Coop automates for higher data quality

Automated processes are a key to save time as well as to increase security and customer satisfaction in most organizations. It was for these very reasons that Coop Hemma started a digitalization project in autumn 2019. But how do you really get everyone on the digitization train? We have talked to Erik Holmberg, Business Manager for Coop Hemma, to hear about the journey so far and get his best key takeaways.

As one of Sweden’s largest players in the grocery industry, Coop offers affordable products from a sustainable and popular range. Together with GS1 Sweden and their service Validoo, Coop has for several years worked to create structured trade item information for products throughout the supply chain. About a year ago Coop, with support from GS1 Sweden, started a digitalization journey. The goal was to create the same trade item information security in the so-called Non-food range that is already in the food range.

Automated processes for higher data quality

Structured product information is a thing and more when dealing in goods, and also widespread in the grocery trade in food. For non-food products, known as non-food products, there were previously not the same requirements for a ensured flow of product information. Erik believes that the previous approach could ultimately lead to a deterioration in customer offering.

With digitalization, where more and more people are shopping online rather than in-store, there is a greater demand for better and broader data on products.

Erik Holmberg

“Suppliers for non-food products have long worked outside systems where all manual steps must be done 100 percent right at all times. The information about the product itself is not deficient, it is rather the way it is stored and shared that is it. As digitalization is revealed, where more and more people shop online rather than in-store, greater demands are placed on better and broader data about products,” says Erik.

With this in mind, Coop chose to focus on the goods that have had an underdeveloped master data throughout the years. The goal was to move historically manual processes to automated ones, in order to create security throughout the supply chain and become more time efficient. GS1 and the Validoo service became the obvious choice for the transfer.

Support in project management and training of suppliers

Previously, Coop communicated with Excel sheets to send and share information manually. Validoo’s system was now able to communicate automatically with the suppliers’ business systems. Unlike in the past when updates needed to be made in each individual sheet, you could now correct detected errors in the information everywhere, directly through Validoo,” says Erik. Validoo was also able to assist with project management and training of suppliers.

“Together with GS1 Sweden, we have conducted training to ensure that suppliers are on the change journey that takes place. GS1 has also helped with follow-up to see what digital maturity our suppliers have, which has led to fewer problems later in the process,” says Erik.

Digitisation creates new conditions

Reactions have been mixed among the suppliers affected by the change. Those who are used to working digitally have directly understood the purpose of the initiative. For others, with lower digital maturity, understanding has been somewhat lower. Coop has therefore, together with GS1, focused on explaining the usefulness of the initiative.

“The first step is to get some kind of acceptance from the suppliers and a realization that it is the right way to go. Change is hard for some, but once you’re up and running, it’s easier to see the benefits. The challenge in understanding where suppliers are in the process has led to valuable lessons learned from us who do not usually work with the supplier side of Validoo as a service, says Erik.

Another challenge has been the work with all coop’s international suppliers. Coop Hemma has a higher proportion of non-Swedish suppliers. This creates a completely different starting point for change.

“Our work with international suppliers has meant a major change in how we carry out the journey on an often technical level. Together with GS1, we have been trained and learned about how GS1 works internationally,” says Erik.

Cooperation equipped for the future

This spring Coop Hemma enters the last phase of implementation, and forward March Erik estimates that it will be ready to be around 90 percent at the supplier level. In less than two years, Coop Hemma, in collaboration with GS1 and Validoo, has moved hundreds of suppliers into Validoo. And the benefits are many. Erik explains:

“The main advantage of the work is that between us and suppliers we will have less problems with orders and finances, because we share the same flow. This will lead to increased growth online and a tremendous time saving. A large part of the job has been done at the suppliers – and I am extremely grateful for their efforts.

Erik welcomes the cooperation with GS1, and they already have several joint projects planned. As a next step in the process towards an even better e-commerce experience, Erik now wants to work even deeper with, for example, image management and packaging materials.

“Working with centralized master data is necessary, and for those of us who have a long history of working with GS1, they were an obvious choice. Validoo offers work processes that support business, and their service can be used in change for the future. I can no doubt recommend this solution to others who want to control data inflows!

Thanks Coop for letting us join us on the trip.