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IBM Confidential
© Copyright IBM Corporation 2009
IBM Global Business Services and IBM Software Group
The Data Crunch ReportThe Data Crunch Report
The impact of bad data on the Retail and Consumer Products Industry
ECR Asia-Pacific Conference
Kuala Lumpur, October 2010
Chris Cave Jones. IBM
Page 2
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
CIES Top of Mind
• No surprise, it’s the economy & consumer demandthat is #1
• Food Safety is still very high priority
• Drive for Efficiencyand data qualitycontinues to underpin all TOM
issues
600 decision makers in food and consumer goods across 54 countries
Background to UK data crunch study
IBM Confidential
Page 3
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
The evolving value chain of 2016
Background
Page 4
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Background
� In tough economic
conditions the industry needs to maximise
efficiency
� Increasing demand for data from consumers –
nutrition, safety, lifestyle, environment, ethical
� Increasing regulation around food and product
safety and impact on the environment
� The UK retail industry is behind the curve in addressing poor supply chain data
� But “stars are aligning” - now is the time for the UK industry to address this issue
DATA CRUNCH PROJECT OBJECTIVES:
1. Understand the impact of inconsistent data on the UK supply chain (now and future)
2. Identify opportunities to increase efficiency and reduce costs
3. Collaborate with the stakeholders to agree and develop an industry action plan and solution
IBM Confidential
Page 5
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
IBM’s Involvement
Following a tendering process, IBM were selected as GS1 UK’s partners for both software
and consulting services.
“This is the first time that such an exercise has been carried out on this scale. We are delighted to
work with IBM to analyse the data records we are being provided with. The combination of their leading data analysis software and their unrivalled industry experience made the choice of IBM an
easy one,” commented Malcolm Bowden, Business Development Director, GS1UK.
Page 6
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Why IBM?
� Requirements:
� 1. Analytics tools:
� Analytics functionality
� Scalable
� Adaptable
� Flexible
� 2. Industry Knowledge
� Retail experience
� Supply Chain expertise
� Real world insights
� IBM’s Capabilities:
� 1. Business Analytics & Optimisation:
� Advanced analytics software
� Over 1 million records!
� Intuitive
� Structured
�
� 2. GBS Consulting Services:
� Worked with all major players
� Leaders in SCM
� Industry experienced
IBM’s Involvement
IBM Confidential
Page 7
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
What we did
� Obtained data files from retail partners
� Reviewed each file for completeness using
� IBM Information Analyser software
� Matching of consumer unit and traded unit data between
� retailer files
� Requested supplier data
� Reviewed supplier files for completeness using IBM
� Information Analyser software
�
� Matching of consumer unit and traded unit data
� between suppliers and retailers
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
IBM’s Involvement
Page 8
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Report Findings
� UK grocery sector identifies opportunity to better serve 21st century consumers
� GS1 UK report highlights golden opportunity
to enhance consumer experience through
improved product information
� Industry data standards to help manage the
demand for 4 fold increase in retail product
information
� Opportunity to realise savings of £1 billion
over the next five years
IBM Confidential
Page 9
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Results 80% - average level of retailer and supplier product data inconsistency
Report Findings
Page 10
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
�Over time, retailers have found ways of minimising, avoiding and managing these issues…
�…it may not be efficient, but it isn’t really broken, so why fix it?
SUPPLIERHEAD OFFICE
RETAILERHEAD OFFICE
FACTORY WAREHOUSE CONSOLIDATIONRETAILER RDC
STORE
PRODUCT FLOW
DATA/INFORMATION FLOW
Price file inconsistencies resulting in high invoice
matching workload
Incorrect item dimensions causing errors in space
planning systems
Ti-Hi data wrong or missing, causing receiving problems at RDCs and consolidation
points
Case dimensions wrong, causing cage and pallet fill problems & inefficiencies
Case weights inaccurate, resulting in cage and trailer
fill problems
Product descriptions differences, causing pricing
and replenishment confusion in stores
Invoice matching errors resulting in late payment of
invoices
Product coding and different hierarchies across retailers,
making data analysis challenging
Incorrect product life data generates RDC rejections
and waste
Bar code errors causing “no scans” and impacting
customer serviceDevelop workflow
systems to make invoice
matching as efficient as
possible
Check Ti-Hi on receipt
and maintain on local
system
Get samples from suppliers,
measure products again,
maintain in local space system
97.3%ECR On-ShelfAvailability Survey Aug 09
Report Findings
IBM Confidential
Page 11
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
So what for Industry?
