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GS1+RSS+GDSN 22.2. 2007 Ladislav Janco Product manager GS1 Slovakia.

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Presentation on theme: "GS1+RSS+GDSN 22.2. 2007 Ladislav Janco Product manager GS1 Slovakia."— Presentation transcript:

1 GS1+RSS+GDSN 22.2. 2007 Ladislav Janco Product manager GS1 Slovakia

2 ©2007 GS1 2 Background on GS1

3 ©2007 GS1 3 GS1 in a nutshell GS1 is a not-for-profit organisation that develops global standards for the identification of goods and services. GS1's standards foster cooperation and encourage information-sharing worldwide. Thanks to GS1, businesses and organisations can improve the efficiency of their supply and demand chains by adding useful information to any exchange of goods or services. The global language of business

4 ©2007 GS1 4 GS1 in numbers 30 years of experience 104 member organisations representing all points in the supply chain Over a million companies doing business across 145 countries Over 20 represented sectors (Fast Moving Consumer Goods, healthcare, transport, defence…) Over 5 billion transactions a day A fully integrated global organisation, GS1 was formed in early 2005 from the joining of EAN International and the Uniform Code Council (UCC). GS1 is the most widely used supply chain standards system in the world.

5 ©2007 GS1 5 GS1: A Broad Portfolio(1/3) GS1 has a full portfolio of products. Global standards for electronic business messaging Rapid, efficient & accurate business data exchange The environment for global data synchronisation Standardised, reliable data for effective business transactions Global standards for automatic identification Rapid and accurate item, asset or location identification Global standards for RFID-based identification More accurate, immediate and cost effective visibility of information

6 ©2007 GS1 6 GS1: A Broad Portfolio(2/3) GS1 offers solutions, each integrating a number of GS1 products. Traceability is a robust solution for tracking and tracing items such as medical products and food through the supply chain. Patient Safety ensures the prevention of medical errors and counterfeiting through the healthcare supply chain.

7 ©2007 GS1 7 GS1: A Broad Portfolio(3/3) GS1 provides a wide variety of services to its user companies. Implementation support Guides and manuals Training and education Helpdesk Benchmarking Verification tools and calculators Consulting services Software And more…

8 ©2007 GS1 8 104 Member Organisations. 145 Countries served. Local services, global reach. Countries with a GS1 Member Organisation Countries served on a direct basis from GS1 Global Office (Brussels) GS1 Member Organisations

9 Reduced Space Symbology (RSS) February 2007 GS1 DataBar

10 ©2007 GS1 10 Examples of RSS RSS in Healthcare

11 ©2007 GS1 11 Challenge – Business Needs To provide better ways to automatically identify Very small items (e.g. syringes, vials, and telecommunications circuit boards) Random measure retail items utilising full product identification (e.g. meat, poultry, and bagged produce) Individual produce items (e.g. apples and oranges) Logistic units that required more data to accompany the item than there was space available (e.g. content information for mixed trade item pallets)

12 ©2007 GS1 12 Size Comparison RSS vs. EAN/UPC EAN-13 EAN-8 RSS Stacked OmniD. RSS Stacked

13 ©2007 GS1 13 The Reduced Space Symbology Family RSS-14 RSS-14 Stacked Omnidirectional RSS Expanded RSS Expanded Stacked RSS-14 Truncated RSS Limited RSS-14 Stacked POS Symbols

14 ©2007 GS1 14 How does RSS compare to EAN/UPC? RSS, the next-generation bar code, carries over 100 different bar code data elements like serial or lot numbers, expiration dates, & measurements Retailers: “EAN/UPC Symbols only carry GTIN” RSS Expanded RSS Expanded Stacked GTIN + Serial # GTIN/Price/Weight RSS Expanded RSS Expanded Stacked More Data, Same Space EAN-13 Symbol Area

15 ©2007 GS1 15 Benefit Areas Enable category management and control of a number of products not able to support a standard bar code due to size of packaging. Better control of inventories, shrinkage, and product recalls. Better control over products exceeding their expiry dates Enable scanning of fresh food products (i.e. produce) reducing key punch errors, allowing for self check out options, and supplier identification. RSS Adoption Business Case Utilizing RSS labels generates an annual operating savings at retail of over $2.32 million in produce and $2.33 million in meats for an average 100-store chain. RSS’ accuracy generates an annual reduction in shrink dollars of over $7.3 million for an average 100-store chain. A 100-store chain that upgrades to RSS will gain over $4.2 million in savings during the first year. Source: GS1 US Study

16 ©2007 GS1 16 Most scanners shipped for the last 4 years are RSS capable Most scanners shipped in the last 7 years are upgradeable for RSS 2006 2010 60% 85% RSS Capable Scanner Projection Source: GS1 Global Symbology Committee & GS1 Japan Surveys. Estimates +/-5%

17 ©2007 GS1 17 When Will Retailers Be Ready? Retailer ReadinessRSS Capable Scanners 2006 (%) RSS Capable Scanners 2010 (%) Aeon0% Ahold US95%100% Carrefour80%98% Daiei0%1-2% DLM100% FoodstuffsTBD100% Karstadt100% Loblaws80%100% Metro100% Seiyu100% Target88%100% Uny0%67% Wal-Mart100% Wegmans24%100% Woolworths75%100%

