gs1+rss+gdsn 22.2. 2007 ladislav janco product manager gs1 slovakia
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©2007 GS12
Background on GS1
©2007 GS13
GS1 in a nutshell
GS1 is a not-for-profit organisation that develops global standards for the identification of goods and services.
GS1's standards foster cooperation and encourage information-sharing worldwide. Thanks to GS1, businesses and organisations can improve the efficiency of their supply and demand chains by adding useful information to any exchange of goods or services.
The global language of
business
©2007 GS14
GS1 in numbers
• 30 years of experience • 104 member organisations representing all points in the supply
chain• Over a million companies doing business across 145 countries• Over 20 represented sectors (Fast Moving Consumer Goods,
healthcare, transport, defence…)• Over 5 billion transactions a day
A fully integrated global organisation, GS1 was formed in early 2005 from the joining of EAN International and the Uniform Code Council (UCC).
GS1 is the most widely used supply chain standards system in the world.
©2007 GS15
GS1: A Broad Portfolio (1/3)
GS1 has a full portfolio of products.
Global standards for electronic business messagingRapid, efficient & accurate business data exchange
The environment for global data synchronisationStandardised, reliable data for effective business transactions
Global standards for automatic identificationRapid and accurate item, asset or location identification
Global standards for RFID-based identificationMore accurate, immediate and cost effective visibility of information
©2007 GS16
GS1: A Broad Portfolio (2/3)
GS1 offers solutions, each integrating a number of GS1 products.
Traceability is a robust solution for tracking and tracing items such as medical products and food through the supply chain.
Patient Safety ensures the prevention of medical errors
and counterfeiting through the healthcare supply chain.
©2007 GS17
GS1: A Broad Portfolio (3/3)
GS1 provides a wide variety of services to its user companies.
• Implementation support
• Guides and manuals
• Training and education
• Helpdesk
• Benchmarking
• Verification tools and calculators
• Consulting services
• Software
• And more…
©2007 GS18
104 Member Organisations.145 Countries served.
Local services, global reach.
Countries with a GS1 Member Organisation
Countries served on a direct basis from GS1 Global Office (Brussels)
GS1 Member Organisations
Reduced Space Symbology (RSS)Reduced Space Symbology (RSS)
February 2007
GS1 DataBarGS1 DataBar
©2007 GS110
Examples of RSS
RSS in Healthcare
©2007 GS111
Challenge – Business Needs
To provide better ways to automatically identify
• Very small items (e.g. syringes, vials, and telecommunications circuit boards)
• Random measure retail items utilising full product identification (e.g. meat, poultry, and bagged produce)
• Individual produce items (e.g. apples and oranges)
• Logistic units that required more data to accompany the item than there was space available (e.g. content information for mixed trade item pallets)
©2007 GS112
Size Comparison RSS vs. EAN/UPC
EAN-13
EAN-8
RSS Stacke
d OmniD.
RSS Stacke
d
©2007 GS113
The Reduced Space Symbology Family
RSS-14
RSS-14 StackedOmnidirectional
RSSExpanded
RSS ExpandedStacked
RSS-14Truncated
RSSLimited
RSS-14Stacked
POS Symbols
©2007 GS114
How does RSS compare to EAN/UPC?
RSS, the next-generation bar code, carries over 100 different bar code data elements like serial or lot numbers, expiration
dates, & measurements
Retailers: “EAN/UPC Symbols only carry GTIN”
RSS Expanded RSS Expanded Stacked
GTIN + Serial #
GTIN/Price/Weight
RSS Expanded RSS Expanded StackedMore Data,Same Space
EAN-13Symbol
Area
©2007 GS115
Benefit AreasEnable category management and control of a number of products not able to support a standard bar
code due to size of packaging.
Better control of inventories, shrinkage, and product recalls.Better control over products exceeding their expiry dates Enable scanning of fresh food products (i.e. produce) reducing key punch errors, allowing for self
check out options, and supplier identification.
