Transcript Ross Stores - Southern California e

SCeBF
Evolution of the UPC
and Data Synchronization
Richard Randall, QRS Corporation
QRS PRIVILEGED AND CONFIDENTIAL
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
 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
Retailer Strategy
Differentiate
Software Services
Collaborate
Data Exchange
Transact
Manufacturer/
Supplier
Vendor
QRS Network
Connect
Branded Goods Manufacturing
QRS PRIVILEGED AND CONFIDENTIAL
© Richard Randall, QRS Corporation, 2003. All rights reserved.
QRS Overview
Profile:

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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
Customers:
General Merchandise and Apparel

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QRS PRIVILEGED AND CONFIDENTIAL
Top 20 General Merchandise
retailers – $530B in sales
Top 20 General Merchandise
manufacturers – $60B in sales
Grocery and Consumer Packaged Goods
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19 of top 20 food retailers – $200B
in sales
9 of the top 15 Packaged Goods
manufacturers – $270B in sales
© Richard Randall, QRS Corporation, 2003. All rights reserved.
QRS Overview
Applications
& Services:
Hosted & Software Services
In-Store Services
QRS
QRS
QRS
QRS
QRS
Exchange
Catalogue
Sourcing
Insight
Retail Intelligence
Services
Trading Community Management
Enabling & Support
• Program Management
• Dedicated Enabling Professionals
• 7x24 Customer Support
• Industry Consultants
• Customer Conferences & Web-inars
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
“Gee Whiz:”  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
QRS PRIVILEGED AND CONFIDENTIAL
© Richard Randall, QRS Corporation, 2003. All rights reserved.
QRS Catalogue
Over 90 million items from over 4,000 vendors,
distributors, wholesalers, and manufacturers
Vendor A
Improved timing, reduced errors, increased sales, and
overall reduced expenses
Distributor B
EDI
Retailer A
Supplier C
Wholesaler D
XML
QRS
Catalogue
EDI
Retailer B
XML
Manufacturer E
Vendor F
Retailer C
System edits and Customer Support greatly improves
data reliability and integrity
Improved vendor discipline/compliance
Distributor G
QRS PRIVILEGED AND CONFIDENTIAL
Since vendor’s data is the same to all retailers, a
centralized database/catalog provides significant
efficiency – one connection – consistent format & quality
© 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/GMA
Mass Merchant
Grocery Store
2,000,000+ items
200,000-500,000 items
50,000 items
Fashion – 1,000s of
new items daily
Highly branded – lots
of vendor info
3K price changes
weekly
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
Character
Manufacturer
Number
Company Prefix (Block ID)
QRS PRIVILEGED AND CONFIDENTIAL
Module 10
Checkdigit
Unique Item
Reference Number
to Color/Size Level
© Richard Randall, QRS Corporation, 2003. All rights reserved.
Benefits of UPC
Retailer
Supplier/Manufacturer
 Eliminates need for ticketing
 Facilitates EDI
 Ability to efficiently identify
unique product at Point-ofSale
 More accurate orders
 Facilitates EDI
 Product gets to stores faster
 Facilitates more advanced
initiatives such as:
 Improved in-stock position
 Fewer invoice discrepancies
 Efficiencies of scanning
– Cross-Docking/Assumed
Receiving
– Scan Based Trading
– Auto Replenishment
 Efficiencies of scanning at
receiving, POS, Physical
inventory
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)
12-digit UPC
13-digit EAN
– 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 14digits
 Beyond retail…
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
14-digits for
database format &
electronic
communications:
– UPC (UCC-12)
00123456789012
– EAN (EAN/UCC-13)
01234567890123
– EAN/UCC-8
00000012345678
– SCC-14 (ITF-14)
12345678901234
 New (2005 Sunrise)
– GTIN-14 (EAN/UCC-14)
QRS PRIVILEGED AND CONFIDENTIAL
12345678901234
© Richard Randall, QRS Corporation, 2003. All rights reserved.
GTIN-14 Usage
 The 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
QRS PRIVILEGED AND CONFIDENTIAL
Widget X
UPC-12:
123456 00001 8
GTIN-14: 00 123456 00001 8
Case of 12 Widget X’s Pre-pack
UPC-12:
123456 00721 5
GTIN-14: 00 123456 00721 5
or
GTIN-14: 10 123456 00001 5
