Moving quickly towards Fast Perfect Order (through EDI & GDS) Renato Di Ferdinando Renato Di Ferdinando Customer Service Manager, Kraft Foods Italia March 2010
Moving quickly towards Fast Perfect Order (through EDI & GDS)
Renato Di FerdinandoRenato Di FerdinandoCustomer Service Manager, Kraft Foods Italia
March 2010
Main Topics Agenda
Storyline
N i l t ti th “B f V Aft ” i tNew process implementation: the “Before Vs After” picture
GDS & EDI integration: a successful synergy
KPI and benefits measurement
Next stepsNext steps
Key Learning & Deliverables
Storyline
Classic effectiveness & efficiency targets
EDI + GDSTraditional transaction EDI
EDI + GDS
To improve service guaranteed to cooperatives by CoopTo improve service guaranteed to cooperatives by CoopCustomer collaboration: the starting point for new projects
From Traditional Order To Cash To EDI
As it was…Manual Order
GenerationGeneration
Order PrintingManual Order
Typing
Order Sent via Fax
Manual InvoiceControl Invoice Printing
Manual InvoiceRegistration
Paper InvoiceMailing
From Traditional Order To Cash To EDI
First Step
EDI OrderProcessing
in ERP
EDI OrderGeneration
EDI Sales OrderConfirmation 1°
I i P i ti
Manual InvoiceControl
Invoice Printing
Paper Invoice MailingManual Invoice
Registration
From Traditional Order To Cash To EDI
Second Step
EDI OrderGeneration
EDI OrderProcessing
in ERP
EDI
EDI InvoiceRegistration
EDI Sales OrderConfirmation 1°& 2°
RegistrationEDI Invoice
From Traditional Order To Cash To EDI
Main features of EDI roll-out
Order and Order Confirmation:Order and Order Confirmation:regular implementation of standard messages
Sales Order Confirmation focus: upgrade with communication of amended quantities
EDI Invoice: the electronic flow reaches completion pCredit Note & Debit Note messages are coming soon
EDI Outstanding Issues
The flow was electronic but...
Product details were manually keyed into both MasterProduct details were manually keyed into both Master DataThe time needed to manage the information within Coopwas about 20 min per documentInformation on products communicated by different means such as fax mail phonemeans, such as fax, mail, phone...EDI Orders could be in error status due to Master Data mismatchesImprecise item details lead to a deterioration of invoice accuracy
GDS: The Missing Link
A review of obsolete processes: not only a technical tool, but the base to improve performance
Full awareness of the process across all functions
New KPI sharing to assure common understanding ofi timprovements
Reduction of IT systems redundancy: all relevant info on a single sitea single site
Shorter product introduction Lead Time
Less time spent on complaints/disputes: Invoice Accuracy,“Order Accuracy”, Returnsy ,
Before GDS implementation: critical areas
1W 1W 2DD
Itemintroduction
Product analysis Completion
StoreProduct
info
Edit & Publish
detailspartially
categorydept.:
kraft Sales dept.:
category dept.:
manualeditingpartially
sent viae-mail
briefing
approval
p
complete product information
p
infocollection
editing
info to affiliates
further requests
information retrieval & transmission
doc sent to assistant
New process implementationSteps of the process > From 5 to 3
1W 1W
Steps of the process > From 5 to 3
1DD
Itemintroduction
Product analysis Completion
StoreProduct
info
Edit & Publish
all details
categorydept.:
Kraft Sales Dept.:
Category Dept.:
Items info self details
via GDS access to all info via GDS-Pim
p
complete product information
p
Infocollection
storage
Info to affiliates
approval via Pim
information retrieval & transmission
doc sent to Assistant
affiliates
GDS+EDI: a successful synergy
During the Listing process, information requests andmanual typing delays are eliminatedmanual typing delays are eliminated
New Listing additions and Master Data changes detailsNew Listing additions and Master Data changes detailsare quickly notified via digital protocol
Orders and Invoices are based on complete and alignedMaster Data features
GDS KPI’s:GDS lit h k th li dGDS assures quality checks: the supplier needsto cleanse his Master Data to avoid technical blocksMaster Data harmonization and fine tuning, according to GS1 requirements and partners agreements(e.g. naming convention)
Data Consistency:Assure that COOP receives what Kraft sends in their systemsy
Time To Market:Streamlining the process assures time savingStreamlining the process assures time savingMaster Data harmonization, no template to fill
GDS KPI’s Measurements:
Data Consistency% item data with Correspondent
Data qualityIncrease
100%
75%
50%
27%
Correspondentattribute in KraftCoop Master data
Increase25%
0%
Time to market (dd)Time needed for a product to be stored
50% of time saving
21
1416p
into master data
Parameters
saving7
0Source: Coop assessment
168
ParametersTime to market is related to all the activities of the process (eg. Send information, Manual data entry, paper production)
Focus on consistency: before GDSGtin Consumer unit
Net contentProduct Description
Supplier internal code
100
100Supplier internal code
Each in a TITI per layer
Layers per pallet
010
098Layers per pallet
TI per palletGtin Case
Trade item Weight
98969387g
Packaging (Trade Item)Total Shelf life
Trade item Volume
857850
Packaging (C.U.)Each Volume
46312421
Source: Coop assessment
Parameters1/3 of total product as sample15 common critical attributes
2117
Focus on consistency: after GDSGtin Consumer unit
Net contentProduct Description
Supplier internal codeSupplier internal codeEach in a TITI per layer
Layers per palletLayers per palletTI per pallet
Gtin CaseTrade item Weight
100
gPackaging (Trade Item)
Total Shelf lifeTrade item Volume
Packaging (C.U.)Each Volume
Source: Coop assessment
Parameters1/3 of total product as sample15 common critical attributes
Performance Improvement Indicators
General Master Data Discrepancies....
Up to 20% of EDI Orders in error !Up to 20% of EDI Orders in error !
Up to 1h per Day to fix Orders anomalies !
More than 2000 Credit Notes per Year !
U t 30 i D t il I i !Up to 30mins per Day to reconcile Invoices !
..... after full GDS implementation everythingbecomes “0”!
Project timingK ft j i C i t GDSKraft joins Coop into GDS ....
2ndQ2006
3thQ2006
4thQ2006
1stQ2007
2ndQ2007
3thQ2007
4thQ2007
Collaboration ECR/Coop/Kraft on attribute set
Pil t h ith l
Q2006 Q2006 Q2006 Q2007 Q2007 Q2007 Q2007
Pilot phase with manual upload in 1Sync
Project requirements and resources allocationsresources allocations
Interface design and implementation
Massive upload testMassive upload test and Go-Live
Next Steps
Roll-Out to new Suppliers for Coop and new Retailersfor Kraft
Complete adoption of the new processes by Sales( f ) C (C )Managers (Kraft) and Category Managers (Coop)
I t f P I M f ti liti i tiImprovement of P.I.M. functionalities on existing products updating
Automating KPI’s calculation
Key Learning & Deliverables
The importance of moving together
Involve the business side in the project f th b i ifrom the beginning
Mutual trust in creating a value project
The leverage effect of multiple innovation