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UCCnet & Data Synchronization for the Book Industry Dan Wilkinson Al Garton John McInerney April 12, 2005 2005 UCCnet.

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Presentation on theme: "UCCnet & Data Synchronization for the Book Industry Dan Wilkinson Al Garton John McInerney April 12, 2005 2005 UCCnet."— Presentation transcript:

1 UCCnet & Data Synchronization for the Book Industry Dan Wilkinson Al Garton John McInerney April 12, UCCnet

2 INSERT GRAPHIC SQUARE HERE 2 Data sync and the Global Data Synchronization Network (GDSN) –Why we are here… Why UCCnet UCCnet –Uniquely qualified to ensure GDSN supports the unique aspects of the Book Industry Agenda

3 INSERT GRAPHIC SQUARE HERE 3 An Acknowledgement … It was the book industry that really started the whole concept of a standard for identifying products: That was in the mid 60s… ISBN:

4 INSERT GRAPHIC SQUARE HERE 4 Multi Industry Problem Manual Methods are Error Prone & Require Data Re-Entry Fax Changes Phone Changes Product Catalogs Automated Methods are Highly Customized & Not Broadly Adopted ExcelWeb Forms EDI Exchange Multiple Ways for Retailers and Suppliers to Exchange Product Information

5 INSERT GRAPHIC SQUARE HERE 5 Warehouse & Back Room –Unplanned Reorg of Slots –Accommodate Pallet Configuration Changes Bad Product Data Results in Inefficiency Data Management –Manually Key Product Data –Creating Images –Measuring Dimensions –Validating Supplier Data Accounts Payable –Matching Invoices to Orders –Submitting Invoice Discrepancies –Negotiating Deductions Store Operations –Plan-O-Gram Changes –Accommodate Unit Level Dimension Changes Purchasing & Merchandising –Staff Time Devoted to Entering or Validating Product Data –Less Information to Base Merchandising Decisions –Incorrect Orders Transportation & Logistics Functions –Additional, Unscheduled Shipments to Stores –Accommodate Changes to Weight and Pallet Configuration

6 INSERT GRAPHIC SQUARE HERE 6 Store Display B2C Web Site Touch Points Sales & Support Point of Sale –Enhanced In-Store Sales Team Training –Rich Product Info at Employees Fingertips –Enhance Shelf Appearance –More Effective End Caps –Cross-Sell & Up-Sell Opportunities –100% Scan Checkout –Accurate Receipt Descriptions –Cross-Sell Coupons –Rich Content Influences Sales –Correct Content Reduces Returns –Cross-Sell & Up-Sell Ops 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 Good Product Data Creates Opportunity

7 INSERT GRAPHIC SQUARE HERE 7 Catalog Disparities –Incorrect - 30% of Item Data –To Correct - $60-$80 per Error –Cleanse - 25 minutes per SKU per year Invoice Errors –Incorrect - 60% have Errors –Costs – 43% have Deductions –To Correct - $40-$400 to Reconcile Lost Sales Opportunity –Product Roll-In – 4 Weeks on Average –Lost Sales – 3.5% due to Inaccurate data Industry Studies Quantify the Opportunity

8 INSERT GRAPHIC SQUARE HERE 8 98% of the items synchronized were updated Item maintenance that normally took 15 to 30 days went to same day maintenance Recognition of carry over of 30% of de-listed items 5-15% increase in market share for early arrival of new items We knew there were benefits with UCCnet, we didnt realize how much more we would find Source: Randy Salley – Wal-Mart, Retail Systems 2002 Presentation Case Study

9 INSERT GRAPHIC SQUARE HERE 9 Land OLakes and Consumer Benefits Reduced out of stocks Increased speed to shelf for new items Supply Chain benefits Reduced time in P.O. processing and shipment rework Reduced logistics costs Inventory reduction Improved Transactional Efficiencies Reduced sales force time on item introductions and updates Reduced time spent on invoice reconciliation and deductions Land OLakes wants to be, and is, on the leading edge of data synchronization because we believe data synch is the foundation for all EC and Supply Chain Initiatives. Without data synchronization, we would be on a dead end road. Source: Jodi Miller, Land OLakes, Supply Chain U meeting Case Study

10 INSERT GRAPHIC SQUARE HERE 10 Estimated 44,400 hours in Merchandising activities saved per year Estimated 17,543 hours in Payables activities saved per year Estimated 5,200 hours in Marketing activities saved per year Accurate product data and streamlined business processes will allow us to focus more time selling your products Total of 67,143 hours saved Case Study

