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The Business Role of Classification Lunch & Learn Thursday October 9, 2008.

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Presentation on theme: "The Business Role of Classification Lunch & Learn Thursday October 9, 2008."— Presentation transcript:

1 The Business Role of Classification Lunch & Learn Thursday October 9, 2008

2 2 ©2008 GS16 Years of Standards Excellence Classification Identification Product Identification: A coded key - GTIN such that unambiguously identifies a single product SKU Product Classification: putting GTINs into category groups (GPC Brick) according to common characteristics towards a specific goal

3 3 ©2008 GS16 Years of Standards Excellence Why Global Product Classification (GPC)? GTINGPC ITEM SKU Reference CodeProduct GROUP Code WHICH product is it?WHAT product is it? ____________ Each GTIN is electronically linked to a unique GPC brick code GPC is a mandatory code in GDSN 0091002371282310005788

4 Use Classification Hierarchy to find the Category (Brick) Formation: WHOLE If Organic: YES If Pitted/Stoned: NO Type of Fruit: APPLE = Classification Category ID Key Classification Category (Brick) Attributes: SINGLE TRADE ITEM PROPERTIES (Public or Private) Formation: WHOLE If Organic: NO If Pitted/Stoned: NO Type of Fruit: BANANA Food Beverage and Tobacco Example Core ID Key: GTIN: 1234567890123C; GLN: 987654321012C; TM: USAGTIN: 4567890123456C; GLN: 321012987654C TM: UK Basic Trade Item Name: Apple Manufacturer: ZPA Trade Item Name: Banana Manufacturer: ABCDE Category Specific Net Weight: 150 grm Best Before Date: 2005-11-30 Net Weight: 150 grm Best Before Date: 2005-11-30 TM Specific Brand Name: Freshest Apple Catalogue Price: USD 0.15 Brand Name: Children Banana Catalogue Price: EUR 0.25 Relationship Specific Publication Date: 2005-11-01 First Order Date: 2005-12-01 Publication Date: 2005-10-01 First Order Date: 2005-11-01 Manufacturer Specific Target Consumer Gender: UnisexTarget Consumer Gender: Children Many GTINs to One Brick Segment = Food/Beverage/Tobacco Family = Fruits/Vegetables/Nuts/Seeds Class = Fruit – Unprepared/Unprocessed Top Tier 2nd Tier 3rd Tier Bottom Tier Brick Code = 10000003 Brick Description = Fruit – Unprepared/Unprocessed (Shelf Stable)

5 Installation Type: BUILT IN Loading Type: FRONT Type of Clothes Washer: AUTOMATIC SINGLE TRADE ITEM PROPERTIES (Public or Private) Logo fields, Product Images low resolution, Product Images high resolution, Brand Message fields, Feature Messages USP fields, Sales Messages USP fields, After Sales Message USP fields Relationship Specific [Communication* non GS1 stds -CECED] Basic Product Name, Category Specific [Descriptive* non GS1 stds - (Energy Label – CECED] Width, Height, Net Weight, Gross Weight, Current Depth, Colour Body, Colour Panel, Energy Efficiency Class, Energy Consumption, Noise Level, Washing Performance, Water Consumption, Average Washing Time 40C/60C/90C, Moisture Content % on dry load after max spin, Capacity Cotton, Max Spin Speed Manufacturer Specific [Technical Features* non GS1 stds –CECED] Wash Optimisation, Foam Control, Balance Control, Water Protection System, Half load option, Pre-Wash, Quick Wash, Special Woollens, Rinse Hold, Delicates/Silk, Tub Material, Drum Material, Filter System, Spin Speed Options, Skip Spin, Self adjusting water level to load, Separate Temperature Control Options, Cold Wash Option, Start Delay Options, Start Delay Time max. (h), Water Plus; Door opening: Button/Handle, Drum Volume, Load size (max.–kg), Hot & Cold Water Intake Installation Type: FREE STANDING Loading Type: TOP Type of Clothes Washer: SEMI-AUTOMATIC Home Appliances Example Core ID Key: GTIN: 1234567890123C GLN : 987654321012C TM: Germany GTIN: 4567890123456C GLN: 321012987654C TM : BENELUX TM Specific Brand, Catalogue Price, Voltage, Frequency, Plug Type, Test Certificates, Many GTINs to One Brick Segment = Home Appliances Family = Major Domestic Appliances Class = Major Laundry Appliances Top Tier 2nd Tier 3rd Tier Bottom Tier Use Classification Hierarchy to find the Category (Brick) Classification Category (Brick) Attributes: = Classification Category ID Key Brick Code = 10001959 Brick Description = Clothes Washers

