How suppliers can drive profits by addressing problems with product data
Our report analyses the cost of poor product data to manufacturers in the grocery business and explores the potential upsides to bringing the UK grocery sector’s product data management into line with the best countries in the world.
In these countries, it has been estimated that suppliers using accurate and consistent data sharing services were able to increase their sales figures by 1-3%. Their cost of sales decreased by 5%. A total financial benefit across the grocery market equivalent to over £3bn was achieved.
Given the size of the UK’s economy and population, this could represent a benefit of between £17bn and £21bn if the retail grocery industry works together to create a common platform for sharing high-quality data across the supply chain.
Among other things, the report highlights issues in logistics and transport. In the UK, 40% of invoices currently do not match with deliveries – causing delivery rejection, manual investigations, repeat journeys and wasted effort on behalf of suppliers (and their customers).
Poor data management is costing suppliers in terms of transport operations and is also affecting speed to shelf.
productDNA:hub's purpose is to tackle these problems for the whole industry. Moreover, one of its main aims, is to have a more immediate, positive impact for small suppliers. While GS1 UK has been developing the new product data management solution alongside FMCG giants such as Mondelēz, Nestlé and P&G, small suppliers stand to reap the benefits.