Soaring online sales divert IT from data work
Retailer efforts to develop fully integrated supply chain systems, capable of fulfilling demand for physical in-store and online sales – the so-called ‘omni-channel’ – are starving IT resources that had previously been devoted to GDSN in the UK, according to Gary Lynch, chief executive of standards organisation GS1, which is behind the GDSN initiative.
GDSN aims to improve the accuracy of grocery packaged product data shared between retailers and their suppliers and is expected to considerably reduce costs incurred for both retailers and manufacturers through wrongly identified stock keeping units. GDSN was famously described by former Tesco boss Sir Terry Leahy as “a boring subject with exciting consequences”.
But, because retailers are concentrating their IT efforts on achieving a seamless approach to the consumer experience through all available shopping channels such as mobile internet devices, computers, stores, television and catalogues, etc they haven’t sufficient resources to devote to GDSN, which therefore hasn’t taken off in the UK as originally expected, said Lynch.
Feeding the demand for e-retail
“There has been an absolute focus for the majority of retailers on feeding the demand for e-retail,” said Lynch. “And even though retailers are big and have big IT departments, that has skewed the resources required to do some of the plumbing that is required to do GDSN to the B2C [business to consumer] requirement.”
However, the very fact that omni-channel also requires consistent, high-quality data, could now provide a fillip for GDSN. In response to this, GS1 plans to merge its B2C data handling work with GDSN, added Lynch. “We have to work out how we do this, but it is recognised that it doesn’t make sense any more to look at these things separately especially when it comes to data and ensuring data quality,” said Lynch.
“When you start talking about data management and fulfilment; talking about coming off shelves, to meet demand from whatever channel your systems have got to be pretty much in-line. And, as an industry, there is work to do in streamlining systems. All retailers recognise they have to do it.”
Lynch added: “So, although B2C slowed it down, I think it will hopefully now speed it up. A year ago it was very quiet; B2C has now brought it back on the agenda. I'm optimistic.”
