ECR Digital Awareness Day

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2 ECR Digital Awareness Day The role of GS1 standards in the Consumer Journey Mike Byrne 29 August 2016

3 110+ Member Organisations Serving Business Around the World The Global Language of Business 3

4 GS1 GS1 standards are the global language of business a language for Identifying, Capturing and Sharing information automatically and accurately, so that anyone who receives that information can understand and Use it, no matter who or where they are. 4

5 The Digital Consumer: standards make it possible Providing a seamless consumer experience across physical and digital channels 5

6 More data and a more diverse variety of data Today s consumer is in the middle of a much more complicated network of businesses than ever before The In digital United States influence (alone), $1.1 factor: trillion in store sales are now influenced by the web. (Ref: Deloitte, 2014); We are at a tipping point a point where digital channels should no longer be considered a separate or distinct business. Forrester forecasts that 45% of offline sales in the UK, Instead, Germany, digital France, is fundamental Italy, Spain, the to Netherlands entire business and and the entire shopping Sweden experience, (EU-7) will be in influenced and out of by the web store. in 2020 (Ref: Forrester, 2015). This means the digital representation of a product needs to be the same in potentially thousands of different places. And that digital presence needs to be updated in all those places at the same time. 6

7 The role of GS1 in the consumer journey Source: Planet Retail 7

8 GS1 standards - the global language of business Identify GS1 Identification Numbers Capture GS1 Data Carriers Share GS1 Data Exchange 8

9 The challenges facing your company to achieve omni-channel readiness Web-Ready Products Inventory Visibility Fulfilment Strategy Business Intelligence Risk & Compliance Grow the Business Reduce Costs Leverage Consumer Insights Manage Risk 9

10 How GS1 helps Better Search Results Improved Product Information Optimised Consumer Fulfilment Smarter Analytics Safer Products, Fewer Counterfeits Grow the Business Reduce Costs Leverage Consumer Insights Manage Risk 10

11 What GS1 will show today. GS1 Standards in Digital Data Quality challenges and opportunities Product Availability effective SCM Supply Chain Visibility future trends Data Analytics trusted product information 11

12 For more information about GS1 Ireland s standards and solutions please contact: Mike Byrne Chief Executive Officer Second Floor The Merrion Centre Nutley Lane Donnybrook Dublin 4, D04 KF Mike.Byrne@gs1ie.org

13 Data Quality Challenges and Opportunities 13

14 GS1 and IBM data crunch report GS1 and IBM engaged on a six-month project to compare grocery product data held by four of the UK nation s largest supermarket retailers: 80% of inaccurate product data in the supply chain causing; - Over-stocking, lost sales from shelf stock-outs, and manual workarounds - 25% of product data matched with the suppliers master data files UK Grocery industry and its customers could benefit from potential savings in excess of 1 billion by Improved industry-wide data synchronisation - 235m 5 year cost of corrections and manual work arounds for retailers and suppliers - 475m The admin shrinkage over 5 years - 300m Lost sales over next 5 years 14

15 Bad data = Bad decisions 15

16 The solution to: The Demand for Quality Data Improved Product Information Data Quality is an assessment of data's reliability and completeness to serve its purpose in a given context. The easiest way for this to be realised is data must adhere to the, documented, industry standards that trading partners use: - GS1 Standards (Global Data Dictionary, GDSN Package Measurement Rules, GTIN Allocation Rules, Trade Item Implementation Guide, GS1 Digital Image Guide etc.) 16

17 The problem: Demand for Quality Data Improved Product Information Consumers Trading Partners Regulators Make Informed Decisions Buy, Fulfill, Sell Protect Public Safety Product Features Servings per Container Ingredients Nutrition Facts Allergens Price Images Etc. Order to Cash Weights & Measures Product Features Images Ingredients Marketing Copy Sustainability Claims Chemicals Etc. Nutrition Facts Food Additive Claims Health Claims Allergens Country of Origin Product Safety/Traceability Etc. 17

18 The problem: The attribute explosion Improved Product Information 340 attributes from 200 people Serving size Servings per container Product features Ingredients Short marketing copy Detailed marketing copy Nutrition facts Food additive claims Health claims Sustainability claims Allergens Contains soy (y/n) Weight & dimensions Box weight U.P.C. Country of origin Every retailer and e-tailer requires different attributes in different formats. EDI Retailer A Retailer B Retailer C 18

