scebf evolution of the upc and data synchronization
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SCeBF Evolution of the UPC and Data Synchronization Richard Randall, QRS Corporation May 20, 2003. Agenda. Who is QRS and the QRS Catalogue What is the UPC How retailer industry has benefited Evolution of the UPC EAN GTIN Data Synchronization vs. Data Normalization - PowerPoint PPT PresentationTRANSCRIPT
QRS PRIVILEGED AND CONFIDENTIAL
SCeBF
Evolution of the UPCand Data Synchronization
Richard Randall, QRS Corporation May 20, 2003
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Agenda
Who is QRS and the QRS Catalogue
What is the UPC
How retailer industry has benefited
Evolution of the UPC EAN GTIN
Data Synchronization vs. Data Normalization
The role of a Global Registry
UCCnet’s GLOBALregistry
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
QRS’ EC Strategy for Retailer Success Retailer
VendorManufacturer/ Supplier
Connect
Transact
Privat
e La
bel
Branded Good
Distribution
Branded Goods Manufacturing
Differentiate
Collaborate
Data Exchange
QRS Network
Retailer Strategy
Software Services
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
QRS Overview
Customers:
Founded in 1988 in partnership with IBM, public ’93 (QRSI) 8,000+ customers in retail supply chain 2002 revenue – $136M Providing B2B e-commerce supply chain services Corporate headquarters San Francisco Bay Area, with
offices in New York, Los Angeles, Boston, Richmond (VA), Toronto, London, Paris
Profile:
Top 20 General Merchandise retailers – $530B in sales
Top 20 General Merchandise manufacturers – $60B in sales
General Merchandise and Apparel
19 of top 20 food retailers – $200B in sales
9 of the top 15 Packaged Goods manufacturers – $270B in sales
Grocery and Consumer Packaged Goods
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
QRS Overview
Applications& Services:
Over 300,000 trading partnerships enabled More than 500 million electronic documents per year Manage over 90 million active UPC/EANs 300,000 store visits annually to monitor price competition &
accuracy
“Gee Whiz:”
Enabling & Support• Program Management• Dedicated Enabling Professionals• 7x24 Customer Support• Industry Consultants• Customer Conferences & Web-inars
Hosted & Software Services
Trading Community Management
Services • Data Exchange – EDI “mailboxing”
(Traditional VAN and IP based)• Managed EC -- Web Forms (EDI to
Web), EDI-to-FAX, etc.• UPC Management• Merchandise Ticket and UCC-128
Label printing
QRSCatalogue
QRSExchange
QRSSourcing
QRSInsight
QRSRetail Intelligence Services
In-Store Services
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
QRS Catalogue
Vendor A
Distributor B
Supplier C
Wholesaler D
Manufacturer E
Vendor F
Distributor G
Retailer B
Retailer C
QRSQRSCatalogueCatalogue
Over 90 million items from over 4,000 vendors, distributors, wholesalers, and manufacturers
Improved timing, reduced errors, increased sales, and overall reduced expenses
EDI
XML
System edits and Customer Support greatly improves data reliability and integrity
Improved vendor discipline/compliance
Since vendor’s data is the same to all retailers, a centralized database/catalog provides significant efficiency – one connection – consistent format & quality
EDI
XML
Retailer A
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Product Synchronization Database
Not a “shopping/consumer” catalog
Database for synchronizing product information between retailers and their suppliers
Historically used by department store vertical… Why?…
Department Store/GMA2,000,000+ items
Mass Merchant200,000-500,000 items
Grocery Store50,000 items
Fashion – 1,000s ofnew items daily
Highly branded – lots of vendor info
3K price changesweekly
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
What is the UPC (Universal Product Code)
Industry standard for product identification – facilitates supply chain efficiencies
Standard administered by the UCC (Uniform Code Council)
Number System
CharacterManufacturer
Number Unique Item Reference Numberto Color/Size Level
Module 10Checkdigit
Company Prefix (Block ID)
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Benefits of UPC
Retailer
Eliminates need for ticketing
Ability to efficiently identify unique product at Point-of-Sale
Facilitates EDI
Facilitates more advanced initiatives such as:– Cross-Docking/Assumed
Receiving
– Scan Based Trading
– Auto Replenishment
Efficiencies of scanning at receiving, POS, Physical inventory
Supplier/Manufacturer
Facilitates EDI
More accurate orders
Fewer invoice discrepancies
Product gets to stores faster
Improved in-stock position
Efficiencies of scanning
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Evolution of the UPC
Beat out OCR and magnetic strip
Internationally became the EAN (European Article Number)
– Same barcode structure and checkdigit formula as UPC, but 13-digits
– First two digits are Country Code
– Can make a UPC into an EAN by adding a leading “0” (Country Codes for North America are 00-09)
The GTIN (Global Trade Item Number)– Sunrise 2005
– Truly global standard
– Same barcode structure and checkdigit formula as UPC/EAN, but 14-digits
Beyond retail…
12-digit UPC 13-digit EAN
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Quick GTIN Q&A
What does the acronym “GTIN” stand for? Global Trade Item Number
What is GTIN? (Hint: What are GTINs?) The new 14-digit structure to uniquely identify trade items, comprising the
existing EAN.UCC data structures
When is the GTIN “sunrise” date? January 1, 2005
Will the UPC and EAN be retired after 2005? No!
