GS1+RSS+GDSN

22.2. 2007Ladislav JancoProduct managerGS1 Slovakia

©2007 GS12

Background on GS1

©2007 GS13

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

©2007 GS14

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.

©2007 GS15

GS1: A Broad Portfolio (1/3)

GS1 has a full portfolio of products.

Global standards for electronic business messagingRapid, efficient & accurate business data exchange

The environment for global data synchronisationStandardised, reliable data for effective business transactions

Global standards for automatic identificationRapid and accurate item, asset or location identification

Global standards for RFID-based identificationMore accurate, immediate and cost effective visibility of information

©2007 GS16

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.

©2007 GS17

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…

©2007 GS18

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

Reduced Space Symbology (RSS)Reduced Space Symbology (RSS)

February 2007

GS1 DataBarGS1 DataBar

©2007 GS110

Examples of RSS

RSS in Healthcare

©2007 GS111

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)

©2007 GS112

Size Comparison RSS vs. EAN/UPC

EAN-13

EAN-8

RSS Stacke

d OmniD.

RSS Stacke

d

©2007 GS113

The Reduced Space Symbology Family

RSS-14

RSS-14 StackedOmnidirectional

RSSExpanded

RSS ExpandedStacked

RSS-14Truncated

RSSLimited

RSS-14Stacked

POS Symbols

©2007 GS114

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 StackedMore Data,Same Space

EAN-13Symbol

Area

©2007 GS115

Benefit AreasEnable 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

©2007 GS116

Most scanners shippedfor the last 4 yearsare RSS capable

Most scanners shippedin the last 7 yearsare upgradeable for RSS

2006 2010

60%

85%

RSS Capable Scanner Projection

Source: GS1 Global Symbology Committee& GS1 Japan Surveys. Estimates +/-5%

©2007 GS117

When Will Retailers Be Ready?

Retailer Readiness RSS Capable Scanners 2006 (%)

RSS Capable Scanners 2010 (%)

Aeon 0% 0%

Ahold US 95% 100%

Carrefour 80% 98%

Daiei 0% 1-2%

DLM 100% 100%

Foodstuffs TBD 100%

Karstadt 100% 100%

Loblaws 80% 100%

Metro 100% 100%

Seiyu 100% 100%

Target 88% 100%

Uny 0% 67%

Wal-Mart 100% 100%

Wegmans 24% 100%

Woolworths 75% 100%

©2007 GS118

The Basics of Data Synchronisation

©2007 GS119

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

©2007 GS120

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.

©2007 GS121

Key elements of the GDSN

GS1 Data PoolsElectronic 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

©2007 GS122

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…

©2007 GS123

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

©2007 GS124

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.

©2007 GS125

GDSN GrowthJanuary 2005 – January 2007

January2005

February2006

January 2007

Data Pools (in production)

7 7 13

(24 Certified)

Retailers / Suppliers 2003,778

110 retailers 3,668 suppliers

10,892135 Retailers

10,757 Suppliers

GTINs(products registered)

180,000 479,000 1,161,183

©2007 GS126

How the GDSN Works

©2007 GS127

The GDSN Network

©2007 GS128

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:

©2007 GS129

The Benefits

©2007 GS130

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

©2007 GS131

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

©2007 GS132

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

©2007 GS133

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

©2007 GS134

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

©2007 GS135

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

©2007 GS136

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

©2007 GS137

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

©2007 GS138

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

©2007 GS139

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.

©2007 GS140

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.

©2007 GS141

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.

©2007 GS142

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.

©2007 GS143

Thank you!

©2007 GS144

Contact details

Ladislav Janco

GS1 Slovakia

Nanterska 23

01008 Zilina, Slovakia

T + 421 41 5651185

F + 421 41 5651186

W www.gs1sk.org