Global Data Synchronisation
Retails and Consumer Products Manufacturers are Realising Tangible Benefits from Global Data Synchronisation. Increased Sales, Reduced Costs, Improved Productivity are Among the Real World Benefits Highlighted in New Study from GCI and Capgemini.
8 March 2005
Paris, March 8, 2005 – Global Data Synchronisation (GDS) is more than just a vision. It is an existing practice, with rapidly growing adoption, producing measurable benefits for retailers and consumer products manufacturers around the world. That is the key finding from a new report titled “GDS at Work in the Real World,” published by the Global Commerce Initiative (GCI) and Capgemini.
The report features case studies from retailers and manufacturers, including AEON, Albert Heijn, The Gillette Company, Johnson & Johnson, Procter & Gamble, Unilever and Wegmans, that demonstrate the actual business benefits of GDS:
- Leading Japanese retailer AEON reduced their item management costs by $2 million using GDS.
- At Dutch retailer Albert Heijn, an improvement in data accuracy through GDS with four trading partners has resulted in a 30% productivity improvement in their data management department.
- In Venezuela, The Gillette Company improved their order processing productivity and eliminated master data discrepancies by aligning their product information with that of their trading partners.
- Johnson & Johnson virtually eliminated data integrity-related out-of-stocks at Wal-Mart in the U.S.
- In Guatemala, Procter & Gamble and retailer La Fragua have increased purchase order accuracy by 3% just by focusing on aligning obsolete products in their respective systems.
- Unilever Colombia significantly reduced their data inconsistencies and improved new item speed to market by aligning product information with their trading partners.
- U.S. retailer Wegmans has increased store sales by reducing speed to market on new items by two weeks.
“GDS is fast becoming a strategic imperative for many manufacturers and retailers,” says Nigel Bagley, Head of Customer eBusiness of Unilever and Co-chairman of GCI’s GDS Implementation Program. “Early adopters understand that GDS is necessary to provide a foundation for future collaborative commerce and are realising substantial benefits from implementing GDS.”
Ruud van der Pluijm, Vice President, B2B eCommerce of Royal Ahold and Co-chairman of GCI’s GDS Implementation Program, notes that this new report demonstrates that GDS is no longer just a concept. “The case studies in this report prove that GDS is real and is making a difference. We no longer need to reference the ‘projected’ business benefits,” van der Pluijm says. “The pieces of the GDS puzzle are defined and are increasingly coming together. Most importantly, the practices now in place are proving that GDS brings the promised benefits.”
The report includes a GDS Key Performance Indicator (KPI) model, designed as a framework for trading partners to begin measuring achieved business benefits. The model identifies both retailer KPIs and manufacturer KPIs, which are designed to measure internal business improvements. “The model also identifies a number of collaborative KPIs, which are relevant for measuring the collaboration performance between a retailer and manufacturer,” says Kees Jacobs, Principal Consultant with Capgemini’s global Manufacturing, Retail and Distribution practice. “These collaborative KPIs can help manage and improve the trading collaboration.”
Each case study highlighted in the report explains the business trigger behind the company’s decision to implement GDS, what the company did and the result, as well as key learnings and critical success factors. “There is one common element in all these case studies,” says Simon Glass, The Gillette Company’s Global Value Chain Senior Program Manager. “Companies that are successfully driving GDS understand that they need to manage product information as a corporate asset.”
Download the report: Global Data Synchronisation At Work in the Real World (PDF document).
About the Global Commerce Initiative (GCI)
The Global Commerce Initiative (GCI) was established in October 1999 as a voluntary
platform. Its objective is to improve the performance of the international supply
chain for consumer goods through the collaborative development of best practices
and the implementation of global recommended standards.
It is a network created by the member companies and sponsors to simplify global
commerce and link the value chains to improve consumer value.
GCI operates through an Executive Board composed of senior representatives of more than 45 companies drawn equally from manufacturing and retailing that do business across continents or via global supply chains. It operates under the sponsorship of ten organisations – regional ECR Initiatives and VICS, six trade associations (AIM, CIES, GMA, FMI, NACDS and RILA) and the standards organisations GS1 and GS1 US – representing more than 1 million companies in the world.
For more information about the Global Commerce Initiative, please do visit our website at www.gci-net.org.
About Capgemini
Capgemini, one of the world’s foremost providers of Consulting, Technology and Outsourcing services, has a unique way of working with its clients, which it calls the Collaborative Business Experience. Through commitment to mutual success and the achievement of tangible value, the company helps businesses implement growth strategies, leverage technology, and thrive through the power of collaboration. Capgemini employs approximately 60,000 people worldwide and reported 2004 global revenues of 6,291 million euros. More information about individual service lines, offices and research is available at www.capgemini.com.
