technology and operations management,
TRANSCRIPT
Who is GS1?
Henry C. CoTechnology and Operations Management, California Polytechnic and State University
The Cost of Bad Data
CPG
CPG is one of largest sectors of business today. Includes over 25% of Fortune 500 companies and accounts for well over $1 trillion in revenues annually.Critical to the industry is the dynamics between consumer goods manufacturers and the retailers.
It’s All About the Data
Sterling Committee, “Data Synchronization: From Compliance to Collaboration – An Essential Guide to Understanding Your Opportunity,” Whitepaper, 2004, http://www.sterlingcommerce.com
According to Cap Gemini Ernst & Young (CGE&Y), the impact of out-of-sync information within and between businesses in the retail supply chain is an average of 1-3 percent of supply chain performance.
Cost of Bad Data 5
Cost of Bad Data According to A.T. Kearney
$40 billion or 3.5% of total sales lost each year due to supply-0chain information inefficiencies
30% of item data in retail catalogs have errors; each error costs $60-$80 to correct
25 minutes of manual cleansing per SKU per year
http://www.hammer.net/subpage.asp?template=/template.asp?menu%3D476
Cost of Bad Data 6
60% of all invoices generated have errors; 43% of all invoices result in deductions; each invoice error costs $40 - $400 to reconcile
More than 40% of all invoices result in deductions.
Average of 6 weeks to roll-in a new product – largely due to inefficient and error-prone approaches for exchanging and updating new item information in buyer and seller systems.http://www.hammer.net/subpage.asp?template=/template.asp?menu%3D476
The Push for Synchronization
Major companies in merchandizing, CPG/grocery, hardlines, chain drug, office supply, and others are mandating that their suppliers implement data synchronization.
GDS – Process of establishing and maintaining consistent, accurate information within and between businesses in the retail supply chain.
Information about items trading partners buy or sellInformation about the trading partners (contact information, store/warehouse locations, bill-to/pay-to data, etc.)
GS1 (Formerly EAN and UCC)
As part of a unified, global approach to standards development for the global supply chain…
EAN International becomes GS1 (May ‘03)UCC becomes GS1 US (Feb ‘03)
Cost of Bad Data 10
Worldwide standards for unique product and company identification
Standards for global data synchronization
Who is the UCC?
The Uniform Code Council97 Member Organizations Around the World
Cost of Bad Data 12
The Uniform Code Council The Global Language of Business ®
Founded 1974 (30 years experience working with business)
Experienced organization - ~ 175 employees with extensive experience in: XML, EDI, Business Process Modeling, Physical identification (barcode & RFID), Standards development and management
280K members and growing Accredited not-for-profit standards
organization ISO & ANSI Voluntary
Membership Drivenhttp://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt
Cost of Bad Data 13
Globally recognized Standards Management Process (GSMP)
Top down development of multi-industry standards based on Business Processes
Simpl-eB CPFR®
Rapid Process Development (RPD) Standards development slashed from 12
months to 3 months
Cost of Bad Data 14
UCC’s Internal Support Staff Identification Experts (Bar Codes, Scanning,
RFID) Business process experts Customer Service facility
~100,000 calls annually Implementation support
Interoperability & Compliance testing Promote the value of standards to industry eCommerce expertise
EDI Support XML Standards
http://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt
Cost of Bad Data 15
UCC Mission
To take a global leadership role in establishing and promoting multi-industry standards for collaborative commerce
The goal is to enhance efficient supply chain management, thus contributing added value to the customer
Key Goals of UCC Provide strong foundation of open and global standards Reduce supply chain costs Create fast and seamless data exchange by removing
e-business bottleneckshttp://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt
Cost of Bad Data 16
Overview UCC
Jim Petragnani, “EAN.UCC System Update,” PowerPoint Presentation, Aftermarket Council on Electronic Commerce, August `2, 2004.
Who is the EAN?
