GDSN Data Accuracy Team

1
GDSN Data Accuracy Team

• July 10 2006

2
Who We Are

3
Sponsors

• Project Lead
• Brad Papietro, Wegmans Food Markets, Inc.,
• Scott Brown, Conair
• Project Sponsors
• Bradley Papietro, Wegmans Food Markets, Inc
• Peter Porri, The Coca-Cola Company
• Larry Roth, Kimberly Clark
• Terry Vavrick, The Hershey Company
• Gina Tomassi, PepsiCo
• Bud Babcock, Procter Gamble

4
Project Team

• List of participants assisting in developing
  requirements

• Talvis Hilley, Ahold USA
• Duane Hefty, Bush Brothers
• Kraig Adams, The Coca-Cola Company
• Peter Porri, The Coca-Cola Company
• Scott Brown, Conair
• Carol Edison, General Mills
• Kevin, Georgia Pacific
• Elizabeth Richmond, Hasbro
• Dan Davies, The Hershey Comapny
• Terry Vavrick, The Hershey Company
• Carol Meyer, Kimberly Clark
• Larry Roth, Kimberly Clark
• Barb Munro, Kraft
• Peter Zaephel, Kraft
• Gina Tomassi, Pepsi
• Takford Mau, Pepsi
• Vaishali Shah, Pepsi
• George Bryce, Proctor Gamble
• Bud Babcock, Proctor Gamble

• Greg Zwanziger, SUPER Value
• Jeff Breazelle, Quaker Oats
• Todd Murdock, Wal-Mart
• Brad Papietro, Wegmans
• Jake Pearson, Wegmans
• Marianne Timmons, Wegmans
• Thorsten Ziercke, Austria
• Alan Hyler, GDSN, Inc.
• Pete Alvarez, GDSN, Inc.
• Cameron Green, GS1
• Gabriel Sobrino, GS1 Mexico
• Jurriaan Pasma, GS1 Netherlands
• Ray Delnicki, GS1 US
• James Chronowski, GS1 US
• Mary Wilson, GS1 US
• Rich Richardson, GS1 US
• Lynn Hamilton, Equal Measure
• Jeanne Iglasias, GMA
• David Grissom, The Coca-Cola Company

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What We Believe

• That Data Accuracy is Foundational and without
  it, e-commerce will only enable the rapid,
  seamless transfer of bad data and the mutual
  pollution of our systems (we will move bad data
  faster)

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What We Believe

• Accuracy is Critically important for
• Logistics Systems
• Warehouse Management Systems
• Plannogram Management
• Outbound Shipping Efficiency
• Efficient New Item Introduction
• Efficient Financial Processes
• Incredible Customer Service
• The Realization of Data Sync Savings!

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Our Business Case

• To develop a standards-based set of tolerances
  which will be used within the network to ensure a
  level of data accuracy and to allow business
  users streamlined processes.
• The JBP Team will use our findings as best
  practices of the Data Quality Management Program

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Our Journey
9
Data Accuracy in GDSN 2004 Timeline
Wegmans hires 3rd Party Auditor to conduct
2 additional pilots May, 2004 Total Accuracy
Rate 33
Industry conducts Audit August, 2004 Total
Accuracy Rate 11 Total Items 244
1/1/04
12/31/04
GDSN Team alerts industry of findings at GSMP
Meeting October, 2004
GDSN Forms Data Accuracy Team for conducting
Industry Pilot June, 2004
Wegmans conducts Internal Audits
while Validating GDSN Values March, 2004 Total
Accuracy Rate 0
1
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Data Accuracy in GDSN 2005 Timeline
Industry Call to Action (FMI, GMA, etc) March
2005
1/1/05
12/31/05
2
11
Data Accuracy in GDSN 2006 Timeline
Tolerance Team Submits Change Request to Gen Spec
6.8
GDSN Tolerance Team Conducts Discovery Pilot with
3 Retailers and 10 Suppliers January 2006
1/1/06
Today
Wegmans Strategic Grocery W/H Suppliers at 63
Accuracy 4 of 25 suppliers at 100
Pilot is Completed. Results on upcoming slides.
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The Discovery Pilot

• The Where
• Different geographical regions in order to
  incorporate environmental issues
• Measurement will occur at chosen manufacturing
  site and/or DC(s)
•  
• The How
• Using a 3rd Party Measurement Service at Retailer
  end (Equal Measure)
• Manufacturers measuring on own (learning)
• Maximum of 10 GTIN hierarchies per manufacturer
  per packaging type (7 packaging types were
  selected)
• The Who
• Retailers Ahold, Safeway, and Wegmans
• Manufacturers Bush Brothers, Coke, ConAir,
  General Mills, Kimberly Clark, Kraft, Minute
  Maid, Pepsi, Quaker Oats and PG

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Our Guiding Principles

• The 80-20 Rule
• Supplier simulate real world
• Retailer simulate control valve
• We shared our learnings
• We understood Environmental/Seasonality issues
• We agree to improve the quality of the data for
  the long term!
• We are learning and therefore perfection is
  unattainable! This is Version 1.0!

