A Standard State of Mind

At the start of 2004, Kraft Foods CEO Roger Deromedi introduced a new global organizational structure to more strongly position the brand owner of Kraft, Maxwell House, Nabisco, Oscar Mayer, Post and more for sustainable growth. The new structure brought organizational dimensions together to better leverage Kraft on a global scale, which included the unification of key functions worldwide in scope to increase effectiveness and drive cost savings across Kraft's business.

For Starters
To facilitate streamlined global operations, Kraft embarked on a data synch initiative that would establish a common global data synchronization system via Transora. The resulting system would allow for automated synchronization with retailers -- such as Wal-Mart in the United States and Tesco overseas -- in line with standard formats for exchanging business information over the Internet.

Transora was chosen as Kraft's data pool for two main reasons: Kraft, along with Unilever, Procter & Gamble and Nestle, is a major investor in Transora; and Transora is standards compliant -- offering services for validating supplier-provided product information, ensuring compliance to the Uniform Code Council (UCC) and its European counterpart, EAN International, and publishing that data to subscribing partners.

Before committing to Transora, Kraft relied on local data pools and links within multiple countries. "Every country has a slightly different interpretation of how things should work, so if we hadn't put a stake in the ground saying we want to be truly standards compliant, we would have been building a separate set of interfaces and processes in each country," says Peter Jordan, director, B2B Strategy for Kraft Foods.

Synching Up with IBM
Kraft Foods is working with IBM on its product information management (PIM) and global data synchronization (GDS) initiatives. Kraft originally tapped Trigo Technologies for data synch, a then privately-held company that sold software drawing product information from multiple information technology systems and storing it in a central repository.

In March 2004, IBM acquired Trigo Technologies, gaining technology than can gather and manage product information across the supply chain as well as support standards for product information sharing among suppliers and retailers including those set by the Global Data Synchronization Network (GDSN).
In December 2004, IBM announced its Global Data Synchronization product built around IBM's WebSphere Product Center (WPC) software, a retooled version of software gained in the Trigo Technologies acquisition.

Going Global
Kraft is currently replacing its 20-year-old legacy master data files and creating a central repository that accurately identifies every detail of information around products using PIM capabilities housed in IBM's WPC software. Product information stored within WPC can then be synchronized with internal systems and shared across supply chains. At the time of this interview, Kraft expected to go live with IBM's PIM solution in February 2005 to manage data internally. The repository is expected to help Kraft to reduce errors around product information in its numerous country systems as well as streamline product information to its retailer customers and distributors.

With one central repository of data replacing multiple systems, Kraft can focus on its strategic global data synch initiative. In June 2005, Kraft will go live with IBM's GDS. However, it will start doing ad-hoc trials between now and then to ensure an aggressive roll out come June, says Jordan. IBM GDS "builds the foundation for our B2B activity and meets our customer requirements," says Jordan. "As we expand the service to Kraft operating units around the world, it gives us one set of common data and procedures that should save time and money." Kraft will roll out a country/customer at a time, dependent on the commercial requirements and the ability of Transora to support it in those geographies, says Jordan.

Future Impact
Global data synch will not only improve Kraft's relationships with its customers, but will provide a strategic starting point for additional Kraft business and information technology initiatives. "We believe that data synch is a fundamental building block for activities such as EPC, CPFR, etc.," says Jordan. "ROI will come from having 'clean' data at all points in the supply chain." With RFID, for example, Kraft would expect to get an improved flow of data back from retailers on stock availability, stock movement, where products are and what they're doing, says Jordan. "But that won't work if you don't have global data synch tied up properly."