DRIVE THE IMPLEMENTATION OF GLOBAL STANDARDS IN EUROPE

• The Standards

• Status of implementation in Europe

• Discussion

GLOBAL DATA SYNCHRONISATION

The first global standard

When?

What?

Why?

1202

1, 2, 3 arabic numbers

Faster processing

Further knowledge

Benefits

Time/Degree of Trust and Complexity

Collaborative Insight & Product Development

Collaborative Insight & Product Development

Collaborative Sales & Promotional PlanningCollaborative Sales & Promotional Planning

Collaborative Supply Chain Management

Collaborative Supply Chain Management

Collaborative Transaction Management

Collaborative Transaction Management

Data SynchronizationData Synchronization

Common Data StandardsCommon Data Standards

To enable tomorrow

Focus Today

Foundation First

SharedMasterData

SharedInformation

Shared Processes

ReducedErrors

Reduced Costs

BetterCustomer

Service

BetterConsumerResponse

A Common way of describing a productG

TIN

=

3700

1233

0038

0

•Agree on common definition of attributes

ie Height is the distance from the base of the bottle to the top of the bottle, including any foil or other top covering, measured as a vertical distance

• Agree on a common set of attributes to describe products

For example: Brand = BajozHeight = 35cm

Data

Pool

One single source of product information

Data

Warehouse

Manufacturer Retailer

•within a company, across• departments• business units• geographies

•with the trade partners

Data

Warehouse

to execute business processes

Production

Finance &Accounting

Sales & Marketing

Warehouse

Merchandising

Warehouse

POS

Finance &Accounting

•

GlobalRegistry

Manufacturer

Retailer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Retailer

Retailer

RetailerRetailer

Retailer

Retailer

RetailerRetailer

Retailer

Retailer

RetailerRetailer

Retailer

Retailer

Retailer

Manufacturer

Manufacturer

RetailerRetailer

Retailer

Retailer

RetailerRetailer

Retailer

Retailer

Retailer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Service/Solution Provider

Service/Solution Provider

Service/Solution Provider

Service/Solution Provider

Service/Solution Provider

Service/Solution Provider

Service/Solution Provider

Service/Solution Provider

Service/Solution Provider

Service/Solution Provider

Service/Solution Provider

DataPool

Manufacturer

Registry

DataPool

Retailer

•enter once - used by all °reduce costs ° reduce errors° reduce non value work

Machine to Machine Communication - interoperable data pools

° increase speed ° increase sales and revenues

Data Synchronisation

supplier of raw materials

stock issue

transport transport

retail warehouse

goods receipt

picking

stock issue

manufacturer

production control

stock issue

goods receipt

picking

transport

outlet

goods receipt

shelf management

goods assurance

check-out

purchase management

consumer

payment systems

exchange / guarantee handling

traceability

DistributorsManufacturers

Continuous accurate exchange of information

Continuous flow of information allows

“Working Together to Fulfil Consumer Wishes Better, Faster and at Less Cost”

… with a shared business process (OSA, CPFR, CRM…) leading to shared benefits across the Value Chain

shelf managementcheck-out Home shopping

4330

1226

10 17 6

2643

24

31

25

45

21

17 11

4011

30

23

20

8 915

21 30

12

10

6 7 9 105 2

13

0%

20%

40%

60%

80%

100%

0

1

2

3

4

GCI 2003 SCORECARD : % of European companies implementing

Implementing

Scale: 4: Completed, 3: Implementing, 2:Pilots, 1: Plan; 0: Nothing

Key barriers to implementation

Mindset

• Legacy system : Not migrating to global standards

Key barriers to implementation

It leads to: Multiple solutions High cost of data communication

The inefficiency in the supply chain remains

Willingness to Change ?

• Lack of standards

Key barriers to implementation

• some standards not yet created (ie Product Classification scheme for Merchandise )

•some standards keep changing :

° 400 requests for change (since 2001)

° 150 pending change requests° 17 published versions of the Global Data Dictionary (from Feb 2001 to June 2003)

• Change requests work process at EAN International

A: simple change request 136 daysB: moderate change request 236 daysC: significant business impact 333 days

51

TYPE P1 BRW UML BRD IUML XML TRG TOTALA 18 0 0 0 14 14 10 56B 18 28 14 27 14 14 20 135C 18 42 21 49 21 21 42 214

Original Targets

Development Cycle Times

Days expressed as calendar days

TYPE P1 BRW UML BRD IUML XML TRG TOTALA 18 0 0 0 14 14 90 136B 18 42 21 30 21 14 90 236C 18 84 30 60 30 21 90 333

Red = Change after 9 mo. experience, Purple = effect on total days.

Standards Require Time

…and there are 150 waiting!

•Standard creation (from 136 to 333 days)

•32 representatives of manufacturers and retailers per group

• 7 groups :Align, Order, Pay, Deliver, Plan etc.

• and many subgroups: eg 7 subgroups for Align

•Standard review before publication

° eg Non food product classification

• Standard implementation (9 to 24 months)

End users involvement: all voluntary

Standards Require Time & Manpower

The Issues

• Speed vs Complexity

•Standards creation process

Users wait for finalisation before starting off

Others delay as the goalpost keeps moving

Delays in achieving interoperability and gain in efficiency

From Blue Book to Pilots and Projects

Open Discussion

• What is YOUR experience in standards implementation and piloting ?

• What can ECR Europe do to simplify and speed up the standard adoption and implementation process?

• What should ECR Europe show at ECR Conference in Brussels?

In Barcelona …

we explain what GDS is

In Berlin …

we say it was time to roll GDS

In Brussels …

we will show how we implemented GDS

Route to GSMP: From multiple fragmented initiatives to one worldwide and coordinated

initiative• 1990- 1996: National initiatives under EAN MOs leadership (in Europe and the rest of the world)

• 1997: EAN International Initiative - Electronic Catalogues Projet Team (ECPT)

• 1998 - 1999: ECR Europe Initiative on Inter-Operability of EAN Compliant Data Pools (IODP)

• 1999 - 2000: EAN•UCC Initiative - Global Data Aligment System (GDAS)

• 2000 - 2001: GCI - Global Data Synchronisation Initiative (GCI - GDS, GDD, Product Classification, etc.) - One world-wide initiative required and driven by Users

• Since 2002: EAN•UCC GSMP / Align

B2B Marketplaces: Opportunities andB2B Marketplaces: Opportunities andbarriers for SMEsbarriers for SMEs

Awareness issuesAwareness issues

Information issuesInformation issues

Trust issuesTrust issues

B2B Marketplaces: Opportunities and barriers for SMEs

Topic divided in 3 parts:

• Awareness issues

• Information issues

• Trust issues