The Global Scorecard

1. Improving Business Results via the Implementation of GS1 Standards and Industry Best PracticesFindings of the TCGF Global Compliance Survey 2009-2010

2. The Global Scorecard A The Consumer Goods Forum tool for Internal and Trading Partner Collaboration A Key Enabler from the IT- Connecting Business for Consumers Committee

3. The Community or Who is behind it? • The Owner: TCGF / IT – Connect Our Business Committee • Merger of the Global CEO Forum, GCI and CIES. • Independent global parity-based consumer goods network. 650 retailers, manufacturers, service providers, others from 70 countries. • The Host: IBM • Technical host of the Global Scorecard tool. • Validity check and direct support for users. • Creates global reports and analyses. • The Community Builders: GS1 and ECR Organisations • Promote the use of the Global Scorecard by companies in their country. • Support for users. • Use the Global Scorecard to assess the implementation of GS1 standards. • The Team • Exists since 1999 and keeps the Global Scorecard aligned with today’s and tomorrow’s business requirements. • Promotes the Global Scorecard and provides expert knowledge.

4. What is the Global Scorecard? • It is a tool that uses a common language and measurement system to enable • Companies Internally • Trading Partners Collaboratively • And, the Industry Collectively • To understand how well we are doing • Relative to the capabilities we have built and the benefits we expect those capabilities to deliver The Value of a Common Language and Measurement System

5. The Global Scorecard - a Capability Assessment Tool has been designed 10 years ago to give you a detailed understanding of your ECR capability each year and to highlight specific improvement opportunities for your company. You are able to compare your company with the peers in your industry. Questions presented to the participant depend on the business type and industry sector. Content • Standard Capability Assessment (Measures the status of implementation) • Demand • Supply • Enablers (Item identification, Electronic messages and master data synchronization) • Integrators • Business Measures (e.g. Service levels, inventory, out-of-stocks, lead time, costs, invoice accuracy) • Implementation Measures (Measures the level of implementation for e.g. Item and location identification, • EDI, Global Data Synchronization) Profile Used for the annual report

6. We observe that most of the standards increased over the last years for the retailers & wholesalers; as many of the new participating manufacturers are smaller companies some implementation levels are lower than in the years before

7. The number of the submitted KPI scorecards increased again in 2009/2010 Increase driven by adoption of the Implementation Measures by GS1 MOs • 5,624 KPI records accepted in 2010 • 3,637 KPI records accepted in 2008 • 2,788 KPI records accepted in 2007 • 892 KPI records accepted in 2006

8. Data sharing as imperative and basis for powerful analytics … it is only a small tag, but the amount of data that is collected and can be analysed is enormous Using GS1 Standards is the key for all activities ftp://public.dhe.ibm.com/common/ssi/ecm/en/cie03046usen/CIE03046USEN.PDF

9. Improvements through implementation Many direct effects of the implementation of standards on the Business Measures could be captured in the Global Scorecard survey Competitive advantage Efficiency Customer Satisfaction Improved Quality Sustainability Examples • Improved Image & Brand • Less Waste • Optimized usage of resources • Better overview of inventory • Time saving • Cost reduction • Improved supply chain operations • Improved visibility • Increased understanding of retailers • needs and become preferred • collaboration partner • Increased sales • Improved client relationship • Improved customer • satisfaction • Better information availability • Improved data quality • Fewer invoice-disputes • Supplier Service Levelh • ž GTIN on consumer units • Ž GTIN on cases/cartons/inners • ŽGTIN catalogued with • GS1 Product classification code • Store Service Levelh • ž SSCC • Ž EDI for orders • Ž EDI despatch advise • Ž Sales with synced master data • ŽGTIN catalogued with • GS1 Product classification code • Annual Revenue Growth Rate h • Ž Roll out and full implementation • of Trading partner performance • standards (E401) • Invoice accuracyh • ž EDI for invoices (manufacturers) • Out of stocksi • ž GTIN on cases/cartons/inners • Ž SSCC • Ž EDI for orders • Ž EDI for despatch advice • Ž GTIN catalogued with • GS1 Product classification code • On-time deliveryh • Ž GTIN catalogued with • GS1 Product classification code • Distribution costsi • ž GTIN on consumer units • Ž GTIN on cases/cartons/inners • Ž Sales with synchronized master • data via GDSN • Order to delivery cycle time i • ž GTIN on consumer units • Ž GTIN on cases/cartons/inners

10. Retailers & wholesalers tend to implement the standards on a higher average implementation level than manufacturers

11. There is still potential for many standards, especially Data Synchronisation 96% of all companies have indicated an implementation level 4,779 KPI scorecards 5% have responded by indicating a 0-implementation level 91% indicated an implementation level above 0

12. The fresh food & perishable produce industry is the driver of implementing measures, independently of the size of the company Books, Journals, Music, Video Heath & Beauty Dry Grocery, non food Multiple product categories (incl. fresh food) Electrical Goods Multiple product categories (without fresh food) Textile Dry Grocery (Food) Fresh Food Home Improvement Hardware n=4779

13. Benefits of using GS1 Standards:

14. Example – Distribution Costs Industry Leaders, companies which have implemented at least 6 standards at an average implementation level of above 50% - manufacturer as well as retailer & wholesaler - profit from reduced distribution costs. 100% Industry Leaders Distribution costs: 6.5% 51% - 43% Average implementation level of standards implemented 50% Distribution costs: 11.4% 1% 10 1 5 6 Number of standards implemented

15. Example – Out-of-Stocks The use of SSCC positively affects the Out-of-stocks rate at the POS, which can be considerably reduced. Reduction by - 52% Reduction by - 5.8%

16. The use of SSCC or EDI for orders positively affects the Out-of-stocks rate at the POS, which can be considerably reduced Customer Satisfaction Reduction by - 4% Reduction by - 5.8%

17. Companies utilizing SSCC or EDI for orders show significant improvement for the store service level/fill rate Efficiency Increase +3,7% Increase +5.9%

18. Companies using GTIN on consumer units level on a higher implementation level gain advantage by an increased supplier service level Efficiency Increase +2.7%

19. Companies who have EDI for invoices implemented on a level above 50% could improve invoice accuracy and save your company, as invoice accuracy does not only cause administrative costs, diminish customer loyalty but also delay in payment Improved Quality Improved accuracy by +1.5%

20. Utilizing EDI for orders or GTIN on cases/cartons/inners level makes companies profit by lower distribution costs; distribution costs are one of the largest cost components in the company and therefore play an extremely important role Sustainability Reduction by – 4.6% Reduction by – 4.7%

21. The More, the Better! The morecompanies and GS1 MOs engage in the Global Scorecard, the morevaluecompanies internally, trading partners collaboratively, and the industry collectively will get out of this powerful system!