Who is GS1

1
Who is GS1?

• Henry C. Co
• Technology and Operations Management,
• California Polytechnic and State University

2
The Cost of Bad Data
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.

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Its All About the Data

• According to Cap Gemini Ernst Young (CGEY),
  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
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/templa
te.asp?menu3D476
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• 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/templa
te.asp?menu3D476
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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.

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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
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)

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• Worldwide standards for unique product and
  company identification
• Standards for global data synchronization

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Who is the UCC?

• The Uniform Code Council
• 97 Member Organizations Around the World

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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 Driven

http//knownet.hhs.gov/acquisition/D2-5cEGov(Unifo
rmCodeCouncil).ppt
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• 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

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UCCs 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(Unifo
rmCodeCouncil).ppt
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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 bottlenecks

http//knownet.hhs.gov/acquisition/D2-5cEGov(Unifo
rmCodeCouncil).ppt
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Overview UCC
Jim Petragnani, EAN.UCC System Update,
PowerPoint Presentation, Aftermarket Council on
Electronic Commerce, August 2, 2004.
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Who is the EAN?

• European Article Number, International
• 99 EAN Member Organizations

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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.

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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

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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.
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Industries Using EAN.UCC Standards

• Apparel
• Alcoholic Beverages
• Automotive
• Building Supplies
• Chemicals
• Food Beverages
• Foodservice
• Furniture
• General Merchandise
• Health / Beauty Care
• Housewares
• Information Technology

• Industrial Products
• Jewelry
• Leisure Industries
• Music Products
• Pharmaceuticals
• Government
• Publishing
• Telecommunications
• Transportation
• Utilities
• Video Products
• and others

Jim Petragnani, EAN.UCC System Update,
PowerPoint Presentation, Aftermarket Council on
Electronic Commerce, August 2, 2004.
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What are EAN.UCC Standards?

• Identification Numbers
• Data Carriers

http//www.cpfr.org/BHoganUCCnet_CPFR.ppt
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

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• Relationship of Identification Numbers
• GTIN / GLN to identify a products supplier
• GLN / GLN to identify the hierarchy of legal,
  functional, and physical entities

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• 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)

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• 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)

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EANUCC Core Technologies

• The EAN?UCC system provides an integrated suite
  of standardized tools that enable effective
  management of supply chains

Data Carriers
GTIN
Identification Numbers
GLN
EDI
XML
http//www.cpfr.org/BHoganUCCnet_CPFR.ppt
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UCCs Global Supply Chain
POS
Information Data Carrier EDI or XML
Data Structure Application Identifiers GTIN,
SSCC, Dates, Weights, Lot Numbers, etc.
Physical Data Carrier Symbology or Bar Code
http//www.cpfr.org/BHoganUCCnet_CPFR.ppt
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Path to the Future
ROI
10,000s
100,000s
1,000s
0
100s
Community Size
http//www.cpfr.org/BHoganUCCnet_CPFR.ppt
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EAN.UCC Keys Identify

• 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
http//knownet.hhs.gov/acquisition/D2-5cEGov(Unifo
rmCodeCouncil).ppt
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EAN?UCC Proven Supply Chain Management
Supply Chain Starts
Supply Chain Ends
Mfg.
Case
Pallet
Truck
Hospital
Truck
Pallet
Case
Doctor
UCC links physical assets and logistic units with
the flow of electronic messages
http//knownet.hhs.gov/acquisition/D2-5cEGov(Unifo
rmCodeCouncil).ppt
Electronic Commerce
Purchase Order, ASN, Invoice, Assets,
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• GS1 Global Vision
• Act As One Organization
• or
• Become One Organization

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Background

• Name Confusion
• Organizational Issues
• Financial Issues

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

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

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• NAME CHANGE
• One World. One System
• One Global Language of Business

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NAME CHANGE PROPOSAL

• To change all the EAN names to GS1 followed
• by the country name
• GS1 US
• GS1 UK
• GS1 France
• GS1 Japan

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)

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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
• Cs levels (CEOs, COOs, CIOs, etc.)
• Top functional levels (VPs IT, Supply, FA,
  Sales)

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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

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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.

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• 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.