how gsmp brussels april 15, 2008 gpc unites the supply chain?

How

GSMP BrusselsApril 15, 2008

GPC Unites the Supply Chain?

2 ©2008 GS16 Years of Standards Excellence

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Agenda

• Objectives: Understand how GPC unites the supply chain

• Approach: Demonstrate case studies Best Buy, Carrefour, Wal-Mart, SA2,

GS1 Canada


Information Emphasis is Changing


How GPC Unites the Supply Chain?

• When a seller organisation implements GPC, then the GPC Brick ensures the correct recognition of the product category through the extended supply chain and the buyer organisation can use the same GPC Brick to route the seller's product information to the right buyer


Commercial Role: Delivering Better Assortments, Sales, Margins


GPC Connects Views

GPC Update from Best Buy

Patricia Vessey


Best Buy Co., Inc.

Best Buy Co., Inc. (NYSE:BBY) operates a global portfolio of brands with a commitment to growth and innovation. Our employees strive to provide customers around the world with superior experiences by responding to their unique needs and aspirations. We sell consumer electronics, home-office products, entertainment software, appliances and related services through more than 1,200 retail stores across the United States, throughout Canada and in China. Our multi-channel operations include: Best Buy (BestBuy.com, BestBuy.ca and BestBuy.com.cn), Future Shop (FutureShop.ca), Geek Squad (GeekSquad.com and GeekSquad.ca), Pacific Sales Kitchen and Bath Centers (PacificSales.com), Magnolia Audio Video (Magnoliaav.com), Jiangsu Five Star Appliance Co. (Five-Star.cn) and Speakeasy (speakeasy.net). Best Buy supports the communities in which its employees work and live through volunteerism and grants that benefit children and education.

2007 Sales: $40 Billion

http://bestbuy.com/

http://bestbuy.ca/

http://bestbuy.com.cn/

http://futureshop.ca/

http://geeksquad.com/

http://geeksquad.ca/

http://pacificsales.com/


Best Buy Co., Inc.

• Best Buy’s use of GPC• Results of analysis of GPC that Impacts Best

Buy

- Segments (23) and Families (41)

- Classes (98)

- Bricks (329)• Key Learnings from Best Buy’s GPC Journey


Best Buy’s use of GPC

• We have 13 vendors using GDSN currently, an increase of 8 vendors in the past year that send data using GPC codes. This list continues to grow year over year.

• We continue to update the mapping of BBY hierarchy to GPC as changes are made and submit Change Requests as we identify them.

• We have begun using GPC bricks to allow us to be more accurate in taxing our product for our Taxation systems for Retail stores.

• As we move into international market, we have taken Best Buy use of GPC to affect how we implement our new international

Retail systems.


Key Learnings from our GPC Journey

• GDSN limitations on communicating GPC attributes and subscription at the attribute level continue to present difficulties and complicate the GDD item data model.

• The most critical use of GPC has been to assign new items to the appropriate internal category in our PIM system.

- We use the GPC provided through GDSN by our vendors to map to our internal category hierarchy.

- These categories are used to define attributes required for an item.

- We have defined 333 PIM Internal categories to date which are mapped to 329 Bricks.

• Benefits of GPC use include standardization across internal business units for category reporting, including international.

• We need to keep an eye on segment development as Best Buy has continued to expand the GPC categories we sell.


GPC Segments (23) that Impact Best Buy

Segments (23)Arts/Crafts/NeedleworkAudio Visual/PhotographyAutomotiveBeauty/Personal Care/HygieneClothingCommunicationsComputingElectrical SuppliesFood/Beverage/TobaccoHealthcareHome Appliances

HomecareHousehold Kitchen MerchandiseHousehold/Office Furniture/FurnishingsLawn/Garden SuppliesMusicPersonal AccessoriesPlumbing/Heating/Ventilation/Air ConditioningSafety/Security/SurveillanceSports EquipmentStationery/Office Machinery/Occasion SuppliesTextual/Printed/Reference MaterialsToys/Games


GPC Families (41) that Impact Best Buy

• Arts/Crafts/Needlework Supplies• Audio Visual Equipment• Audio Visual Media• Beverages• Body Products• Bread/Bakery Products• Clothing• Communications• Computers/Video Games• Confectionery/Sugar Sweetening Products• Cosmetics/Fragrances• Electrical Cabling/Wiring• Electrical Connection/Distribution• Electrical Lighting• General Electrical Hardware• Greeting Cards/Gift Wrap/Occasion

