BtoB Strategy :Data Synchronization implementation

ECR Asia – 17 October 2008

17 October 2008 ECR AsiaBtoB Strategy – GDS2

Agenda

Definitions and BtoB Strategy

Data Synchronization : First achievements

Next steps

17 October 2008 ECR AsiaBtoB Strategy – GDS3

Carrefour Group overview

N°1 mass retailer in Europe and N°2 worldwide

€92.27 billion in sales, incl. tax, in 2007

Over 500,000 colleagues worldwide

Operations in 30 countries

More than 15,000 stores

Multi-format : hypermarket, supermarket, hard discount, convenience, cash & carry, e-commerce

17 October 2008 ECR AsiaBtoB Strategy – GDS4

Carrefour Group overview

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Agenda

Definitions and BtoB Strategy

Data Synchronization : First achievements

Next steps

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Business to Business solutions

BtoB Solutions account for Processes and Tools to support the exchange of information between Carrefour and its partners

Supplier

RetailerEnsure On-ShelfEnsure On-ShelfAvailabilityAvailability

Manage commercialManage commercialtransactionstransactions

Grow our Grow our BusinessBusiness• Joint Business Plan

• Scorecard

• DataSharing Merchandise

• DataSharing Client

• EDI Order

• EDI – Dispatch / Reception

• EDI - Invoice

• Payment report/advance

• DataSharing Operational

• EDI Sales/Inventory

Speak the same Speak the same LangageLangage

• Standards

• Master Data

• BtoB Portal

Optimize Optimize Assortment Assortment And PriceAnd Price

• eSourcing

• Private labels development

• Tests Private labels

• Auctions

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AECOC

ECR Europe

GS1 France

GS1 Global

EPC Global, Inc.

GDSN Inc.– Global Registry

Global Commerce Initiative

ECR France

GSMP – Global Standards Management

Process

International associations

Carrefour involvement in international associations follows the logic of : « Move towards a new relation with our suppliers »

Carrefour teams participate to local implementations : Implementation of B to B processes with local ECR Maintenance and use of standards through local GS1 MOs

CIES

ECR … GS1 …

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GCI report : « Future Value Chain 2016 » The GCI report « 2016 Future Value Chain » published end of 2006 gives a pragmatic vision of forces and trends that will influence the Value Chain within 10 years

1

2

3 4

5

6

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Suppliers’ Priorities

DataSharing Improve On Shelf Availability, especially for promotions Improve Innovation process, Promotion efficiency

Data Synchronisation Develop Product Data Quality Reduce non value-added tasks

Supplier A Supplier B Supplier C Supplier D

Priority 1 Promotion Management DataSync DataSync Datasharing

Priority 2DataSharing

EPOS DataDatasharing Joint

Scorecarding

Priority 3 DataSync Shared Supply chain KPI DataSync

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2008-2010 : 7 priorities

7

6

5

4

3

2

1

Advanced

Collaboration

FinanceDeploy solutions for Invoice Management (WebVendor)

Advanced

Collaboration

Supply Chain

BuyingImplement Operational DataSharing

Entry TicketSupply Chain

BuyingSystematically share performance scorecards

Entry TicketBuyingRelaunch use of reverse auctions and develop eSourcing for Assets

Entry TicketSupply Chain

FinanceFinalise dematerialization of orders and invoices (EDI messages)

Entry Ticket

Advanced Collaboration

MasterDataDeploy Data Synchronisation

Entry TicketMasterDataImplement the supplier portal « CarrefourNET »

Integration levelDomain

7

6

5

4

3

2

1

Advanced

Collaboration

FinanceDeploy solutions for Invoice Management (WebVendor)

Advanced

Collaboration

Supply Chain

BuyingImplement Operational DataSharing

Entry TicketSupply Chain

BuyingSystematically share performance scorecards

Entry TicketBuyingRelaunch use of reverse auctions and develop eSourcing for Assets

Entry TicketSupply Chain

FinanceFinalise dematerialization of orders and invoices (EDI messages)

Entry Ticket

Advanced Collaboration

MasterDataDeploy Data Synchronisation

Entry TicketMasterDataImplement the supplier portal « CarrefourNET »

Integration levelDomain

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Agenda

Definitions and BtoB Strategy

DataSynchronization : First achievements

Next steps

17 October 2008 ECR AsiaBtoB Strategy – GDS12

Automatic synchronisation of product data with the suppliers’ systemsThe exchange mode can have different levels of automation (Webform, P2P, GDS)

Data Synchronization

Webform

Supplier PIM

Supplier PIM

XML, EDI

Peer to Peer

RecipientData pool

SupplierB

Source Data pool

RecipientData pool PIM

RecipientData pool

RecipientData pool

Source Data pool

SupplierA

Source Data pool

GDS

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Worldwide implementation as of June 08

active target active target

FranceGDSP2PWeb

Production CreationModification

547 20 000

SpainGDS Pilote Creation 2

Belgium P2P Production Creation 90%

ColombiaGDS Production Creation

Modification280

China Web Production Creation 520

Channels used

Status Scope# Suppliers # sku

2009 rollout plan includes Italy

Argentina

Taiwan

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Focus on deployment in France

Rise from 0 to 100 suppliers in the first 6 months

Rise from 100 to 600+ suppliers in the following 12 months

0

5000

10000

15000

20000

25000

Jan-07

Apr-07

Jul-07

Oct-07

Jan-08

Apr-08

Jul-08

0

100

200

300

400

500

600

# items

# suppliers

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Joint Retailer Communication to Suppliers

Acceleration of implementation

First « live » connectionsStart of GCI Implementation Initiative

Key milestones

Jan 07 Jul 07 Jan 08 Jul 08 Jan 09

Internal preparation processes and tools

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Key success factors

Market maturityManufacturers, RetailersData Pools, Service Providers

Internal process preparation and availability of systemsInvolve Buying DepartementSystems integration

Readiness / Willingness of retailers to move towards implementation

GCI Implementation Initiative driven by 1 retailer and 1 manufacturerEnsure real implementation

GS1 France support for communication towards SMEsSeminars, Newsletter, Booklets« Tour de France »

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Agenda

Definitions and BtoB Strategy

Data Synchronization : First achievements

Next steps

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Next steps

Select one country that will serve as pilot for the region

Leverage existing connections with international suppliers in other regions

Involve local GS1 and ECR Enrolment of SMEs Usage of GS1 standards, acknowledgement of DataSync as

a business best practice

Align with other retailers in the market : readiness and/or willingness to implement

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Key take-aways

Secure preparation of processes and tools in order to ensure Data Quality

Respect GS1 standards

Work together, join forces between retailers and manufacturers

Start small, grow steadily

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Thank You