� Retailers not using supplier data
� Re-measuring within merchandising and depots
� Duplication of effort
� Suppliers sending sample products to different retailers
� Suppliers’ effort to complete numerous different New Line Forms
� Trading teams completing New Line Forms when data is fixed later in the
process
• Significant opportunities to better serve 21st century customer by managing the 4 fold increase in retail product information
• Opportunity to realise huge savings over the next five years
Report Findings
Page 12
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
CONSOLIDATION
SUPPLIERHEAD OFFICE
RETAILERHEAD OFFICE
FACTORY WAREHOUSE
RETAILER RDCSTORE
PRODUCT FLOW
DATA/INFORMATION FLOW
WEB
MOBILE
CALL CENTRECATALOGUE
GLOBALSUPPLY
TRACEABILITY
CARBON DATA
PACKAGINGINFORMATIONCOMPLIANCE
LOCALSOURCING
MULTI-CHANNEL
CONSUMERDATA
NUTRITIONALINFO
Growing Data Requirements
Report Findings
IBM Confidential
Page 13
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
40% of shoppers have specific dietary needs & need more
product info
Coke Retailing
Research Council
66
250400%
increase in
data
required to
be held by
retailers
The future data needs
Report Findings
Page 14
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
GS1 India – IBM Data crunch study
Retailers
� Spensers
� Reliance
� Aditya Birla
� Shoppers Stop
Manufacturers
� Hindustan Unilever
� Johnson & Johnson
� India Tobacco
� Dabur
IBM Confidential
Page 15
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Initial data quality observations
100%100%100%29%case Weight Missing
100%100%100%29%case L,W,H dimensions missing
100%99%5%9%Each weight missing
100%100%1%38%Each L,W,H dimensions missing/incorrect
0%0%1%5%Case configuration/ eaches in a case missing
31%24%18%51%Shelf life blank or zero
100%100%100%65%Vendor, Supplier product code missing
0%0%4%9%MRP Missing
1%0%0%3%Missing/Incorrect EAN Codes
0.7%0.0%0.0%0.4%One EAN number attached to multiple item codes
0%43%18%60%Under the same retailer item code there are many EAN codes
attached
1313173532651014Available EAN codes for Analysis
Retailer 4Retailer 3Retailer 2Retailer 1Initial Observations
100%100%100%29%case Weight Missing
100%100%100%29%case L,W,H dimensions missing
100%99%5%9%Each weight missing
100%100%1%38%Each L,W,H dimensions missing/incorrect
0%0%1%5%Case configuration/ eaches in a case missing
31%24%18%51%Shelf life blank or zero
100%100%100%65%Vendor, Supplier product code missing
0%0%4%9%MRP Missing
1%0%0%3%Missing/Incorrect EAN Codes
0.7%0.0%0.0%0.4%One EAN number attached to multiple item codes
0%43%18%60%Under the same retailer item code there are many EAN codes
attached
1313173532651014Available EAN codes for Analysis
Retailer 4Retailer 3Retailer 2Retailer 1Initial Observations
Under 40%40% - 70%70% - 100%
Page 16
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Consumer Unit match across retailers
66 %22 %1 %E ac h es Pe r C ase
65 %29 %7 %She lf L ife
91 %82 %4 2%M R P
Att r ibu tes
m a tc h ed
ac ros s a n y 2 re ta ile rs
A ttr ibu tes
m a tc h ed
a cro s s a n y 3 reta ile r s
A tt ri bu te s
m a tc h ed
ac ros s a ll 4 re ta ile r s
E xa ct M a tch
Attribu te
66 %22 %1 %E ac h es Pe r C ase
65 %29 %7 %She lf L ife
91 %82 %4 2%M R P
Att r ibu tes
m a tc h ed
ac ros s a n y 2 re ta ile rs
A ttr ibu tes
m a tc h ed
a cro s s a n y 3 reta ile r s
A tt ri bu te s
m a tc h ed
ac ros s a ll 4 re ta ile r s
E xa ct M a tch
Attribu te
Unde r 40 % M a tc h
4 0% - 70 % M a tc h
70 % - 100 % M a tc h
• The sh e l f l i fe d a ta is cr it ic a l f o r en su r ing prod u ct fre shn e ss , D isc re pa ncy
h ere c an h a ve finan cia l im p act a s we l l sa fet y c oncern s
• Ca se con fig ura tion d a ta if in c or re c t c an a lso re su lt in f ina n cia l im pa ct
i f u sed in ca lcu la t in g th e u n it s rece iv ed /inv o ice d
• MRP is t he on ly pa ram e te r wh ich is a t a reaso nab le leve l (D isc rep ancy
a ttrib utab le t o huma n error and a ll sys tems no t up da ted )
IBM Confidential
Page 17
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Consumer unit attribute match across 2 retailers
61%3%Ea ch D im e ns ion Su m
22%1%E ac h Vo lum e
55%51 %Eac h Ne t W eight
49%7%E ac h H ei gh t
13%2%Eac h W idth
23%1%Eac h L en gt h
A ttr ibutes
m atch ed
ac ro ss an y 2 re tailers
E xact Match
A ttri bu te s
m a tc hed
a cr oss an y 2 r eta ile rs
To lerance 10 % +/-A ttribu te
61%3%Ea ch D im e ns ion Su m
22%1%E ac h Vo lum e
55%51 %Eac h Ne t W eight
49%7%E ac h H ei gh t
13%2%Eac h W idth
23%1%Eac h L en gt h
A ttr ibutes
m atch ed
ac ro ss an y 2 re tailers
E xact Match
A ttri bu te s
m a tc hed
a cr oss an y 2 r eta ile rs
To lerance 10 % +/-A ttribu te
U n d er 40 % M atc h
40 % - 70 % M a tc h
70 % - 10 0 % M atch
• Be sides ne t w eigh t the d imen sion dat a i s in red. Th e d im ensions did n ot ma tch be tween Reta ile rs
•E ven a fte r app lying a tolera nce of + /- 10% none of the parameters were ing reen
Page 18
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Consumer Unite Attribute match with 4 retailers by supplier
33%62%23%42%MRP
8%
0%
Supplier 3
0%0%0%Shelf Life
3%
Supplier 1
3%
Supplier 2
0%
Supplier 4Attribute
Eaches Per Case
33%62%23%42%MRP
8%
0%
Supplier 3
0%0%0%Shelf Life
3%
Supplier 1
3%
Supplier 2
0%
Supplier 4Attribute
Eaches Per Case
Under 40% M atch
40% - 70% M atch
70% - 100% Match
• There is significant discrepancy between Retailer and Supplier data.
