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6/12/2013
CURRENTLY SCHEDULED IN THIS ROOM:
99: How to Do Business with Lowe’s
Retail Track Sponsor
Anti-Trust Caution
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everyone to refrain from discussions in areas of antitrust such as pricing,
deal-making, selling, promoting or other activities which could be viewed
as anti-competitive. If anyone believes the discussion is approaching
these boundaries, please inform a GS1 US representative. Please
remember to make your own business decisions and that all GS1
standards are voluntary and not mandatory.
Please review the complete GS1 US antitrust policy at
http://www.gs1us.org/gs1-us-antitrust-compliance-policy
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© GS1 US 2012
99: How to Do Business with Lowe’s
Kristy Hart, Lowe’s Companies, Inc.
Cindy Bohen, Lowe’s Companies, Inc.
Alexandra Capper, Lowe’s Canada
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6/12/2013
Agenda
• History
• Canada
• Where we are going?
– Data is an Asset
– Data as the Foundation of the Future
• How to Succeed with Lowe’s
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© GS1 US 2012
Data Sync Timeline
•GDSN vendor on-boarding
continues
•PCM internal roll-out continues
•Marketing Data Collection begins
•PCM deployed
•GDSN vendor on-boarding begins
•Defining categories/ attributes for
Marketing data begins
2004
•Internal build of
PCM begins
•GDSN vendor on-boarding continues
•PCM internal roll-out begins
•Marketing data build within PCM begins
2008
2007
2012
2010
2009
2011
2013
•Pilot Centralized Item Setup
•Marketing Data Collection brought in house
•Marketing Data Standards Guide Published
•More focus on Data Quality
•Increase internal usage of data
•GDSN vendor on-boarding complete
•PCM Internal roll-out complete
•Focus shifted to speed of publication
•Flow from PCM to Selling Tools turned on for
Marketing data
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•Enhanced Marketing Data Collection – includes
multiple images
•Item Restrictions Collection begins
•Identify improved technology
•Streamline processes – gain efficiencies
•Canadian PI team established
•GDSN Data faster – Pub before Sub
implemented
•Flow
Fl
from
f
PCM to
t Selling
S lli T
Tools
l ffor
Marketing Data completed
2006
2005
•Item Set-up centralized within PI
•1 Millionth GTIN Synchronized – July
•Product DQ team established in PI
•IPE Implemented – support team established in PI
•Repair Services begin utilizing product data
•GDSN/Marketing Implemented for Lowe’s Canada
•Unique Item Business Rules Implemented
•Reached 500K items on Lowes.com
•Master Data & Content Management Organization formed
© GS1 US 2012
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History of PCM Canada
• Introduced in May of 2012
• Why did we do it?
• The primary purpose: Lowes.ca
Lowes ca with product content
• Improve product data
• Align with US processes
• Align with industry standards
• There are a few places that PCM
and Vendors play a role
1 At initial item setup
1.
2. Ongoing item maintenance
3. Legacy item synchronization
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Progress to Date – Lowe’s Canada
• Legacy information
– Currently Vendors have sent 85% of their Legacy item
information to us
• Total: we’re synchronized over 115,000 GTINs, and
there are more than 25,000 Lowe’s items online today
Who will you be working with?
• Resources
– Used US-based contractor
resources to assist Canada
for the launch
– We transferred to a
Canada-based PI team
in March of this year
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Merch Division
Contact
Hardlines & Building Products
& Building Products
Lynn Osborne
Lynn Osborne Home Décor
Amanda Vitaro
Kitchen & Bath Micheal Page Outdoor Living (Excluding TAT)
Craig Arseneau Trim‐a‐Tree & Advertised items
Laura Figuccio © GS1 US 2012
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Lowe’s Canada Current Focus
The team’s time is currently being spent on
New item setup
Marketing data for .ca
data
for ca
Data integrity
• On average, the team is synchronizing 800 items a month
• We are working to have better visibility to the areas that continue to
experience challenges synchronizing their data, and to help Vendors
succeed with the GDSN
1. Scorecards and reporting
2 FSEnet+ partnership
2.
