342 - The Kroger Company s GDSN Implementation Plans Dave Schmitt, Kathy Sant, Chris Kirkland, Chadd St. Clair, Holly Abernathy, Greg Menz Presentation Agenda The Kroger Co. Background Thanks! GDSN Implementation --- Why Now? Kroger s Mercury Program Mercury Master Data Management (MDM) Objectives & Data Flow Overview Required Information Provider Attributes GS1 B2C Initiative & Timing Kroger GDSN/MDM Implementation Plans Seeking Your Input --- Please Visit With Us!!! 2 2 GS1 US 2011
The Kroger Co. Background 2435 supermarkets & multi-department stores Operating in 31 states 791 convenience stores 348 fine jewelry stores 39 Food Processing Plants $90B in sales during FY2011 3 GS1 US 2011 Thank You!!! For joining us today for this presentation To those CPGs, distributors and brokers that have participated in our Supplier User Group, thus far Especially to everyone in the industry that has helped develop the Global Data Synchronization Network (GDSN) standards, as they exist today 4 GS1 US 2011
Kroger GDSN Implementation --- Why Now? Current environment: 30+ Yr old distributed data model for item info Labor intensive and error prone business process for product data mgmt Manual efforts by suppliers, Corporate, Division, Stores No clear delineation of data ownership Limited # of attributes Would like to improve speed to shelf (especially for emergencies) Circa 2003 investigated GDSN implementation w/current data model but determined it was not feasible 5 GS1 US 2011 Kroger GDSN Implementation --- Why Now? 2008-2011 --- developed a business directed strategy to replace many of our legacy applications Set a priority on establishing a new Master Data Management (MDM) solution for our product data utilizing GDSN that will take us well into the future MDM solution includes new repository, workflows, rules and roles for managing items/supplies/services Referred to as our Mercury Program GS1 B2C Initiative Providing a Trusted Data Source for consumer apps 6 GS1 US 2011
Kroger Mercury Program Core Business Team was formed in 2 nd qtr, 2011: Dave Schmitt (Core Business Team Director) dave.schmitt@kroger.com Kathy Sant (Grocery, Natural Foods, Rx, Supplies) kathy.sant@kroger.com Chris Kirkland (Perishables Meat, Deli & Produce) chris.kirkland@kroger.com Chadd St. Clair (Drug/GM & Imports) chadd.st.clair@kroger.com Holly Abernathy (Data Integrity and Quality, Tax, WIC, Foodstamps, etc.) holly.abernathy@kroger.com Debbie Kramer (Organizational Change Management) debbie.kramer@kroger.com Greg Menz (IT Business Architect) greg.menz@kroger.com Avg CBT member experience w/kroger --- 29 years! 7 GS1 US 2011 Kroger Mercury Program Business Requirements Gathering sessions with all areas of our business during the past year Data Governance Council Established About 33 business members representing all Data Owners involved with items/supplies/services Approve policies, business processes, attributes, workflows, roles and rules associated with data management Meeting monthly since October, 2011 Currently determining Data Owner scorecarding method Supplier User Group About 25 CPGs, brokers and distributors of different sizes/commodities Several meetings so far to review our plans and seek their input 8 GS1 US 2011
Mercury MDM Primary Objectives Develop a highly effective and efficient Data Mgmt solution Reduce time and labor associated with data management Expand data content and improve data accuracy Data handled only by data owners Implement proper Data Ownership via Data Governance Accountability (i.e. Scorecarding) of all Data Owners is critical Rules based solution to determine internal attributes based upon Info Provider data Utilize Workflows to enforce flow and pace 9 GS1 US 2011 Kroger Mercury MDM Data Flow Overview What is Mercury? 10 GS1 US 2011
Info Provider Required Attributes Core attributes and category specific attributes for first 9 commodities have been identified Copy of attributes available here or on the 1SYNC website [ www.1sync.org/kroger ] Approximately 120 attributes per item About half are available via GDSN About 25 are Kroger unique Attributes must be provided via 1SYNC Portal regardless of whether they are sent via GDSN Attributes provided via GDSN cannot be changed in 1SYNC Portal Total attributes across all commodities will likely be 2000-3000 We will submit requests via 1SYNC for our required attributes currently not available via GDSN 11 GS1 US 2011 Info Provider Required Attributes Attributes required to automatically derive family tree, tax, foodstamps, restricted sale, buyer, source (whs/dsd), etc. Accuracy of GDSN & 1SYNC portal Info Providers is critical!!! Copy of our merchandising family tree to GPC mapping available here or on the 1SYNC website. [ www.1sync.org/kroger ] Please review and let us know exceptions! Gather attributes so we look at items in the same manner a customer would in our store or via digital commerce 12 GS1 US 2011
Info Provider Required Attributes Kroger Corporate Brands will publish same data via GDSN for our new item process 13 GS1 US 2011 GS1 B2C Trusted Source of Data Overview (slide courtesy of GS1) Tentative schedule: 2012 pilot suppliers 2013 general release 14 GS1 US 2011
GS1 B2C Phase 1 Basic Information (5 attributes) (slide courtesy of GS1) 15 GS1 US 2011 GS1 B2C Phase 1 Nutritional Information (19 attributes) (slide courtesy of GS1) 16 GS1 US 2011
Implementation Plans Test with limited items with most suppliers of 9 categories late this year Packaged cheese, salad dressing, breakfast sausage, baby HBC, coffee filters, bagged salad mix, air care, paper towels, packaged deli meat Production for these categories during 1 st qtr, 2013 650+ categories to implement in approx. 3 years Conversion by waves of categories; will try to group by GPC bricks, wherever possible 17 GS1 US 2011 Implementation Plans 12-18 months in advance (for suppliers in scheduled categories): Survey: solicit Brand Owner & Info Provider contact info, GLNs, etc. Webinar to review required attributes, new business processes and Data Migration Strategy for existing items About 6-9 months ahead of implementation of category, Info Providers receive list of active items: Confirm the Info Provider Identify missing items or any that need to be disco d Identify proper case GTINs, if not correct Contact us asap, if you have not converted your case UPCs to GTINs in Kroger s PID system Begin to gather attributes you are not currently providing via GDSN 18 GS1 US 2011
Implementation Plans 4-8 weeks in advance of implementation: Provide all required data for existing items (Excel is optional) 1SYNC portal will alert you if we believe you have errors Implementation Day Staged existing items within the 1SYNC portal will be pushed into Kroger MDM and replace existing production data All new items and changes from that point will only be accepted via the 1SYNC portal 19 GS1 US 2011 We d love your input on: Brokers/distributors as Info Providers POG Images Deposit and California Redemption Value info DSD each hierarchy level publication w/o designation as an Order or Invoice Unit level Opportunities with Fresh Foods??? Opportunities with Imports??? Challenges/timing of when our list of GDSN attributes could be made available via GDSN for your company Under what circumstances do you use the DELETE GDSN command Any guidance or experience that you are willing to share with us is welcome!!! Please stop by our Roundtable sessions or catch us any time during the conference to share your thoughts. Thanks!!! 20 GS1 US 2011