The Global Data Synchronization Network in the Consumer Goods Industry

Abstract

Digitalization is revolutionizing the way organizations manage their internal operations. Many of them are still characterized by waste and inefficiencies, however, innovative digital tools are already changing the way large corporations operate in a variety of sectors. One of the fields that still have room for improvement is product data management (PDM) in the consumer goods industry. Supply chain partners spend huge amount of resources in just fixing manual errors and adapting large data formats. There is not enough standardization in the way product data is exchanged among entities. Inter-organizational information systems (IOS), and more specifically the Global Data Synchronization Network (GDSN), represent the most promising digital tool towards leaner PDM processes.

IOSs are computer-based information systems that extend beyond the borders of one organization. They provide automated information exchange to support linked business processes among two or more organizations. The GDSN is a specific IOS for product data management that extends to all the supply chain partners that are exchanging product data, mainly suppliers and retailers. This system can have a big impact in PDM process, potentially reducing errors and inefficiencies to zero.

This research aims at addressing the preconditions that are needed to successfully implement this system in a supply chain network. There is evidence that this critical phase can often be underestimated by supply chain professionals. Many FMCG organization have not been able to implement the system despite of the benefits that would bring to the network.

A case study is the research methodology used to gather primary data. Other sources such as scientific articles and consulting reports are used to gather secondary data. Henkel and its retailers in the Netherlands and Belgium is the supply chain network used in this case study.

The research is performed using an adapted IOS adoption framework. The IOS framework from Pang & Bunker is adapted with the particular characteristics of the GDSN in order to be able to analyze the case using this stand-alone framework. This methodology proves the reliability and validity of the research, as it is founded in a scientific framework.

The new research framework is used in the case study to identify the preconditions that play a fundamental role in the success of the project. Finally the critical success factors are outlined, discussed and validated.