European Article Number, International99+ EAN Member Organizations
Cost of Bad Data 18
EAN INTERNATIONAL MISSION :
To create and drive the worldwide implementation of standards to improve the supply and demand chain
ROLE: Develop global, open, multi-sectorial standards, Train and educate on the standards, Promote and help to implement standards, thus
facilitating best business solutions. OBJECTIVE:
To be the number 1 Standards’ Organization in the world for the management of supply and demand chains.
Cost of Bad Data 19
EAN INTERNATIONAL: Product & Services
These are our Global Product & Services : Bar Codes E-business (EANCOM & EAN.UCC-XML) Global Data Synchronization Network Global Registry Global Product Classification Electronic Product Code Traceability Solutions
Cost of Bad Data 20
One Million Members ● Over 100 Countries ● 23 Industries
99+ EAN Member Organizations
Jim Petragnani, “EAN.UCC System Update,” PowerPoint Presentation, Aftermarket Council on Electronic Commerce, August `2, 2004.
Cost of Bad Data 21
Industries Using EAN.UCC StandardsApparelAlcoholic BeveragesAutomotiveBuilding SuppliesChemicalsFood & BeveragesFoodserviceFurnitureGeneral MerchandiseHealth / Beauty CareHousewaresInformation Technology
Industrial ProductsJewelryLeisure IndustriesMusic ProductsPharmaceuticalsGovernmentPublishingTelecommunicationsTransportationUtilitiesVideo Products…and others
Jim Petragnani, “EAN.UCC System Update,” PowerPoint Presentation, Aftermarket Council on Electronic Commerce, August `2, 2004.
What are EAN.UCC Standards?
Identification NumbersData Carriers
http://www.cpfr.org/BHoganUCCnet_CPFR.ppt
Cost of Bad Data 23
Strong legacy in Identification Numbers
GTIN - Trade Items GLN - Locations SSCC - Logistics Identifier GIST - Instance Identifier GIAI - Individual Assets GRAI - Returnable Assets GSRN - Service Relations
Cost of Bad Data 24
Relationship of Identification Numbers GTIN / GLN to identify a product’s supplier GLN / GLN to identify the hierarchy of legal,
functional, and physical entities
Cost of Bad Data 25
Strong legacy in physical ID to tightly link the flow of physical products to information flow Physical Products
Bar Codes EAN/UPC UCC/EAN-128 RSS Composite - 2D
RFID: GTAG - Open Standard RFID The Future: ePC (MIT Auto ID Center)
Cost of Bad Data 26
Information Flow EDI – ANSI x.12
UCS VICS Industrial Commercial
XML – based on business process that assumes data synchronization occurs outside the business process (e.g. – UCCnet)
Cost of Bad Data 27
IDE
NTI
FIC
ATI
ON
DA
TA C
AR
RIE
R
Ecommerce
SUPPLY CHAIN
MANAGEMENT
RFIDRFID
GTINGTIN
GLNGLN
EDI
RSSRSS EAN/UCC 12
XML
Identification Numbers
Data Carriers
http://www.cpfr.org/BHoganUCCnet_CPFR.ppt
EAN•UCC Core Technologies The EANUCC system provides an integrated suite of
standardized tools that enable effective management of supply chains
Cost of Bad Data 28
UCC’s Global Supply Chain
Mfg Item Case Pallets Trucks Distributor Trucks Pallets Case Item Destination Mfg Item Case Pallets Trucks Distributor Trucks Pallets Case Item Destination UserUser
212345 6789072 212345 6789072
Source
Data Structure
Application Identifiers= GTIN, SSCC, Dates, Weights, Lot Numbers, etc.
Physical Data Carrier = Symbology or Bar Code
( 01) 9 0 614141000418 ( 15) 991225 ( 3202) 000356 ( 21) VR900389
GTIN, GLN, PO, planning, payment, sales, etc.
