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

GS1 GDSN:ECR Asia Update 2008

Alan C. Hyler and Panel

15 October 2008

ECR Asia

© 2008 GS1

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

2

Introduction:What is data synchronisation?

© 2008 GS1

Demand side Product

Database

Supply side Product

Database

Synchronising master data

4

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?

© 2008 GS1

Without data synchronisation …

Invoice

Errors

Incorrect: 60% have errors

Costs: 43% have deductions

To Correct: $40-$400 to reconcile

Lost

Sales

Opportunity

Product Roll-In: 4 weeks on average

Lost Sales: 3.5% due to inaccurate data

Catalog

Disparities

Incorrect: 30% of item data

To Correct: $60-$80 per error

Cleanse: 25 minutes/SKU/year

Industry studies quantify the inefficiencies

© 2008 GS1

With data synchronisation …

Industry studies quantify the benefits

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%

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%

© 2008 GS1

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

© 2008 GS1

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

© 2008 GS1

The three elements of GDS

Data Quality (DQF)

Product Classification (GPC)

Data Synchronisation (GDSN)When combined, they provide a

powerful environment for

secure and continuous

synchronisation of reliable data

Global Data Synchronisation

Network

© 2008 GS1

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)

© 2008 GS1

What is the GDSN?

14

Enables trading partners to share

reliable master data

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

© 2008 GS1

How the GDSN works

Data Quality Framework

© 2008 GS1

Good quality master data

Good quality master data is:• Complete

• Consistent

• Accurate

• Time-stamped

• Based on industry standards

© 2008 GS1

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

© 2008 GS1

GDSN uses GS1 Global Product Classification (GPC)

• Ensures products are classified correctly and uniformly

• Gives buyers and sellers a common language for grouping products in the same way, everywhere in the world


© 2008 GS1

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

© 2008 GS1

A powerful environment

Data Quality (DQF)

Product Classification (GPC)

Data Synchronisation (GDSN)Global data

synchronisation enables a single point of truth for

master data in the supply chain

GDSN Today

© 2008 GS1

Solid base of Standards and Guidelines in place

to build a reliable Master Data Management programme

Solid Base of Standards in Place

Package Measurement Rules

Trade Item SynchronisationBusiness Messaging Standards

Data Pool Certification

Data Quality Framework

Price Synchronisation

Cataologue Item Synchronisation


Extended Attributes

and more …

© 2008 GS1

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 RegistryTrading Partners: from 200 in 2005 to 15,561 in 2008

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

Increased Adoption Momentum

© 2008 GS1

Broad Geographic Coverage

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

= countries with local support for GDSN

© 2008 GS1

The GDSN is in place

27

The infrastructure is there…

The standards are there…

It is journey to get there, but the benefits are and will be substantial

Ms. Mami SouGCI Japan Update

Industry-wide GDS Implementation in

Japanpart 2GCI Japan – GDS Working Group

© 2008 GS130

Internet

GDS Implementation

Must be ..

Why??

from 4 to 16 from 4 to 6 from 1 to 1

Manufacturers Wholesalers Retailers

Much More Penetration in 2008?

© 2008 GS131

Agenda

• What is GCI Japan?

• Review GCI Japan’s Approach

• Key Learning from 2007 – 2008 Activities

• Current “Data Sync” in Japan

© 2008 GS132

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

What is GCI Japan?

GCI Japan

4 WGs

GS1 Japan(FMCG users) ( secretariat )

Local Needs

GS1 Standard

© 2008 GS133

Review GCI Japan’s Approach

GDSN

GGlobal Registry

DSN National Registry

Pilot of virtual environment

2005

DSProof-of-concept

Business Process

2004 SNProof-of-concept

Technical

2003

Pilot of real environment2006

Rising Sun 2007Rising Sun 20072007

GO LIVE

© 2008 GS134

First Target : “Rising Sun 2007”

2005 2006 2007 -200420032002

Study

Pilot of

virtual environment

　

