OPIDSReaching the Goal Line on Office

Products Industry Data StandardizationBSA Conference - October 3, 2012

OPIDS Presentation Overview

• What is OPIDS and Why is it Important?

• Progress Made Since 2006

• Current Challenges to Overcome

• Relationship to eContent Standardization

• Today’s Call to Action

OPIDS Setting the Stage

WHO: Independent OP Channel

WHAT: MAC, SKU#, UOM, Color Codes

WHERE: Print and Online Catalogs

WHEN: 2006 ?

WHY: Efficiency, Sales, Margins

OPIDS: Who’s Involved?

Participants in OPIDS Committee:

• BSA and NOPA – Program Coordinators

• Independent Stationers & TriMega Purchasing Association

• S.P. Richards & United Stationers

• Trade Service – Industry Product Data Analysis & Program Support

Other Parties Consulted Periodically

• Industry Manufacturers & Other Industry Wholesalers

• Industry Business System/Software Solutions Companies

OPIDS: What’s Involved?

Manufacturer Prefixes/Codes (MAC) - Examples:

• ACCO Brands (ACC)

• Avery Consumer Products (AVE)

• Sanford (SAN)

Stock Numbers (SKU) – Examples (with MAC):

• BIC DEC11

• CNM 1153B001AA

• DUR MN1500B20

OPIDS: What’s Involved?

Units of Measure (UOM): Standardized Meaning – Applied at SKU Item Level

– BX = Box:

• A box is repackaged within a carton to be shipped

• Package of <500 sheets of paper, if boxed

• Three dimensional cardboard container

– DZ = Dozen: Combination of like items with like characteristics, quantity 12

– EA = Each:

• All spiral pads

• For furniture, if the item in question is an "option," treat as EA

• Package of one item bound by plastic to a cardboard backing

• Single items, i.e.; a cartridge of tape

OPIDS: What’s Involved?

Color Code Abbreviations:

• 3-digit Trade Service color standards:

– BLK = Black

– BLU = Blue

– RED = Red

• 2-digit OPIDS standards for most-common colors:

– BK = Black

– BE = Blue

– RD = Red

OPIDS: Where Used?

• Printed flyers & catalogs

• Online catalogs & web sites

• Dealer back-end systems

• Inventory stock checks

OPIDS – Why Important?

• Office Products Buying Continues to Shift to Web– Essential for basic item and order processing

– Online buying experience central to market success

– Large national competitors continue to invest heavily in online experience to sell more and take market share

– Downside risks to independent channel of inadequate data standards rising – Amazon entry into B2B market

• Standards Help Drive Cost Reductions in Channel

OPIDS – Why Important?

End User and Dealer Shared ‘Pain Points’

• Without 99%+ OPIDS Standardization:

– UOM confusion leads to invoice cost exceptions, returns, increased customer service costs, loss of customer good-will

– Customer contract issues are more prevalent, complex to resolve

– Significant conflicts arise between online/printed catalogs

OPIDS – Why Important?

Dealer Internal ‘Pain Points’

• Without 99%+ OPIDS Standardization:– Inventory management and sales forecasting errors more likely

– Order fulfillment drawing on secondary wholesaler more difficult

– Systems providers and dealers must invest more time to synchronize data

– Scarce dealer resources are diverted from selling and delivering valuable customer service to problem resolution

OPIDS Variances: 2012 Key Issues

Same item – Different SKUSP Richards UOM United UOM Manufacturer UOMBICDEC11BLK DZ BICDEC11BK DZ BICDEC11

DZCNMFX11 EA CNM1153B001AA EA CNM1153B001AA EADURMN1500B20 PK DURMN1500B20Z PK DURMN1500B20 PK

OPIDS Variances: 2012 Key Issues

Same item – Different MACSP Richards UOM United UOM Manufacturer UOM

CLE10001410 PD CHA10001410 PD CHA10001410 PDMJK00757 BX CRY00757 BX CRY00757 BXAAG759200 EA DRN759200 EA DRN759200 EA

OPIDS Variances: 2012 Key Issues

Same SKU – Different UOM for Same quantitySP Richards UOM United UOM Manufacturer UOMAVE8373 PK AVE8373 BX AVE08373 PKAVE8386 BX AVE8386 PK AVE08386 BX

OPIDS Variances: 2012 Key Issues

Same Item – Different UOM SuffixSP Richards UOM United UOM United* UOM Manufacturer

UOMDPR02936 EA DPR02936EA EA DPR02936CT CT DPR2936 CTGOJ902210 BX GOJ902210BX BX N/A GOJ902210 BX

• United 2nd SKU offering with different UOM

OPIDS – Results 2006-11

• MAC Standards – MAC use variances largely removed within 2-3 years

– Lingering variances mostly reflect inconsistent guidance from manufacturers to wholesalers and buying groups

• SKU Standards– 95%+ SKU standardization on office supplies within 2-3 years, but

then shifted into maintenance mode

– Growing SKU variance issues on items sold in multiple UOM, increased use of variable suffix structure in SKUs

OPIDS – Results 2006-11

• UOM Standards– UOM nomenclature use variances largely

removed in 2-3 years

– 95%+ UOM standardization on supplies within 2-3 years, but then moved to maintenance mode

– Challenges in agreeing on base or ‘root’ UOM when item sold in multiple UOM quantities

OPIDS – eContent Standards Relationship

• Substantial OPIDS Progress Made … But More Needed!– 95% basic product data standardization insufficient in

current online buying market

– Risk of OPIDS ‘back-sliding’ rising with more multiple UOM items + non-traditional products

– Independent Channel cannot afford to stand still on OPIDS while focusing on eContent issues – Ultimate goal of driving more sales depends on advancing both initiatives in coordinated way.

OPIDS – Next Steps

• Proposed Future OPIDS Work Process– Finalize logic rules and apply to resolve open OPIDS

issues

– Establish strong pipeline for validation of additions and changes prior to implementation

– Implement maintenance plan to ensure continuity

– OPIDS Prime Directive: Make it simple-Keep it simple

OPIDS: Call to Action

• Help us Expand Manufacturer Awareness of OPIDS Goals and Your Role in Process

– Review your own MAC, SKU and UOM use vs. OPIDS standards – note variances and talk with wholesalers

– Inform others in your company about OPIDS and need to standardize existing and new SKUs quickly

– Get/stay engaged with BSA and NOPA on OPIDS and eContent standards – these initiatives are interconnected and success will drive more sales!

OPIDS

Reaching the Goal Line on Office Products Industry Data StandardsBSA Conference - October 3, 2012

THANK YOU!

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