCI Japan’s Approach

DSN

National Registry

GDSN


Lessons learned in 2008

G

2006

2007

Rising Sun 2007

Pilot ofreal environment

GO LIVE

Global Registry

Lessons Learned in 2008

DSN

National Registry

GDSN


Lessons learned in 20081

G

2006

2007

2008

Rising Sun 2007

Pilot ofreal environment

Many things to do

for more implementation

GO LIVE

Global Registry

Lessons Learned in 2008

DSN

National Registry

GDSN


Why slow

Why SLOW?

Manufacturers

Manual Processes

Wholesalers

Existing

Common Product Database

Retailers

Required 3 Steps

1. More Companies which follows Standard

Attributes, and more food safetyattributes

2. Standard Way of Interchange

3. “GDSNization”

Required 3 Steps

1. More Companies which can handle

electronic sync

2. Standard Way of Interchange

3. “GDSNization”

More Electronic Sync

Manufacturers

Wholesalers

Retailers

More Manufacturers and Wholesalers


Gdsn model transition

2007

Model

2008

InterimStep

Registry

National

NONE

Pub/Sub

ANY

AS2

ANY

XML Format

ANY

Attributes

GTIN, GLN

GDSN Model Transition

Full

GDSN

GDSN

Global

GDD


2008 interim case 1

2008 Interim Case - 1

Manufacturers

Retailers

Wholesalers

National Registry

2008/12~:non-Registry Model

Pub-Sub

SDP

RDP

XML

AS2

GDD Standard Attributes with GTIN, GLN


2008 interim case 2

2008 Interim Case - 2

Manufacturers

Retailers

Wholesalers

Retailers

Retailers

SDP

ANY

ANY

ANY

GDD Standard Attributes with GTIN, GLN


Gci japan gds wg focus area in 2008

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


Gds implementation guideline how to use

GDS Implementation Guideline “How to use”

GCI Japan will issue this guideline for GCI Japan member companies.


Thank you very much

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

Ms. Eva ChangGS1 Taiwan Case Study


Gdsn in taiwan

GDSN in Taiwan

Eva Chang

GDSN project manager

GS1 Taiwan

15 OCT. 2008


Outline

Outline

  • A brief introduction of GS1 Taiwan

  • GDSN in Taiwan

  • Case Study

  • What We Have Learned

  • Carrefour Case

  • What you need to know


A brief introduction of gs1 taiwan

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)


Gdsn in taiwan1

GDSN in Taiwan


Gs1 gdsn ecr asia update 2008

  • 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


Present status

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


Milestones

Milestones


Case study

Case Study

Lowe’s supplier in Taiwan


Background

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


User profile

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


Benefit revealing

Benefit revealing

Immediate benefit:

The work flow of product data maintain is simplified

data modification is timely and consistently

Gradual benefit:

The number of the synchronized GTIN with the specific retailer continues to grow

From 80+ to 446 since 2006 till now

58


What we have learned

What we have learned


Gs1 gdsn ecr asia update 2008

  • 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


Carrefour case

Carrefour Case

Carrefour Asia


Back ground

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


The process of communication with carrefour asia

2008.3

2007.12

2007.10

2007.11

Special promotion

of GLN application

First Contact with

Carrefour Asia

POC plan

discussion

&Solution briefing

Carrefour internal

master data analysis

Existing attributes

Matching with GDSN

POC plan proposal

The process of communication with Carrefour Asia


Carrefour taiwan situation 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


Gds poc scope focus on helping carrefour taiwan in

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


What you need to know

What you need to know


Gs1 gdsn ecr asia update 2008

  • 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


Contact details

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

Data SynchronizationFuture Look

Luiz Martins – 1SYNC


Agenda2

Agenda

  • About 1SYNC

  • GDSN changing Business Practices

  • GDSN changing Consumer Experience


About 1sync

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


Sampling of 1sync customers

Sampling of 1SYNC Customers


Vision for the future of gdsn

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

  • No discussions on data sync but on additional services that leverage accurate data


Changes with gdsn

Changes with GDSN

To Corporations


Gs1 gdsn ecr asia update 2008

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…


Looking forward

Looking Forward

Nestlé will be “Managing Data As a Company Asset”!

Peter Brabeck-Letmathe

Chairman and CEO of Nestlé Group


Gdsn changing business practices

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


Gdsn changing business practices1

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)

78


Changes with gdsn1

Changes with GDSN

To Consumers


Gdsn changing consumer behavior

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:

80


Gdsn changing consumer behavior1

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)

81


Gdsn changing consumer behavior2

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)

82


Summary

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

83


Contact details1

Contact Details

Luiz Martins

[email protected]

www.1SYNC.org


Questions

Questions

GS1 Global Office

Avenue Louise 326, bte 10

B-1050 Brussels, Belgium

T + 32 2 788 78 00

W www.gs1.org


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