Proof of Concept

Technical

Step-by-step, Long Term Project

Proof of Concept

BusinessProcess

Pilot of real

environment

RisingSun RisingSun

20072007

Collaboration

© 2008 GS135

Rising Sun 2007 : GO LIVE

National Registry

Source Data PoolFor Manufacturer

Source Data PoolFor Wholesalers

Recipient Data PoolFor Retailers

2DPs : Planet, Bizmart

4 Companies 4 Companies 1 Company


© 2008 GS136

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 ProcessRoll out company-by-company with full attributes

Not roll out attribute-by-attribute with all companies

© 2008 GS137

Review GCI Japan’s Approach

GDSN

DSN


GGlobal Registry

DSProof-of-concept

Business Process

2004 SNProof-of-concept

Technical

2003

Pilot of virtual environment

2005

Pilot of real environment2006

GO LIVE

National Registry

© 2008 GS138

Lessons Learned in 2008

DSNPilot of real environment

2006


GO LIVE

GGlobal Registry

National Registry

GDSN

© 2008 GS139

Lessons Learned in 2008

GDSN

GGlobal Registry

DSNPilot of real environment

2006


GO LIVE

National Registry

Many things to do for more implementation

2008

© 2008 GS140

Manufacturers

Wholesalers

Retailers

Why SLOW?

Manufacturers

Wholesalers

Retailers

Existing Common Product Database

Manual Processes

Required 3 Steps1. More Companies which can handle electronic sync2. Standard Way of Interchange3. “GDSNization”

Required 3 Steps

1. More Companies which follows Standard Attributes, and more food safety attributes2. Standard Way of Interchange3. “GDSNization”