11 INSERT GRAPHIC SQUARE HERE 11 Data Synchronization Provides … Neutral industry source –Where retailers can locate product and partner information regardless of where the manufacturers have published such information Accurate synchronization of data –In near-real time transactions among trading partners Automation of product lifecycle processes –Such as new item introduction and maintenance Verification of compliance to standards

12 What is eCollaboration? Foundation for eCollaboration Provides 10 basis points in benefits ROI in less than 6 months Additional eCollaboration Activities Additional basis points of benefits Source: Uniform Code Council, Inc.® and AT Kearney

13 INSERT GRAPHIC SQUARE HERE 13 Current Certified GDSN Interoperable Data Pools 1.WWRE 2.UCCnet 3.Global eXchange Services (GXS) 4.CABASnet (Columbia) 5.Click Commerce 6.DataCod(Argentina) 7.ECCnet (Canada) 8.GS1 UK Data Pool (United Kingdom) 9.SINFOS (Germany) 10.Transora


15 INSERT GRAPHIC SQUARE HERE 15 UCCnet History UCCnet, pioneered data synchronization (1999) –Like the book industry, UCCnet was built on a foundation of global standards Established track record of taking new industry requirement and driving them into the data sync standards (e.g., office products, hardlines, etc.) –We want to work with the book industry and drive your requirements into the standards for rapid implementation

16 INSERT GRAPHIC SQUARE HERE 16 Why UCCnet? UCCnet is a not-for-profit, cost recovery revenue model –Low cost UCCs thirty-year history of trust and leadership Proven implementation track record –Largest number of subscribers (4,200+) 2,400 implemented 36 retailers, manufacturers, and distributors 16 industries

17 INSERT GRAPHIC SQUARE HERE 17 Why UCCnet? Proven technology –History of innovation –Built with proven architecture that has vision and flexibility for the future Consistent architecture with the EPCglobal Network –Means you wont have to restructure your databases –Robust features and functionality UCCnet technology group built and operates the GS1 Global Registry

18 INSERT GRAPHIC SQUARE HERE 18 A Commitment to our subscribers success –Easy methods of implementation –Many time-saving features –Reasonability checks and data validation of rules –Participation in standards committees to foster standards adoption

19 INSERT GRAPHIC SQUARE HERE 19 Better Understanding of the Book Industry We have been to the Frankfurt Book Fair We have attended many BISAC meetings We have attended many BISG meetings Your use of some of our standards –GTIN case codes –SSCC with ASNs –Migration to a 13-digit ISBN We need to leverage the ONIX work

20 INSERT GRAPHIC SQUARE HERE 20 Booksellers/Subscribers that Are UCCnet Members Ace Hardware Lowe's Office Depot Staples Supervalu Target True Value The Great Atlantic and Pacific Tea Co The Home Depot Wegmans Wal-Mart

21 INSERT GRAPHIC SQUARE HERE 21 Unique Aspects of Book Industry Extremely large number of SKUs: –Scalability and capacity are not an issue with UCCnet. We follow ISO standard practices for scalability and capacity planning. The system is architected to scale horizontally to the n th tier (today we are only at 16% utilization of the system. –Bandwidth is not an issue We utilize Digex/MCI (located in Maryland) which is directly on the Internet backbone (and really cannot be out-scaled). We are only using 6 terabytes of storage today. We use an EMC SAN solution (DMX 1000) and are prepared to scale much larger as demand grows. –Security Data is replicated from the Maryland facility to a similarly secure operation in California within 1 to 1.5 minutes of real time. Net result is that we can recover from a complete disaster in less than 30 minutes.

22 INSERT GRAPHIC SQUARE HERE 22 Unique Aspects of Book Industry Prices Printed on Books: –Because add-on codes are not necessarily supported by all industries all over the world, we recognize this is a key business requirement in the book industry. Current EAN.UCC standards support unique identification of pre- priced products. This involves unique GTINs for each price. The book industry needs to work with EAN.UCC to resolve this issue. Numerous Price Changes: –Join us and let us help drive your requirements into the standard being built (see above).

23 INSERT GRAPHIC SQUARE HERE 23 Subscriber exclusive website Educational live Web Seminars On Demand Web Seminars - 24/7/365 Technical help desk support - 24/7 Customer Service support Retailer-specific / Association-specific web pages 50+ certified UCC Solution Partners UCCnet Sync Utility - Graphical User Interface We give this away so that even the very smallest suppliers/publishers are able to join the community and help drive down costs We are in this to make it happen Retailer scorecard UCCnet User Group U Connect ® Conference Supply Chain U ® seminars Sync Source quarterly newsletter Retailer Advisory Council UCCnet Comprehensive Support

