How Global Supply Chain Standards Streamline Procurement Process?

Transcription

1 How Global Supply Chain Standards Streamline Procurement Process? 8 th April, 2017 Ms. Heidi Ho Global Traceability Trainer/GS1 Global Principal Consultant/GS1 Hong Kong

2 Procurement & Supply Chain in Horizon (2020) Many in business are also determined to move to a faster, higher, stronger level of performance. The look eastwards is a timely reminder of where true competition in global markets lies and why the people leading modern procurement and supply chain need to be at the top of their game. David Noble, CIPS Chief Executive CIPS 2012 GS1 [Country] Hong Kong

3 Procurement & Supply Chain in Horizon (2020) The scenarios: 1. The shift in the economic centre of power 2. Geo-political and macro-economic change 3. The increasing impacts of corporate social responsibility 4. Technological advances 5. Demographic changes GS1 [Country] Hong Kong

4 Procurement & Supply Chain in Horizon (2020) Predictions in next 20 years: 1. Goodbye to the backroom boys 2. The emergence of a new supply management Outsourcing 3. Compete on big data analytics power 4. Collaboration will be the new normal, tighter integrations and heavier reliance upon suppliers 5. Risk management will become everybody s business as capacity and demand soar 6. Procurement professionals skills keep upgrading GS1 [Country] Hong Kong

5 The Global Language of Business GS1 is a neutral, not-for-profit, user-driven standards body, which facilitates collaboration to create more efficient, safer and sustainable value chains through the adoption of easy-toimplement global standards. The most widely used supply chain standards system in the world GS1 [Country] Hong Kong

6 Global Reach, Local Presence GS1 [Country] Hong Kong

7 Membership Profile by Industry Sector Apparel 590+ FMCG 1,300+ F&B Healthcare 550+ Total 7,000+ GS1 [Country] Hong Kong

8 GS1 Standards GS1 [Country] Hong Kong

9 Role of GS1 Hong Kong (founded in 1989 by HK General Chamber of Commerce) Drive Standard Development & Adoption to solve business challenges and to ensure efficiency and visibility along the entire supply chain GS1 Identification Keys GS1 Barcodes GS1 ecom GS1 GDSN GS1 EPCglobal Engage Industry Needs to translate its business needs into standards solutions and services for greater supply chain efficiency and business success GTS/GTC Provide Knowledge Transfer for communities/organizational domains to build competence and share best practices in the complex supply chain environment Training Courses Conferences & Seminars SCM Knowledge Center IoT Technology Center Industry Committees Facilitate Local-Global Trade / Industry Collaborations to enhance HK s industry competitiveness Retail ECR Food & Wine Traceability Healthcare Supply Chain Modernization Apparel Item-level Tagging Cross-border Logistics Supply Chain Visibility [Country] 2015 Optimizing Business, Creating Value GS1 Hong Kong

10 Common challenges for the supply chain and procurement A lack of standards (internal, external) Multiple part numbers Multiple units of measure Poor product identification (both physical and data) Poor product data records (master data) Mis-aligned product data between buyer and seller Lack of interoperable systems Varying degrees of systems and process capabilities System limitations (legacy systems) No systems GS1 [Country] Hong Kong

11 Common challenges for the supply chain and procurement Talk-able (understand what item is talking about) Track-able (understand when the item is being transacted) Trace- able (understand where the item is happening) GS1 [Country] Hong Kong

12 Common challenges for the supply chain and procurement Talk-able (understand what item is talking about) Track-able (understand when the item is being transacted) Trace- able (understand where the item is happening) GS1 [Country] Hong Kong

13 Common challenges for the supply chain and procurement Item description is varied amongst parties GS1 [Country] Hong Kong

14 Common challenges for the supply chain and procurement The Surgical Glove Sterile Latex Surgical Gloves? Latex Surgical Gloves? Sterile Surgical Gloves? Disposable Surgical Gloves? GS1 [Country] Hong Kong

15 Common challenges for the supply chain and procurement GS1 [Country] Hong Kong

16 Common challenges for the supply chain and procurement Scenario 1: Hospital ward is running short on latex gloves. They estimate that they need 400 pairs for the next month. Question: What information do they put into their order? Answer: 400 pairs or 8 Boxes or 1 carton? To further complicate the issue, the supplier recently changed the number of boxes in a carton from 8 to 6 and did not bother to tell his customers. He also forgot to mention that a new glove was replacing the old glove and AB123 was now obsolete. GS1 [Country] Hong Kong

17 Common challenges for the supply chain and procurement GS1 [Country] Hong Kong

18 Global Standards Eliminate Challenges GS1 [Country] Hong Kong

19 Global Standards Eliminate Challenges Current Enhance retail check out efficiency Future More efficient product search on the web Accurate inventory management Efficient paperless order to cash process Product identifier Global Standards Key for big data analytics for on-line/ off-line Enabling product level marketing Enable consumer products research Enabling counterfeit GS1 [Country] Hong Kong

20 Global Standards Eliminate Challenges GS1 [Country] Hong Kong

21 Global Standards Create Benefits Online Audience (in millions) Amazon, ebay, Walmart, Apple itunes and Google require or endorse GS1 identification. Source: comscore, Inc., March 2014 GTIN - The unique product identifier Connecting the on-line and off-line As we continue to create a seamless shopping experience across online, mobile and stores, we rely on accurate and consistent product information. The GS1 GTIN Validation Guide is an important tool for improving the quality of product data and the relevance of online and mobile search results. Walmart Global ecommerce The GTIN Validation Guide will help ebay find and resolve incorrect, duplicate and conflicting product information, improving visibility for merchant offers and enhancing the consumer search experience. ebay GS1 standards have been very valuable in our efforts to improve the online shopping experience by harmonising product data and eliminating inaccuracies. Google GS1 [Country] Hong Kong

