Creating value through global e-business solutions
This session will show the benefits of implementing GS1’s e-business standards from the perspective of today’s and future business requirements. The value of implementing global e-business solutions will be introduced by successful case studies from innovative pioneer retailers and their suppliers.
Speakers: Luca Meconi, Coop Italy; Pierre Georget, GS1; Sally Herbert, GS1 GDSN; Renato Di Ferdinando, Kraft Foods Italy; Urs-Ulrich Katzenstein, Metro Group; Bertold Ruffler, Nestlé Germany; Carrefour.
Facilitated by GS1.
22. Moving quickly towards Fast Perfect Order
(through EDI & GDS)
ECR Forum – Berlin 2008
Berlin, 29th May 2008
23. Main Topics Agenda
Storyline
New process implementation: the “Before Vs After” picture
GDS & EDI integration: a successful synergy
KPI and benefits measurement
Next steps
Key Learning & Deliverables
24. Storyline
Classic effectiveness & efficiency targets
Effectiveness
Efficiency
Traditional EDI + GDS
transaction EDI
Integration
To improve service guaranteed to cooperatives by Coop
Customer collaboration: the starting point for new projects
25. From Traditional Order To Cash To EDI
As it was…
Manual Order
Generation
Manual Order
Typing
Order Printing
Order Sent via Fax
Manual Invoice
Control Invoice Printing
Manual Invoice Paper Invoice
Registration Mailing
26. From Traditional Order To Cash To EDI
First Step
EDI Order EDI Order
Generation Processing
in ERP
Manual Invoice EDI Sales Order
Control Confirmation 1°
Invoice Printing
Manual Invoice
Registration
Paper Invoice Mailing
27. From Traditional Order To Cash To EDI
Second Step
EDI Order EDI Order
Generation Processing
in ERP
EDI
EDI Sales Order
EDI Invoice Confirmation 1°& 2°
Registration
EDI Invoice
28. 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
29. 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
30. 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”, Returns
31. Before GDS implementation: critical areas
1W 1W 2DD
Item Store
Product Edit &
introduction Completion Product
analysis Publish
info
Details Category Kraft Sales Category Manual
Partially Dept.: Dept.: Dept.: editing
sent via briefing
e-mail complete Info Info to
approval product collection
Affiliates
information
further retrieval & doc sent to
requests transmission Assistant
32. New process implementation
Steps of the process > From 5 to 3
1W 1W 1DD
Item Store
Product Edit &
introduction Completion Product
analysis Publish
info
All Category Kraft Sales Category access
details Dept.: Dept.: Dept.: to all info
via GDS access to all via GDS-
info via GDS- complete Info Pim (exc.
Pim (exc. product collection Price)
information
Price)
retrieval & doc sent to approval
approval via transmission Assistant via Pim
Pim
33. 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
34. 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
35. GDS KPI’s Measurements:
100%
Data Consistency 27% 75%
% item data with Data quality
Correspondent Increase 50%
attribute in Kraft 25%
Coop Master data 0%
Time to market (dd) 21
Time needed for a 50% of time
product to be stored
14
16 8 saving
into master data 7
0
Source: Coop assessment
Parameters
Time to market is related to all the activities of the process (eg. Send
information, Manual data entry, paper production)
36. Focus on consistency
Gtin Consumer unit 100
Net content 100
Product Description 100
Supplier internal code 98
Each in a TI 96
TI per layer 93
Layers per pallet 87
TI per pallet 85
Gtin Case 78
Trade item Weight 50
Packaging (Trade Item) 46
Total Shelf life 31
Trade item Volume 24
Packaging (C.U.) 21
Each Volume 17
Source: Coop assessment
Parameters
1/3 of total product as sample
15 common critical attributes
37. Focus on consistency
Gtin Consumer unit 100
Net content 100
Product Description 100
Supplier internal code 98
Each in a TI 96
TI per layer 93
Layers per pallet 87
TI per pallet 85
Gtin Case 78
Trade item Weight 50
Packaging (Trade Item) 46
Total Shelf life 31
Trade item Volume 24
Packaging (C.U.) 21
Each Volume 17
Source: Coop assessment
Parameters
1/3 of total product as sample
15 common critical attributes
38. 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”!
39. Project timing
Kraft joins Coop into GDS ....