GTIN, GLN, shipping, invoice
POS
Information Data Carrier = EDI or XML
http://www.cpfr.org/BHoganUCCnet_CPFR.ppt
Cost of Bad Data 29
ROI
10,000s 100,000s1,000s0
Community Size
100s
XML
Interoperability
Registry
Data Sync
EDIINT
Middleware
EAI
Standards
•Global B2B
•Small & Large Cos.
•Internet Based
•Multi-Sectoral
•Collaborative
Path to the FutureAchieve maximum
return with maximum
community size
EDI
http://www.cpfr.org/BHoganUCCnet_CPFR.ppt
Cost of Bad Data 30
• Logistics – Serialized Shipping Container Code (SSCC)
• Products – Global Trade Item Number (GTIN)
• Assets – Global Individual Asset Identifier (GIAI)
• Locations –Global Location Number (GLN)
• Relations –Global Service Relation Number (GSRN)
• UCC: Links physical assets and logistic units with the flow of electronic messages
Each of these is a key to data
EAN.UCC Keys Identify …
http://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt
Cost of Bad Data 31
EANEANUCC: Proven Supply Chain ManagementUCC: Proven Supply Chain Management
Purchase Order, ASN, Invoice, Assets,
Electronic Commerce
Supply Chain Starts Supply Chain Ends
UCC links physical assets and logistic units
with the flow of electronic messages
Physical Flow
Information Flow
UCC provide
s the Link
212345 6789072 212345 6789072
Mfg. Case Pallet Truck Hospital Truck Pallet Case Asset DoctorAsset
http://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt
Cost of Bad Data 32
GS1 Global Vision
Act As One Organization or
Become One Organization
Cost of Bad Data 33
Background Name Confusion Organizational Issues Financial Issues
Cost of Bad Data 34
One World. One System. One Global Language of Business
BUT A ZOO OF NAMES…… UCC (USA) e-centre (UK) Gencod (France) CCG (Germany) DCC (Japan) EAN Russia …
Cost of Bad Data 35
One World. One System. One Global Language of Business BUT POOR EXTERNAL IMAGE …..
Poor Customer Focus Limited Business Leadership Speed to the Market Focus on Local vs. Global
Cost of Bad Data 36
NAME CHANGE One World. One System One Global Language of Business
Cost of Bad Data 37
NAME CHANGE PROPOSAL To change all the EAN names to GS1
followed by the country name :
GS1 US GS1 UK GS1 France GS1 Japan …
Cost of Bad Data 38
EAN General Assembly approved it in May ‘2003
UCC Board of Governors has just approved to change UCC to GS1 US (Feb. 3rd, 2004)
Cost of Bad Data 39
Reasons For Change To communicate we are a single
Global Standards organization that covers over 141 countries
To re-launch our image with new attributes (customer focus, leadership and innovation)
To increase our awareness on key targets : C’s levels (CEO’s, COO’s, CIO’s, etc.) Top functional levels (VP’s IT, Supply, F&A,
Sales)
Cost of Bad Data 40
Why Now ? Leverage momentum of EAN and UCC
single leadership Take advantage of the positive
attributes (leadership, innovation) projected by our new systems (e.g. EPC, GDSN)
Take advantage of the ample media coverage given to our new systems
Cost of Bad Data 41
Documented Benefits of Early Adaptors
3-5% reduction in shelf out-of-stocks 2 weeks reduction in speed to market
for new items. i.e., 14 extra days sales of faster-moving items.
10,000 to 30,000 hours saved in store labor.
5,000 to 10,000 hours saved in merchandizing and data entry time dealing with new item introductions and updates.
Cost of Bad Data 42
1,000 to 2,000 hours saved in finance time dealing with invoice disputes related to basic item information.
Reduction in invoice auditor fee. Up to 1 percent reduction in inbound
freight costs. 1,000 to 2,000 hours saved in
warehouse and DSD time dealing with item discrepancies.
1% reduction in inventory.