Supplies• Hair Products• Home Diagnostics• Home/Business

Safety/Security/Surveillance• Home/Business Surveillance Equipment

•Household Cleaning/Care•Household Energy•Household Kitchen Merchandise•Household/Office Furniture•In-car Electronics•Lawn/Garden Supplies•Light Application•Major Domestic Appliances•Musical Instruments/Accessories•Ornamental Furnishings•Personal Accessories•Personal Hygiene Products•Photography/Optics•Plumbing/Heating/Ventilation/Air Conditioning•Prepared/Preserved Foods•Skin Products•Small Domestic Appliances•Sports Equipment•Stationery/Office Machinery•Textual/Printed/Reference Materials•Toys/Games


GPC Classes (98) that Impact Best Buy

Air/Gas Controlling Appliances/Parts

Alarm SystemsAudio Visual AccessoriesAutomotive Anti-Theft ProductsAutomotive Appearance/Fragrance

AccessoryAutomotive Decorative LightingBaking/Cooking Mixes/SuppliesBatteries/ChargersBoard Games/Cards/PuzzlesBody Massage/ToningBooksCables/WiresCabling/Wiring Management/ControlCar AudioCar Video/NavigationCleaning AppliancesClocksClothing AccessoriesCoffee/Tea/SubstitutesCommunication AccessoriesComputer ComponentsComputer DrivesComputer Networking EquipmentComputer/Video Game AccessoriesComputer/Video Game Control/Input

DevicesComputer/Video Game PeripheralsComputer/Video Game SoftwareComputersConfectionery ProductsCosmetic ProductsDevelopmental/Educational ToysDiagnostic MonitorsDiagnostic Tests

Electric Lamps/Light Bulbs/LightingElectrical ConnectionElectrical DistributionFixed Communication DevicesFood/Beverage Preparation AppliancesGeneral Electrical HardwareGift Wrap/AccessoriesGreeting Cards/InvitationsHair Care ProductsHair Removal/Masking ProductsHome Audio EquipmentHome/Business Surveillance EquipmentHousehold Beds/MattressesHousehold CleaningHousehold Food Measuring EquipmentHousehold Water/Beverage EquipmentHousehold/Office SeatingHousehold/Office Storage/Display Furniture/ScreensHousehold/Office Tables/DesksKitchen Washing AppliancesLaundry Care AppliancesLawn/Garden Cooking/Heating AppliancesLawn/Garden Pools/Ponds/Water Features & OrnamentsLawn/Garden Weather Monitoring/ObservationMajor Cooking AppliancesMajor Laundry AppliancesMobile Communication Devices/ServicesMusical Instrument AccessoriesMusical Instrument AccessoriesMusical Instruments (Non Powered)Musical Instruments (Powered)Musical ToysNeedlework/Toy Making Craft SuppliesNon Alcoholic Beverages – Not Ready to DrinkNon Alcoholic Beverages – Ready to Drink

Office MachineryOpticsOral HygieneOrganizational Planning StationeryPeriodicalsPersonal Bags/Luggage/UmbrellasPhotographyPhotography Printing/Dark Room EquipmentPictures/Mirrors/FramesPortable Air Control AppliancesPortable Audio/VideoPortable Electric LightingPre-recorded MediaRecordable MediaRefrigerating/Freezing AppliancesSanitary WareSkin CareSkin CareSmall Cooking/Heating AppliancesSnacksStationery Cutters/TrimmersStationery Paper/Card/FilmSweet Bakery ProductsTelevisionsToy Vehicles – Non-rideUpper Body Wear/TopsVideo Game ConsolesVideo Recording/Playback/ReceivingWarming AppliancesWaste Disposing/Compacting Appliances


Contact DetailsMaureen Wissel

7601 Penn Avenue South

Richfield, MN 55423 T USA 612-291-7134E [email protected]

GPC Update from Carrefour

Olivier Mouton


Agenda

1.

DataSync at Carrefour

2.

Roll-out status

3.

DataSync Roadmap

19


RecipientData pool

Webform

SupplierB

Source Data pool

RecipientData pool

Supplier

Supplier

PIM

PIM

PIM

RecipientData pool

RecipientData pool

Source Data pool

SupplierA

Source Data pool

Any supplier will be able to electronically transfer 100% of the data that Carrefour

needs by using one of the 3 following channels:

GENERATION RECEPTIONTRANSFER

2. PEER TO PEER (direct

flow)

3. GDS

1. WEBFORM

Canal

Global Data Synchronization: Publication of the product information in a data poolby the supplier

On-line form in which the supplier enters his data

Direct flows between partners; integration files in a given data format


20


2.

