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 ove...
It’s All About the Data According to Cap Gemini Ernst & Young (CGE&Y), the impact of out-of-sync information within and be...
Cost of Bad Data <ul><li>According to A.T. Kearney </li></ul><ul><ul><li>$40 billion or 3.5% of total sales lost each year...
<ul><ul><li>60% of all invoices generated have errors; 43% of all invoices result in deductions; each invoice error costs ...
The Push for Synchronization Major companies in merchandizing, CPG/grocery, hardlines, chain drug, office supply, and othe...
GDS – Process of establishing and maintaining consistent, accurate information within and between businesses in the retail...
GS1 (Formerly EAN and UCC) As part of a unified, global approach to standards development for the global supply chain… EAN...
<ul><li>Worldwide standards for unique product and company identification  </li></ul><ul><li>Standards for global data syn...
Who is the UCC? The Uniform Code Council 97 Member Organizations Around the World
The Uniform Code Council  <ul><li>The Global Language of Business  ® </li></ul><ul><li>Founded 1974  (30 years experience ...
<ul><li>Globally recognized Standards Management Process (GSMP) </li></ul><ul><li>Top down development of multi-industry s...
UCC’s Internal Support Staff <ul><li>Identification Experts (Bar Codes, Scanning, RFID) </li></ul><ul><li>Business process...
UCC Mission <ul><li>To take a global leadership role in establishing and promoting multi-industry standards for collaborat...
Overview UCC Jim Petragnani, “EAN.UCC System Update,” PowerPoint Presentation, Aftermarket Council on Electronic Commerce,...
Who is the EAN? European Article Number, International 99+ EAN Member Organizations
EAN INTERNATIONAL <ul><li>MISSION : </li></ul><ul><ul><li>To create and drive the worldwide implementation of standards to...
EAN INTERNATIONAL: Product & Services <ul><li>These are our Global Product & Services : </li></ul><ul><ul><li>Bar Codes </...
99+ EAN Member Organizations One Million Members  ●   Over 100 Countries  ●   23 Industries Jim Petragnani, “EAN.UCC Syste...
Industries Using EAN.UCC Standards <ul><li>Apparel </li></ul><ul><li>Alcoholic Beverages </li></ul><ul><li>Automotive </li...
What are EAN.UCC Standards? Identification Numbers Data Carriers http://www.cpfr.org/BHoganUCCnet_CPFR.ppt
<ul><li>Strong legacy in Identification Numbers </li></ul><ul><ul><ul><li>GTIN - Trade Items </li></ul></ul></ul><ul><ul><...
<ul><li>Relationship of Identification Numbers </li></ul><ul><ul><ul><li>GTIN / GLN to identify a product’s supplier </li>...
<ul><li>Strong legacy in physical ID to tightly link the flow of physical products to information flow </li></ul><ul><ul><...
<ul><li>Information Flow </li></ul><ul><ul><li>EDI – ANSI x.12 </li></ul></ul><ul><ul><ul><li>UCS </li></ul></ul></ul><ul>...
EAN•UCC Core Technologies <ul><li>The EAN  UCC system provides an integrated suite of standardized tools that enable effe...
UCC’s Global Supply Chain Data Structure Application Identifiers= GTIN, SSCC, Dates, Weights, Lot Numbers, etc. Physical D...
ROI 10,000s 100,000s 1,000s 0 Community Size 100s Path to the Future http://www.cpfr.org/BHoganUCCnet_CPFR.ppt XML Interop...
EAN.UCC  Keys  Identify … <ul><li>Logistics  – Serialized Shipping Container Code (SSCC) </li></ul><ul><li>Products  – Glo...
EAN  UCC: Proven Supply Chain Management Purchase Order, ASN, Invoice, Assets,  Electronic Commerce Supply Chain Starts S...
<ul><li>GS1 Global Vision </li></ul><ul><li>Act As One Organization </li></ul><ul><li>or </li></ul><ul><li>Become One Orga...
Background <ul><li>Name Confusion </li></ul><ul><li>Organizational Issues </li></ul><ul><li>Financial Issues  </li></ul>
<ul><li>One World. One System. One Global Language of Business </li></ul><ul><li>BUT A ZOO OF NAMES…… </li></ul><ul><ul><l...
<ul><li>One World. One System. One Global </li></ul><ul><li>Language of Business </li></ul><ul><li>BUT POOR EXTERNAL IMAGE...
<ul><li>NAME CHANGE </li></ul><ul><li>One World. One System </li></ul><ul><li>One Global Language of Business </li></ul>
NAME CHANGE PROPOSAL <ul><li>To change all the EAN names to GS1 followed </li></ul><ul><li>by the country name : </li></ul...