3. Canada-only vendor summit in Toronto (est. Fall)
4. Drop-in sessions throughout the summer
Our overall focus is on revising the current support model to better
support Vendors and our Merchandising team through the process
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Lowes.ca
• Lowes.ca
is a driver for
growth as well as
b d
brand
development in
Canada
• We are looking to
enhance
conversion on the
site through
i
improved
dd
data
t
quality, and
completing the catalogue of items available online as quickly as possible
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© GS1 US 2012
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Seamless: Single Source of the Truth
Product Information
End Users
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Core Attributes / Item Set-Up
Country Of Origin
Hazmat Information
S
Source
Tagging
T
i Information
I f
ti
Product-Specific Selling Attributes
Standard Images
Logos
User Guides (Energy Star,
Installation, etc.)
Warranty Data
Tax Codes
Item Restrictions
Market Specificity Information
Brand
Package
g Hierarchies
Quantities
Product
Content
Management
Merchandising
Supply Chain
Integrated Planning & Execution
Lowes com
Lowes.com
In-Store Selling Tools
Flexible Fulfillment (Sterling)
Advertising
Quality Assurance
HazMat / Safety
Loss Prevention
Repair Services
Accounting / Finance
On-Demand Signage
In-Store Displays
Planogramming
g
g / Space
p
Planning
g
Pro Services / Government Sales
Legal
Product Information is more than just item set-up and selling attributes.
Product Information helps multiple groups within Lowe s better meet their
product information needs.
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Wherever, Whenever: Data is Available
Store
Mobile
Lowes.com
Call Center
On-Site
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© GS1 US 2012
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6/12/2013
Simple: Make it Easier for the Customer
• Customer-facing mobile represents a growing percentage of
Lowes.com traffic
• On-line transactions represent a significant amount of sales
• With 42,000
iPhones deployed
,
p y to stores associates can:
– access additional product information online
– check inventory availability
– retrieve product rebate information
– help customers access their MyLowe’s account information
– offer additional special order options
MyLowe’s
y
registered
g
users spend
p
more at
Lowe’s overall, transacting more often and
spending more per transaction than nonregistered users.
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© GS1 US 2012
Master Data Management Strategy
Raw
Data
Deliver
Source
Source
Standardize
Standardize
Data Management
Make
Make
Measure/Audit/Compliance
Data Governance
DATA IS AN ASSET!
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© GS1 US 2012
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Master Data Management Strategy
Master Data & Content Management
Strategy, Standards & Solutions
Content Management
Product Information
Strategize
Vendor Data
Customer Data
Execute
Location/ Dwelling Data
Data Quality, Governance & Reporting
Measure
“Organizations are perfectly designed to get
the results they get.”
David Nadler & Michael Tushman. Competing By Design: The
Power of Organizational Architecture. Jossey – Bass, 1997.
Also found in: David Hanna. Designing Organizations for High
Performance. Addison – Wesley, 1988.
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© GS1 US 2012
Data is the FOUNDATION
• Step 1: Data Quality
– Correct Data
– Complete Data
– Consistent
C
i t tD
Data
t
• Step 2: Enhanced Marketing Data
– Additional Images
– Supporting Documentation
• Step 3: Item Restrictions
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© GS1 US 2012
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6/12/2013
Data is the FOUNDATION
• Step 1: Data Quality
– Correct Data
– Complete Data
– Consistent Data
• Step 2: Enhanced Marketing Data
– Additional Images
– Supporting Documentation
• Step 3: Item Restrictions
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© GS1 US 2012
GDSN + Marketing Data
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© GS1 US 2012
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Source Tagging Data
By the Numbers…
8500 # of items physically inspected in 2012
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Percentage of items found to have a discrepancy
between the physical product and the published data
150 Man hours spent auditing source tags and data
2 & 3 Phases of tags that are Lowe’s approved
$$ lost to shrinkage and resources
Source Tag Definitions:
•
•
•
•
N = Item not EAS source-tagged
