How to align your data internally to meet your external communication requirements PIRONET NDH AG, Natascha Pottier, Sales & Business Development Maarweg 149-161, 50825 Köln, Tel.: +49 (0)221-770-1366, Fax: +49 (0)221-770-1005 PIRONET NDH AG 8/5/06 1
CONTENT Who is speaking The big picture: The Concept of the Global Data Synchronisation Network Internal Data Alignment (Challenges and Approaches for complex and / or multinational companies) Benefits of Internal and External Data Alignment PIRONET NDH AG 8/5/06 2
GLOBAL DATA SYNCHRONISATION PROBLEM STATEMENT PIRONET NDH AG 8/5/06 3
WHAT DATA ARE WE TALKING ABOUT Definition MASTER DATA PRODUCT INFORMATION MANAGEMENT PIRONET NDH AG 8/5/06 4
WHAT DATA ARE WE TALKING ABOUT Definition MASTER DATA PRODUCT INFORMATION MANAGEMENT PIRONET NDH AG 8/5/06 5
GLOBAL DATA SYNCHRONISTION Current Status and Need for Change Today, trading partners are facing high, unnecessary costs due to supply chain information inefficiencies and inaccurate data in transactions Invoices with errors are responsible for a large part of these costs Globalisation of trade has generated an accelerated need for the smooth inter-company flow of goods and better control of supply chain processes PIRONET NDH AG 8/5/06 6
GLOBAL DATA SYNCHRONISATION GDS Today Across the industry 30 % of transactions contain inaccurate data (AMR Research 2002) Proprietary or inaccurate item descriptions delay efficient data exchange = cost $30 billion lost per annum * (3.4 per cent of sales) through supply chain inefficiency * The Case for Global Standards: Creating the Business Case for Global Data Synchronisation in Your Company, GCI and Cap Gemini Ernst & Young, October 2002 PIRONET NDH AG 8/5/06 7
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POTENTIAL OF GLOBAL DATA SYNCHRONISATION PIRONET NDH AG 8/5/06 9
GLOBAL DATA SYNCHRONISTION The Potential Medium term savings of 1-3 per cent for manufacturers and retailers* Bottom line improvement 10-15 per cent Positive revenue impact from improved availability * The Case for Global Standards: Creating the Business Case for Global Data Synchronisation in Your Company, GCI and Cap Gemini Ernst & Young, October 2002 PIRONET NDH AG 8/5/06 10
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THE CONCEPT OF THE GLOBAL DATA SYNCHRONISATION NETWORK PIRONET NDH AG 8/5/06 12
GLOBAL DATA SYNCHRONISATION NETWORK Background The Global Data Synchronisation Network (GDSN) is a concept that was developed by various industry groups, including the Global Commerce Initiative (GCI), GS1 (formerly called EAN International), and the GS1 US, to help the industry streamline supply chain transactions and reduce supply chain costs. PIRONET NDH AG 8/5/06 13
GLOBAL DATA SYNCHRONISTION NETWORK Definition Master Data Synchronisation is the process of continuous harmonisation of data attribute values between all trading partners within the supply chain through the use of GS1 standards. The GDSN is an Internet-based, interconnected network of interoperable data pools and a Global Registry, the GS1 Global Registry, that enables companies around the world to exchange standardised and synchronised supply chain data with their trading partners. PIRONET NDH AG 8/5/06 14
GLOBAL DATA SYNCHRONISTION NETWORK Components Trading partners (supplier and retailers) Data pools (services that hold and process trading partner data) The GS1 Global Registry (a worldwide directory to help the GDSN community locate data sources and manage ongoing synchronisation relationships between trading partners) PIRONET NDH AG 8/5/06 15
THE VISION AT A GLOBAL SCALE Global Registry Data Pool Data Pool Data Pool Data Pool Data Pool Data Pool Data Pool Data Pool Data Pool Data Pool This model supports a rich network of certified data pools and entry points that may be manufacturer based, retailer based or both. It requires the interoperability and consistent adoption of global standards of all components (GTIN & GLN, Data Models for Item & Party, Global Product Classification) PIRONET NDH AG 8/5/06 16
INTERNAL DATA MANAGMENT PIRONET NDH AG 8/5/06 17
WHAT DATA ARE WE TALKING ABOUT Definition MASTER DATA PRODUCT INFORMATION MANAGEMENT PIRONET NDH AG 8/5/06 18
WHAT DATA ARE WE TALKING ABOUT Definition MASTER DATA PRODUCT INFORMATION MANAGEMENT PIRONET NDH AG 8/5/06 19
BUSINESS IMPACT OF FRAGEMENTED PROCESSES & SYSTEMS Errors in data 30% of data in retailers systems is wrong Lost productivity 25 minutes manual cleansing per SKU per year Slow time to market 4 weeks to introduce new products Invoice deductions 43% of invoices result in deductions Failed scans up to 70,000 per week (one large US retailer) Lost sales up to 3.5% per year Source: A.T. Kearney, GMA, AMR PIRONET NDH AG 8/5/06 20
KEY ISSUES IN MANAGING PRODUCT INFORMATION Increasing number of sales channels & customer touch points with shorter product lifespan High costs and long lead times of creating, maintaining and publishing product information Richer information needed at the point of purchase to drive higher sales Global standards driving the need to synchronise product information internally and externally PIRONET NDH AG 8/5/06 21
