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

UCCnet &

Data Synchronization for the Book Industry

Dan Wilkinson

Al Garton

John McInerney

April 12, 2005

2005 UCCnet

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• 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


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An Acknowledgement …

It was the book industry that really started

the whole concept of a standard for

identifying products:

That was in the mid ’60’s…

ISBN: 978-1-4028-9462-6

1-4028-9462-7


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Multi Industry Problem

Manual Methods are Error Prone & Require

Data Re-Entry

FaxChanges E-Mail

PhoneChanges

ProductCatalogs

Automated Methods are Highly Customized & Not Broadly Adopted

Excel WebForms

EDIExchange

Multiple Ways for Retailers and Suppliersto Exchange Product Information


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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


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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 Op’s

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


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CatalogDisparities

– Incorrect - 30% of Item Data– To Correct - $60-$80 per Error– Cleanse - 25 minutes per SKU

per year

InvoiceErrors

– Incorrect - 60% have Errors– Costs – 43% have Deductions– To Correct - $40-$400 to

Reconcile

Lost SalesOpportunity

– Product Roll-In – 4 Weeks on Average

– Lost Sales – 3.5% due to Inaccurate data

Industry Studies Quantify the Opportunity


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• 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 didn’trealize how much more we would find”

Source: Randy Salley – Wal-Mart, Retail Systems 2002 Presentation

Case Study


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Land O’Lakes 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 O’Lakes 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 O’Lakes, Supply Chain U meeting

Case Study


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• 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


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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

What is eCollaboration?

Foundation for eCollaboration

• Provides 10 basis points in benefits

• ROI in less than 6 months

Additional eCollaborationActivities

• 200-300 Additional basis points of benefits

Source: Uniform Code Council, Inc.® and AT Kearney


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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


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The UCC Family


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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


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Why UCCnet?

• UCCnet is a not-for-profit, cost recovery revenue model – Low cost

• UCC’s 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


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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 won’t have to restructure your databases

– Robust features and functionality• UCCnet technology group built and operates

the GS1 Global Registry


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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


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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


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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


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Unique Aspects of Book Industry

• Extremely large number of SKU’s:– 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 nth 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.


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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).


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• 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


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Q & A

• Answers to questions posed in March 1st RFI from BISG


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1. 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., UCCnet’s GLN)

4. What is the Product Class– GPC

5.& 6. The Target Market– ISO Country Code– ISO Subdivision Code (optional)

7. The Item’s Status in the Registry – In-Progress, Registered, Cancelled, Discontinued

8. Key Dates – Registered, Last Changed, Canceled, Discontinued, Deleted


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2. 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.


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3. 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).


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4. 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.


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5. 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.


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6. 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.


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7. 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.


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8. What additional services do you provide to assist synching retailer specific information?

1. Education2. Training3. USU Sync Utility (GUI for smaller suppliers) 4. On-Boarding sub-contractor program5. Weekly implementation webinars 6. Technical help desk support7. Customer support help desk8. 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 Meetings10. Standards Expertise11. Reference-able implementations12. RFID (EPCglobal) expertise13. EAN.UCC Expertise


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9. 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


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10. 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 company’s internal systems or databases. We are an Oracle-based model.


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11. 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.


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12. 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


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13. 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.


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14. 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


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15. 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 catalogMore detail discussion is encouraged to better understand this robust program.

The objective of this program is to sign & implement customers within 90 days.


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16. Are there benefits for utilizing a single Data Pool by an industry?

• When developing the GDSN, it was recognized that in today’s 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


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17. 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.


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18. 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, Lowe’s, 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


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Thank You

Help in Implementing

800.280.4013

Customer [email protected]

Web site: www.uccnet.org

John McInerney

[email protected]

609.620.4573

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

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