Monday Apr 22, 2013

Next Generation Product MDM for Retailers

Shyam  Lakshman - Director of Product Management, PIM Data Hub

Unique Challenges and Opportunities of Multiple Retail Channels

Retailers around the globe face unique challenges in managing product information.  Competitive pressures are forcing retailers to provide customers with a consistent and integrated buying experience across channels.   Mobile commerce has become increasingly important with the usage of smart phones and tablets in the buying process. Evolving business models such as online marketplaces and store-within-store are redefining the boundaries of traditional retail stores.  These trends also represent an opportunity for retailers to differentiate themselves and provide their customers with a better buying experience while improving their margins and enhancing their online reputations.

Here are some of the common challenges we hear about from retail customers:

  • Volume and volatility of product changes: It is very common for retailers to deal with millions of products SKUs.  Due to seasonality, competitive pressures and customer expectations, products are introduced and retired at very fast pace.   There is an increasing need to capture and manage additional product attribution - from an average of 66 product attributes today to an estimated 250 attributes in future years according to a study conducted by GS1 UK.  All this information needs to be captured in multiple languages to facilitate seamless operations across the globe.
  • Variability of product data: The assortment of products carried by retailers varies widely in scope.   The attribution requirements can vary significantly across merchandising categories and continue to evolve over time.  Defining and capturing the correct product attribution is critical in making assortment and merchandising decisions.  Compliance with regulatory and legal mandates also requires appropriate product attribution to be captured.  The consequences of incomplete or inadequate attribution can result in loss of revenue and business reputation.
  • Multiple sources and formats of product data: The source of product information is often the supplier and tends to be in different formats. The study conducted by GS1 UK has revealed that retailers are working with data that is inconsistent with their suppliers in well over 80% of instances.  With the increasing acceptance of GDSN (Global Data Synchronization Network), larger retailers are looking for product data management solutions which can be easily integrated with it.  If integrated correctly, this could increase the efficiency of data exchange retailers and their suppliers.
  • Data Quality:  Product data is often duplicated, inaccurate and not standardized.  This contributes to process inefficiencies and hinders the ability to correctly classify products and translate product information into different.  This is also a contributing factor to higher product return rates and its related costs.
  • Multiple publication channels: Accurate and consistent product data needs to be made available to multiple channels – point-of-sale systems, merchandising systems, web stores, print catalog publication systems, mobile commerce. According to RSR Research, 40% of retailers have difficulty coordinating with other channels to create a seamless cross channel experience.  They often lack the ability to centrally maintain and distribute content to create a seamless omni-channel experience

Next Generation MDM - Fusion Product Hub

Fusion Product Hub is the next generation product master data management solution built to address these challenges today.  At the core of the solution is the enterprise product model around which we have built various business processes to consolidate, cleanse, govern and share the product record.  We have re-invented the user experience to emphasize task based navigation, easy access to contextual information, embedded business intelligence and collaboration.    It is available for on-premise deployment and on the Oracle Public Cloud.  The solution was built around 3 key themes:

  • Accelerate Business Processes: The new item introduction process was designed to efficiently induct large volumes of new items while validating business rules and policies.   Optimized task based notifications and a dynamically generated user interface are designed to improve accuracy and response times.  Social collaboration is enabled through integration with Webcenter Spaces, helping further streamline the item induction process.   A configurable publication framework is provided to define criteria and content for publishing product data by spoke system.  This enables product data to be managed once and re-used many times.
  • Enforce Data Governance:  Real time and batch data quality checking is enabled through integration with Enterprise Data Quality for Products (EDQP).  This enables customers to de-duplicate, standardize, cleanse and categorize their product data effectively.  A configurable business rules framework enables definition of rules across business entities and analyzes the impact of introducing a new business rule before activating it.  Approval management for item changes can be used to dynamically derive key stakeholders and participants based on product attributes.  Item version management allows customers to maintain a complete audit trail of product data changes and control the timing of their release.
  • Protect Existing Investments: Data, user interface and business process extensibility enables business users to configure the system to address their unique business needs.  A comprehensive set of business web services facilitates easy integration with existing systems.  The user interface has been designed with a modern look and feel making it easy for new users to get started.  