RSS Adoption Business Case
Utilizing RSS labels generates an annual operating savings at retail of over $2.32 million in produce and $2.33 million in meats for an average 100-store
chain.
RSS’ accuracy generates an annual reduction in shrink dollars of over $7.3 million for an average 100-store chain.
A 100-store chain that upgrades to RSS will gain over $4.2 million in savings during the first year.
Source: GS1 US Study
©2007 GS116
Most scanners shippedfor the last 4 yearsare RSS capable
Most scanners shippedin the last 7 yearsare upgradeable for RSS
2006 2010
60%
85%
RSS Capable Scanner Projection
Source: GS1 Global Symbology Committee& GS1 Japan Surveys. Estimates +/-5%
©2007 GS117
When Will Retailers Be Ready?
Retailer Readiness RSS Capable Scanners 2006 (%)
RSS Capable Scanners 2010 (%)
Aeon 0% 0%
Ahold US 95% 100%
Carrefour 80% 98%
Daiei 0% 1-2%
DLM 100% 100%
Foodstuffs TBD 100%
Karstadt 100% 100%
Loblaws 80% 100%
Metro 100% 100%
Seiyu 100% 100%
Target 88% 100%
Uny 0% 67%
Wal-Mart 100% 100%
Wegmans 24% 100%
Woolworths 75% 100%
©2007 GS118
The Basics of Data Synchronisation
©2007 GS119
Why Synchronise Data?
Trading partners today see unnecessarily high costs from:
• supply chain information inefficiencies • inaccurate data in transactions• invoices with errors• manual work-around processes to correct inefficiencies
$Synchronised and harmonised master data between trading partners’ systems can promote:
• smooth inter-company flow of goods • better control of supply chain processes• increased data accuracy • reduced costs in the supply chain• a robust foundation upon which the full benefits of
electronic collaboration can be achieved and scaled
©2007 GS120
What is GS1 GDSN?
GS1 GDSN is an automated, standards-based global environment that enables secure and continuous data synchronisation, allowing all trading partners to have consistent item data in their systems at the same time.
The GS1 Global Data Synchronisation Network connects retailers and suppliers, via their selected GDSN-certified data pools, to the GS1 Global Registry.
©2007 GS121
Key elements of the GDSN
GS1 Data PoolsElectronic catalogues of standardised item data, serving both as a source and/or recipient of master data. Can be run by a GS1 Member Organisation, supplier, customer, exchange or service provider.
GS1 Global Registry®
The GDSN acts as a "yellow pages directory" that • Provides information for subscription sharing• Enables data pool interoperability • Guarantees uniqueness of the registered items and parties• Ensures that all data pools in the network are complying with
a common basic set of validation rules that support data integrity in the system
• Holds the information about who has subscribed to trade item or party data
©2007 GS122
What is a certified data pool?
• Conform to GS1 GDSN standards
• Ensure the confidentiality and integrity of user information
• Are fully interoperable
• Comply with the global validation rules
• Comply with the global search functionality
Certified GS1 data pools…
©2007 GS123
GS1 Global Registry® Membership Sample
Retailers•AAFES•Ahold•Albertson’s•Best Buy•Carulla Vivero S.A.•Coop Italia•Dairy Farm•Exito•Home Depot•Kohl’s• Lowes•Alamacenes Exito (Casino)•Safeway•Staples•Supervalu• Target•Walgreens•Wal*Mart •Wegmans
Suppliers• 3M Company•Alcon•Bayer•Cadbury Schweppes•Coca-Cola•Colgate Palmolive•Electronic Arts•Clorox•Danone•Del Monte•Eastman Kodak•Energizer•Eveready•General Mills•Gillette•Glaxo Smith Kline•Heinz• Jergens
• Johnson & Johnson •Kellogg Company•Kimberly Clark•Kraft• Intuit•Mattel, Inc•Nestle•Memorex•MeadWestvaco•MGM Studios•Paramount•Philips Cons. Electronics•Procter & Gamble•Revlon•Sega•Sony•Universal Studios• Zenith
©2007 GS124
GDSN Governance
GDSN Board of Directors
The GDSN Board of Directors was established by GS1 to ensure that the GDSN meets the business needs of the user community.