18 ©2007 GS1 18 The Basics of Data Synchronisation

19 ©2007 GS1 19 Why Synchronise Data? Trading partners today see unnecessarily high costs from: supply chain information inefficiencies inaccurate data in transactions invoices with errors manual work-around processes to correct inefficiencies $ Synchronised and harmonised master data between trading partners’ systems can promote: smooth inter-company flow of goods better control of supply chain processes increased data accuracy reduced costs in the supply chain a robust foundation upon which the full benefits of electronic collaboration can be achieved and scaled

20 ©2007 GS1 20 What is GS1 GDSN? GS1 GDSN is an automated, standards-based global environment that enables secure and continuous data synchronisation, allowing all trading partners to have consistent item data in their systems at the same time. The GS1 Global Data Synchronisation Network connects retailers and suppliers, via their selected GDSN-certified data pools, to the GS1 Global Registry.

21 ©2007 GS1 21 Key elements of the GDSN GS1 Data Pools Electronic catalogues of standardised item data, serving both as a source and/or recipient of master data. Can be run by a GS1 Member Organisation, supplier, customer, exchange or service provider. GS1 Global Registry ® The GDSN acts as a "yellow pages directory" that Provides information for subscription sharing Enables data pool interoperability Guarantees uniqueness of the registered items and parties Ensures that all data pools in the network are complying with a common basic set of validation rules that support data integrity in the system Holds the information about who has subscribed to trade item or party data

22 ©2007 GS1 22 What is a certified data pool? Conform to GS1 GDSN standards Ensure the confidentiality and integrity of user information Are fully interoperable Comply with the global validation rules Comply with the global search functionality Certified GS1 data pools…

23 ©2007 GS1 23 GS1 Global Registry ® Membership Sample Retailers AAFES Ahold Albertson’s Best Buy Carulla Vivero S.A. Coop Italia Dairy Farm Exito Home Depot Kohl’s Lowes Alamacenes Exito (Casino) Safeway Staples Supervalu Target Walgreens Wal*Mart Wegmans Suppliers 3M Company Alcon Bayer Cadbury Schweppes Coca-Cola Colgate Palmolive Electronic Arts Clorox Danone Del Monte Eastman Kodak Energizer Eveready General Mills Gillette Glaxo Smith Kline Heinz Jergens Johnson & Johnson Kellogg Company Kimberly Clark Kraft Intuit Mattel, Inc Nestle Memorex MeadWestvaco MGM Studios Paramount Philips Cons. Electronics Procter & Gamble Revlon Sega Sony Universal Studios Zenith

24 ©2007 GS1 24 GDSN Governance GDSN Board of Directors The GDSN Board of Directors was established by GS1 to ensure that the GDSN meets the business needs of the user community. It includes representation from suppliers, retailers, GS1 Member Organisations and certified data pools.

25 ©2007 GS1 25 GDSN Growth January 2005 – January 2007 January 2005 February 2006 January 2007 Data Pools (in production) 77 13 (24 Certified) Retailers / Suppliers200 3,778 110 retailers 3,668 suppliers 10,892 135 Retailers 10,757 Suppliers GTINs (products registered) 180,000479,0001,161,183

26 ©2007 GS1 26 How the GDSN Works

27 ©2007 GS1 27 The GDSN Network

28 ©2007 GS1 28 The Process 1.Load Data: The seller (data source) registers product and company information in its data pool. 2.Register Data: A small subset of this data is then sent to the GS1 Global Registry. 3.Subscription Request: The buyer (data recipient), through its data pool, subscribes to a seller's GLN, product category (GPC), target market, or GTIN to receive the corresponding product and company information. Using the GS1 Global Registry, the data pool containing the requested item and location information is identified and the subscription is forwarded to that data pool. 4.Publish Data: The seller’s data pool then publishes the complete item and party information to the buyer via the buyer’s data pool. 5.Recipient Confirmation: The buyer then sends a confirmation to the seller through the buyer’s data pool directly to the seller’s data pool. More than simply an acknowledgement, it informs the supplier of the action taken by the retailer on the item information. Suppliers and retailers who want to synchronise data with each other perform the following steps:

29 ©2007 GS1 29 The Benefits

30 ©2007 GS1 30 Why implement GDSN? Why Implement GDSN? Because GDSN… provides standardised, reliable data for effective business transactions in both local and global markets ensures that trading partners work in a standardised way, reducing duplicate systems and processes ensures that item data is consistent between trading partners validates accuracy of data against standards and business rules ensures that trading partners classify their products in a unique, standardised way (Global Product Classification) provides a single point of entry for retailer and supplier trading partners (their chosen Data Pool), so reducing the cost of operating multiple solutions guarantees uniqueness of item (product, case, pallet), party and location through the GS1 Global Registry certifies that Data Pools and the GS1 Global Registry comply with GDSN rules