What was the reason for the new 14-digit structure? Because we are running out of UPC Block IDs – wrong To create a truly global standard for product identification
Who will potentially use (or not use) the GTIN-14? Probably – Manufacturers and retailers dealing in cases of a single trade item Probably not – Manufacturers dealing cases composed of multiple trade items
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
The GTIN “Family”
Global Trade Item Numbers include: Existing
– UPC (UCC-12)
– EAN (EAN/UCC-13)
– EAN/UCC-8
– SCC-14 (ITF-14)
New (2005 Sunrise)
– GTIN-14 (EAN/UCC-14)
14-digits for database format & electronic communications:
00123456789012
01234567890123
00000012345678
12345678901234
12345678901234
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Pre-packUPC-12: 123456 00721 5GTIN-14: 00 123456 00721 5 or
GTIN-14 UsageThe first digit of a
GTIN-14 is a level of packing indicator
A higher level of packing of a unique trade item can have the same “base” GTIN number:
– with a higher first digit, indicating a higher level of packing of the item
– with the correct checkdigit
Widget X
Case of 12 Widget X’s
GTIN-14: 30 123456 00001 9
UPC-12: 123456 00001 8GTIN-14: 00 123456 00001 8
Pallet of 4 cases of Widget X
Pre-packUPC-12: 123456 00721 5GTIN-14: 00 123456 00721 5 orGTIN-14: 10 123456 00001 5
If a GTIN-14 begins with a zero, the number is actually one of the other, shorter GTIN data structures.
The actual GTIN type may be determined by the number of leading zeros on a GTIN-14.
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
GTIN-14 UsagecontinuedThe first occurrence of a
GTIN-14, always working from lower packing level to higher packing level, is a “0”
A packing indicator of “0” does not necessarily indicate that the GTIN represents the consumer unit
A higher level packing indicator can only be used if the lower pack level contains all the same trade item
Packing Indicator “9” reserved for variable measure/price
Mixed Case of 4 eachof Widget X, Y, & Z Pre-pack
UPC-12: 123456 00721 5GTIN-14: 00 123456 00721 5
X UPC-12: 123456 00001 8Y UPC-12: 123456 00002 5Z UPC-12: 123456 00003 2
Pallet of 4 mixed cases
Widget X, Y, & Z
WrongGTIN-14: 20 123456 00003 8
Pre-packUPC-12: 123456 01324 1GTIN-14: 00 123456 01324 1 or
WrongGTIN-14: 20 123456 00003 8
GTIN-14: 30 123456 00721 6
Pre-packUPC-12: 123456 01324 1GTIN-14: 00 123456 01324 1 or
Note: When dealing with a UPC the second digit of the GTIN-14 will/must always be a zero.
