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Retailers 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
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.
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