Asian Market and ÆON Group Product Data Management

Asian Market and ÆON Group Product Data
Management
Cenk Gurol
Group SCM Officer
ÆON Co. Ltd.
0
Agenda
1. ÆON Group Overview
1.
2.
3.
4.
Business
History
Strategy
ÆON Group Standardization
2. Standardization in ÆON Group
1. PIM Portal
2. RFID
3. Challenges in Standardization
4. 1WorldSync and ÆON
1
ÆON Group Overview
2
ÆON at a glance






$56.85 billion USD Revenue
13,212 stores, 157 Shopping malls, 2,862 overseas stores
31.75 million # of ÆON Credit Card members
$12 billion USD e-money transactions
360,000 group employees
6.8 billion USD private-label sales
3
As of Feb, 2013
Our current business model
Group Integration Circle of Consumer Value
Continue to
expand group
economies of
scale
Build ÆON
Topvalu
brands
Differentiate
and localizing
product
Support customers and local communities as
an essential community partner and CSR
activities
Increase share
through CRM
Enhance
touchpoints
through ecommerce and
omni-channel sales
Expand
markets/
formats/
geographies
Create
valuable
property
Development and
entertainment
Provide
services for
daily life
support
Provide full
access to
financial
services
4
Our History
5
Business Tie-up Based on Shared Philosophy
・Putting individual interest
aside, build a partnership
based on shared philosophy
・Becoming the glue that firmly
bonds different organizations
and the fertilizer that nurtures
new business
→Marriage of Hearts
JUSCO (ジャスコ) Stands for
Ｊａｐａｎ Ｕｎｉｔｅｄ Ｓｔｏｒｅｓ Ｃｏｍｐａｎｙ
JUSCO establishment on Feb. 21, 1969
6
Retail Sales Ranking
Year
1960
1968
1972
1980
1985
1990
1995
2001
2011
1
Mitsukoshi
Daimaru
Daiei
Daiei
Daiei
Daiei
Daiei
Ito Yokado
ÆON
2
Daimaru
Mitsukoshi
Mitsukoshi
Ito Yokado
Ito Yokado
Ito Yokado
Ito Yokado
ÆON
Seven & i Holdings
3
Takashimaya
Takashimaya
Daimaru
Seiyu
Stores
Seiyu
Seiyu
JUSCO
Daiei
Yamada
Denki
4
Matsuzakaya
Tetsudo
Kousaikai
Takashimaya
JUSCO
JUSCO
JUSCO
Nichii
Takashimaya
Mitsukoshi-Isetan
Holdings
5
Toyoko
Dept. Stores
Matsuzakaya
Seiyu
Stores
Mitsukoshi
Nichii
Seiyu
Uny
Uny
6
Isetan
Daiei
Tetsudo
Kousaikai
Nichii
Mitsukoshi
Mitsukoshi
Takashimaya
Seiyu
J.Front
Retailing
Takashimaya
Mitsukoshi
Mitsukoshi
Daiei
Takashimaya
Nichii
Uny
Daimaru
Takashimaya
Daimaru
Daimaru
Isetan
Fast
Retailing
Uny
Marui
Yamada Denki
EDION
Ranking
7
8
Hankyu
Seibu
Seibu
Dept. Stores
Dept.Stores
Dept.Stores
Seibu
Seiyu
Stores
JUSCO
Dept.Stores
9
Sogo
10
Matsuya
Hankyu
Dept. Stores
Isetan
Matsuzakaya
Nichii
Daimaru
Takashimaya
Seibu
Dept.Stores
Uny
Seibu
Dept.Stores
Seibu
Dept.Stores
Seibu
Dept.Stores
Daimaru
＊Some Companies had disappeared in the changes of business environment.