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
How is UCC dealing with a limited number of blocks? Conservation
Creating additional Company Prefixes by increasing the length of the prefix (which reduces the the number of UPCs available to the vendor to assign)
Number System
CharacterManufacturer
Number Unique Item Reference Numberto Color/Size Level
Module 10Checkdigit
Company Prefix (Block ID)
Company Prefix (Block)
Item Reference Checkdigit Total digits Total Items
Historically 6 5 1 12 100,000
March 2000 8 3 1 12 1,000
January 2002 7 4 1 12 10,000
January 2002 9 2 1 12 100
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
QRS Catalogue
Vendor A
Distributor B
Supplier C
Wholesaler D
Manufacturer E
Vendor F
Distributor G
Retailer B
Retailer C
QRSQRSCatalogueCatalogue
Over 90 million items from over 4,000 vendors, distributors, wholesalers, and manufacturers
Improved timing, reduced errors, increased sales, and overall reduced expenses
EDI
XML
System edits and Customer Support greatly improves data reliability and integrity
Improved vendor discipline/compliance
Since vendor’s data is the same to all retailers, a centralized database/catalog provides significant efficiency – one connection – consistent format & quality
EDI
XML
Retailer A
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Data Synchronization vs. Normalization
Synchronization
What is in Company B’s database is the same as what is in Company A’s database
Key is data is not changed by user or system
Key for automating processes between companies – have to have the same data
Leads to retailer requirements to vendors that content on all media must match – labels, literature, databases, etc.
Normalization
Data is changed to meet certain standards/rules
Key for searching across a database, and for consistent “look and feel”
Two different objectives, which require separate fields within the database or two separate
databases
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Concept:
• Vendors would typically load products on local/regional catalogs of their choice, and a subset of the data elements would be forwarded from the regional catalogs to the UCCnet registry
• Retailers could then find in the registry where the data resides, and be routed to the appropriate data pool (long term direction)
Registry – a router or “yellow pages” that routes data requests to the appropriate appropriate data pool.
Data Pool – Third-party catalogs, such as the QRS Catalogue which enable vendors on industry standards related to product information, and ultimately publish the aggregated data of multiple vendors in one database accessible by registries or directly by retailers.
Global Registry
Vendor A
Distributor B
Supplier C
Wholesaler D
Manufacturer E
Vendor F
Distributor G
Retailer A
Retailer B
Retailer C
QRSQRSCatalogueCatalogue
World’s largest –World’s largest –90 mil. items90 mil. items
4,000 vendors4,000 vendors
Regional Data PoolRegional Data Pool(Catalog) 1(Catalog) 1
Regional Data PoolRegional Data Pool(Catalog) 2(Catalog) 2
Regional Data PoolRegional Data Pool(Catalog) … n(Catalog) … n
Glo
ba
l R
eg
istr
yG
lob
al
Re
gis
try
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Various data synchronization models
Catalog 2
Catalog 3
V
V
V
R
Current:Retailer usesseveral catalogs
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Various data synchronization models
Catalog 2
Catalog 3
V
V
V
R
Catalog 2
Catalog 3
V
V
V
R
Current:Retailer usesseveral catalogs
Current:Retailer uses asingle catalog
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Various data synchronization models
Data Pool 2
Data Pool 3
V
V
V
R
UC
Cn
et
Catalog 2
Catalog 3
V
V
V
R
Catalog 2
Catalog 3
V
V
V
R
Current:Retailer usesseveral catalogs
Current:Retailer uses asingle catalog
Future:Retailer usesregistry to locatecatalog (data pool)
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
UCCnet GLOBALregistry
The UCC established a subsidiary, UCCnet to provide additional services to their members.
UCCnet’s primary service is their GLOBALregistry
– Phase 1: GLOBALregistry is actually a “thick” registry holding up to 70 attributes per item with data loaded from enablers and data pools.
– Phase 2: when technology and standards are defined, GLOBALregistry is a true registry, routing requests for data to the registered data pool.
QRS Catalogue a preferred partner of UCCnet
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
Various data synchronization models
Data Pool 2
Data Pool 3
V
V
V
R
UC
Cn
et
Catalog 2
Catalog 3
V
V
V
R
Catalog 2
Catalog 3
V
V
V
R
Current:Retailer usesseveral catalogs
Current:Retailer uses asingle catalog
Future:Retailer usesregistry to locatecatalog (data pool)
Issues:-Architecture for “Phase 2”-Efficiency/response time of making two hops-Schema or attribute list for different industry sub-segments-Language translation, regional pricing and regulations, . . .-Synchronization vs. Normalization
QRS PRIVILEGED AND CONFIDENTIAL © Richard Randall, QRS Corporation, 2003. All rights reserved.
For more information, contact QRS –
Phone: 800-UPC-TALK (800-872-8255)
Web: www.qrs.com
E-mail: Sales [email protected]
Support [email protected]
Careers [email protected]
Alliances [email protected]
Richard Randall, QRS Industry Consultant
510-215-3765 or [email protected]