• Ideally there should not have been any discrepancy if the data from Suppliers
was used by Retailers without any manual intervention.
• This clearly shows that Retailers are maintaining their own version of data whichis further impacted by manual errors
IBM Confidential
Page 19
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Consumer unit attribute match across 2 retailers by supplier
0%24%67%32%Each Net Weight
0%
0%
0%
0%
Supplier 3
0%
0%
0%
0%
Supp lier 1
0%
0%
0%
0%
Supplier 2
0%
0%
4%
0%
Supplier 4
Each Length
Each Height
Each W idth
Each Volume
0%24%67%32%Each Net Weight
0%
0%
0%
0%
Supplier 3
0%
0%
0%
0%
Supp lier 1
0%
0%
0%
0%
Supplier 2
0%
0%
4%
0%
Supplier 4
Each Length
Each Height
Each W idth
Each Volume
19%43%70%45%Each Net Weight
8%
18%
24%
22%
Supplier 3
12%
48%
10%
29%
Supplier 1
0%
0%
0%
0%
Supplier 2
23%
48%
42%
38%
Supplier 4
Each Length
Each Height
Each Width
Each Volume
19%43%70%45%Each Net Weight
8%
18%
24%
22%
Supplier 3
12%
48%
10%
29%
Supplier 1
0%
0%
0%
0%
Supplier 2
23%
48%
42%
38%
Supplier 4
Each Length
Each Height
Each Width
Each Volume
EX
AC
T M
AT
CH
WIT
H 1
0%
To
lera
nc
e
Page 20
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009Page 20
GS1 AUSTRALIA – IBM Organisations Involved - Grocery
IBM Confidential
Page 21
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009Page 21
GS1 AUSTRALIA – IBM Organisations Involved - Hardware
Page 22
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009Page 22
What is being done
� Obtained data files from retail partners
� Reviewed each file for completeness using
IBM Software Tools
� Matching of consumer unit and traded unit data between
retailer files
� Requested supplier data
� Reviewed supplier files for completeness using IBM
software tools
�
� Matching of consumer unit and traded unit data
between suppliers and retailers
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Process followed
✓
✓
✓
✓
✓
IBM Confidential
Page 23
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009Page 23
Current Status
� Australian Grocery retailer data analysed for consistency & alignment with Supplier data
� Australian Hardware retailer data analysed for
consistency & alignment with Supplier data
� 2.5 months of data review, clarification, and re-submission in a number of circumstances.
� Propose to lock data down for final report run by
October 8.
� Commence data analysis after October 11.
Page 24
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
What does this mean for companies?
RETAILERS:
� Tackling data issues cannot wait
� What does it mean?
� Solution options
� Internal IT impacts
� Process impacts
� Where do I start?
� Drive competitive advantage?
MANUFACTURERS:
� What are the Retailer Agendas?
� Do I become a Leader or Laggard?
� What does it mean?
� Solution options
� Internal IT impacts
� Process impacts
� Where do I start?
IBM Confidential
Page 25
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Facilitated for Industry
by GS1
GS1’s Solution
200+ Item standard attributes
Global Product Classification
Data Quality Framework
UK New Lines Form Adopted so far by ASDA and JS
GS1 STANDARDS
Understand data
Allowing all GS1 UK supplier members to manage their master
data centrally as part of a membership service
Ensure all data is cleansed to GS1 standards
My PIM
Create, Cleanse and Manage Data
Enter once - publish to manyusing a global standard network of
interoperable data pools
One version of ‘the truth’ globally held and accessible by all
GDSN
Exchange Data
What does this mean for companies?
Page 26
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
How can IBM help?
Consulting:
� Thought Leadership
� Solution Design
� Process Change
� Systems Implementation
� Application Integration
Software:
Discuss the Information Agenda
� Infosphere:
� Data Stage
� Information Analyser
� MDM Server for PIM
� Traceability
IBM Confidential
Page 27
IBM Global Business Services and IBM Software Group
© Copyright IBM Corporation 2009
Contacts
GBS
Chris Cave Jones
Growth Markets Software Lead for Consumer Products and Retail
Tel: +65 9369 2114
© Copyright IBM Corporation 2009
IBM Global Business Services and IBM Software Group
Thank YouThank You