Editor's Note: Efficiency Leads To Lower Costs - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance
Commentary
6/13/2003
06:20 PM
Stephanie Stahl
Stephanie Stahl
Commentary
50%
50%

Editor's Note: Efficiency Leads To Lower Costs

I had to check my notes several times. Did I misunderstand what he was talking about? Those thoughts kept going through my mind following a chat in Procter & Gamble CIO Steve David's office about six months ago. That's when he told me and one of my colleagues that retailer returns and refusals of products cost the company some $50 million a year.

Incorrect orders, damaged products, and other inaccuracies all contribute to its detergents, toothpastes, diapers, shampoos, and other products getting sent back. Sure, that's a drop in the bucket to a $40 billion company, but think of what you could do with $50 million. I'm not criticizing P&G--its competitors have similar issues.

In fact, speaking of $40 billion, that's about what the consumer-goods industry could save if there weren't so many inefficiencies between retailers' and manufacturers' product data. That's according to a report issued last year by A.T. Kearney (see informationweek.com/895/shop.htm). Imagine what could be done with an extra $40 billion!

New collaboration standards and technologies aim to change all that, thanks in large part to the services of UCCnet, a standards body whose goal is to provide a central registry of product information to retailers and wholesalers. The registry includes things such as manufacturer and part number. Imagine Wal-Mart ordering diapers to stock up for a big sale but getting toothbrushes instead. Though hypothetical, the chances of such mistakes will decrease significantly as retailers such as Wal-Mart raise the bar for doing business with them--"participate in UCCnet and deploy RFID tags on your product pallets or don't do business with us" will soon become the new mandate (see stories on pp. 18 and 30)--and as product makers aggressively commit to a new level of collaboration.

Stephanie Stahl
Editor
[email protected]


To discuss this column with other readers, please visit Stephanie Stahl's forum on the Listening Post.

To find out more about Stephanie Stahl, please visit her page on the Listening Post.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll