Kraft, Nestlé and P&G align to realise supply chain benefits

Posted by Daniel Palmer on 19th December 2008

Leading global manufacturers Kraft Foods, Nestlé and The Procter & Gamble Company, along with German-based retailer Metro Group, announced today they have extended the use of the Global Data Synchronization Network (GDSN) to synchronize item data in Russia.The supply-chain partners are leveraging the GDSN connections of two world-leading GDSN data-pool providers. Kraft, Nestlé and P&G are members of 1SYNC, the world’s largest data pool; while Metro Group uses SA2 Worldsync as its global home data pool.

Kraft and Nestlé are two of the world’s largest food manufacturers, while P&G is the world’s biggest consumer goods company. Together, they intend to synchronize their product catalogues in multiple countries with representation from Metro Group, the world’s fourth largest retailer, and expect to realise supply-chain benefits such as reduced paperwork and strengthened service levels due to faster setup of new items and more-accurate product data.

Enabling active GDSN connections in Russia is a milestone for the data-synchronization industry given Russia’s dynamic market conditions. As one of the fastest-growing European markets, Russia offers a significant potential for suppliers and retailers to grow across all sectors.

“By synchronizing product data with Metro Group in Russia, we are able to get real-time inventory updates from Metro’s stores in the region,” said Janna Kouchina, Director Sales, Kraft Foods Russia. “This gives us the ability to get our products to the store shelf faster. We hope that more retailers will adopt this process, giving us the ability to experience similar benefits across our supply chain globally.”

“Leveraging our GDSN experience in European and non European countries, we are very pleased to demonstrate once again our capability to synchronize data with a major player such as Metro Group in Russia,” Jonathan Pearce, Head of Supply Chain for Nestlé Russia, noted. “The operational benefits are obvious: an efficient and sustainable supply chain that contributes to maximizing product availability to our consumers and shoppers.”

P&G is planning to continue extending their use of GSDN around the world to eliminate “waste” from their supply chain. “Availability of accurate product master data in our own and our customers’ systems is key to flawless operation of today’s supply chain,” Wolfgang Menzel, IDS Manager Global Customer Development at Procter & Gamble, advised. “Building on the 1SYNC / SA2 interoperability established in Germany, we are now scaling GDSN capability and benefits. Russia, a key growth market, is an excellent choice. Based on global standards, we are transforming our collaborative processes and eliminating waste from the end-to-end value chain.”

Urs Ulrich Katzenstein, Head of Master Data Exchange, Metro Group, believes that the deal is pioneering, ensuring more efficient trade relations worldwide.

In addition to Russia, Metro Group is currently synchronizing GDSN data via SA2 Worldsync in Germany, Poland and Britain. The retailing company is working toward rolling out its efforts to other countries.