“Bar codes have transformed the way we do business; Global Data Synchronisation is now set to do the same.”
Richard Brasher, Commercial & Trading Director, Tesco plc

The efficiency of today’s supply chain is increasingly dependent on accurate product information, for example, product description, dimensions, weight etc.

This information is shared by suppliers and retailers on a daily basis through their usual business trading practices. However, as these transactions are becoming more automated, so the need for accurate product information is becoming more business critical.

Inaccurate product information can result in increased costs, returned shipments, lost sales and ultimately, consumer dissatisfaction. This affects all suppliers and retailers, no matter what size they are or how many trading partners they have.

“Alignment of data between retailers and suppliers will improve on-shelf availability and ultimately reduce costs and increase sales. This lies at the heart of the principles of Efficient Consumer Response. This is the next step for FMCG in the UK.”
Chris Tyas, Co-Chair, ECR UK Board

Business Benefits

GDS provides standardised, reliable product information for effective business transactions in both local and global markets, driving down costs in the supply chain.

GDS:

• Ensures that trading partners work in a standardised way thereby reducing duplicate systems and processes
• Ensures that product information is updated and consistent between trading partners
• Validates accuracy of product information against standards and business rules
• Ensures that trading partners classify their products in a unique, standardised way (using the GS1 Global Product Classification)
• Provides a single point of entry for retailer and supplier trading partners through their chosen data pool, thereby reducing the cost of operating multiple vendors
• Guarantees uniqueness of item (product, case, pallet), party and location through the GS1 Global Registry
• Certifies that data pools and the GS1 Global Registry comply with GDS rules

GDS in the Real World

The Global Commerce Initiative (GCI) and Capgemini have published a report detailing the business benefits of GDS. These real-life cases demonstrate that GDS is:

1. Reducing costs
2. Improving productivity
3. Increasing sales
4. Providing the essential foundation for trading partner collaboration

The report highlights, for example, that leading Japanese retailer AEON has reduced their item management costs by $2 million using GDS. Johnson & Johnson has virtually eliminated data integrity related out-of-stocks at Wal-Mart in the US. The benefits are compelling.

The full report is available below.
GDS at work in the real world [format: pdf - size: 768kb]