Narendra Ambwani*, managing director, Johnson & Johnson India, and co-chairman, ECR India, outlines the benefits of global data synchronisation services.

When was the last time you looked around and marvelled at some of the everyday things? Things that by 'just working' enhance our quality of life or the performance of our businesses immeasurably. We're talking about the way water comes out of the tap every time you turn it on, or the way in which electric lighting illuminates everything we do at the flick of a switch. It would be unthinkable for these things not to function properly on demand, and we rightly take them for granted.

Data synchronisation with reference to the retail and FMCG industry can be regarded in precisely these terms. None of the infrastructure is visible to the end user, and yet it is one of those things that, when it 'works' (and, unlike electric lighting, this is by no means a certainty yet) it just makes businesses function better, faster and smarter together.

Data synchronisation is a global, internet-based business process whereby trading partners align and synchronise master data automatically and in real-time. It helps in exchanging accurate, up-to-date and standards-compliant supply chain information. In business terms, it can be as revolutionary as the light bulb. The simple idea behind data synchronisation is that the seamless sharing of information, enabled by technology, can create value and eliminate waste on a grand scale.

In India, a decision to launch 'global data synchronisation services' (GDSN) as an initiative by ECR India, an independent joint trade and industry body to promote the use of 'efficient consumer response' (ECR) techniques, was taken in April 2005. These techniques help remove unnecessary costs from the supply chain and are designed to make the FMCG sector, as a whole, more responsive to consumer demand.

The ECR movement in India was launched in October 1999 by J&J, HLL, P&G, Godrej, Nestle, PwC, TCIL, Food World and EAN India. The movement has since rapidly progressed to include over 36 companies.

Consumer benefits of global data synchronisation pool:

• Reduces Out of Stocks by improving availability and assortments, and increased speed to shelf for new items, ensuring a satisfied consumer.
• Customer service: Store employees who are not busy fixing errors will have more time to assist and service customers. GDSN reduces shelf-tag and checkout errors in stores. And in the long run, these standards will be of great value in the further development of concepts such as home shopping and self-scanning.

• Leading Japanese retailer AEON reduced its item management costs by $2 million using GDS.
  
• Johnson & Johnson has virtually eliminated data integrity related out-of-stocks at Wal-Mart in the US.
  
• At Dutch retailer Albert Heijn, an improvement in data accuracy through GDS (with four trading partners) has resulted in a 30 per cent productivity improvement in its data management department.
  
• Gillette Venezuela improved its order processing productivity and eliminated master data discrepancies by electronically aligning product information with that of their trading partners.
  
• In Guatemala, Procter & Gamble and retailer La Fragua have increased purchase order accuracy by 3per cent just by focusing on aligning obsolete products in their respective systems.
  
• Unilever Colombia significantly reduced their data inconsistencies and improved new item speed to market by aligning product information with their trading partners.
  
• US retailer Wegmans has increased store sales by reducing speed to market on new items by two weeks.

• Supply side (eg, efficient replenishment)
  
• Demand side (eg, efficient assortment, efficient promotion, efficient product introduction) and
  
• Enabling technologies (eg, common data and communication standards, cost / profit and value measurement).