It includes representation from suppliers, retailers,
GS1 Member Organisations and certified data pools.
©2007 GS125
GDSN GrowthJanuary 2005 – January 2007
January2005
February2006
January 2007
Data Pools (in production)
7 7 13
(24 Certified)
Retailers / Suppliers 2003,778
110 retailers 3,668 suppliers
10,892135 Retailers
10,757 Suppliers
GTINs(products registered)
180,000 479,000 1,161,183
©2007 GS126
How the GDSN Works
©2007 GS127
The GDSN Network
©2007 GS128
The Process
1. Load Data: The seller (data source) registers product and company information in its data pool.
2. Register Data: A small subset of this data is then sent to the GS1 Global Registry.
3. Subscription Request: The buyer (data recipient), through its data pool, subscribes to a seller's GLN, product category (GPC), target market, or GTIN to receive the corresponding product and company information. Using the GS1 Global Registry, the data pool containing the requested item and location information is identified and the subscription is forwarded to that data pool.
4. Publish Data: The seller’s data pool then publishes the complete item and party information to the buyer via the buyer’s data pool.
5. Recipient Confirmation: The buyer then sends a confirmation to the seller through the buyer’s data pool directly to the seller’s data pool. More than simply an acknowledgement, it informs the supplier of the action taken by the retailer on the item information.
Suppliers and retailers who want to synchronise data with each other perform the following steps:
©2007 GS129
The Benefits
©2007 GS130
Why implement GDSN?
Why Implement GDSN? Because GDSN…• provides standardised, reliable data for effective business transactions in
both local and global markets• ensures that trading partners work in a standardised way, reducing
duplicate systems and processes• ensures that item data is consistent between trading partners• validates accuracy of data against standards and business rules• ensures that trading partners classify their products in a unique,
standardised way (Global Product Classification)• provides a single point of entry for retailer and supplier trading partners
(their chosen Data Pool), so reducing the cost of operating multiple solutions
• guarantees uniqueness of item (product, case, pallet), party and location through the GS1 Global Registry
• certifies that Data Pools and the GS1 Global Registry comply with GDSN rules
©2007 GS131
Benefits for Retailers
Corporate Management
• Simplify corporate reporting • Enable global sourcing • Create corporate transparency and sales synergy • Eliminate IT system redundancy • Create an opportunity for shared services
Administrative Data Handling
• Reduce catalogue maintenance time • Eliminate need for cross-reference tables • Decrease invoice disputes • Encounter fewer order defects • Improve fill rate
©2007 GS132
Benefits for Retailers
Category/Promotion Management• Reduce need for local agents and intermediation • Expand supplier base • Create corporate sourcing price transparency • Improve visibility for stock-level planning • Reduce time spent addressing complaints/disputes • Simplify and enhance category reporting • Reduce product introduction lead time • Reduce product promotion lead time
Logistics
• Encounter error-free shipment receiving • Reduce return shipments • Reduce backorders • Require less excess/safety stock • Optimize location despatch
©2007 GS133
Benefits for Suppliers
Corporate Management
• Simplify corporate reporting• Expand geographic retailer base• Eliminate IT system redundancy • Create an opportunity for shared services
Category/Promotion Management • Improve visibility for stock-level planning • Maximize retail exposure/product posting • Reduce time spent addressing complaints/disputes • Simplify and enhance category reporting • Reduce product introduction lead time• Reduce product promotion lead time
©2007 GS134
Benefits for Suppliers
Administrative Data Handling • Eliminate need for cross-reference tables • Decrease invoice disputes • Reduce write-offs • Reduce accounts receivable • Encounter fewer sales order defects
Logistics • Simplify order tracking and tracing • Reduce return shipments • Improve percentage of accurate orders • Encounter fewer emergency orders • Improve accurate picking • Optimize short-term planning
©2007 GS135
Merchandising Benefits
Accurate, synchronized data eliminates many manual item setup processes and maintenance.
