METRO Group data synchronization strategy master data quality is the key Urs-Ulrich Katzenstein Business Solution Centre Master Data Exchange METRO Group Solutions Praha, February 03, 2009
1 International presence as a factor for success Metro/Makro Cash & Carry: 655 stores in 29 countries Real: 439 hypermarkets in 5 countries Media Markt and Saturn: 768 consumer electronics centers in 15 countries Kaufhof: 141 department stores in 2 countries Others: 392 locations METRO Group 2008: over 2,200 locations in 32 countries with 300,000 employees as of: Jan/2009
2 METRO Group Structure METRO AG
3 Master Data Exchange Strategy Definition of processes for article master data synchronization Master data synchronization deployment Strategic development of MMS CAT (master data exchange solution) Supplier Use of standard IDs Increase article master data quality within METRO Group Supplychain
4 Collaborative benefits Increase sales Increase sales Reduce cost Reduce cost Improve productivity Improve productivity Foundation = Master Data Quality Trading partners Foundation = Master Data Quality
5 Cost savings of Master Data Quality Improvements Correct data quality management can be translated into cost savings Old cost development New cost development Sampling Article listing Disposition & Logistics Invoice control Payment process Miscellaneous
6 Possible revenue increase New potential revenue increase Old revenue increase Correct data quality management can be translated into revenue increases Negotiations Product introduction & handling Point-of-sale
7 Identify impact areas throughout Supply Chain Corporate IT department (MGI) 5 Corporate reporting (MDW) 7 Logistics Administrative Category data handling Management 1 Supplier Buying terms Category / promotion data Item data Invoice Order Master data impact areas ASN with possible revenue increase opportunities Goods 6 2 4 Sourcing Category Management Catalogue Maintenance Invoice processing Purchasing Inbound logistics DC goods receiving 2 1 3 Merchandise Management Master data impact areas with 1 possible cost saving opportunities Stock management Store goods receiving 3 Internal data synchronization Point-of-sale
8 Master Data Quality Principles Guideline for master data management Roles and responsibilities Base for master data quality strategy
9 Committed to Global Standards Identification standards: GLN, GTIN Classification standards: GPC GS1 Global Standards: GSMP, GDSN, GDD etc Communication standards: EDI, EANCOM, XML Technology standards: Commonly used software tools
10 Master Data Synchronization External METRO Group MMS CAT Webforms Suppliers Country Interoperability EDI Converter MGBI DE MMS CAT (PIM) MCC MCC Country METRO Group Country Countries Other certified Data Pool Bilateral MMS CAT / METRO Link SA2 WorldsyncPool GDS Pool via SA2 (GCI Suppliers via GDSN (Etoile project))
11 Metro-Link Supplier Portal
12 SA2 Worldsync METRO Group s home data pool METRO Group support for SA2 target market entry with no GDSN certified national data pool Interoperability with local GDSN certified data pool METRO Group fully committed to SA2 and GDSN
13 Outlook Connected to Global Data Synchronization Network (GDSN) Live Live Live Q1/09 Q1/09 Q3/09 Q3/09 DE UK RU PL DK CZ HU Trading Partners and many more
14 Key success factors 1 Business Case 5 Partner readiness 2 Retailer community 4 Collaboration with partners 3 Local resources
15 Join in! Check your business case Use identification and classification standards Engage in GS1 activities: e.g. GSMP, GDSN Use communication standards: EDI, EANCOM, XML Start master data synchronization
16 Contact METRO Group Solutions GmbH Urs-Ulrich Katzenstein Grafenberger Allee 297 40235 Duesseldorf (Germany) Tel.: +49 (0) 211 6886 5859 E-Mail: urs-ulrich.katzenstein@metro-mgs.com Fotografie G. Eichenauer