2nd 3th 4th 1st 2nd 3th 4th
Q2006 Q2006 Q2006 Q2007 Q2007 Q2007 Q2007
Collaboration ECR/Coop/Kraft
on attribute set
Pilot phase with manual
upload in 1Sync
Project requirements and
resources allocations
Interface design and
implementation
Massive upload test
and Go-Live
40. 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 P.I.M. functionalities on existing
products updating
Automating KPI’s calculation
41. Key Learning & Deliverables
The importance of moving together
Involve the business side in the project
from the beginning
Mutual trust in a profitable project
The leverage effect of multiple innovation
42. ECR Europe
Carrefour’s BtoB Strategy
Key link for a new relationship
Jean Lecomte
Carrefour BtoB/BtoC Competency Center
43. Content
BtoB Strategy
Examples of achievements
2
May 2008 Carrefour BtoB Strategy : key link for a new relationship
44. Carrefour Overview
Carrefour BtoB figures per year
>60B€* >2M >60 000
Merchandise Purchase Products Sourced Merchandise Suppliers
>30M >150M
Invoices EDI Messages
3
* Without Tax
May 2008 Carrefour BtoB Strategy : key link for a new relationship
45. BtoB Strategy
BtoB: key link for better collaboration
• eSourcing
• Private labels development
Optimize
Assortment • Quality tests Private labels
and Price • Auctions
Speak the same
Langage Supplier
Manage Commercial
Transactions
• Standards
• EDI Order
• Master Data
• EDI – Dispatch / Reception
• BtoB Portal • EDI - Invoice
• Payment report/advance
Grow our Retailer
Ensure On-Shelf
Business
Availability
• Joint Business Plan
• Scorecard • DataSharing Operational
• DataSharing Merchandise
• EDI Sales/Inventory
• DataSharing Client
4
May 2008 Carrefour BtoB Strategy : key link for a new relationship
46. BtoB Strategy
3 levels of BtoB Integration
High Level of Integration with Shared Responsibilities
Strategic Transactional Information by sku / store / day 20 int’l
Partnership suppliers
Associated to results commitment on turnover and margin
for the category
Medium Level of Integration
Advanced 20% of
Collaboration suppliers
Transactional Information by sku / DC / week
Structured and standardized processes
80% of
Entry Ticket suppliers
Static/Aggregated Information : indicators
5
May 2008 Carrefour BtoB Strategy : key link for a new relationship
47. BtoB Strategy
2008-2010 : 7 priorities
Domain Integration Level
1 Implement the supplier portal Master Data Entry Ticket
« CarrefourNet »
2 Deploy Data Synchronization Master Data Entry Ticket
Advanced
Collaboration
3 Finalise dematerialization of orders and Supply Chain Entry Ticket
invoices (EDI messages) Finance
4 Relaunch use of reverse auctions and Buying Entry Ticket
develop eSourcing for Indirects
5 Systematically share performance Supply Chain Entry Ticket
scorecards Buying
6 Implement Operational DataSharing Supply Chain Advanced
Buying Collaboration
7 Deploy solutions for payment report and Finance Advanced
advance Collaboration
6
May 2008 Carrefour BtoB Strategy : key link for a new relationship
48. Content
BtoB Strategy
Examples of achievements
7
May 2008 Carrefour BtoB Strategy : key link for a new relationship
49. Examples of achievements
Standards - Data Quality vision
Data Quality
Retailer
Supplier
DataSync
8
May 2008 Carrefour BtoB Strategy : key link for a new relationship
50. Examples of achievements
BtoB Portal - sharing our strategy
9
May 2008 Carrefour BtoB Strategy : key link for a new relationship
51. Examples of achievements
GDS - foundation for collaborations
Standard DataModel
CONTENT
Carrefour figures on
LOGISTICS Standard DataSync
MARKETING
160 suppliers in France,
DESCRIPTION
280 suppliers in Columbia
Standard messages and Roll-out plan for Europe
infrastructure
S R Over 10B€ sales managed
S R
S R
10
May 2008 Carrefour BtoB Strategy : key link for a new relationship
52. Examples of achievements
EDI – towards operational excellence
Carrefour figures on EDI
MERCHANDISE RETURN MASTER DATA
15 EDI messages used in
18 countries
RELIABLE
INVOICING ORDER PRODUCTS Over 150M messages per
SUPPLY - CHAIN year
Over 90% orders in value
RECEIVING PROCESS
through EDI (Food)
DISPATCH ADVICE
11
May 2008 Carrefour BtoB Strategy : key link for a new relationship
53. Our BtoB vision
Implementing standards is the best way to ensure
global use and reliable information flows
Ensuring Data Quality is key for business processes
reliability
The road is long,
but the first benefits are already there
12
May 2008 Carrefour BtoB Strategy : key link for a new relationship