Phase 1* – EAS source tagged topically (on outside of the package)
Phase 2 – EAS source tag concealed inside the item’s packaging
Phase 3 – EAS source tagged inside the item itself (best protection)
*Only use if approved by Lowe’s Loss Prevention
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© GS1 US 2012
Data is the FOUNDATION
• Step 1: Data Quality
– Correct Data
– Complete Data
– Consistent Data
• Step 2: Enhanced Marketing Data
– Additional Images
– Supporting Documentation
• Step 3: Item Restrictions
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© GS1 US 2012
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Integrated Planning and Execution
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© GS1 US 2012
Data is the FOUNDATION
• Step 1: Data Quality
– Correct Data
– Complete Data
– Consistent Data
• Step 2: Enhanced Marketing Data
– Additional Images
– Supporting Documentation
• Step 3: Item Restrictions
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© GS1 US 2012
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Consistency is Crucial
Marketing
Data:
60 x 96
GDSN
Data:
58 x 94
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© GS1 US 2012
Images
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© GS1 US 2012
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Data is the FOUNDATION
• Step 1: Data Quality
– Correct Data
– Complete Data
– Consistent
C
i t tD
Data
t
• Step 2: Enhanced Marketing Data
– Additional Images
– Supporting Documentation
• Step 3: Item Restrictions
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© GS1 US 2012
Data is the FOUNDATION
Multiple Images
Supporting Documentation
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© GS1 US 2012
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6/12/2013
Data is the FOUNDATION
• Step 1: Data Quality
– Correct Data
– Complete Data
– Consistent
C
i t tD
Data
t
• Step 2: Enhanced Marketing Data
– Additional Images
– Supporting Documentation
• Step 3: Item Restrictions
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© GS1 US 2012
Item Restrictions
•
•
•
•
Regulatory compliance is a growing area of concern
especially given the diversity of our products
As Lowe
Lowe’s
s continues to transition into an OmniOmni
channel retailer, we must change how we handle Item
Restrictions (Selling, Age, Shipping) in order to
mitigate risks
Previously Lowe’s had little to no governance for
restrictions as data was handled by multiple areas in
multiple systems
Centralization of restrictions into a single repository
drives consistency throughout the organization and in
all sales channels
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© GS1 US 2012
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Item Restrictions - Why now?
Flexible Fulfillment
Our goal is a seamless customer experience across
Lowes.com, mobile application, call center, in store
and in home.
Our challenge is to provide consistency to our
customer throughout all of the channels mentioned
above.
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© GS1 US 2012
Flexible Fulfillment
New technology enables customers to shop from any channel and have the product fulfilled
from any location in which the product is available.
It is no longer just about 1,700+ stores - now we must consider 43K + zip codes
Benefits
Leverage existing
inventory
Higher inventory
turns
Shorter lead times
to Customer
Provide lowest
shipping cost
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© GS1 US 2012
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Terms and Definitions
Selling Restriction: Item entered cannot be sold in the designated
location provided (item should not be in store)
Age Restriction: Item can be sold at the stocked location as long as
the customer
customer’ss age is verified
Shipping Restriction: Item cannot be shipped due to government
restriction or carrier limitations
SAS (Selling, Age and Shipping): Lowe’s internal tool where item
restrictions will be uploaded, monitored and updated
RCT (Restrictions Collection Tool): the user interface sent to
vendors
d
with
ith item
it
iinformation;
f
ti
will
ill b
be returned
t
d tto Lowe’s
L
’
Flattened File: the first tab, labeled Restrictions, in the RCT workbook
or Builder after it is saved; used to upload your data into Lowe’s
system
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© GS1 US 2012
Some Known Restrictions
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Selling Restrictions
Volatile Organic Compounds (VOC)
Fertilizers
Pesticides/Insecticides
Lead Based Products
California Air Resource Board Emissions
Noise Ordinance