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Conair Process

• Measurements at end stages of supply chain
• Items tested were more rigid
• Corrugated with Cardboard or Plastic Inside
• Limited Product Lines with these retailers

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Conair Issues

• Various procedures in the plants
• Inaccuracy of devices
• Tape measures
• Scales
• Multiple versions of same item
• Free Goods
• Different
  Manufacturing site

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Conair Findings
Bulk of Linear Measurements within /- 4 of the
published value
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Conair Findings
Weight Measurements more erratic. More
investigation began
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Results Case Dimension Variances
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Results Case Weight Variances
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Results Each Dimension Variances
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Proposed General Specification Section Addition
for Dimensional Tolerances

• 6.8.1.5 (Effective Date August 16, 2006)
• Physical products identified by the same GTIN
  have inherent variability in gross weights and
  dimensions due to manufacturing variability,
  environmental factors, etc. Acceptable tolerances
  between STATED (synchronized) and MEASURED gross
  weights and linear dimensions are defined as
  follows
•  
• Non-Consumer Trade Item (case level)
• Accurate Linear Dimensional Data (or case height,
  width, and depth) is defined as being within plus
  or minus 4 tolerance stated versus measured data
• Accurate Gross Weight Data is defined as being
  within plus or minus 4 tolerance stated versus
  measured data
• Consumer Trade Item
• Linear Dimensional Data (or each height, width,
  and depth) should be plus or minus 0.25 inches or
  metric equivalent between stated and measured
  data.

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Proposed General Specification Section Addition
for Dimensional Tolerances (contd)

• These acceptable tolerances apply to the
  following packaging types
•  
• Corrugated cases with cardboard box inside
• Examples Cereal, Games, Puzzles, Juice Boxes,
  Concentrated Liquids
• Corrugated cases with cans and glass (No over
  wrap)
• Examples Vegetables, Fruit, Aerosol
• Corrugated cases containing rigid plastic
  (Including tray and non-tray)
• Examples Shampoo, Laundry Detergent, Clam
  Shells, Baby Wipes
• Plastic over wrap cases containing cans and glass
  (Including tray and non-tray)
• Examples Vegetables, Fruit, Aerosol
• Plastic over wrap of rigid plastic
• Examples Water, Mayonnaise, Cleaning Products 
• Note Soft paper products in flexible packaging
  at the consumer level are
• excluded from the above categories
• Note Frozen categories are excluded from the
  above packaging types
•  
• Note Refer to the best practice guidelines for
  more information
• regarding data accuracy guidelines and
  implementation

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Scope

• What is needed to implement this new
  functionality
• Impact Analysis
• Current Business Practices Send synchronized
  dimensions weight without using SPC
  (Statistical Process Control) to verify accuracy.
  
• Change Management - There is no information
  messaging impact from this change. Impact will
  primarily be in the technologies and processes
  used to measure items, record measures and
  monitor data accuracy (physical dimensions and
  weights vs. synchronized dimensions and weights.)
  

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Scope

• What is needed to implement this new
  functionality
• Sizing
• Trading Partner Effort - will vary from company
  to company
• Need evaluate dimensions weight in their ERP
  systems
• Review packaging processes even if the same
  product is produced in multiple global locations.
  
• In order to meet the goals it may be necessary to
  align with the JBP Data Accuracy Document
• Datapool Effort - Minimal
• GSMP Effort- Minimal
• GS1 MO - Moderate
• GS1 Global RegistryTM Effort - Minimal

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Measure of Success

• Wegmans conducts Internal Audits while Validating
  GDSN Values March, 2004
• Total Accuracy Rate 0
• When the data accuracy pilot began in May 2004
  Wegmans had Third party Auditor conducted 2
  additional pilots May, 2004
• Total Accuracy Rate 33
• Wegmans currently (Mid 2006) after the data
  accuracy pilot has
• Wegmans Strategic Grocery W/H Suppliers at 63
  Accuracy
• 4 of 25 suppliers at 100

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Measure of Success (contd)

• How will this proposal translate into measurable
  benefits?
• Key Performance Indicators
• Return on Investment (can be proprietary)?
• Trading Partner
• GDSN, Inc

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Conair Learnings

• Developed standard training program for all
  facilities
• Developing written standards documents for all to
  follow.
• Developed standard set of
  devices for all facilities
• Developing more rigorous
  process for measuring
  inbound items

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Questions
Scott BrownCompliance / GDS Manager
800-366-5391 x485scott_brown_at_conair.com