Getting In Synch

Carol Casper
Created:

Food retailers are seeing the benefits of global data synchronization.


Teradata, for example, offers master data management software. The solution is basically an electronic data warehousing tool designed as a central repository and clearinghouse for information on a wide range of business objects, including customers, vendors, transactions, products and more.

 

Study In Synchronicity

The A.T. Kearney report, "Proof of Concept Case Studies," detailed numerous operational improvements achieved by retailers who participated in the data synchronization pilots. They included:

  • A 3 percent to 5 percent reduction in out-of-stocks;
  • A reduction of two weeks in speed to market for new item introductions;
  • Savings ranging from 10,000 to 30,000 hours in store labor that would have otherwise been spent dealing with shelf-tag and scan errors;
  • Reductions of 5,000 to 10,000 hours in the amount of time that would otherwise have been spent on merchandising and data entry related to new item introductions and product updates;
  • Reductions of 1,000 to 2,000 hours in the amount of time that would otherwise have been spent by accounting on resolving invoice disputes related to basic item information;
  • Lower invoice audit fees;
  • Reductions of 1,000 to 2,000 hours that would have otherwise been spent dealingl with item discrepancies;
  • A 0.5 percent to 1 percent reduction in inbound freight costs; and
  • A 1 percent reduction in inventory.

For manufacturer participants, the results were equally impressive. In addition to the reductions in store shelf out-of-stocks and speed-to-market for their new item introductions, results included:

  • A 10 percent reduction in time spent by sales communicating basic item information to customers, following up, resolving queries, etc.;
  • Reductions in call center and Web site queries regarding basic item information;
  • A 5 percent to 10 percent reduction in time spent by sales and accounting dealing with invoice disputes;
  • Fewer invoice write-offs due to data discrepancies;
  • The elimination of item data errors in purchase orders;
  • 0.2 percent to 0.7 percent lower outbound costs; and
  • A 0.5 percent reduction in inventory.

In addition, Susan Boehn, product solutions manager at Dallas-based Retalix U.S.A., points out that one of the biggest benefits of global data synchronization for smaller, independent retailers is that it puts them on an equal footing with the industry's giants in terms of access to data. "So now they can be receiving information on new products or deals at the exact same moment as the big box stores. As long as they are operating in the same GDSN environment, everyone is treated as an equal," she says. ––C.C.

 

Most Popular