Improved Sales• New item processes reduced• Merchant administrative time can be reinvested in building sales• Better visibility to more supplier catalogs
Sales Representative Value Add• No need to fill out new item forms for all customers• No need to communicate changes and corrections• More time can be spent building sales
Merchandising Administration• No more data entry of new items forms• Elimination of key entry errors• No more paper trail from
merchandise=>pricing=>logistics=>accounting
©2007 GS136
Logistics and Distribution Benefits
Allows inbound and outbound truckloads to be better utilized, reducing freight costs and increasing efficiency
Means inbound truckloads can be received and put away efficiently - reducing time, handling, cost and improving shelf service levels
Synchronized and accurate cube and weight data
©2007 GS137
Store Operations Benefits
Improved Customer Shopping Experience• Error free scanning at front end • Improved Planograms for ease in shopping• Improved shelf tag accuracy for price comparisons• Improved on the shelf availability
Accurate and synchronized data will improve efficiency and thus the customer shopping experience
Improved Back Door Management (DSD)• Reduced “not on file” discrepancies which stop product from
flowing onto the shelves• Reduced invoice discrepancies
©2007 GS138
Accounting Benefits
Accurate and synchronized data improves invoice accuracy and associated reconciliation processes
Invoice reconciliation• More invoices will be accurate • More streamlined/timely processes for resolving invoice
discrepancies• Reduced out of period adjustments which will make
financial information more actionable• Reduced receiving quantity errors to be reconciled
©2007 GS139
Proven Benefits
In a 2003 case study performed by Cap Gemini under the leadership of the Global Commerce Initiative (GCI) Steering Group, it was demonstrated that adopting and implementing a global data synchronisation programme would lead to a 1% to 3% savings in supply chain costs.
Long-term benefits have been even greater.
©2007 GS140
Proven Benefits
In 2005, GCI and CapGemini conducted a study entitled, “Global Data Synchronisation at Work in the Real World: Illustrating the Business Benefits”, and found that:•Dutch retailer Albert Heijn improved productivity in their data management
department by 30%.
•Wal-Mart decreased item maintenance from 15-30 days to 1 day.
•Gillette Venezuela improved order-processing productivity and eliminated master data discrepancies by aligning product information with their trading partners.
• Johnson and Johnson decreased out-of-stocks by 2.5% by virtually eliminating data integrity issues.
• Procter & Gamble increased purchase order accuracy by 3% by focusing on aligning obsolete products with La Fragua in Guatemala.
•Unilever Columbia significantly reduced data inconsistencies and improved new item speed to market by 2-3 weeks.
•U.S. retailer Wegmans Food Markets increased store sales by reducing speed to market on new items by two weeks.
©2007 GS141
Proven Benefits
An August 2006 Accenture report entitled "Synchronization—The Next Generation of Business Partnering" clearly confirms that companies that take action are making progress and achieving real results with global data synchronisation.
Suppliers and retailers that have collaborated and taken an integrated approach to data synchronisation have realized even greater benefits than originally expected.
©2007 GS142
Implement Now!
These case studies show cleansing your data and ensuring compliance with GTIN and
GLN allocation rules result in immediate and important cost savings.
Start improving your relationship
with your trading partners now.
©2007 GS143
Thank you!
©2007 GS144
Contact details
Ladislav Janco
GS1 Slovakia
Nanterska 23
01008 Zilina, Slovakia
T + 421 41 5651185
F + 421 41 5651186
W www.gs1sk.org
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