GS1+RSS+GDSN
22.2. 2007
Ladislav Janco
Product manager
GS1 Slovakia
Background on GS1
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©2007 GS1
GS1 in a nutshell
GS1 is a not-for-profit organisation that
develops global standards for the
identification of goods and services.
The global
language of
business
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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.
©2007 GS1
GS1 in numbers
A fully integrated global organisation, GS1 was formed in
early 2005 from the joining of EAN International and the
Uniform Code Council (UCC).
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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
GS1 is the most widely used
supply chain standards system in the world.
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©2007 GS1
GS1: A Broad Portfolio
(1/3)
GS1 has a full portfolio of products.
Global standards for automatic identification
Rapid and accurate item, asset or location identification
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 RFID-based identification
More accurate, immediate and cost effective visibility of information
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©2007 GS1
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.
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©2007 GS1
GS1: A Broad Portfolio
(3/3)
GS1 provides a wide variety of services to its user companies.
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Implementation support
Guides and manuals
Training and education
Helpdesk
Benchmarking
Verification tools and calculators
Consulting services
Software
And more…
©2007 GS1
GS1 Member Organisations
Countries with a
GS1 Member
Organisation
Countries served on a
direct basis from GS1
Global Office (Brussels)
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104 Member Organisations.
145 Countries served.
Local services, global reach.
©2007 GS1
Reduced Space Symbology (RSS)
GS1 DataBar
February 2007
Examples of RSS
RSS in Healthcare
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©2007 GS1
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)
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©2007 GS1
Size Comparison RSS vs. EAN/UPC
RSS
Stacked
OmniD.
EAN-13
RSS
Stacked
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EAN-8
©2007 GS1
The Reduced Space Symbology Family
POS Symbols
RSS-14
Truncated
RSS-14
RSS-14 Stacked
Omnidirectional
RSS
Expanded
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RSS
Limited
RSS-14
Stacked
RSS Expanded
Stacked
©2007 GS1
How does RSS compare to EAN/UPC?
Retailers: “EAN/UPC Symbols only carry GTIN”
EAN-13
Symbol
Area
RSS, the next-generation bar code, carries over 100 different
bar code data elements like serial or lot numbers, expiration
dates, & measurements
GTIN/Price/Weight
RSS Expanded
More Data,
Same Space
RSS Expanded Stacked
GTIN + Serial #
RSS Expanded
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RSS Expanded Stacked
©2007 GS1
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
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.
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©2007 GS1
RSS Capable Scanner Projection
Most scanners shipped
for the last 4 years
are RSS capable
85%
60%
Most scanners shipped
in the last 7 years
are upgradeable for RSS
2006
2010
Source: GS1 Global Symbology Committee
& GS1 Japan Surveys. Estimates +/-5%
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©2007 GS1
When Will Retailers Be Ready?
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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 GS1
The Basics of
Data Synchronisation
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©2007 GS1
Why Synchronise Data?
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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
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©2007 GS1
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.
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©2007 GS1
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
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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
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©2007 GS1
What is a certified data pool?
Certified GS1 data pools…
• 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
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©2007 GS1
GS1 Global Registry®
Membership Sample
Retailers
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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
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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
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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 GS1
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.
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©2007 GS1
GDSN Growth
January 2005 – January 2007
January
2005
February
2006
January
2007
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(24 Certified)
Retailers / Suppliers
200
3,778
110 retailers
3,668 suppliers
10,892
135 Retailers
10,757 Suppliers
GTINs
(products registered)
180,000
479,000
1,161,183
Data Pools
(in production)
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©2007 GS1
How the GDSN Works
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©2007 GS1
The GDSN Network
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©2007 GS1
The Process
Suppliers and retailers who want to
synchronise data with each other perform
the following steps:
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1.
Load Data: The seller (data source) registers product and company information in its
data pool.
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Register Data: A small subset of this data is then sent to the GS1 Global Registry.
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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.
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Publish Data: The seller’s data pool then publishes the complete item and party
information to the buyer via the buyer’s data pool.
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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.
©2007 GS1
The Benefits
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©2007 GS1
Why implement GDSN?
Why Implement GDSN? Because GDSN…
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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 GS1
Benefits for Retailers
Corporate Management
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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
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Reduce catalogue maintenance time
Eliminate need for cross-reference tables
Decrease invoice disputes
Encounter fewer order defects
Improve fill rate
©2007 GS1
Benefits for Retailers
Category/Promotion Management
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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
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Encounter error-free shipment receiving
Reduce return shipments
Reduce backorders
Require less excess/safety stock
Optimize location despatch
©2007 GS1
Benefits for Suppliers
Corporate Management
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Simplify corporate reporting
Expand geographic retailer base
Eliminate IT system redundancy
Create an opportunity for shared services
Category/Promotion Management
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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 GS1
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
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©2007 GS1
Merchandising Benefits
Accurate, synchronized data eliminates many manual
item setup processes and maintenance.
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
Improved Sales
• New item processes reduced
• Merchant administrative time can be reinvested in building sales
• Better visibility to more supplier catalogs
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©2007 GS1
Logistics and Distribution Benefits
Synchronized and accurate cube and weight data
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
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©2007 GS1
Store Operations Benefits
Accurate and synchronized data will improve efficiency
and thus the customer shopping experience
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
Improved Back Door Management (DSD)
• Reduced “not on file” discrepancies which stop product from
flowing onto the shelves
• Reduced invoice discrepancies
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©2007 GS1
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
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©2007 GS1
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.
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©2007 GS1
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:
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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 GS1
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.
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©2007 GS1
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.
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©2007 GS1
Thank you!
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©2007 GS1
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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©2007 GS1