22 Common challenges for the supply chain and procurement Talk-able (understand what item is talking about) Track-able (understand when the item is being transacted) Trace- able (understand where the item is happening) GS1 [Country] Hong Kong

23 Global Standards Eliminate Challenges eztrade B2B ecommerce Platform An Industry-wide B2B ecommerce Platform that facilitate electronic transaction messaging via EDI and Web to support electronic ordering, invoicing and shipment notices. eztrade is a standard-based e-commerce platform that facilitates paperless trading and helps enterprises achieve greater efficiency under GS1 Keys. To date, more than 1,800 Retail CPG users representating over 90% of companies in the FMCG sector in Hong Kong and 2,000 users in South China adopted our eztrade service. Over 500,000 monthly transactions are regularly processed via this community-based e-business platform for more efficient and accurate electronic procurement. GS1 [Country] Hong Kong

24 Global Standards Eliminate Challenges Portal with suppliers to facilitate the e-po, e-invoice transmission Over 2,000 Suppliers & 95% HK Supermarket +Major Healthcare Provider + Food Service GS1 [Country] Hong Kong

25 Global Standards Eliminate Challenges Supplier Portal is a secure system for managing and communicating with third party suppliers of goods and services. It standardize business processes by centralized channel of supplier and product information. It helps enterprises achieve greater efficiency with a single window. It supports the following activities: Supplier Registration and company information maintenance Product Registration Alert function to track supplier documents which are to be expired Bulletin Board with latest news and notification Account Management Export supplier information to ERP system Single Sign-on (eztrade and Supplier Portal). PO Summary in Supplier Portal GS1 [Country] Hong Kong

26 Global Standards Eliminate Challenges Consolidated processing on three inputs PO release, invoice (statement submission & payable notification) & GR (web receipt from stores/warehouse) Retailer can know if the supplier has received or opened the PO Supplier can check the payment status GS1 [Country] Hong Kong

27 GS1 [Country] Hong Kong

28 Global Standards Create Benefits 60% reduction in workload due to the streamlined ordering process, improved data accuracy and reduction in manual data entry work. allowing suppliers to deliver goods without the need to arrange invoices in advance, which in turn helps shorten lead times and reduce delivery costs. Enhance and enable trace and track capability Order processing leadtime reduced from around 4-5 days to 1-2 days Shorten goods receipt processing time and enhance accuracy though pre-validation on good receipt information GS1 [Country] Hong Kong

29 Common challenges for the supply chain and procurement Talk-able (understand what item is talking about) Track-able (understand when the item is being transacted) Trace- able (understand where the item is happening) GS1 [Country] Hong Kong

30 Global Standards Eliminate Challenges The GS1 Global Traceability Standard provides quality managers in supply chain with an effective traceability process that complies with the multiple international regulatory and business requirements. Global Standard develops since 2005 from 73 industry experts from 20 countries, including WAL-MART NESTLE CARREFOUR ALLIED DOMECQ WEGMANS GMA CASINO SYNGENTA, BASF ALBERTSONS GLON GS1 [Country] Hong Kong

31 Global Standards Eliminate Challenges GS1 Global Traceability Standard (GTS) GS1 [Country] Hong Kong

32 Global Standards Eliminate Challenges USA New Zealand Australia GDS Project Singapore EPCIS Traceability Networks Europe EPCIS Cassandra Project Latin America EPCIS Traceability Networks Facilitating global connectivity Malaysia EPCIS Taiwan EPCIS Traceability Networks Japan EPCIS Hong Kong China China Guangdong EPCIS Traceability Networks GS1 [Country] Hong Kong

33 Global Standards Eliminate Challenges How we support? Aligning the company s performance in an industrial best practices standards, optimizing company s product flow processes and boosting up customer and consumer trust. Standards Trainings Traceability Assessments & Recognition Consultancy& Technology Platform Support Best practices &Training Deployment GS1 [Country] Hong Kong

34 Global Standards Eliminate Challenges How we support? Aligning the company s performance in an industrial best practices standards, optimizing company s product flow processes and boosting up customer and consumer trust. Standards Trainings Traceability Assessments & Recognition Consultancy& Technology Platform Support Realign processes, parties and data GS1 [Country] Hong Kong

35 Global Standards Eliminate Challenges Recognition Quality Food Traceability Scheme The GS1 s GTS has been applied in "Quality Food Traceability Scheme", a scheme launched by GS1 Hong Kong to recognize and reward local enterprises who demonstrate excellence in food traceability practices. In 2016, 18 food pioneers have been awarded for the scheme. GS1 [Country] Hong Kong

36 Global Standards Eliminate Challenges GS1 [Country] Hong Kong

37 Global Standards Eliminate Challenges Product Information Award & Certificate Temperature Log Track & Trace Information Marketing Purpose GS1 [Country] Hong Kong

38 Global Standards Create Benefits Benefits: 1. ACHIEVED product traceability from business to business and business to consumer 2. UPLIFTED brand image through product protection and quality assurance 3. ENHANCED Efficiency and visibility, potential saving of 66% on order management. GS1 [Country] Hong Kong

39 Summary How to Implement successful standards in procurement? Start with the basics Product identification is the key that underpins the whole GS1 system of standards. Understand that the procurement function has an important role to play and it s decisions and activities impact a large community Treat data as an Asset Educate, educate, AND educate Don t try to do it alone.. - GS1 Hong Kong is here to assist GS1 [Country] Hong Kong

40 GS1 Hong Kong GS1 Hong Kong Ms. Heidi Ho Principal Consultant E: GS1 [Country] Hong Kong