7
ÆON group mid-term strategy
Overseas ：2,458
(FY.2011-2013)
 50% of sales by 2020
Old
TOTAL
15,008
Japan：
 Products in
various sizes and Quantities
12,550
* Unit= the number of stores
Focused expansion of
small-size Urban super
markets
Asian shift
Senior shift
Urban shift
Digital shift
430
350
300
250
173
200
113
150
100
29
50
0
2009年度末
2010年度末
2011年度末
2012年度末
2013年度末
 Enlarged fonts on displays
 Expanded operating time
450
400
246
New
B2C web-site
E-money
・Card issued: 24 million
・Annual transaction :
\ 1 Trillion JPY
(＄12 Billion USD)
※Feb. 2012
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ÆON multiple store formats
FROM GMS/SM in suburban area
TO
small-size supermarkets, CVS、specialty stores
in urban area
GMS、SM：2,127
TOTAL
15,008
※Feb. 2012
Specialty stores：
3,424
Small-size super
market、CVS：
4,560
1 GMS
2 SM
* Unit= the number of stores
3 DS
4 HC
5 CVS
6 その他
7 専門店
8 金融
9 サービ
10 ドラッ
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ÆON Group Standardization
GMS
Leadtime
Specialty
store
Delivery
form
Ordering
unit
Processi
ng
CVS
Store format
Product
characteristics
Logistics service & quality
Flexible
&Optimized
Platform
SM
DS
Product
trend
PB/NB
Rapidly changing business environment
(Demographic, economic, IT, regulatory)
Consumer needs
(Price, Time, Senior, Practical)
Temperature
category
Ecommerce
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Quick Summary of Biggest Impacts
1.
Consumers determine our pricing (There is no guaranteed gross margin
anymore)- Heavy discounting
2.
Shop saturation, global product sourcing, economic slow growth and price
competition require differentiation
3.
Web empowered, smart-phone enabled consumers ensure total consumer
price transparency – multi-channel, E-Commerce
4.
Technology change speed increase and cost decrease provides much more
opportunity to
Better understand our customers- (CRM + Data mining)
Better communication and reach- (Marketing + Social media)
Expand our selling model- (Digital online and omni-channel)
5.
Need for wider range
of product data
Growth of Asia, urbanization and population aging provides unique product,
format and service opportunities for ÆON
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Flexible and Optimized Platforms
IT Platform with Global Standard Compliant Management Processes
Global Environment
Domestic Environment
ÆON Group
PIM
Expandability, Shared platform, Optimization
(Product Information Management)
Standardized Product Master Data
RFID
(Radio Frequency Identification)
MJ BMS/EDI
(Business MessageStandards)
Standardized EDI Messaging
Product DWH
(Merchandising Data Warehouse)
Data Analysis
PEC
(people connectivity)
Communication Tool
Diversity, Interoperability, De-centralization
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ÆON Group Master Data Management Initiative
PIM Portal
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ÆON Group PIM Project
Year
2010
2011
2012
Tasks Completed
・Initial project team launched
・Proof-of-concept pilot project
・Final executive decisions made
・Signed 1WorldSync (formerly SA2) contract
・MDM Team members assigned.
・System development kickoff
• PIM Supplier Portal Go-Live
 Direct (aggregated purchasing) national brand products
 Private-label products
2013
• Extend PIM Coverage in ÆON
 Non-direct (wholesalers) products
 Additional product categories
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Distribution of Product Data (Before)
No standardized product data distribution process existed
Brand Owners
ÆON Group
Domestic, industry-specific rules
GMS
Wholesalers
DS
LCPs
SM
Small
-Sized
More than 15% discrepancy in product size
Master data discrepancy between group companies
Specialty
Redundant work, poor data quality
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Distribution of Product Data (Current)
Standardized product data distribution and management process in place
ÆON Group
Brand Owners
GMS
GS1 Standard
LCPs
DS
PIM
PORTAL
SM
Wholesalers
Specialty
Different sales categories for
multiple sale channels can be
aggregated in PIM
Small
-Sized
MDM Process
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Global Product Data Platform (Future)
Establish connectivity with GDSN and eCommerce
B2C Use
E-Commerce Platform for ÆON
MDM Process
PIM
China
PIM
Japan
PIM
ASEAN
n
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KPIs
KPI Type
Description
Target
Result
(1) PIM Portal Coverage
Coverage of PIM Portal Master data for direct
usage for direct items
items are captured by
PIM
100%
17% September 2012, now 98%
(2) Auto-Population of Attributes
Number of attributes
populated
automatically
Automated attribute
population by
business rules
As much
as
possible
199 attributes out of total 555 attributes are
populated automatically by the system (35%) to
reduce human errors and manual work
1. Item description
rules for privatelabels
TopValu brand must
be abbreviated as
“TV”
100%
Before: 81%
After: 100% (new items only)
2. Brand type selected
correctly
Brand type (sb type) is
correctly selected
100%
Before: 7%
After: 100% (including new and old items)
(3) Data Accuracy
3. Manufacturer GLNs
correctly provided
Manufacturer/brand
100%
100%
owner identification
(before PIM, category managers were using
provided correctly
proprietary identification codes)
KPIs are based on the phase 1 scope covering the grocery and H&BC categories.