Roll-out status

1.


3.

DataSync Roadmap

21


France Roll-out : Figures

Live Manufacturers

311

126

9

Webform

P2P

GDS

DataSync Suppliers (Target FMCG 1063)

0

100

200

300

400

500

600

janv.-07

mars-07

mai-07

juil.-07

sept.-07

nov.-07

janv.-08

mars-08

Nb

r F

rn

Webform P2P GDS Tests

Live Products

4 831

11 094

2 747

Webform

P2P

GDS

Products DataSync (Target 77707)

0

5 000

10 000

15 000

20 000

25 000

30 000

janv.-07

mars-07

mai-07

juil.-07

sept.-07

nov.-07

janv.-08

mars-08

Nb

re F

ich

es

Webform P2P GDS Tests

446 18 672

1st of March 2008

22


3.

DataSync Roadmap

1.


2.

Roll-out status

23


Production Time ScheduleFood and Non-Food

InformationProvider

#SKUs JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

CEREAL PARTNERS 69 1

RICARD SA 113 1

BEIERSDORF 709 1

COLGATE PALMOLIVE 619 1

LAVAZZA France 27 1

HENKEL Detergents & Cosmetics

395

1

PHILIPS Lighting 433 1

HEINEKEN 120 1

SCA - Hygiene Pdts 91 1

GENERAL MILLS 139 1

GEORGIA PACIFIC 129 1

HEINZ 50 1

J&J - Vendome Lab. 305 1

PHILIPS Cons. Elec. 239 1

PHILIPS DA & PC 176 1

RECKITT BENCKISER 454 1

CEPASCO / SPIGOL 115 1

ERIC BUR 488 1

KIMBERLY CLARK 135 1

MCCORMICK - Ducros 488 1

CADBURY 351 1

MATTEL 492 1

PEPSICO 266 1

SC JOHNSON 270 1

NESTLE 876 1

PROCTER & GAMBLE 755

UNITED BISCUITS 197

24


Manufacturers Roll-Out for Carrefour Franceo All Food Manufacturers Live by End 2008o Food & Beverage, Home Care, Personal Care, Wineo Non-Food roll-out by Q2 2008 (Pilot with Philips Lighting) including

Electronics Equipment and Major and Small Domestic Appliances o Excluding Clothes and Culture Manufacturers

Country roll-outo Priorities : Spain and Belgiumo Roadmap to be validated by Carrefour Board in April

Price Synchronization in scope for Carrefour France

GPC : no link with Internal Classification for the moment

DataSync Roadmap

25

GPC Update from Wal-Mart

Bruce Hawkins


Wal-Mart and GPC

Wal-Mart’s interest in GPC revolves around:

• Product Classification

• Product Attributes


Wal-Mart’s interest in GPC

• Product Classification• Allow Buyers to subscribe (via GDS) to the product groupings they are

interested in.

• Product Attributes• Category Management

Which products should we carry? Which products should be displayed together? Help determine why and where some products perform better than

others e.g.:– where do liquid detergents outperform powdered detergents?– does canned fruit sell better in a regular or light syrup?– Bedding: analysis of sales using attributes like sheet type or

thread count.


Wal-Mart’s interest in GPC

• Product Attributes (contin)• Use to associate or group products for:

Business Intelligence reporting & analytics Planning & Budgeting Replenishment settings Compliance management Merchandising e.g. centralized/regional buying Track Company initiatives e.g. sustainability Price management


Factors that inhibit the use of GPC

• Insufficient coverage• Less than 10% of all items in Wal-Mart have a valid GPC brick code.

• 75% of GTIN's sent via GDS have a valid GPC brick code.

• 10% of GTIN's sent via GDS have 999’s for a GPC brick code.

• GPC attributes are not currently available via the data pool• These may be added in the next release?

• Difficult for organizations to systemically and automatically interact with GPC e.g.: • Receive system notification when a new release is made available.

• Ability to systematically extract full downloads of the GPC data.