More Manufacturers and Wholesalers

More Electronic Sync

© 2008 GS141

GDD

GDSNAS2

XML Format

Attributes

GTIN, GLN

Pub/Sub

Registry

GDSN Model Transition

Global

Full

GDSN

National

2007

Model

2008Interim

Step

ANY

ANY

ANY

NONE

© 2008 GS142

2008 Interim Case - 1

SDP RDPＸＭＬ

ＡＳ２

Pub-Sub


GDD Standard Attributes with GTIN, GLNGDD Standard Attributes with GTIN, GLN

National Registry

2008/122008/12～：～： non-Registry Modelnon-Registry Model

© 2008 GS143

RetailersRetailers

2008 Interim Case - 2

SDP


GDD Standard Attributes with GTIN, GLNGDD Standard Attributes with GTIN, GLN

ANYANYANY

© 2008 GS144

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

© 2008 GS145

12

2．マスタ項目一覧表の説明2-1. マスタ項目一覧表とは

• マスタ項目一覧表とは、GDSにおいてデータの受け渡しを行うための項目を定義したものです。

• 本ガイドラインでは、ヘッダーの項目の説明と、各項目の概要について説明します。

PointPointPoint

• マスタ項目一覧表とは、GDSにおいてデータの受け渡しを行うための項目を定義したもの

2

＜マスタ項目一覧イメージ＞ヘッダ

各項目

12

2．マスタ項目一覧表の説明2-1. マスタ項目一覧表とは

• マスタ項目一覧表とは、GDSにおいてデータの受け渡しを行うための項目を定義したものです。

• 本ガイドラインでは、ヘッダーの項目の説明と、各項目の概要について説明します。

PointPointPoint

• マスタ項目一覧表とは、GDSにおいてデータの受け渡しを行うための項目を定義したもの

2

＜マスタ項目一覧イメージ＞ヘッダ

各項目

20

3-2．項目の説明3-2-2. 商品記述情報＜統一ルール＞

＜商品名称の分解＞商品パッケージより名称項目を下記に分解を行います。

①メーカー名②ブランド名③商品名④容器説明⑤内容量

次のような商品の場合は下記のように分解されます。

3

「ＧＤＳ商品名称項目統一登録ルール」

項目酒類・加工食品日雑

商品

メーカー名アサヒユニリーバブランド名ダヴ

商品名スーパードライアドバンストダメージケアコンディショナー

容器説明缶詰替え用内容量３５０ｍｌ× ６４００ｍｌ

注意事項・メーカー名・・・メーカー政策で表示したくない場合は省略が可能です。・ブランド名・・・商品名と分解できる場合のみ分解します。

※分解できない場合は商品名とする。・容器説明・・・同一商品で複数の容器形態がない場合は登録が不要です。

・内容量・・・パッケージに容量掲載がない場合は登録が不要です。※シュリンクパック商品は単品容量 × 入数で登録。

20

3-2．項目の説明3-2-2. 商品記述情報＜統一ルール＞

＜商品名称の分解＞商品パッケージより名称項目を下記に分解を行います。

①メーカー名②ブランド名③商品名④容器説明⑤内容量

次のような商品の場合は下記のように分解されます。

3

「ＧＤＳ商品名称項目統一登録ルール」

項目酒類・加工食品日雑

商品

メーカー名アサヒユニリーバブランド名ダヴ

商品名スーパードライアドバンストダメージケアコンディショナー

容器説明缶詰替え用内容量３５０ｍｌ× ６４００ｍｌ

注意事項・メーカー名・・・メーカー政策で表示したくない場合は省略が可能です。・ブランド名・・・商品名と分解できる場合のみ分解します。

※分解できない場合は商品名とする。・容器説明・・・同一商品で複数の容器形態がない場合は登録が不要です。

・内容量・・・パッケージに容量掲載がない場合は登録が不要です。※シュリンクパック商品は単品容量 × 入数で登録。

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

GDS Implementation Guideline “How to use”

Thank you very much

For follow-up questions, please feel free to contact

Mami Sou at [email protected]

Ms. Eva ChangGS1 Taiwan Case Study

GDSN in Taiwan

Eva ChangGDSN project managerGS1 Taiwan15 OCT. 2008

© 2008 GS149

Outline

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

© 2008 GS150

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)

© 2008 GS1

GDSN in Taiwan

© 2008 GS1

• 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 synchronizationThe environment for global data synchronizationStandardized, reliable data

for effective business transactions

© 2008 GS1

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

© 2008 GS1

Milestones

# MILESTONE #1 TASKS Progress Date

1 GDSN service preparations Completed April 04

2 Data pool certified Completed May 05

3 The first Pilot run Completed with 1SYNC 2006

4 The uploading tool ready for use Upgrade with standards constantly

5 Data Pools connecting test Completed with KOEB Sep. 07

7 Data Pools connecting test Completed with Big Hammer

Feb. 08

© 2008 GS1

Case Study

Lowe’s supplier in Taiwan

© 2008 GS1

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

© 2008 GS1

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

© 2008 GS158

Benefit revealing

Immediate benefit:1. The work flow of product data maintain is simplified2. data modification is timely and consistently

Gradual benefit:1. The number of the synchronized GTIN with the

specific retailer continues to grow• From 80+ to 446 since 2006 till now

What we have learned

© 2008 GS1

• 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

© 2008 GS1

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

© 2008 GS1

The process of communication with Carrefour Asia

First Contact with

Carrefour Asia

2007.10

POC plan

discussion

&Solution briefing

2007.11 2007.12 2008.3

Special promotion

of GLN application

POC plan proposal

Carrefour internal

master data analysisExisting attributes

Matching with GDSN

© 2008 GS1

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

© 2008 GS1

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

© 2008 GS1

• 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

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 SynchronizationFuture Look

Luiz Martins – 1SYNC

© 2008 GS1

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

© 2008 GS1

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

Vision for the Future of GDSN

© 2008 GS1

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…

Streamlined Data Management

© 2008 GS1

Looking Forward

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

Peter Brabeck-LetmatheChairman and CEO of Nestlé Group

© 2008 GS177

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

© 2008 GS178

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)

© 2008 GS180

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:

© 2008 GS181


• 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)

© 2008 GS182


• 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)

© 2008 GS183

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

Contact Details

Luiz Martins

[email protected]

www.1SYNC.org

© 2008 GS1

Questions

GS1 Global Office

Avenue Louise 326, bte 10

B-1050 Brussels, Belgium

T + 32 2 788 78 00

W www.gs1.org

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

Documents

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