<ul><li>EAN General Assembly approved it in May ‘2003 </li></ul><ul><li>UCC Board of Governors has just approved to change...
Reasons For Change <ul><li>To communicate we are a single Global Standards organization that covers over 141 countries </l...
Why Now ? <ul><li>Leverage momentum of EAN and UCC single leadership </li></ul><ul><li>Take advantage of the positive attr...
Documented Benefits of Early Adaptors <ul><li>3-5% reduction in shelf out-of-stocks </li></ul><ul><li>2 weeks reduction in...
<ul><li>1,000 to 2,000 hours saved in finance time dealing with invoice disputes related to basic item information. </li><...
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Technology And Operations Management,

  1. 1. Who is GS1? Henry C. Co Technology and Operations Management, California Polytechnic and State University
  2. 2. The Cost of Bad Data
  3. 3. 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.
  4. 4. 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
  5. 5. Cost of Bad Data <ul><li>According to A.T. Kearney </li></ul><ul><ul><li>$40 billion or 3.5% of total sales lost each year due to supply-0chain information inefficiencies </li></ul></ul><ul><ul><li>30% of item data in retail catalogs have errors; each error costs $60-$80 to correct </li></ul></ul><ul><ul><li>25 minutes of manual cleansing per SKU per year </li></ul></ul>http://www.hammer.net/subpage.asp?template=/template.asp?menu%3D476
  6. 6. <ul><ul><li>60% of all invoices generated have errors; 43% of all invoices result in deductions; each invoice error costs $40 - $400 to reconcile </li></ul></ul><ul><ul><li>More than 40% of all invoices result in deductions. </li></ul></ul><ul><ul><li>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. </li></ul></ul>http://www.hammer.net/subpage.asp?template=/template.asp?menu%3D476
  7. 7. 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.
  8. 8. 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.)
  9. 9. 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)
  10. 10. <ul><li>Worldwide standards for unique product and company identification </li></ul><ul><li>Standards for global data synchronization </li></ul>
  11. 11. Who is the UCC? The Uniform Code Council 97 Member Organizations Around the World
  12. 12. The Uniform Code Council <ul><li>The Global Language of Business ® </li></ul><ul><li>Founded 1974 (30 years experience working with business) </li></ul><ul><li>Experienced organization - ~ 175 employees with extensive experience in: XML, EDI, Business Process Modeling, Physical identification (barcode & RFID), Standards development and management </li></ul><ul><li>280K members and growing </li></ul><ul><li>Accredited not-for-profit standards organization </li></ul><ul><ul><li>ISO & ANSI Voluntary </li></ul></ul><ul><li>Membership Driven </li></ul>http://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt
  13. 13. <ul><li>Globally recognized Standards Management Process (GSMP) </li></ul><ul><li>Top down development of multi-industry standards based on Business Processes </li></ul><ul><ul><ul><li>Simpl-eB </li></ul></ul></ul><ul><ul><ul><li>CPFR® </li></ul></ul></ul><ul><li>Rapid Process Development (RPD) </li></ul><ul><ul><ul><li>Standards development slashed from 12 months to 3 months </li></ul></ul></ul>
  14. 14. UCC’s Internal Support Staff <ul><li>Identification Experts (Bar Codes, Scanning, RFID) </li></ul><ul><li>Business process experts </li></ul><ul><li>Customer Service facility </li></ul><ul><ul><li>~100,000 calls annually </li></ul></ul><ul><li>Implementation support </li></ul><ul><ul><li>Interoperability & Compliance testing </li></ul></ul><ul><li>Promote the value of standards to industry </li></ul><ul><li>eCommerce expertise </li></ul><ul><ul><li>EDI Support </li></ul></ul><ul><ul><li>XML Standards </li></ul></ul>http://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt
  15. 15. UCC Mission <ul><li>To take a global leadership role in establishing and promoting multi-industry standards for collaborative commerce </li></ul><ul><li>The goal is to enhance efficient supply chain management, thus contributing added value to the customer </li></ul>Key Goals of UCC <ul><li>Provide strong foundation of open and global standards </li></ul><ul><li>Reduce supply chain costs </li></ul><ul><li>Create fast and seamless data exchange by removing e-business bottlenecks </li></ul>http://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt
  16. 16. Overview UCC Jim Petragnani, “EAN.UCC System Update,” PowerPoint Presentation, Aftermarket Council on Electronic Commerce, August `2, 2004.