GPC Update from SA2

Grant Kille


SA2 and Global Product Classification

• Both former Agentrics and Sinfos implementations support GPC “bricks”• Agentrics supports brick attributes and values

• SA2 implementation will also support all brick attributes and attribute values

• SA2 provides access to the GPC via a robust user interface

• GDSN suppliers have been slow to adopt the valid brick codes • Most suppliers still using the dreaded “all 9s”

• We are contacting all suppliers to get them moving to classify properly

GPC Update from GS1 Canada

Mike Sadiwnyk


Canadian Implementation Road Map

Value Added

Validation Services

Stage

Data Clean Stage

Critical Mass

LoadingStage

Startup Phase Rollout Phase

DataSyncSTDS

Implement

Stage

BusProcessSTDS Stage

GS1 IDStandardsImplement

Stage

GovernanceSteering

Stage

1 2 3 4 5 6 7

Data Integrity

8Process

Re-engineering &Legacy

integration


5. Implementation Deadlines and Compliance Protocol Audits


Value Added

Validation Services

Stage

Data Clean Stage

Critical Mass

LoadingStage


DataSyncSTDS

Implement

Stage



Stage

GovernanceSteering

Stage

1 2 3 4 5 6 7

Data Integrity

4. GS1 Business Process Data Requirements

1. GS1 Prefix Ownership Audit

2. GS1 Barcode Verification3. GS1 GTIN Assignment &

Allocation rules

6. GS1 Data Completion Audits on Mandatory Data

7. GS1 GTIN Discrepancy Reports – Online Error Mgmt

8Process

Re-engineering &Legacy

integration



Value Added

Validation Services

Stage

Data Clean Stage

Critical Mass

LoadingStage


DataSyncSTDS

Implement

Stage



Stage

GovernanceSteering

Stage

1 2 3 4 5 6 7

Data Integrity

Data Validation Services / Business Process Scorecards8. Listing Process- Normalized Product Description Validation

Service9. Shelf Management Process -Images & Dimensions Validation

Service10. POS Management - Tax Validation Service11. Advertising Management Process - Advertising Image

Validation Service12. DC Receiving -Case Dimensions, TiHi Validation Service

13. ECCnet Next Generation / Item Centre / Retailer Portal

• No paper – Listing s• Price Synchronization• Online / Visibility (Sales /

Buyers Account)• Upgraded Data Validation

Engine• Integration to 1SYNC

8

Complete Business Relationship Data Synchronization

Process Re-

engineering &Legacy

integration


Retail Portal / Item Center Service Framework

Relationship Data (ie Price)

GDSNData

Retailer’s Own Data

Current Retailer listing Forms

Extended Retailer Internal Data Forms


Typical Retailer Workflow

1. Retailer (category manager) can search & view Vendor’s products populated from a data pool, then “subscribe” by catalog or GTIN

2. Alert message to Vendor to populate proprietary product attributes (using Retailer specific rules / edits)

3. Review & approve / reject Vendor data (workflow & messages to manage collaboration)

4. Add “internal only” data using customized edits & business rules

5. “approve” product for listing

6. Link to ERP using API data interface to download (push or pull) “approved” product data, transform & update ERP / PIM / staging

Complete visibility to product status and change history at all timesComplete visibility to product status and change history at all times

Category Manager can gothrough a series of customworkflow screens for searching, viewing and subscribing toItems.

Manager can reject items that require more information via the GDR process or invite Vendor to add proprietary data

Category Manager can gothrough a series of customworkflow screens for searching, viewing and subscribing toItems.

Manager can reject items that require more information via the GDR process or invite Vendor to add proprietary data

McKesson

ECCnet Next Generation - Collaboration Zone

Vendor inputs missing proprietarydata and saves item.Alert sent to CategoryManager advising thatrequired information isnow complete

Vendor inputs missing proprietarydata and saves item.Alert sent to CategoryManager advising thatrequired information isnow complete



GPC Enables Routing Vendor Data to Retail Buyer

GPC Brick +Attribute Selection String

RetailerMerchandiseCategory

RetailerBuyer Assignment

•GTIN Filter•GTIN Assignment & Subscription

Retailer/Distributor Welcome Screen

Customized in appearance and filteredfor items of interest basedon the Individual’s role and privileges

Customized in appearance and filteredfor items of interest basedon the Individual’s role and privileges

Planogram ImagesSearch and DownloadClick Here

Click on an icon to link to a GS1 service

Click on an icon to link to a GS1 service


Online GTIN Discrepancy Reporting

Launch a Discrepancy Report Click Here

Product Information Cards

Launch a Product Information Card Click Here


Product Planogram Images

Workflow can be

extended to publish

information to Retail

Pharmacist

Workflow can be

extended to publish

information to Retail

Pharmacist

Category Manager canreview item, add any internal data required for product listing and download to ERP