24 INSERT GRAPHIC SQUARE HERE 24 Q & A Answers to questions posed in March 1 st RFI from BISG

25 INSERT GRAPHIC SQUARE HERE What fields are registered with GS1 for each GTIN? 1.What Product –GTIN 2.Who Provided the Data –GLN of the Information Provider; the Data Source »e.g., manufacturer is the owner & source of product data 3.Where is the Data Stored –GLN of the Source Data Pool »e.g., UCCnets GLN) 4.What is the Product Class –GPC 5. & 6. The Target Market –ISO Country Code –ISO Subdivision Code (optional) 7.The Items Status in the Registry –In-Progress, Registered, Cancelled, Discontinued 8.Key Dates –Registered, Last Changed, Canceled, Discontinued, Deleted

26 INSERT GRAPHIC SQUARE HERE Is there a check and balance in place to make sure that the owner of the information is the one that registers a GTIN with GS1? Yes, each user of the UCCnet system is uniquely identified using their EAN.UCC Global Location Number. This GLN is verified against the GTINs (Global Trade Item Number) – the 13 digit ISBN is a form of GTIN - owned by that GLN (e.g., Random House cannot modify Simon Schuster products) As noted above, the identity of the information provider is part of the information that is in the Global Registry. Current book Industry practice is the use of a SAN (a 7-digit ANSI standard) which can be combined with a company prefix to form a GLN. SAN however is not a global standard; it is only North American. Another option open to the book industry is the use your existing EAN.UCC Company Prefix to create a GLN.

27 INSERT GRAPHIC SQUARE HERE What is a 'target market' as defined by GS1? Today, target market is country; there is also a target market subdivision code, which can be used for states. The GDSN (Global Data Synchronization Network) community is not using this function at this time but there is evidence of a desire to use these fields to group item information to specific regions and/or businesses (e.g., targeting snow shovels for the Northeast).

28 INSERT GRAPHIC SQUARE HERE What is the Global Data Dictionary? This is a standard data model that EAN and UCC are developing and growing as the GSMP standards expand in both business processes and industry verticals. The GD (Global Data Dictionary) is where those attributes which have applicability to all products are stored. This is different from attributes that are specific to a particular vertical industry.

29 INSERT GRAPHIC SQUARE HERE What is a Global Product Classification (GPC) and what role does it play in the GDSN? GPC is the agreed classification system that the GDSN community will use to communicate information about products to supply chain partners. It is understood that most companies will map to/from GPC to their internal classification system(s). GPC is both classification and attributes that are applicable to a particular class of products/commodities. UCCnet believes the book industry should use the work of ONIX as a straw man for their GPC for books.

30 INSERT GRAPHIC SQUARE HERE How does a company obtain a Global Location Number? Simply by joining UCC. If an organization is already a member of UCC they have a GLN.

31 INSERT GRAPHIC SQUARE HERE How do we handle the Distributor Model? UCC has a methodology in place today to handle the Distributor Model. Brand Owner (e.g., Penguin books) publishes information through UCCnet targeting both distributors (e.g., Baker Taylor) and retailers. Distributors are able to re-publish this item directly to retailers with over-riding information specific to that distributor (e.g., first order date, last order date, etc.) There is also a GDSN team that has been working on a more robust model for distributors. That model is not yet a standard; at the time this model becomes an approved standard, UCCnet will support it.

32 INSERT GRAPHIC SQUARE HERE What additional services do you provide to assist synching retailer specific information? 1.Education 2.Training 3.USU Sync Utility (GUI for smaller suppliers) 4.On-Boarding sub-contractor program 5.Weekly implementation webinars 6.Technical help desk support 7.Customer support help desk 8.Solution partner program Over 40 certified solutions including companies like GHX, IBM, Oracle, SAP, JDA, Sterling Commerce, etc. UCCnet would welcome additional solution partners that specialize in servicing the book industry. 9.User Group Meetings 10.Standards Expertise 11.Reference-able implementations 12.RFID (EPCglobal) expertise 13.EAN.UCC Expertise

33 INSERT GRAPHIC SQUARE HERE What is the Technology/Methodology to transfer data? Internet communication via AS2 standard as defined by the Internet Engineering Task Force (IETF) Standard XML schema messages (.xsd) as defined by the GS1 GSMP for GDSN

34 INSERT GRAPHIC SQUARE HERE What databases do you support? UCCnet is a hosted.asp model. The internal data bases used by UCCnet have no bearing on customer interfaces. UCCnet only requires standard messaging through standard communications to interface with any company – regardless of companys internal systems or databases. We are an Oracle-based model.

35 INSERT GRAPHIC SQUARE HERE What is your user interface technology? UCCnet has web interface via the SYNCpoint interface UCCnet has a client interface downloadable sync utility (USU) –Spreadsheet upload –Easy user interface UCCnet has hosted sub-contracted, web-based interfaces (4) that assist companies in on-boarding. Over 40+ certified software packages for companies who require direct interfaces with UCCnet.