  17. 17. Who is the EAN? European Article Number, International 99+ EAN Member Organizations
  18. 18. EAN INTERNATIONAL <ul><li>MISSION : </li></ul><ul><ul><li>To create and drive the worldwide implementation of standards to improve the supply and demand chain </li></ul></ul><ul><li>ROLE: </li></ul><ul><ul><li>Develop global, open, multi-sectorial standards, </li></ul></ul><ul><ul><li>Train and educate on the standards, </li></ul></ul><ul><ul><li>Promote and help to implement standards, thus facilitating best business solutions. </li></ul></ul><ul><li>OBJECTIVE: </li></ul><ul><ul><li>To be the number 1 Standards’ Organization in the world for the management of supply and demand chains. </li></ul></ul>
  19. 19. EAN INTERNATIONAL: Product & Services <ul><li>These are our Global Product & Services : </li></ul><ul><ul><li>Bar Codes </li></ul></ul><ul><ul><li>E-business (EANCOM & EAN.UCC-XML) </li></ul></ul><ul><ul><li>Global Data Synchronization Network </li></ul></ul><ul><ul><li>Global Registry </li></ul></ul><ul><ul><li>Global Product Classification </li></ul></ul><ul><ul><li>Electronic Product Code </li></ul></ul><ul><ul><li>Traceability Solutions </li></ul></ul>
  20. 20. 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.
  21. 21. Industries Using EAN.UCC Standards <ul><li>Apparel </li></ul><ul><li>Alcoholic Beverages </li></ul><ul><li>Automotive </li></ul><ul><li>Building Supplies </li></ul><ul><li>Chemicals </li></ul><ul><li>Food & Beverages </li></ul><ul><li>Foodservice </li></ul><ul><li>Furniture </li></ul><ul><li>General Merchandise </li></ul><ul><li>Health / Beauty Care </li></ul><ul><li>Housewares </li></ul><ul><li>Information Technology </li></ul><ul><li>Industrial Products </li></ul><ul><li>Jewelry </li></ul><ul><li>Leisure Industries </li></ul><ul><li>Music Products </li></ul><ul><li>Pharmaceuticals </li></ul><ul><li>Government </li></ul><ul><li>Publishing </li></ul><ul><li>Telecommunications </li></ul><ul><li>Transportation </li></ul><ul><li>Utilities </li></ul><ul><li>Video Products </li></ul><ul><li>… and others </li></ul>Jim Petragnani, “EAN.UCC System Update,” PowerPoint Presentation, Aftermarket Council on Electronic Commerce, August `2, 2004.
  22. 22. What are EAN.UCC Standards? Identification Numbers Data Carriers http://www.cpfr.org/BHoganUCCnet_CPFR.ppt
  23. 23. <ul><li>Strong legacy in Identification Numbers </li></ul><ul><ul><ul><li>GTIN - Trade Items </li></ul></ul></ul><ul><ul><ul><li>GLN - Locations </li></ul></ul></ul><ul><ul><ul><li>SSCC - Logistics Identifier </li></ul></ul></ul><ul><ul><ul><li>GIST - Instance Identifier </li></ul></ul></ul><ul><ul><ul><li>GIAI - Individual Assets </li></ul></ul></ul><ul><ul><ul><li>GRAI - Returnable Assets </li></ul></ul></ul><ul><ul><ul><li>GSRN - Service Relations </li></ul></ul></ul>
  24. 24. <ul><li>Relationship of Identification Numbers </li></ul><ul><ul><ul><li>GTIN / GLN to identify a product’s supplier </li></ul></ul></ul><ul><ul><ul><li>GLN / GLN to identify the hierarchy of legal, functional, and physical entities </li></ul></ul></ul>
  25. 25. <ul><li>Strong legacy in physical ID to tightly link the flow of physical products to information flow </li></ul><ul><ul><li>Physical Products </li></ul></ul><ul><ul><ul><li>Bar Codes </li></ul></ul></ul><ul><ul><ul><ul><ul><li>EAN/UPC </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>UCC/EAN-128 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>RSS </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Composite - 2D </li></ul></ul></ul></ul></ul><ul><ul><ul><li>RFID: GTAG - Open Standard RFID </li></ul></ul></ul><ul><ul><ul><li>The Future: ePC (MIT Auto ID Center) </li></ul></ul></ul>
  26. 26. <ul><li>Information Flow </li></ul><ul><ul><li>EDI – ANSI x.12 </li></ul></ul><ul><ul><ul><li>UCS </li></ul></ul></ul><ul><ul><ul><li>VICS </li></ul></ul></ul><ul><ul><ul><li>Industrial Commercial </li></ul></ul></ul><ul><ul><li>XML – based on business process that assumes data synchronization occurs outside the business process (e.g. – UCCnet) </li></ul></ul>
  27. 27. EAN•UCC Core Technologies <ul><li>The EAN  UCC system provides an integrated suite of standardized tools that enable effective management of supply chains </li></ul>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
  28. 28. 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.