Pallet of 4 cases of Widget X
GTIN-14: 30 123456 00001 9
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.
© Richard Randall, QRS Corporation, 2003. All rights reserved.
GTIN-14 Usage
continued
 The 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
QRS PRIVILEGED AND CONFIDENTIAL
Widget X, Y, & Z
X UPC-12:
Y UPC-12:
Z UPC-12:
123456 00001 8
123456 00002 5
123456 00003 2
Mixed Case of 4 each
of Widget X, Y, & Z
Pre-pack
UPC-12:
123456 00721 5
GTIN-14: 00 123456 00721 5
Wrong
GTIN-14: 20 123456 00003 8
Pallet of 4 mixed cases
Pre-pack
UPC-12:
123456 01324 1
GTIN-14: 00 123456 01324 1
or
GTIN-14: 30 123456 00721 6
Note: When dealing with a UPC
the second digit of the GTIN-14
will/must always be a zero.
© 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)
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
Number
System
7
Character
January
2002
Company
9 Prefix (Block
2 ID)
QRS PRIVILEGED AND CONFIDENTIAL
Manufacturer
4
Number
Module 10
12Checkdigit10,000
1
Unique
Item
Reference Number
to Color/Size Level
1
12
100
© Richard Randall, QRS Corporation, 2003. All rights reserved.
QRS Catalogue
Over 90 million items from over 4,000 vendors,
distributors, wholesalers, and manufacturers
Vendor A
Improved timing, reduced errors, increased sales, and
overall reduced expenses
Distributor B
EDI
Retailer A
Supplier C
Wholesaler D
XML
QRS
Catalogue
EDI
Retailer B
XML
Manufacturer E
Vendor F
Retailer C
System edits and Customer Support greatly improves
data reliability and integrity
Improved vendor discipline/compliance
Distributor G
QRS PRIVILEGED AND CONFIDENTIAL
Since vendor’s data is the same to all retailers, a
centralized database/catalog provides significant
efficiency – one connection – consistent format & quality
© Richard Randall, QRS Corporation, 2003. All rights reserved.
Data Synchronization vs. Normalization
Synchronization
Normalization
 What is in Company B’s
database is the same as what
is in Company A’s database
 Data is changed to meet
certain standards/rules
 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.
QRS PRIVILEGED AND CONFIDENTIAL
 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
© Richard Randall, QRS Corporation, 2003. All rights reserved.
Global Registry
Concept:
Vendor A
Supplier C
Wholesaler D
Regional Data Pool
(Catalog) 1
Manufacturer E
Regional Data Pool
(Catalog) 2
Distributor G
QRS PRIVILEGED AND CONFIDENTIAL
•
Retailers could then find in the registry where the
data resides, and be routed to the appropriate data
pool (long term direction)
QRS
Catalogue
World’s largest –
90 mil. items
4,000 vendors
Vendor F
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
Regional Data Pool
(Catalog) … n
Retailer A
Global Registry
Distributor B
•
Retailer B
Retailer C
 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.
© Richard Randall, QRS Corporation, 2003. All rights reserved.
Various data synchronization models
Current:
Retailer uses
several catalogs
QRS PRIVILEGED AND CONFIDENTIAL
V
V
V
Catalog 2
R
Catalog 3
© Richard Randall, QRS Corporation, 2003. All rights reserved.
Various data synchronization models
Current:
Retailer uses
several catalogs
Current:
Retailer uses a
single catalog
QRS PRIVILEGED AND CONFIDENTIAL
V
V
V
Catalog 2
V
V
V
Catalog 2
R
Catalog 3
R
Catalog 3
© Richard Randall, QRS Corporation, 2003. All rights reserved.
Various data synchronization models
Current:
Retailer uses
several catalogs
Current:
Retailer uses a
single catalog
Future:
QRS PRIVILEGED AND CONFIDENTIAL
Catalog 2
V
V
V
Catalog 2
V
V
V
Data Pool 2
R
Catalog 3
R
Catalog 3
Data Pool 3
UCCnet
Retailer uses
registry to locate
catalog (data pool)
V
V
V
R
© 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
Current:
Retailer uses
several catalogs
Current:
Retailer uses a
single catalog
Future:
Catalog 2
V
V
V
Catalog 2
V
V
V
Data Pool 2
R
Catalog 3
R
Catalog 3
Data Pool 3
UCCnet
Retailer uses
registry to locate
catalog (data pool)
V
V
V
R
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
© Richard Randall, QRS Corporation, 2003.
QRS PRIVILEGED
AND CONFIDENTIAL
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]
QRS PRIVILEGED AND CONFIDENTIAL
© Richard Randall, QRS Corporation, 2003. All rights reserved.