Category Manager canreview item, add any internal data required for product listing and download to ERP

McKesson



GPC Enables Routing Vendor Data to Retail Buyer

GPC Brick +Attribute Selection String

RetailerMerchandiseCategory

RetailerBuyer Assignment

•GTIN Price assignment/Approval


Value to Retailer

• Drive headcount cost reductions in product listing process• Streamline vendor/retailer collaboration using workflow & messages

instead of voice, fax, email & paper• Eliminate keying for item master updates – download from Kiosk• Reduce errors – data entered by Vendor (source) using Retailer specific

edits and rules

• Accelerate listing process for new products – immediate access

• Workflow queues and standard reports to measure individual productivity, assist in analyzing process bottlenecks at Retailer

• Single platform to view sales collateral from Vendor – images, sales sheets, promotions, special uses, MSDS, etc.

• Provides visibility to status of a product moving through listing process to both Vendor & Retailer


Value to Vendor

• Standardize product listing process across multiple Retailers• Streamline vendor/retailer collaboration using workflow & messages

instead of voice, fax, email & paper• Consistent web solution (process) for multiple Retailers• Reduce errors – data entered by Vendor (source) using Retailer

specific edits and rules (no more guess work)

• Provides common visibility to status and product data moving through listing process to both Vendor & Retailer

• Single platform to distribute sales collateral to Retailer – images, sales sheets, promotions, special uses, MSDS, etc

• Accelerate sales listing process for new products – immediate access to enter new products for a Retailer


Contact DetailsMike SadiwnykChief Standards Officer

1500 Don Mills Road, Suite 800Toronto, Ontario, Canada M3B 3L1

T +1 416 510 8039F +1 416 510 1916W www.gs1ca.orgE [email protected]


What User Benefits Brings GPC?

• Enables GDSN related processes• Internal, external and network synchronisation processes by

organising and validating data

• Enables granularity and aggregation internally within a company and between trading partners.

• Simplifies matching the publication data with subscription data.

• Improves accuracy and integrity of item set-up and maintenance.

• Language barriers could be eliminated

• Facilitates faster implementation into GDSN

• Monthly / quarterly updates at aggregate (Brick) level


What User Benefits Brings GPC? – cont.

• Accelerates new product introduction• Denotes what type of product it is

• If new products come in via GDSN the validation workflow is triggered and the product is routed to the buyer

• All externally facing communication that references product data could use GPC such as • Product specs; Price Lists; Shipment and Share Reports;

Inventory Positions; Product Image Management; Point of Sale (POS) Data; Shelf Data (plan-o-grams); Joint Business Plans; Order Acquisition & Shipment Status; Consumer Response;


What User Benefits Brings GPC? – cont.

• Data Management – Product Information Management: • Single source, high quality master data and services; Enter Data Once;

Common Data Standards; Single Point of Accountability; Atomic Level Data Aggregation

• Data cleansing facilitation (all products going forward should use the appropriate Brick code)

• Eliminates redundant activities by avoiding costly mis-matches• Allows mapping to different trading partners or third party solution providers

– reducing costs.• Reporting facilitation by using GPC Brick and attributes as an industry

standard that will cross all product silos

• Enables category management .• Provides an opportunity to group products with category specific product

group attributes in catalogues allowing global SKU (Stock Keeping Unit) mix• Allows globally standardised positioning of products • Establish category level product attributes


Why Address Classification at all?

GS1Industry

ClassificationStandard(s)

Selling Organizations

MapInternalProduct

Classifications

Buying Organizations

MapInternalProduct

Classifications

Warehouse

Accounting Distribution

Legal

Department

Inventory

Research

& Development

Quality

Assurance Customer

Service

Marketing

$ $$

Purchasing

Packaging

Publications

Manufacturing

Receiving

Warehouse

Accounting Distribution

Legal

Department

Inventory

Research

& Development

Quality

Assurance Customer

Service

Marketing

$ $$

Purchasing

Packaging

Publications

Manufacturing

Receiving

Buyers need to align products to multiple

internal classifications structures

(Buyer, Merchandiser, Logistics…)

Sellers need flexibility to profile products in

multiple views and align to internal

classifications without compromising own systems.

Many functions, different classification

needs

Many functions, different classification

needs

how gsmp brussels april 15, 2008 gpc unites the supply chain?

Documents

gpc bricks

gpc categories

gpc attributes

gpc update

gpc codes

best buys gpc journey

benefits of gpc use

critical use of gpc