19 The solution to: The attribute explosion and multiple format data Improved Product Information 5 Confirmation of receipt of data 4 Publishing of companies data 3 Subscription to sellers data pool 2 Registering of company data 1 Loading of company data

20 Data Recipients subscribed to GDSN 36,049 + trading partners (GLNs) are registered in the GS1 Global Registry of which 1,158 are Data Recipients and 34,892+ are Information Provider. 18+ million trade items in Global Registry. 33 certified data pools operating in 142+ countries. Seen as best practice by Retailers (Increasingly) mandatory for listings Widely used in Americas and Europe 20

21 For more information Alan Gormley Manager Industry Engagement Second Floor The Merrion Centre Nutley Lane Donnybrook Dublin 4, D04 KF Alan.Gormley@gs1ie.org For more information about these topics, please contact Alan Gormley GS1 - Digital Data Quality Committee GS1 Ireland working groups and information sessions The Global Data Dictionary don t reinvent the wheel The Digital Imaging Standard GDSN contact GS1 to share and synchronise data seamlessly The Data Quality Framework Data Governance

22 Product Availability Denis O Brien 29 August 2016

23 Supply chains have changed... plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers requirements for 20 years aggregation was the aim longer production runs, bigger machines, larger orders, bigger lorries [but] in the last years dis-aggregation has become necessary with smaller orders more frequently, smaller production runs on cheaper machines, lower stocks and much more flexibility Global Logistics: New Directions in Supply Chain Management By Donald Waters, Stephen Rinsler (2014)

24 Supply chain management has changed... First, it should be clear by now that the modern logistics and supply systems are heavily dependent on the use of information technology. Logistics now is as much about information movement as it is about product movement. Anyone who believes that retail logistics is all about boxes and lorries needs to rethink. Of course it remains true that products have to be distributed. Vehicles and boxes are still involved. But increasingly it is the control of data and information that remains the key to a successful logistics system Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan Page Publishers.

25 Barriers to effective supply chain management Inadequate Information Sharing 2. Poor/conflicting measurement 3. Inconsistent operating goals 4. Organisational culture & structure 5. Resistance to change lack of trust 6. Poor alliance management 7. Lack of supply chain vision/understanding 8. Lack of managerial commitment 9. Constrained resources 10. No employee passion or empowerment Benefits, barriers, and bridges to effective supply chain management Stanley E. Fawcett, Gregory M. Magnan and Matthew W. McCarter Supply Chain Management: An International Journal Volume 13 Number

26 Barriers to effective supply chain management Poor Data Synchronisation 2. Perpetual Inventory (PI) failure 3. Distorted forecasting 4. Excessive backroom inventory 5. Faulty shelf-space allocation 6. Low planogram compliance 7. Poor stocking practices Procter & Gamble: A Comprehensive Guide To Retail Out-of-Stock Reduction In the Fast-Moving Consumer Goods Industry Thomas W. Gruen and Dr. Daniel Corsten, 2007

27 Share Transactional Data

28 Logistics Interoperability Model (LIM) Align Data & Transport Transport Instruction and Response Item Data Notification Order Configure to Order, Order & Order Response Deliver Consumption Report, Receiving Advice Despatch Advice, Inventory Report Pay Advanced Remittance Notification Buyer Reconciliation of Request for Payment Claims Notification, Debit/Credit Advice, Invoice Request for Payment, Settlement Planning Goods Requirements Goods Requirements Response Performance Measurement Purchase Conditions Replenishment Proposal Replenishment Request Warehousing Logistics Inventory Requests & Reports Warehousing Inbound Instruction & Notification Warehousing Operations Instruction & Notification Warehousing Outbound Instruction & Notification

29 For more information please contact GS1 Ireland Denis O Brien Director of Standards & Solutions Second Floor The Merrion Centre Nutley Lane Donnybrook Dublin 4, D04 KF Denis.OBrien@gs1ie.org