California Energy Efficiency Requirement
Gas Cans (OSHA, DOT, EPA, CARB, AQMD)
Toilets above a certain Gallon Per Flush
OTC (Ozone Transportation Commission)
Shipping Restrictions
Knives
Bo Cutters
Box
C tters
Certain Batteries (GDSN Data)
Certain Live Plants
Pool Chemicals (GDSN Data)
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Age Restrictions
Spray Paint
Volatile Organic Compounds (VOC)
Markers
Windshield Washer Fluid
Lasers (Levels, Stud Finders, Laser Pointers,
etc)
• Lighters
• Box Cutters
• Knives
•
•
•
•
•
Licensing Requirements
• Pull Behind Trailers that require a
g
Title/Registration
• Gas pipe that requires an installation
certification or purchase of installation guide
© GS1 US 2012
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6/12/2013
Next Steps
• Restriction data must be provided on all new
items
– New item collection started with the release of Phase 4 of the
Builder ~2/25
• Lowe’s will ask for restriction data on all existing
items – Stock and SOS
– Collection will be completed in phases
– A response is required even if there are no restrictions
– 60 days to complete and return the file
• Review your Dimensional and Hazmat Data
– Verify what is in PCM matches what you are actually shipping
to Lowe’s
– This data will systematically drive the majority of shipping
restrictions
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© GS1 US 2012
Timeline to Collect Existing Items
Wave 1 – Domestic Stock (3/1/13)
Wave 7 – Domestic Stock (~8/12/13)
Paint
Plumbing
Fashion Electrical
Millwork
Tools & OPE
Lawn & Garden – Live Goods
Lawn & Garden (Does not include Live Goods)
Seasonal Living
Wave 2 ‐ Domestic Stock (5/17/13)
Wave 8 – Import Stock (~9/2/13)
Home Fashions, Storage & Cleaning
Home Fashions, Storage & Cleaning
Lumber & Building Materials
Flooring
Wave 3 – Import Stock (6/10/13)
Lumber & Building Materials
Paint Hardware
Wave 4 – Import Stock (~6/24/13)
Wave 9 – Import Stock (~9/23/13)
Plumbing
Fashion Electrical
Lawn & Garden
Kitchen & Appliances
Wave 5 – Import Stock (~7/8/13)
Millwork
Tools & OPE
Seasonal Living
Wave 6 – Domestic Stock (~7/22/13)
Flooring SOS & ATG – ~ Q4 Hardware
Kitchens & Appliances
Seasonal Living
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© GS1 US 2012
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6/12/2013
Restrictions Training
• Webinars available weekly. Please check LowesLink to register.
• Restrictions Collection Tool Instructions are included in the Builder Phase 4
instructions (Reviewing The MDS section, Step 3 on page 12)
Still have questions? Email us!
[email protected] OR [email protected]
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© GS1 US 2012
How to Succeed with Lowe’s
• Commit to GDSN!
• Key PI dates/touch points during PLRs (not just AFTER!)
• Keep abreast of processes and standards
http://www.loweslink.com/llmain/pubdocuments/pcmWebinarCalendar.pdf
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© GS1 US 2012
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6/12/2013
How to Succeed with Lowe’s
Consider data through the whole process
‐22 Weeks
Receive PLR “Save the Date”
‐21 Weeks
Participate in category review and clean up (as invited)
‐22 to ‐9 Weeks
Review existing items in PCM and online and update data (Stock & SOS)
‐8 Weeks
Receive PLR Packet
‐8 to 0 Weeks
Gather all required data for new items to be presented
0 Weeks
Presentation to Lowe’s
0 to 12 Weeks
Identify Solution Provider (if needed) 12 to 13 Weeks
Decisions Communicated
13 to 18 Weeks
New Item Setup Complete
19+ Weeks PO received
Reset Date
New items online
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© GS1 US 2012
Specific Resources for Canada Vendors
Lowe’s offers a variety of Vendor education venues specifically to assist
Vendors in the data submission process:
1 Two introductory Canada
1.
Canada-focused
focused Vendor webinars
• PCM Canada GDSN and Item Set-up Process
• PCM Canada Marketing Data Process
– For scheduling, refer to the webinar schedule on Loweslink and
look for PCM Canada
2. Documentation available on Loweslink
3. FSEnet+ partnership
4 Canada
4.
Canada-only
only vendor summit in Toronto (est
(est. Fall)
5. Drop-in sessions throughout the summer
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© GS1 US 2012
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6/12/2013
Questions
37
© GS1 US 2012
4 Ways to Evaluate this Session!
1. Mobile Web App
2. www.GS1Connect.org/Evals
3. Cyber Café short cut
4 H
4.
Hard
d copies
i att th
the b
back
k off th
the
room collected at Registration
Desk each day
© GS1 US 2012
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