Velosel Highlights Seven Sins on Path to Global Data Synchronization
28 October 2003 - 4:04AM
PR Newswire (US)
Velosel Highlights Seven Sins on Path to Global Data
Synchronization Reveals the pitfalls and problems most likely to
slow down GDS projects MOUNTAIN VIEW, Calif., Oct. 27 /PRNewswire/
-- Global Data Synchronization (GDS) projects are put at risk by
seven key factors, according to findings by Velosel(TM)
Corporation. The industry-wide drive between manufacturers and
retailers to streamline product information could be derailed if
these challenges are not addressed. By analyzing feedback gathered
from over 50 Global 1000 manufacturers and retailers over the past
two months, Velosel has identified the most common mistakes made in
Global Data Synchronization projects. It found most projects that
fall short of expectations or fail to meet deadlines do so because
the scope or impact of GDS has been underestimated from the outset.
"The burden for GDS is usually shouldered by the technical
department, but the impact is much more far-reaching," said Ricardo
Berrios, vice president of global marketing at Velosel. "If GDS is
to streamline the flow of product information between trading
partners, a holistic approach is essential. That means ensuring the
data is accurate at the source, and that any business process
involved in managing this product information, be it automated or
manual, is addressed. This task can't be handled by the IT function
alone. Senior sponsorship and cross-departmental buy-in are
crucial." "Our goal is to make GDS more manageable for retailers
and manufacturers so they can take advantage of the new strategic
asset that product information represents. We conducted this
analysis as part of an initiative to help organizations achieve
full GDS in the most painless way possible," continued Berrios.
"Achieving complete Global Data Synchronization is not a simple
task. Execution on this front requires that companies be aware as
early as possible of the scope of opportunities and challenges that
may lie ahead," said Kent Allen, research director at Aberdeen
Group. "As Velosel has identified, firms that lack an
organization-wide, business process-centric approach to Global Data
Synchronization projects will find that these initiatives devolve
into an exercise in redundant, cross-divisional frustration." The
common pitfalls are: 1. Lack of a senior sponsor The main reason
for a GDS project to fail is if it lacks a high-level sponsor
within the organization. If GDS is treated as a technical
initiative alone, the broader business implications will not be
considered and the potential benefits will not be realized. For
manufacturers, GDS can help differentiate the company by making it
easier for retailers to buy from them. This will increase sales and
customer satisfaction. For retailers, where efficiency is an
integral part of profitability, GDS offers the potential to
streamline the supply chain and internal operations still further.
Unless the project encompasses these implications, it will simply
provide a technical solution to a technical problem, rather than a
paradigm shift in supply chain efficiency. 2. Ignoring the customer
interaction implications At its full extent, GDS becomes the
platform for interaction between manufacturers and retailers, by
providing a unified 'language' for them to trade efficiently. If it
is viewed simply as a data project, ignoring the potential for a
closer working relationship, the project will fail since GDS
fundamentally changes the way retailers and suppliers interact.
It's important that customer-facing teams are involved in GDS in
order to take full advantage, and to ensure interactions are
clearly understood. 3. Seeing synchronization as a one-time project
Manufacturers and retailers can view GDS as a one-off project
rather than an ongoing program. Uploading data into trading hubs,
such as Transora, or product registries, such as UCCnet, does not
constitute the completion of a GDS project. New products are
constantly introduced, updated or discontinued, authorized product
lists are revised, customer requirements evolve and standards
change, meaning GDS should be a scalable and repeatable process to
be successful. 4. Underestimating the time required to create and
maintain accurate product information The product information for a
GDS project is rarely stored in one place and requires an extensive
collation exercise to create a central product information
repository. Much of the data needed must be drawn from a variety of
departments across the enterprise, such as research, manufacturing
and logistics. Once collated and centralized, this strategic
information needs to be interrogated for accuracy and frequently
enhanced to provide additional information which may not have been
required to date, such as package dimensions, storage temperatures
etc. A common pitfall is that organizations embarking on GDS
underestimate the stringency of these product information
requirements or the time required to fulfill them correctly.
