1SYNC (UCCnet and RosettaNet EDI Data Synchronization)

Several mass merchants and grocers in the United States such as Wal-Mart, Home-Depot, and Supervalu are now requiring the use of UCC Net by their suppliers to accomplish Global Data Synchronization.

The exciting merger of UCCnet + Transora + RosettaNet is being completed. The combination is 1SYNC and the benefit is less complexity for mid-sized manufacturers.

What is Data Synchronization?

A single global system for data synchronization is crucial if the long-promised benefits of electronic collaboration are to be realized. Only when basic catalog information is correct and “in sync,” can companies reliably communicate electronic information about future sales plans, transactions, and the movement of product through the supply chain. Data synchronization, also referred to as Global Data Synchronization (GDS), is a process where by Retailers and their Suppliers synchronize in advance, the various data elements they will eventually transmit.
Examples of such “data validation” elements are:

• Part number
• Price
• Color
• Unit of Measure
• Weight
• And others

The processes of synchronizing the key data elements such as product numbers and pricing, is completed through a data repository using common standards. 1Synch includes the two standards that manufacturers, retailers, and intermediaries have agreed to adopt and adhere to, which are the GTIN (Global Trade Identification Number) for product numbers and the GLN (Global Location Number) for ship-to addresses.
The process begins with manufacturing companies making their product catalog available in “data pools” that are securely linked to a single global registry. Retailers are then able to search this registry, identify the “data pools” where information is stored about the products they want to synchronize and download. Retailers then establish a link from these “data pools” to their own catalog. The information in their catalog is then automatically updated and synchronized on a continuous basis.

Currently many companies send their catalog information to their mass merchant and grocery customers using spreadsheets, faxes, FedEx, etc. They realize the customer needs to enter the data into their MRP or other system, but do not consider the vast number of vendors and the large amount of data entry needed by very large customers. When the catalog item information arrives in many different forms and formats, data entry errors are inevitable. These cause delays and perhaps lost business. Conversely, the vendors to the mass merchants and grocers find themselves completing numerous Web front ends as a service to the large customers, and everyone involved findds the web forms time consuming and lacking in error alerts. A further complication is the emerging requirement to provide promotional details such as daily pricing that change quickly. The best approach is then to:

1. Ensure all data within our business application is current,
2. Send data in a single standard format, and later
3. Require vendors to send their data in a standard format

Benefits of Data Synchronization

While most companies will find it challenging to identify the overall benefits of GDS because the far reaching effects of incorrect information, virtually every aspect of the business process will benefit. Industry experts estimate that as much as $40 billion of total sales are lost each year due to supply chain inefficiencies. Several of the companies that have implemented GDS have realized a “Return on Investment” (ROI) of over 100%.

Several of the measurable benefits to the business cycle of implementing GDS are:

• Reduction in Out of Stocks – Studies have shown that supply chain delays due to data integrity issues result in approximately 5 percent of out-of-stocks.
• Shorter time to Shelf for New Items - GDS reduces the time required to introduce products from several weeks to a matter of hours.
• Reduced Checkout Errors- Problems of “items not being on file” are eliminated at POS (Point of Sale Systems). The “real time synchronization” of vendor data eliminates these costly delays. Data for “Promotional Items” such as “coupon family codes,” “pre-pack UPC codes” and “Day Prices” are effectively transmitted with GDS.
• Errors in Purchase Orders – Most retailers spend hundreds of hours checking and correcting item information in purchase orders. Since GDS synchronizes the data in advance, this task is greatly reduced and in some cases eliminated.
• Reduced Cost for Invoice Reconciliation – A majority of disagreements concerning invoices occur because of data integrity issues. Since GDS ensures correct alignment of all aspects of the data such as discounts, discrepancies are eliminated. A mature GDS implementation will greatly limit and in most cases eliminate the costs of “charge backs” that result from incorrect data.
• Reduction in Warehousing Costs – Synchronized weight and dimension data eliminates the current costs expended to measure new products as they are received. It also eliminates the costs associated with receiving a product that is not in the system. And it will also greatly enhance Inventory Management, since a more accurate inventory will result from having a standard GTIN assigned to the product.
• Enhanced Product Identification – In addition to capturing “Core Product Attributes”, GDS also enables the definition of “Hard-line Extended Attributes” (for home centers and hardware stores)

While the objective of GDS is to provide automatic data synchronization with customers and trading partners, the majority of the effort will take place within a supplier’s organization. A company wide concerted effort is necessary to internally merge and synchronize the various systems (catalogs, spreadsheets, databases, etc.) used by the company to manage their product codes. Although the Retailers do not provide an incentive for doing Data Synchronization, suppliers will benefit by being better organized and more responsive. Suppliers can attempt this daunting task on their own, or they work with a UCC Partner such as DCS for planning and training.

Getting Started

The costs of becoming GDS compliant will depend on the size of the company and the level and degree of the implementation. For starters, UCC Net charges an annual subscription fee based on a company's annual sales (for a breakdown of fees go to the knowledge base at UCC Net). The costs range from $100 to $400,000 to subscribe to UCC Net.

Secondly, a software solution is needed to enter and transmit the data to UCC Net. Several software packages exist which will enable a “publisher” to communicate their information to UCC Net and for a “subscriber” to download the information. The cost of the software ranges from a few thousand dollars for service bureaus up to $50,000 for a full pledged integrated system.

• Implement “In-House” – Company wide effort. Impacts most departments of company. Possibility exists to integrate into MRP system. Will need to develop “In-House” expertise.
• Work with a UCC Partner to Implement – Same issues as above, but with addition of outside help, start-up time is greatly reduced.
• Outsource to a Service Bureau.

Finally, training is needed to ensure the required level of accuracy. Since motivating sales, marketing, nutrition, and I.T. staffs to take responsibility for higher level of attention to detail is unique to the 1SYNC challenge, group training is needed.

DCS can assist a company in determining the most effective combination of subscription fees, software, and implementation strategy. Call us today to get started.

The Uniform Code Council, Inc. (UCC) is a not-for-profit organization dedicated to the development and implementation of standards-based, global supply chain solutions. Under its auspices, the UCC operates two wholly owned subsidiaries, UCCnet and RosettaNet, and it co-manages its global EANUCC System with EAN International. UCC-based solutions, including business processes, XML standards, EDI transaction sets, and the bar code identification standards of the EAN.UCC System are currently used by more than one million member companies worldwide. For more information about the Uniform Code Council, please visit http://www.uc-council.org