31 ©2007 GS1 31 Benefits for Retailers Corporate Management Simplify corporate reporting Enable global sourcing Create corporate transparency and sales synergy Eliminate IT system redundancy Create an opportunity for shared services Administrative Data Handling Reduce catalogue maintenance time Eliminate need for cross-reference tables Decrease invoice disputes Encounter fewer order defects Improve fill rate

32 ©2007 GS1 32 Benefits for Retailers Category/Promotion Management Reduce need for local agents and intermediation Expand supplier base Create corporate sourcing price transparency Improve visibility for stock-level planning Reduce time spent addressing complaints/disputes Simplify and enhance category reporting Reduce product introduction lead time Reduce product promotion lead time Logistics Encounter error-free shipment receiving Reduce return shipments Reduce backorders Require less excess/safety stock Optimize location despatch

33 ©2007 GS1 33 Benefits for Suppliers Corporate Management Simplify corporate reporting Expand geographic retailer base Eliminate IT system redundancy Create an opportunity for shared services Category/Promotion Management Improve visibility for stock-level planning Maximize retail exposure/product posting Reduce time spent addressing complaints/disputes Simplify and enhance category reporting Reduce product introduction lead time Reduce product promotion lead time

34 ©2007 GS1 34 Benefits for Suppliers Administrative Data Handling Eliminate need for cross-reference tables Decrease invoice disputes Reduce write-offs Reduce accounts receivable Encounter fewer sales order defects Logistics Simplify order tracking and tracing Reduce return shipments Improve percentage of accurate orders Encounter fewer emergency orders Improve accurate picking Optimize short-term planning

35 ©2007 GS1 35 Merchandising Benefits Accurate, synchronized data eliminates many manual item setup processes and maintenance. Improved Sales New item processes reduced Merchant administrative time can be reinvested in building sales Better visibility to more supplier catalogs Sales Representative Value Add No need to fill out new item forms for all customers No need to communicate changes and corrections More time can be spent building sales Merchandising Administration No more data entry of new items forms Elimination of key entry errors No more paper trail from merchandise=>pricing=>logistics=>accounting

36 ©2007 GS1 36 Logistics and Distribution Benefits Allows inbound and outbound truckloads to be better utilized, reducing freight costs and increasing efficiency Means inbound truckloads can be received and put away efficiently - reducing time, handling, cost and improving shelf service levels Synchronized and accurate cube and weight data

37 ©2007 GS1 37 Store Operations Benefits Improved Customer Shopping Experience Error free scanning at front end Improved Planograms for ease in shopping Improved shelf tag accuracy for price comparisons Improved on the shelf availability Accurate and synchronized data will improve efficiency and thus the customer shopping experience Improved Back Door Management (DSD) Reduced “not on file” discrepancies which stop product from flowing onto the shelves Reduced invoice discrepancies

38 ©2007 GS1 38 Accounting Benefits Accurate and synchronized data improves invoice accuracy and associated reconciliation processes Invoice reconciliation More invoices will be accurate More streamlined/timely processes for resolving invoice discrepancies Reduced out of period adjustments which will make financial information more actionable Reduced receiving quantity errors to be reconciled

39 ©2007 GS1 39 Proven Benefits In a 2003 case study performed by Cap Gemini under the leadership of the Global Commerce Initiative (GCI) Steering Group, it was demonstrated that adopting and implementing a global data synchronisation programme would lead to a 1% to 3% savings in supply chain costs. Long-term benefits have been even greater.

40 ©2007 GS1 40 Proven Benefits In 2005, GCI and CapGemini conducted a study entitled, “Global Data Synchronisation at Work in the Real World: Illustrating the Business Benefits”, and found that: Dutch retailer Albert Heijn improved productivity in their data management department by 30%. Wal-Mart decreased item maintenance from 15-30 days to 1 day. Gillette Venezuela improved order-processing productivity and eliminated master data discrepancies by aligning product information with their trading partners. Johnson and Johnson decreased out-of-stocks by 2.5% by virtually eliminating data integrity issues. Procter & Gamble increased purchase order accuracy by 3% by focusing on aligning obsolete products with La Fragua in Guatemala. Unilever Columbia significantly reduced data inconsistencies and improved new item speed to market by 2-3 weeks. U.S. retailer Wegmans Food Markets increased store sales by reducing speed to market on new items by two weeks.

41 ©2007 GS1 41 Proven Benefits An August 2006 Accenture report entitled "Synchronization—The Next Generation of Business Partnering" clearly confirms that companies that take action are making progress and achieving real results with global data synchronisation. Suppliers and retailers that have collaborated and taken an integrated approach to data synchronisation have realized even greater benefits than originally expected.

42 ©2007 GS1 42 Implement Now! These case studies show cleansing your data and ensuring compliance with GTIN and GLN allocation rules result in immediate and important cost savings. Start improving your relationship with your trading partners now.

43 ©2007 GS1 43 Thank you!

44 ©2007 GS1 44 Contact details Ladislav Janco GS1 Slovakia Nanterska 23 01008 Zilina, Slovakia T + 421 41 5651185 F + 421 41 5651186 W www.gs1sk.org


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