30 Supply Chain Visibility Denis O Brien 29 August 2016

31 End-To-End SC Visibility is Complex More trading partners, more business processes, and more I.T. systems in the supply chain make end-to-end visibility extremely complex Source: Gemini 03/06

32 Supply Chain Data Can be both public and private

33 Types of Supply Chain Visibility Networks One up One down Single source database Cumulative tracking Distributed Information Sources Or «traceability network»

34 GTS Global Traceability Standard Move from one-up/one-down or centralised data to decentralised, networked, event-based data Traceable Entities: Traceable Items, Partners, Locations Critical Tracking Events: when traceable items are move, are consumed, or are changed Key Data Elements: what pieces of information should be recorded for each event? Identifiers: what key identifier should be used for each Item, Partner, Location, or Event? Data Capture Technologies: which technology is most appropriate (e.g., EAN/UPC, DataBar, DataMatrix, EPC RFID) Common Data Definitions: e.g. item master data, instance lot master data (ILMD), event data Data Sharing: How will the data (KDEs) be shared? Product authentication: who can publish/augment the data Rights management: who should have access to the data

35 EPCIS ultimate supply chain collaboration WHO WHAT WHEN WHY These EPCIS instances have information about this Product WHO HAS INFORMATIO N ABOUT THIS PRODUCT? Fisherman Co-Op Transporter Processor Distribution Retailer

36 ftrace EPCIS Based Traceability

37 ftrace EPCIS Based Traceability

38 For more information about contact GS1 Ireland please Denis O Brien Director of Standards & Solutions Second Floor The Merrion Centre Nutley Lane Donnybrook Dublin 4, D04 KF Denis.OBrien@gs1ie.org 38

39 Data Analytics 39

40 The problem: Big data, little resources Smarter Analytics CIOs that Don't know, 2% Collect customer data No, 75% Yes, 23% Don't know, 2% Have sufficient resources to use the data No, 45 % Yes, 53 % (Source:

41 The problem: Big data, little resources Smarter Analytics What are the pain points for e-tailers/retailers who are trying to create business intelligence out of analytics? - Access to relevant, timely data has improved but the ability to process, manage and analyse that data is improving more slowly. - Among the roughly ¼ of CIOs that report they collect customer data, such as addresses, demographics and buying habits, less than half of those feel they have sufficient resources to generate strategic reports and insights from the data - Even when organisations managed to generate insights from Big Data, they are sometimes not nimble enough to take advantage of those insights in a timely manner. - (Source:

42 How does GS1 help? Smarter Analytics Big data is useless unless it is accurate, sharable and linkable. When products are uniquely identified and described by trusted information they can be associated with consumer reviews and behaviours, which can then be shared. And when products are tracked across the supply chain in real time, demand can be forecast more reliably. 42

43 Big data needs to be: Consistent across channels The information must have the same values in all the places where a copy of it exists (internally and externally). 1. Is the data consistent across systems for the same field? 2. Are there appropriate data linkages between systems? 43

44 GS1 SmartSearch 44

45 Change management quick tips Better Search Improved Product Information Optimised Consumer Fulfilment Smarter Analytics Safer Products, Fewer Counterfeits How do you currently identify product? Do you use GTINs? Do you have measures on the quality of your product information? Do you have the right business processes to support the needed change? Are you collecting your own product information? Do you have multiple sources of information or does your e-commerce team get data from the same sources as Brick & Mortar? Are you using Data Synchronisation with trading partners? Do you know the quality of your data today? How do you identify products, actors and locations across the supply chain Are you investing in data quality to optimise fulfilment processes, enable collaboration and reduce overall costs? Are you using product tags with electronic product codes based on GS1 Standards to enable inventory visibility? Do you have a clear understanding of current analytics processes and challenges? Determine how standardizing and mapping product info can help. How do you currently identify products, actors and locations in your supply chain? How do you track products through the global supply chain and trace product histories? Do you have the ability to have rapid, targeted and secure communications with consumers, trading partners and government? 45

46 For more information about how to make your products visible on the web using GS1 SmartSearch please contact GS1 Ireland Alan Gormley Manager Industry Engagement Second Floor The Merrion Centre Nutley Lane Donnybrook Dublin 4, D04 KF Alan.Gormley@gs1ie.org