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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. 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

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

  2. 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

  3. Introduction:What is data synchronisation?

  4. 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

  5. Why synchronise data?

  6. 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

  7. 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

  8. 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

  9. 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

  10. The elements of global data synchronisation

  11. 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

  12. Global Data Synchronisation Network

  13. 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)

  14. 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

  15. How the GDSN works

  16. Data Quality Framework

  17. Good quality master data • Good quality master data is: • Complete • Consistent • Accurate • Time-stamped • Based on industry standards

  18. 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

  19. Global Product Classification

  20. 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

  21. 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

  22. 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

  23. GDSN Today

  24. 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

  25. Increased Adoption Momentum Trading Partners: from 200in 2005 to 15,561in 2008 Certified Data Pools: from 7in 2005 to 23 in 2008

  26. Broad Geographic Coverage Global Reach – Local Reach Local support for GDSN in 50+ countries

  27. 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

  28. Ms. Mami SouGCI Japan Update

  29. Industry-wide GDS Implementation in Japanpart 2 GCI Japan – GDS Working Group

  30. 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

  31. Agenda • What is GCI Japan? • Review GCI Japan’s Approach • Key Learning from 2007 – 2008 Activities • Current “Data Sync” in Japan

  32. 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

  33. 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

  34. 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

  35. 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

  36. 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

  37. 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

  38. G 2006 2007 Rising Sun 2007 Pilot ofreal environment GO LIVE Global Registry Lessons Learned in 2008 DSN National Registry GDSN

  39. 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

  40. 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

  41. 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

  42. 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

  43. 2008 Interim Case - 2 Manufacturers Retailers Wholesalers Retailers Retailers SDP ANY ANY ANY GDD Standard Attributes with GTIN, GLN

  44. 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

  45. GDS Implementation Guideline “How to use” GCI Japan will issue this guideline for GCI Japan member companies.

  46. Thank you very much For follow-up questions, please feel free to contact Mami Sou at dsh04@dsri.jp

  47. Ms. Eva ChangGS1 Taiwan Case Study

  48. GDSN in Taiwan Eva Chang GDSN project manager GS1 Taiwan 15 OCT. 2008

  49. Outline • A brief introduction of GS1 Taiwan • GDSN in Taiwan • Case Study • What We Have Learned • Carrefour Case • What you need to know

  50. 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)

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