Organizations must ensure they have the internal collaborative
processes in place to maintain accurate product information on an
ongoing basis. Unless it is constantly filtered, companies risk
spreading 'dirty data' among their trading partners. 5. Viewing GDS
as a connectivity problem GDS enables product information to flow
smoothly between manufacturers and retailers. As a result, it can
be viewed simply as a connectivity challenge. However, this ignores
the volume of messages which will be exchanged between the parties
and overlooks the value of those messages. For instance, if a
retailer rejects a new product which is being introduced, the
manufacturer must not only recognize that rejection, but also find
the causes behind it. If the message choreography is wrong and the
right people aren't alerted, this valuable feedback can not be
used. Workflow is an integral part of operational GDS, bringing
manufacturers and retailers closer together. But unless the
messages are correctly managed, manufacturers and retailers will
each be broadcasting feedback which won't be actioned. 6. Stopping
short of full synchronization Given the potential scope of a GDS
project, some manufacturers and retailers only become 'partially
synchronized'. For instance, a manufacturer only uploads part of
its product catalog or only a subset of the available information,
such as physical dimensions but not price information.
Alternatively, the manufacturer only allows synchronization through
a single channel, such as UCCnet, but does not build connectivity
to other data pools or proprietary routes. This can restrict the
number of partners with which the manufacturer can communicate. On
the demand side, a retailer might only synchronize with a handful
of key suppliers, ignoring the smaller vendors. This results in a
dual system which yields some of the benefits of GDS but maintains
the chronic problems inherent in having inaccurate product
information and different interaction approaches with each
supplier. The pitfall of adopting 'partial synchronization' is
that, by restricting the project parameters to encompass only a few
products or suppliers, the resulting solution is not scalable or
comprehensive once the project rolls out further. Unless the broad
parameters are built in from the start, the investment in GDS will
be misplaced, laying problems for the future if the solution has to
be re-engineered. 7. GDS mandates alone disenchant adoption GDS
benefits both retailers and manufacturers. Many retailers have
introduced mandates and deadlines for key suppliers to trade via
GDS in order to incentivize adoption. However, smaller
manufacturers do not have the resources to implement a GDS project
immediately, despite being willing to do so. Retailers should also
consider offering incentives to smaller suppliers to join the GDS
initiative. Many of these suppliers provide high quality, niche
products which give the retailer depth of offering and high margin
stock, so they need to be carried along with the GDS wave. It will
be detrimental to the entire industry if the smaller vendors are
ignored or overly penalized. Further information about these
pitfalls and how to avoid them is available from Velosel at 650 641
8300 (http://www.velosel.com/). About Velosel Velosel Corporation
enables retailers and consumer goods manufacturers to trade
effectively by providing real-time access to accurate product
information. Its software removes supply chain inefficiencies by
eradicating errors in product data and automating the process
required to maintain this dynamic information. Velosel5, a
collaborative product information management application, provides
an ordered framework for the people, processes and systems that
impact product information throughout the enterprise and drives
global data synchronization with external trading partners.
Velosel's technology builds the foundation for critical initiatives
such as Radio Frequency Identification (RFID), Collaborative
Planning, Forecasting and Replenishment (CPFR) and Sunrise 2005.
Leading companies, including Ace Hardware, Campbell Soup Company,
The Clorox Company and Wyeth, utilize Velosel's technology. Velosel
is a Certified and Preferred Solution Partner of UCCnet and is
committed to standards for Global Data Synchronization.
Headquartered in Mountain View, California, Velosel can be
contacted in the U.S. at (650) 641-8300 or at
http://www.velosel.com/. Velosel and Velosel5 are trademarks of
Velosel Corporation. All other company, product and brand names are
trademarks of their respective owners. DATASOURCE: Velosel
Corporation CONTACT: Rachel Kim, , or Lucy Allen, , both of LEWIS
P.R. Inc., +1-415-277-5400, for Velosel Corporation Web site:
http://www.velosel.com/
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