DATA IS EVERYWHERE R&D PLM New Item Form ERP Instance #1 Item Master Promotion Mgrs Item Master 3 Item Master n Logistics Vendor Managers Category Managers Price Update IT Item Master 1 Category Managers Contracts Authorize /Reject Brand Managers Customer Support Regional Managers Party Master Marketing Category Mgmt Item Master ERP Instance #2 Item Master PIRONET NDH AG 8/5/06 22
INTERNAL DATA COMPLEXITIES UK BU1 DE BU1 FR BU2 ASIAPAC BU1 Others Transport Mgt Pallet Mgt Space Mgt Finance Core ERP Market Share Integration Architecture Data Pool Payroll Content Mgt Technical Specs Data held in a number of different systems in Multiple Business Units Current master data not standards compliant Some data may be held manually Much of this data is not currently created, stored, maintained & distributed Quality of data in Core ERP and other source systems may not be adequate for external publishing Cleansing, normalising, updating & publishing data creates new data management challenges New processes New accountabilities Internal synchronisation of master data External synchronisation of master data *BU: Business Unit PIRONET NDH AG 8/5/06 23
A SINGLE VIEW OF THE PRODUCT The challenges associated with achieving a single view of a product data across an enterprise or value chain are particularly prevalent in complex organisations consisting of a heterogeneous environment comprising multiple applications, business intelligence data warehouses and other silos of transactional, operational and analytical data. PIRONET NDH AG 8/5/06 24
FROM INTERNAL TO EXTERNAL DATA ALIGNMENT / SYNCHRONISATION PIRONET NDH AG 8/5/06 25
Item, Customer & Location Masters MANAGE DATA QUALITY AND INTEGRITY, SYNCHRONISE INFORMATION BOTH INTERNALLY AND EXTERNALLY Internal Sync Item, Vendor & Store Masters PLM Retail ERP ERP Private Label Digital Asset Management Content Management Price Management External Synchronisation Internal Sync Warehouse & Logistics Pricing Optimization Pricing Execution Data Warehouse Store Operations Data Warehouse PIRONET NDH AG 8/5/06 26
SYNC OR SINK PIRONET NDH AG 8/5/06 27
THE BENEFITS OF SYNCHRONISING WELL s On Shelf Availability s Increase Sales Speed to Market Increase Sales Improve Productivity Item Set-Up and Maintenance Improve Productivity Reduce Costs Foundation Data Quality Reduce Costs Foundation PIRONET NDH AG 8/5/06 28
THE BENEFITS OF SYNCHRONISING WELL Johnson & Johnson have virtually eliminated data integrityrelated out-of-stocks at Wal-Mart U.S - resulting in 2.5% fewer out-of-stocks. In Guatemala, Procter & Gamble and retailer La Fragua have increased purchase order accuracy by 3%. At Dutch retailer Albert Heijn, GDS has measured a 30% productivity improvement in their data management department. Leading Japanese retailer AEON has realised improvements in their item introduction lead times. Gillette Venezuela improved their order processing productivity by more than 50%. US retailer Wegmans has increased store sales by reducing speed to market on new items by two weeks. Unilever Colombia improved new item speed to market from 3 to 4 weeks to just 2 to 3 days, increasing item sales by 2 to 3 weeks. Study conducted by the Global Commerce Initiative and Capgemini Global Data Synchronisation At Work in the Real World, March 2005 PIRONET NDH AG 8/5/06 29
WHERE TO START PIRONET NDH AG 8/5/06 30
CENTRAL Product info Admin & Marketing Quality control service Finance EVERYWHERE SALES UNIT Supplier Category/ promotions......... Finance & Qualty Sales Admin control Receive order... R&D Product introduction DATA POOL Data pool system LOGISTICS Monitor stock Replenish stock Shipping TRANSORA Distributor Data warehousing Report locally LOCAL Home shopper Wholesale Feeding B2C catalogues Do inbound Report to...... logistics corporate Profil Expedition... consumer planning needs Process... invoice... Supplier Incoming information flow channel Manage waste Outgoing information flow channel NORMALIZATION UDEX THE CHALLENGE: HOW TO IMPLEMENT SUCCESSFULLY Programme Management Key Implementation Enablers Validated Business Case linked to KPIs Platform selection & implementation RoI Time Clear strategic plan for business and partners Product Data Quality & Standards Behavioural assessment and change management Defined processes, scenarios and pilots PIRONET NDH AG 8/5/06 31
GETTING DATA CLEAN AND KEEPING DATA CLEAN Getting Data Clean Getting data clean is a onetime activity which is about Mapping, Checking and Aligning of data, and will take between 6 and 12 months Keeping Data Clean Keeping data clean addresses the root-causes of inaccurate data on structural basis this is about aligning processes, organization, standards, IT solutions and trading partner collaboration; this will take at least 2 years to achieve. PIRONET NDH AG 8/5/06 32
CLEAR ROLES AND RESPONSABILITIES ARE KEY IT and Data Management are important facilitators, but business should take real ownership PIRONET NDH AG 8/5/06 33
Thank You Natascha Pottier, Sales & Business Development 0049-221-7701366, Npottier@pironet-ndh.com PIRONET NDH AG 8/5/06 34