  29. 29. 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 <ul><li>Global B2B </li></ul><ul><li>Small & Large Cos. </li></ul><ul><li>Internet Based </li></ul><ul><li>Multi-Sectoral </li></ul><ul><li>Collaborative </li></ul>Achieve maximum return with maximum community size EDI
  30. 30. EAN.UCC Keys Identify … <ul><li>Logistics – Serialized Shipping Container Code (SSCC) </li></ul><ul><li>Products – Global Trade Item Number (GTIN) </li></ul><ul><li>Assets – Global Individual Asset Identifier (GIAI) </li></ul><ul><li>Locations –Global Location Number (GLN) </li></ul><ul><li>Relations – Global Service Relation Number (GSRN) </li></ul><ul><li>UCC: Links physical assets and logistic units with the flow of electronic messages </li></ul>Each of these is a key to data http://knownet.hhs.gov/acquisition/D2-5cEGov(UniformCodeCouncil).ppt
  31. 31. 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
  32. 32. <ul><li>GS1 Global Vision </li></ul><ul><li>Act As One Organization </li></ul><ul><li>or </li></ul><ul><li>Become One Organization </li></ul>
  33. 33. Background <ul><li>Name Confusion </li></ul><ul><li>Organizational Issues </li></ul><ul><li>Financial Issues </li></ul>
  34. 34. <ul><li>One World. One System. One Global Language of Business </li></ul><ul><li>BUT A ZOO OF NAMES…… </li></ul><ul><ul><li>UCC (USA) </li></ul></ul><ul><ul><li>e-centre (UK) </li></ul></ul><ul><ul><li>Gencod (France) </li></ul></ul><ul><ul><li>CCG (Germany) </li></ul></ul><ul><ul><li>DCC (Japan) </li></ul></ul><ul><ul><li>EAN Russia </li></ul></ul><ul><ul><li>… </li></ul></ul>
  35. 35. <ul><li>One World. One System. One Global </li></ul><ul><li>Language of Business </li></ul><ul><li>BUT POOR EXTERNAL IMAGE ….. </li></ul><ul><ul><li>Poor Customer Focus </li></ul></ul><ul><ul><li>Limited Business Leadership </li></ul></ul><ul><ul><li>Speed to the Market </li></ul></ul><ul><ul><li>Focus on Local vs. Global </li></ul></ul>
  36. 36. <ul><li>NAME CHANGE </li></ul><ul><li>One World. One System </li></ul><ul><li>One Global Language of Business </li></ul>
  37. 37. NAME CHANGE PROPOSAL <ul><li>To change all the EAN names to GS1 followed </li></ul><ul><li>by the country name : </li></ul><ul><ul><li>GS1 US </li></ul></ul><ul><ul><li>GS1 UK </li></ul></ul><ul><ul><li>GS1 France </li></ul></ul><ul><ul><li>GS1 Japan </li></ul></ul><ul><ul><li>… </li></ul></ul>
  38. 38. <ul><li>EAN General Assembly approved it in May ‘2003 </li></ul><ul><li>UCC Board of Governors has just approved to change UCC to GS1 US (Feb. 3rd, 2004) </li></ul>
  39. 39. Reasons For Change <ul><li>To communicate we are a single Global Standards organization that covers over 141 countries </li></ul><ul><li>To re-launch our image with new attributes (customer focus, leadership and innovation) </li></ul><ul><li>To increase our awareness on key targets : </li></ul><ul><ul><li>C’s levels (CEO’s, COO’s, CIO’s, etc.) </li></ul></ul><ul><ul><li>Top functional levels (VP’s IT, Supply, F&A, Sales) </li></ul></ul>
  40. 40. Why Now ? <ul><li>Leverage momentum of EAN and UCC single leadership </li></ul><ul><li>Take advantage of the positive attributes (leadership, innovation) projected by our new systems (e.g. EPC, GDSN) </li></ul><ul><li>Take advantage of the ample media coverage given to our new systems </li></ul>
  41. 41. Documented Benefits of Early Adaptors <ul><li>3-5% reduction in shelf out-of-stocks </li></ul><ul><li>2 weeks reduction in speed to market for new items. i.e., 14 extra days sales of faster-moving items. </li></ul><ul><li>10,000 to 30,000 hours saved in store labor. </li></ul><ul><li>5,000 to 10,000 hours saved in merchandizing and data entry time dealing with new item introductions and updates. </li></ul>
  42. 42. <ul><li>1,000 to 2,000 hours saved in finance time dealing with invoice disputes related to basic item information. </li></ul><ul><li>Reduction in invoice auditor fee. </li></ul><ul><li>Up to 1 percent reduction in inbound freight costs. </li></ul><ul><li>1,000 to 2,000 hours saved in warehouse and DSD time dealing with item discrepancies. </li></ul><ul><li>1% reduction in inventory. </li></ul>

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