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KPIs -continued
KPI Type
Description
Target
Result
1. ÆON Group
Classification
GMS Classification is
assigned as group
common classification
100%
260,000 items (including wholesaler items)
(MDM Team working on maintenance on
existing items)
2. JICFS Classification
Managed by GS1
Japan
100%
100% of new items are classified with JICFS
(4) Product Classifications
(4) Item Data Available on Time
1. Time to setup an
item (direct items)
For target systems
ODBMS and PSS (from
workflow start to
finish)
7 days
Before: 14 days
After: 5 days in June, 9 days in July
(results are variable but showing improvement)
2. Lead time
compliancy rate
(direct items)
Item master setup
must be completed 4
weeks before the
store availability date
100%
Before: 18%
After: 72% in June, 60% in July
(results are variable but showing improvement)
(6) Reduction in Order Errors
PSS order error
Order failure due to
master data issue in
the PSS system
0 error
for nonexistent
data
Before : 1,253 errors (August 2012)
After: 445 errors (June 2013)
-> Approx. 65% improvement
*Number of failed transactions
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RFID
RFID
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RFID Target Scope
Visualizing Returnable Assets (Material Handling)
Product Traceability
RFID Scope
Automated Inspection of Shipment
Basket Analysis and Customer Behavior Analysis
Management of Shelf Life Data
EAS Tagging and Authentication
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RFID Vision and System Integration
Factories Overseas
Port
Ocean
Ports in Japan
Traceability
EPC Global
System Integration
Item Master Data
Historic Data
ＳＣＶ
System
PIM
EDI
EPC Global
Traceability
Domestic Factories
ÆON ＲＤＣ
Stores
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Standardized Supply Chain Platform
Foreign Manufacturers Overseas DC, GXD
Raw ingredients
Suppliers
Domestic Brand
Owners
Domestic RDC
Domestic XD
ÆON Stores
Domestic
Wholesalers
Distribution
Equipment
Facility, Equipment, Delivery truck, Material handling
carriers (pallet, carts, crates, etc.)
Processing
Warehouse operation, Delivery operation, Inventory
control, Replenishment process, Demand
forecasting, etc.
IT
WMS, PMS, TMS, CPFR, SCV, RFID, GDSN, PIM,
GTIN/GLN,
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Material Handling Equipment and RFID Tags
RFID Tag
Carts (used between DC, supplier, Carts for Fresh Produce: Approx.
200,000 units
and stores): Approx. 700,000 units
Pallets: Pallet rental service is used
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Challenges in Standardization
Lack of industry-wide standardization process in Japan
• GDSN is currently not used in Japan
 Some discussions at the industry level in the past but GDSN not adopted by the industry
due to political inter-industry barriers
• GS1 Standard are not fully adopted
 Attributes are defined within ÆON but not yet fully used by appropriate target users
 GLN and GTIN still used in limited systems
 New EDI standards have been introduced but still the 30 year old formats are used.
• B2B Integration still not completed
 Some systems are not yet fully integrated so manual processes are required
• Integration with B2C Systems
 Need to further streamline B2B Processes before moving to B2C
• Complex 3-Tier Business Process in Japan
 Complex data requirements and business processes to handle 3-tier relationship
(manufacturers, wholesalers, and retailers)
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1WorldSync and ÆON
ÆON will continue to promote GS1 standards and product data
management programs in Asia-Pacific with 1WorldSync
• Promotion of GS1 Standards
 GLN to be used in wider occasions
 RFID and related technology
• GDSN Connectivity
 Migrate current PIM portal suppliers to GDSN technology
 GDSN adoption in ASEAN region
• B2C Area
 Additional consumer-relevant data to be captured in PIM Portal
 Looking into 1WorldSync B2C developments for future initiative Digital ID and Trusted Source of Data
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Thank you
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