36 INSERT GRAPHIC SQUARE HERE Provide standard application for security and to what level? From a business perspective there is a process for the owner of data to make item information private and publish information only to specified recipients. Additionally, from a technical perspective UCCnet uses highly secure internet communication protocols per industry standards (e.g., AS2 communication protocol, encryption and digital certificates, etc.) –x.509 certificates –Full payload encryption and non-repudiation

37 INSERT GRAPHIC SQUARE HERE What other attributes are required? There are about 150 attributes –Each of them will need to be reviewed for the book industry. For example, the core attributes address GTIN, GLN, Brand Owner dimensions (weight, height,, width, length), etc. But more importantly, this unique industry needs to review those attributes already developed and in use (e.g., ONIX, X-12, etc.) and decide which ones are appropriate and required for data sync.

38 INSERT GRAPHIC SQUARE HERE What is the Pricing Structure? Annual Sales (In Millions of U.S.$) UCCnet Onboard Support Self Implement <= 1$ 600$ 100 >1 to 5$ 1,175$ 300 >5 to 10$ 1,675$ 600 >10 to 15$ 2,150$ 900 >15 to 20$ 2,575$ 1,200 >20 to 25$ 3,250$ 1,500 >25 to 50$ 4,375$ 2,500 >50 to 75$ 7,250$ 5,000 >75 to 100$ 10,125$ 7,500 >100 to 500$ 13,875$ 10,000 >500 to 750$ 17,500$ 12,500 >750 to 1,000$ 22,500$ 17,500 >1,000 to 3,000$ 40,000$ 32,000 >3,000 to 5,000$ 80,000$ 64,000 >5,000 to 10,000$ 150,000$ 120,000 >10,000 to 15,000$ 250,000$ 200,000 >15,000 to 25,000$ 300,000$ 240,000 >25,000 to 50,000$ 350,000$ 280,000 >50,000$ 400,000$ 320,000

39 INSERT GRAPHIC SQUARE HERE What services are included in the Pricing Structure? For Self-Implementers it is understood that the company is responsible for implementation. UCCnet will cover the GS1 Global Registry fee (includes GPC). Onboard Support is the fastest and easiest way to implement data synchronization and achieve its business benefits. UCCnet provides assistance in on-boarding and implementation as part of the fee. In addition, UCCnet will cover the GS1 Global Registry fee (includes GPC). Benefits of the program include: –Full data synchronization solution provided by UCCnet support staff to help you prepare, load and test your data until you are 100% implemented. –UCCnet Subscriber Website with its wealth of user documentation. –Participation in the UCCnet User Group. –Subscriber-only educational live and On Demand Web Seminars. –24/7 UCCnet technical Customer Support. –Use of TESTregistry –UCCnet Sync Source quarterly eNewsletter –Discounts on Supply Chain U®, the U Connect Conference® and products from our product catalog More detail discussion is encouraged to better understand this robust program. The objective of this program is to sign & implement customers within 90 days.

40 INSERT GRAPHIC SQUARE HERE Are there benefits for utilizing a single Data Pool by an industry? When developing the GDSN, it was recognized that in todays global economy a system was needed that supported multiple data pools. There are benefits that will accrue to any industry by selecting UCCnet as their primary data pool: –Delivery/receipt of messages will be faster (assuming both supplier and retailer belong to the same data pool) –Education and training throughout the industry is more scalable –More productive knowledge sharing in the community

41 INSERT GRAPHIC SQUARE HERE What additional value added services would you provide? UCCnet will dedicate resources to assist BISG in adopting GDSN UCCnet will work with BISG to create a customized awareness, adoption and implementation of GDSN (discussion needed on engagement model best suited to industry) UCCnet can expedite the addition of ONIX attributes to the GDSN standard UCCnet will work with their large existing base (4,200 subscribers) and assist the applicable partners in connecting with BISG member companies UCCnet product management technically has built and operates the global registry UCCnet currently has over 35 retailer subscribers; to date the only GS1 Global Registry production retailers are UCCnet members.

42 INSERT GRAPHIC SQUARE HERE Are you currently working with any publisher(s) or distributors within the book industry? In addition to those book sellers noted earlier in the presentation (Target, Home Depot, Wal-Mart, Lowes, etc.) we have better-than average understanding or the book industry: –UCC has worked closely with the book industry for years –UCC has participated in the Frankfurt Book Fair –UCC is member of BISG –UCC participates in BISAC meetings

43 INSERT GRAPHIC SQUARE HERE 43 Thank You Help in Implementing Customer Service Web site: John McInerney

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