DRIVE THE IMPLEMENTATION OF GLOBAL STANDARDS IN EUROPE

1. DRIVE THE IMPLEMENTATION OF GLOBAL STANDARDS IN EUROPE • The Standards • Status of implementation in Europe • Discussion GLOBAL DATA SYNCHRONISATION

2. The first global standard When? What? Why? 1202 1, 2, 3 arabic numbers Faster processing Further knowledge

3. Collaborative Insight & Product Development Benefits Collaborative Sales & Promotional Planning Collaborative Supply Chain Management Collaborative Transaction Management Data Synchronization Common Data Standards Time/Degree of Trust and Complexity Foundation First To enable tomorrow BetterConsumerResponse Shared Processes BetterCustomerService SharedInformation Reduced Costs SharedMasterData ReducedErrors Focus Today

4. GTIN = 3700123300380 A Common way of describing a product • Agree on a common set of attributes to describe products • For example: • Brand = Bajoz • Height = 35cm • Agree on common definition of attributes • ie Height is the distance from the base of the bottle • to the top of the bottle, including any foil or other top • covering, measured as a vertical distance

5. Data Pool One single source of product information Retailer Manufacturer Data Warehouse Data Warehouse • within a company, across • departments • business units • geographies • with the trade partners Production Finance &Accounting Finance &Accounting Merchandising Sales & Marketing Warehouse Warehouse POS to execute business processes

6. GlobalRegistry Registry Manufacturer DataPool DataPool Retailer Data Synchronisation Machine to Machine Communication - interoperable data pools Manufacturer Manufacturer Service/Solution Provider Manufacturer Manufacturer Service/Solution Provider Manufacturer Manufacturer Manufacturer Manufacturer Retailer Service/Solution Provider Manufacturer Manufacturer Retailer Manufacturer Manufacturer Retailer Retailer Manufacturer Retailer Retailer Service/Solution Provider Manufacturer Service/Solution Provider Retailer Retailer Manufacturer Retailer Service/Solution Provider Service/Solution Provider Retailer Service/Solution Provider Retailer Manufacturer Retailer Retailer Retailer Manufacturer Manufacturer Service/Solution Provider Manufacturer Manufacturer Service/Solution Provider Manufacturer Manufacturer Manufacturer Manufacturer Retailer Retailer Retailer Retailer Manufacturer Manufacturer Manufacturer Retailer Retailer Retailer Manufacturer Retailer Retailer Manufacturer Service/Solution Provider Retailer Retailer • enter once - used by all • reduce costs • reduce errors • reduce non value work • increase speed • increase sales and revenues

7. transport transport transport Manufacturers Distributors Continuous accurate exchange of information supplier of raw materials manufacturer retail warehouse consumer outlet goods receipt goods receipt goods receipt production control picking shelf management stock issue goods assurance stock issue picking check-out stock issue payment systems purchase management exchange / guarantee handling traceability

8. Continuous flow of information allows “Working Together to Fulfil Consumer Wishes Better, Faster and at Less Cost” … with a shared business process (OSA, CPFR, CRM…) leading to shared benefits across the Value Chain check-out Home shopping shelf management

9. GCI 2003 SCORECARD : % of European companies implementing Implementing Scale: 4: Completed, 3: Implementing, 2:Pilots, 1: Plan; 0: Nothing

10. Key barriers to implementation Mindset

11. Key barriers to implementation • Legacy system : • Not migrating to global standards Willingness to Change ? • It leads to: • Multiple solutions • High cost of data communication The inefficiency in the supply chain remains

12. Key barriers to implementation • Lack of standards • some standards not yet created (ieProduct Classification scheme for Merchandise ) • some standards keep changing : • 400 requests for change (since 2001) • 150 pending change requests • 17 published versions of the Global Data Dictionary (from Feb 2001 to June 2003)

13. Standards Require Time • Change requests work process at EAN International • A: simple change request 136 days • B: moderate change request 236 days • C: significant business impact 333 days …and there are 150 waiting!

14. Standards Require Time & Manpower End users involvement: all voluntary • Standard creation (from 136 to 333 days) • 32 representatives of manufacturers and retailers per group • 7 groups :Align, Order, Pay, Deliver, Plan etc. • and many subgroups: eg 7 subgroups for Align • Standard review before publication • eg Non food product classification • Standard implementation (9 to 24 months)

15. The Issues • Speed vs Complexity • Standards creation process  Users wait for finalisation before starting off  Others delay as the goalpost keeps moving Delays in achieving interoperability and gain in efficiency

16. From Blue Book to Pilots and Projects

17. Open Discussion • What is YOUR experience in standards implementation and piloting ? • What can ECR Europe do to simplify and speed up the standard adoption and implementation process? • What should ECR Europe show at ECR Conference in Brussels?

18. In Barcelona … we explain what GDS is In Berlin … we say it was time to roll GDS In Brussels … we will show how we implemented GDS

20. Route to GSMP: From multiple fragmented initiatives to one worldwide and coordinated initiative • 1990- 1996: National initiatives under EAN MOs leadership (in Europe and the rest of the world) • 1997: EAN International Initiative - Electronic Catalogues Projet Team (ECPT) • 1998 - 1999: ECR Europe Initiative on Inter-Operability of EAN Compliant Data Pools (IODP) • 1999 - 2000: EAN•UCC Initiative - Global Data Aligment System (GDAS) • 2000 - 2001: GCI - Global Data Synchronisation Initiative (GCI - GDS, GDD, Product Classification, etc.) - One world-wide initiative required and driven by Users • Since 2002: EAN•UCC GSMP / Align

22. B2B Marketplaces: Opportunities and barriers for SMEs Topic divided in 3 parts: • Awareness issues • Information issues • Trust issues