Technology And Operations Management,Presentation Transcript
Who is GS1? Henry C. Co Technology 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 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. Sterling Committee, “Data Synchronization: From Compliance to Collaboration – An Essential Guide to Understanding Your Opportunity,” Whitepaper, 2004, http://www.sterlingcommerce.com
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
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 sell Information 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)
Worldwide standards for unique product and company identification
Standards for global data synchronization
Who is the UCC? The Uniform Code Council 97 Member Organizations Around the World
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
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, International 99+ EAN Member Organizations
To create and drive the worldwide implementation of standards to improve the supply and demand chain
Develop global, open, multi-sectorial standards,
Train and educate on the standards,
Promote and help to implement standards, thus facilitating best business solutions.
To be the number 1 Standards’ Organization in the world for the management of supply and demand chains.
EAN INTERNATIONAL: Product & Services
These are our Global Product & Services :
E-business (EANCOM & EAN.UCC-XML)
Global Data Synchronization Network
Global Product Classification
Electronic Product Code
99+ EAN Member Organizations One Million Members ● Over 100 Countries ● 23 Industries Jim Petragnani, “EAN.UCC System Update,” PowerPoint Presentation, Aftermarket Council on Electronic Commerce, August `2, 2004.
Industries Using EAN.UCC Standards
Food & Beverages
Health / Beauty Care
… and others
Jim Petragnani, “EAN.UCC System Update,” PowerPoint Presentation, Aftermarket Council on Electronic Commerce, August `2, 2004.
What are EAN.UCC Standards? Identification Numbers Data Carriers http://www.cpfr.org/BHoganUCCnet_CPFR.ppt
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
Relationship of Identification Numbers
GTIN / GLN to identify a product’s supplier
GLN / GLN to identify the hierarchy of legal, functional, and physical entities
Strong legacy in physical ID to tightly link the flow of physical products to information flow
Composite - 2D
RFID: GTAG - Open Standard RFID
The Future: ePC (MIT Auto ID Center)
EDI – ANSI x.12
XML – based on business process that assumes data synchronization occurs outside the business process (e.g. – UCCnet)
EAN•UCC Core Technologies
The EAN UCC system provides an integrated suite of standardized tools that enable effective management of supply chains
GTIN GLN EDI XML Identification Numbers Data Carriers http://www.cpfr.org/BHoganUCCnet_CPFR.ppt IDENTIFICATION DATA CARRIER Ecommerce SUPPLY CHAIN MANAGEMENT RFID RSS EAN/UCC 12
UCC’s Global Supply Chain Data Structure Application Identifiers= GTIN, SSCC, Dates, Weights, Lot Numbers, etc. Physical Data Carrier = Symbology or Bar Code POS Information Data Carrier = EDI or XML http://www.cpfr.org/BHoganUCCnet_CPFR.ppt Mfg Item Case Pallets Trucks Distributor Trucks Pallets Case Item Destination User Source GTIN, GLN, PO, planning, payment, sales, etc. GTIN, GLN, shipping, invoice EDI, XML, etc.
ROI 10,000s 100,000s 1,000s 0 Community Size 100s Path to the Future http://www.cpfr.org/BHoganUCCnet_CPFR.ppt XML Interoperability Registry Data Sync EDIINT Middleware EAI Standards
Small & Large Cos.
Achieve maximum return with maximum community size EDI
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 http://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt
EAN UCC: 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 Mfg. Case Pallet Truck Hospital Truck Pallet Case Doctor http://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt Physical Flow Information Flow UCC provides the Link Asset Asset
GS1 Global Vision
Act As One Organization
Become One Organization
One World. One System. One Global Language of Business
BUT A ZOO OF NAMES……
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
One World. One System
One Global Language of Business
NAME CHANGE PROPOSAL
To change all the EAN names to GS1 followed
by the country name :
EAN General Assembly approved it in May ‘2003
UCC Board of Governors has just approved to change UCC to GS1 US (Feb. 3rd, 2004)
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)
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
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.
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.