Moving quickly towards Fast Perfect Order (through EDI & GDS) Customer Service Manager, Kraft Foods Italia March 2010

Transcription

1 Moving quickly towards Fast Perfect Order (through EDI & GDS) Renato Di Ferdinando Renato Di Ferdinando Customer Service Manager, Kraft Foods Italia March 2010

2 Main Topics Agenda Storyline New process implementation: ti the Before Vs After picture GDS & EDI integration: a successful synergy KPI and benefits measurement Next steps Key Learning & Deliverables

3 Storyline Classic effectiveness & efficiency targets Traditional transaction EDI EDI + GDS To improve service guaranteed to cooperatives by Coop Customer collaboration: the starting point for new projects

4 From Traditional Order To Cash To EDI Manual Order Generation Order Printing As it was Manual Order Typing Order Sent via Fax Manual Invoice Control Manual Invoice Registration Invoice Printing Paper Invoice Mailing

5 From Traditional Order To Cash To EDI First Step EDI Order Generation EDI Order Processing in ERP Manual Invoice Control Manual Invoice Registration EDI Sales Order Confirmation 1 Invoice Printing Paper Invoice Mailing

6 From Traditional Order To Cash To EDI Second Step EDI Order Generation EDI Order Processing in ERP EDI EDI Invoice Registration EDI Sales Order Confirmation 1 & 2 EDI Invoice

7 From Traditional Order To Cash To EDI Main features of EDI roll-out Order and Order Confirmation: regular implementation of standard messages Sales Order Confirmation focus: upgrade with communication of amended quantities EDI Invoice: the electronic flow reaches completion Credit Note & Debit Note messages are coming soon

8 EDI Outstanding Issues The flow was electronic but... Product details were manually keyed into both Master Data The time needed to manage the information within Coop was about 20 min per document Information on products communicated by different means, such as fax, mail, phone... EDI Orders could be in error status due to Master Data mismatches Imprecise item details lead to a deterioration of invoice accuracy

9 GDS: The Missing Link A review of obsolete processes: not only a technical tool, but the base to improve performance Full awareness of the process across all functions New KPI sharing to assure common understanding of improvements Reduction of IT systems redundancy: all relevant info on a single site Shorter product introduction Lead Time Less time spent on complaints/disputes: Invoice Accuracy, Order Accuracy, y, Returns

10 Before GDS implementation: critical areas 1W 1W 2DD Item introduction Product analysis Completion Store Product info Edit & Publish details partially sent via category dept.: briefing approval further requests kraft Sales dept.: complete product information retrieval & transmission category dept.: info collection doc sent to assistant manual editing info to affiliates

11 New process implementation Steps of the process > From 5 to 3 1W 1W 1DD Item introduction Product analysis Completion Store Product info Edit & Publish all details via GDS category dept.: access to all info via GDS- Pim approval via Pim Kraft Sales Dept.: complete product information retrieval & transmission Category Dept.: Info collection doc sent to Assistant Items info self storage Info to affiliates

12 GDS+EDI: a successful synergy During the Listing process, information requests and manual typing delays are eliminated New Listing additions and Master Data changes details are quickly notified via digital protocol Orders and Invoices are based on complete and aligned Master Data features

13 GDS KPI s: GDS assures quality checks: the supplier needs to cleanse his Master Data to avoid technical blocks Master Data harmonization and fine tuning, according to GS1 requirements and partners agreements (e.g. naming convention) Data Consistency: Assure that COOP receives what Kraft sends in their systems Time To Market: Streamlining the process assures time saving Master Data harmonization, no template to fill

14 Data Consistency % item data with Correspondent attribute in Kraft Coop Master data Time to market (dd) Time needed for a product to be stored into master data GDS KPI s Measurements: Data quality Increase % 50% of time saving Parameters Time to market is related to all the activities of the process (eg. Send information, Manual data entry, paper production) 8 Source: Coop assessment 100% 75% 50% 25% 0%

15 Focus on consistency: before GDS Gtin Consumer unit Net content Product Description Supplier internal code Each in a TI TI per layer Layers per pallet TI per pallet Gtin Case Trade item Weight Packaging (Trade Item) Total Shelf life Trade item Volume Packaging (C.U.) Each Volume Parameters 1/3 of total product as sample 15 common critical attributes Source: Coop assessment

16 Focus on consistency: after GDS Gtin Consumer unit Net content Product Description Supplier internal code Each in a TI TI per layer Layers per pallet TI per pallet Gtin Case Trade item Weight Packaging (Trade Item) Total Shelf life Trade item Volume Packaging (C.U.) Each Volume Source: Coop assessment 100 Parameters 1/3 of total product as sample 15 common critical attributes

17 Performance Improvement Indicators General Master Data Discrepancies... Up to 20% of EDI Orders in error! Up to 1h per Day to fix Orders anomalies! More than 2000 Credit Notes per Year! Up to 30mins per Day to reconcile Invoices!... after full GDS implementation everything becomes 0!

18 Project timing Kraft joins Coop into GDS... Collaboration ECR/Coop/Kraft on attribute set 2nd 3th 4th 1st 2nd 3th 4th Q2006 Q2006 Q2006 Q2007 Q2007 Q2007 Q2007 Pilot phase with manual upload in 1Sync Project requirements and resources allocations Interface design and implementation Massive upload test and Go-Live

19 Next Steps Roll-Out to new Suppliers for Coop and new Retailers for Kraft Complete adoption of the new processes by Sales Managers (Kraft) and Category Managers (Coop) Improvement of fpim P.I.M. functionalities on existing products updating Automating KPI s calculation

20 Key Learning & Deliverables The importance of moving together Involve the business side in the project from the beginning i Mutual trust in creating a value project The leverage effect of multiple innovation