6 6 ©2008 GS16 Years of Standards Excellence Have you heard this before? Help, Im overloaded with GTIN level data but starving for category level information

7 7 ©2008 GS16 Years of Standards Excellence Global Classification Solution Concept Industry Standard Selling Organizations Map Internal Product Classifications Buying Organizations Map Internal Product Classifications 3 rd Party Solution Partners Could Maintain Current Classification Systems by Mapping to Industry Standard Many functions, different classification needs

8 8 ©2008 GS16 Years of Standards Excellence Global and Regional classifications Global classifications Regional classifications UN/CPC CN CPA NAICS ANZSIC ANZSCC CEN/UNECE GPC NACE ISO/ICS UN/ISIC WCO/HS GPC UNSPSC GPC HS

9 9 ©2008 GS16 Years of Standards Excellence GPC & Information Flows Recipient Data pool Webform Supplier B Source Data pool Recipient Data pool Supplier PIM Recipient Data pool Recipient Data pool Source Data pool Supplier A Source Data pool SourceRecipientTransmission 2. PEER TO PEER 3. GDSN 1. WEBFORM Flow Portal Direct XML / EANCOM / X12 Message Global Data Synchronisation

10 10 ©2008 GS16 Years of Standards Excellence How GPC Unites the Supply Chain? When Seller implements GPC, then the GPC Brick ensures the correct recognition of the product category through the extended supply chain and The Buyer can use the same GPC Brick to route the seller's product information to the right buyer

11 11 ©2008 GS16 Years of Standards Excellence Inventory Planning Inventory planning and deployment is primarily based on customer sales and volume, followed by product grouping – GPC! region or geography and margin or market share Source: IBM study 2006

12 12 ©2008 GS16 Years of Standards Excellence How GPC will be used? Manufacturers to guide buyer organisations to their product groups Retailers To route new product messages To find sources of existing products through GDSN Global benchmark for category management Governments To evaluate risks in releasing incoming or outgoing cargo at international borders

13 13 ©2008 GS16 Years of Standards Excellence How the perfect GPC will work? Be used globally Include all industry sectors Be tuned to Supply Chain needs Describe all essential characteristics

14 14 ©2008 GS16 Years of Standards Excellence What User Benefits Brings GPC? Enables GDSN related processes Internal, external and network synchronisation processes by organising and validating data Enables granularity and aggregation internally within a company and between trading partners. Simplifies matching the publication data with subscription data. Improves accuracy and integrity of item set-up and maintenance. Language barriers could be eliminated Facilitates faster implementation into GDSN Monthly / quarterly updates at aggregate (Brick) level

15 15 ©2008 GS16 Years of Standards Excellence What User Benefits Brings GPC? – cont. Accelerates new product introduction Denotes what type of product it is If new products come in via GDSN the validation workflow is triggered and the product is routed to the buyer All externally facing communication that references product data could use GPC such as Product specs; Price Lists; Shipment and Share Reports; Inventory Positions; Product Image Management; Point of Sale (POS) Data; Shelf Data (plan-o-grams); Joint Business Plans; Order Acquisition & Shipment Status; Consumer Response;

16 16 ©2008 GS16 Years of Standards Excellence What User Benefits Brings GPC? – cont. Data Management – Product Information Management: Single source, high quality master data and services; Enter Data Once; Common Data Standards; Single Point of Accountability; Atomic Level Data Aggregation Data cleansing facilitation (all products going forward should use the appropriate Brick code) Eliminates redundant activities by avoiding costly mis-matches Allows mapping to different trading partners or third party solution providers – reducing costs. Reporting facilitation by using GPC Brick and attributes as an industry standard that will cross all product silos Enables category management. Provides an opportunity to group products with category specific product group attributes in catalogues allowing global SKU (Stock Keeping Unit) mix Allows globally standardised positioning of products Establish category level product attributes

17 17 ©2008 GS16 Years of Standards Excellence HOW do you eat an elephant?

18 18 ©2008 GS16 Years of Standards Excellence... take one bite at a time! Common understanding Clear communication Alignment with other non - GS1 standards Translation Business Case Alignment with other GS1 standards GS1 management endorsement Training & Education


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