Global Data Synchronization Today

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Global Data Synchronization Today

• Tim Foster
• Manager, Industry Development
• 1SYNC

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AGENDA

• Data Synchronization Today
• The GDSN
• Global Standards
• Benefits
• Resources

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GS1 US Operating Structure

• A single, global
• classification system
• Enables company-wide
• spend analysis
• Procurement optimization

• Bar code identification
• standards
• Business Message
• Standards using XML
• (Extensible Markup
• Language))
• EDI transaction sets
• Training and Education
• Implementation support

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Multi Industry Problem
Multiple Ways for Retailers and Manufacturers to
Exchange Product Information
Fax
Phone
Product Catalogs
Excel
Web Forms
EDI/XML Exchange
E-Mail
Manual Methods are Error Prone Require Data
Re-Entry
Automated Methods are Highly Customized Not
Broadly Adopted
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Retailers and Suppliers have a choice

• There are two approaches to data synchronization
• Proprietary network Retailer or Supplier
  specific technology networks that require each
  entity in the supply chain to build a retailer or
  supplier specific interface.
• Industry standard network Global network based
  on industry standards that allows Retailers and
  Suppliers to build one interface and leverage the
  costs over multiple trading partners.

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Data Synchronization Defined

• Data synchronization is the electronic transfer
  of
• standardized product and location information AND
  the
• continuous synchronization of that data over
  time.
• Product information includes
• Global Trade Item Number (GTIN)
• Attributes required in the supply chain (e.g.,
  dimensions, weight, net content)
• Basic product marketing information (e.g.,
  features, benefits)
• Location information (Global Location Number -
  GLN) includes physical or virtual locations
  involved in trade (e.g., headquarter, store,
  warehouse, accounts receivable)
• Continuous synchronization means that it is not a
  one and done process but rather an ongoing
  business process.

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The Steps to Collaborative Commerce
Source GS1 US and AT Kearney
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The Global Data Synchronization Network
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The Global Data Synchronization Network

• GS1 GDSN (Global Data Synchronization Network)
  is an automated, standards-based global
  environment that enables secure and continuous
  data synchronization, allowing all trading
  partners to have consistent item information in
  their systems at the same time.
• The GDSN is a subsidiary of GS1, an
  international standards organization that emerged
  from the merger of the US based Uniform Code
  Council and the European based EAN.

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How the Global Network Operates
GS1 Global Registry A single repository where
basic data is registered, identifies the data
pool location of source data.
1SYNC Data Pool Services provide source and
recipient data pool services. Services provide
data that is standards conformant, interoperable
in the GDSN and is validated for brand owner
accuracy. The data pool performs the transactions
of sending and receiving validated product
information between partners inside or outside
the 1SYNC Data Pool.
Step 1 Load Data Step 2 Register Data Step 3
Subscription Request Step 4 Publish Data Step 5
Retailer Confirmation
Any Supplier or Retailer selects one data pool
as a single point of entry to the GDSN.
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Data Synchronization Today
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State of the GDSN (a/o August 25th, 2006)

• GS1 Global Registry Subscribers (GLN's)
• 10,071 (9,997 on 7/28)
• Global Trade Item Numbers (GTIN's)
• 847,863 (788,328 on 7/28)
• 26 Data Pools Certified Globally
• 12 Currently in Production
• USA, Canada, France, UK, Germany, Hong Kong,
  Taiwan, South America,

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Industries Currently Involved

• CPG / Grocery
• Wal-Mart
• Target
• School and Office Supply
• Office Depot
• Staples
• Electronics
• Best Buy
• Entertainment
• Disney
• Publishing
• IPDA
• Bowker

• Hardlines
• Lowes Home Improvement
• Ace Hardware
• The Home Depot
• Healthcare
• Johnson Johnson
• Pfizer
• Automotive
• Pep Boys
• Valvoline
• Federal Mogul
• United States Government
• Dept. of Defense

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Global Standards
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A Standards Based Approach

• Since the machine screw became the first effort
  at standardization in1864,
• standards have played a major role in business,
  driving innovation, promoting
• economies of scale, and removing barriers to
  efficient global commerce. Today,
• standards produce a broad range of proven supply
  chain benefits including
• Reduced costs - for example, the introduction of
  the Universal Product Code (U.P.C.) has been
  estimated to produce 17 billion in annual
  savings just in the U.S. grocery channel for
  manufacturers, retailers, and consumers.
• Streamlined and simplified business processes -
  companies can reduce the expense of supporting
  variations of the same business process.
• One to many communication - standardization
  eliminates the cost of supporting multiple
  communications platforms to support different
  trading partners
• Technology stability - standards protect
  investment in existing technologies, provide an
  orderly migration path to new technologies, and
  provide a baseline of performance to compare
  different products and suppliers

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Benefits
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Bad Product Data Results in Inefficiency
Data Management
Accounts Payable

• Manually Key Product Data
• Creating Images
• Measuring Dimensions
• Validating Supplier Data

• Matching Invoices to Orders
• Submitting Invoice Discrepancies
• Negotiating Deductions

Warehouse Back Room
Store Operations

• Unplanned Reorg of Slots
• Accommodate Pallet Configuration Changes

• Plan-O-Gram Changes
• Accommodate Unit Level Dimension Changes

Transportation Logistics Functions
Purchasing Merchandising

• Staff Time Devoted to Entering or Validating
  Product Data
• Less Information to Base Merchandising Decisions
• Incorrect Orders

• Additional, Unscheduled Shipments to Stores
• Accommodate Changes to Weight and Pallet
  Configuration

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Good Product Data Creates Opportunity
B2C Web Site
Sales Support

• Enhanced In-Store Sales Team Training
• Rich Product Info at Employees Fingertips

• Rich Content Influences Sales
• Correct Content Reduces Returns
• Cross-Sell Up-Sell Ops

Touch Points
Product Availability

• New Products on the Shelves Faster before
  Competitors
• Reduce Out of Stocks

• Rich Info Kiosks In Stores
• Consistent Multi-Channel Experience
• Better Warranty Mgt

Store Display
Point of Sale

• Enhance Shelf Appearance
• More Effective End Caps
• Cross-Sell Up-Sell Opportunities

• 100 Scan Checkout
• Accurate Receipt Descriptions
• Cross-Sell Coupons

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The Business Case for Data Sync and EPC

• Data synchronization is a foundational element in
  preparing for advanced electronic commerce
  initiatives, such as the Electronic Product Code
  (EPC) RFID initiatives
• Data synchronization cleanses supply chain data
  serving as the foundation for new, dynamic data
  generated by the EPC

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The GDSN - EPCglobal Network Relationship
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GDSN and EPCglobal Convergence
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Thank YouQuestions?
Tim Foster
tfoster_at_1sync.org