In subsequent blog posts, I will talk about each of these themes in more detail.  In the meantime, we invite you to visit the Oracle Fusion Product Hub Product Overview to learn more about the solution.  Find out how Fusion Product Hub can help retailers meet their unique challenges in managing their product master data.

Monday Mar 25, 2013

Private Label Management for Grocery Retailers

Alex van de Velde  - Principal Consultant, Enterprise PLM Solutions EMEA

Broader Solutions 

Managing product information remains important in private label strategy. Today, leading grocery retail companies are increasingly looking for broader solutions that allow them to better manage cross-functional product lifecycle business processes across their global product networks.

Product Lifecycle Management solutions give complex enterprises the comprehensive support they need to implement an integrated private label process.  These solutions provide a single view of products across business processes and geographical regions. By optimizing the global product network, they allow private label retailers to achieve key business objectives such as enhanced product innovation, faster speed to market, shorter time to shelf, lower costs, improved product quality, and regulatory compliance.


Accelerate Time to Shelf

Time to shelf and time to volume determine success and failure in many markets. Product Lifecycle Management helps retailers turn time into a competitive advantage for your company by enabling your teams to collaborate across your extended supply chain to design, source, and build (outsourced) products that are right for the consumers. As a result, you can eliminate information latency, minimize errors,   and accelerate both time to shelf and time to volume.


Minimize Cost

As your product network extends around the world, managing costs can become more complicated and cumbersome. It becomes even more important to streamline and formalize (cost) price management processes by giving  managers the information, tools, and analytical power they need to apply their business insight and skills to (cost) price management and product sourcing activities. Product Lifecycle Management gives private label retailers the ability to manage and improve product margins, release new products at or below target costs, control margin erosion through purchased material repricing, and outsourced (manufacturing) activities without losing control of your product cost. 


Improve Product Quality

As the product network expands outside the four walls of the company, it becomes more difficult to manage the design, formulation and manufacturing details that affect product quality. With private label management, retailers can put into place the processes and product improvements required to improve quality and customer satisfaction. It also allows retailers to design higher-quality products, improve product reliability, shorten complaints resolution times, and ultimately increase customer satisfaction and loyalty.


Ensure Regulatory Compliance

Without a product lifecycle management backbone, managing compliance documentation and processes across a global product network, complying with diverse regulations from various countries, and keeping documents consistent can be a tough challenge. Software solutions allow some retailers to turn regulatory compliance into a competitive edge by tightly controlling the whole process. With these solutions, retailers can establish and manage compliant, efficient, and auditable product lifecycle processes, thereby reducing business risks and ensuring adherence to regulatory requirements.


Drive Innovation

Innovation is the engine of growth for shareholder value. Product Lifecycle Management enables private label retailers to accelerate innovation without compromising creativity or supply chain flexibility. Dispersed product design teams can collaborate in real time to leverage insight, creativity, and core product designs. As a result, retailers can compress cycle times from concept through release  .


Drive Strategic and Operational Decisions

Leading grocery retail companies need solutions that let them leverage embedded decision support and analytics capabilities to drive better strategic and operational decisions about their private label portfolio.  Out-of-the-box decision support allows grocery retailers to make better decisions that improve product quality and enhance customer satisfaction and loyalty.


Summary

Product Lifecycle Management helps retailers to add best-selling products or drop poor-selling ones from the supply chain faster, and it helps in reduction of inventory losses. It also helps increasing product quality by minimizing errors in the design and development process and bringing compliant products to the market. 

About

A cross industry discussion on ways to better manage product data and the entire product lifecycle from idea to end of life with special attention to the unique challenges faced by European companies.

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