B 2 B in Retail EAN UCC Standards

B 2 B in Retail EAN. UCC Standards and Direction ……………. John Terwilliger VP, Market Development

B 2 B e. Business § e. Business has caught the imagination of more than many § Enabled by new technologies, chiefly the internet (free movement of information) § Is writing XML schemas the new national pastime? © 2002 Uniform Code Council, Inc.

What is the UCC doing? § Who is the UCC? § What are EAN.

Key Goals of UCC § Provide strong foundation of open and global standards § Reduce supply chain costs § Create fast and seamless data exchange by removing e-business bottlenecks © 2002 Uniform Code Council, Inc.

Who is the UCC? § Experienced organization - permanent employees with extensive experience in: ° ° ° XML EDI Business Process Modeling Physical identification (barcode & RFID) Standards development and management © 2002 Uniform Code Council, Inc.

Who is the UCC? § Globally recognized Standards Management Process (GSMP) § Top down development of multi-industry standards based on Business Processes ° Simpl-e. B ° CPFR® © 2002 Uniform Code Council, Inc.

What are EAN. UCC Standards? § Information Flow • EDI ° ° UCS VICS EDI Industrial Commercial EDI EANCOM • XML – based on business process that assumes data synchronization occurs outside the business process (e. g. – UCCnet) © 2002 Uniform Code Council, Inc.

What about EDI? § § It is NOT dead! There are NO true global EDI standards! Networks are disparate Lessons learned • mismatched product & location data • redundant data on business documents • Up to 30% error rate on purchase orders, advance ship notices and invoices • Technology centric § XML is complementary to EDI © 2002 Uniform Code Council, Inc.

The EAN • UCC System “Future Proofing” your investment © 2002 Uniform Code Council,

What are EAN. UCC Standards? § Strong legacy in Identification Numbers ° ° ° ° GTIN - Trade Items GLN - Locations SSCC - Logistics Identifier GIST - Instance Identifier GIAI - Individual Assets GRAI - Returnable Assets GSRN - Service Relations © 2002 Uniform Code Council, Inc.

What are EAN. UCC Standards? § Strong legacy in physical ID to tightly link the flow of physical products to information flow • Physical Products ° Bar Codes • • EAN/UPC UCC/EAN-128 RSS Composite - 2 D ° RFID: GTAG - Open Standard RFID ° The Future: e. PC (MIT Auto ID Center) © 2002 Uniform Code Council, Inc.

EAN • UCC Core Technologies Identification Numbers UCC/EAN-128 GLN SUPPLY CHAIN MANAGEMENT E UR PT 90+ Application Identifiers EAN/UPC RSS CA GSRN TA SSCC GRAI DA GIAI GIST ID IDEN ENTI TFIFIC ICAT ATIO ION N GTIN Data Carriers RFID Ecommerce EDI XML © 2002 Uniform Code Council, Inc.

Key Thoughts § The EAN. UCC is not unique in managing bar codes and data structures § The EAN. UCC is not unique in seeking global standards § The EAN. UCC is unique in its emphasis on the link between the physical product and the business information flow. © 2002 Uniform Code Council, Inc.

What is B 2 B e-Business? It is information flow between trading partners (computer-to-computer

Tools to support § § § One-to-one proprietary connections Major trading partner required solution Value Added Networks (VANs) Data Pools (product catalogs) Registries (index of where the data is, a. k. a. “yellow pages” on steroids) © 2002 Uniform Code Council, Inc.

ROI Path to the Future Achieve maximum return with maximum community size • Internet Based • Global B 2 B Registry Interoperability Data Sync XML • Multi-Sectoral EDIINT EDI 0 • Small & Large Cos. • Collaborative Standards 100 s 1, 000 s 100, 000 s Community Size © 2002 Uniform Code Council, Inc.

Why are data synch and registry critical to you? § § § § Multiple databases & interfaces Conflicting item definitions Slow product updates Inaccurate / slow communications Challenges of getting new products to market Incorrect / returned shipments Deductions & lost shelf time © 2002 Uniform Code Council, Inc.

One-to-one Processes RETAIL SIDE SUPPLY SIDE Usual approach © 2002 Uniform Code Council, Inc.

SUPPLY SIDE RETAIL SIDE With UCCnet © 2002 Uniform Code Council, Inc.

Industry Benefits § Simplifying and standardizing business processes § Stronger relationships across the entire value chain § Improved inventory control and capacity planning § Decreased data synchronization costs (economies of scale) § Streamlined deductions management § Streamlined new vendor setup and introduction § Accurate pricing and promotion information © 2002 Uniform Code Council, Inc.

Short-Term Benefits § § § § Improve trading partner relationships Automate a manual process Enable more accurate execution of orders Reduce costly transaction processing errors Eliminate most disputes & deductions Increase speed to market for new products Facilitate changes to existing item information © 2002 Uniform Code Council, Inc.

Long-Term Benefits § Less sales administration, more time for strategy § More accurate inventory management § Enable other supply-chain management tools § Enable other collaborative e-commerce initiatives § Improve customer satisfaction § Drive efficiency and value throughout the industry § Allow for more accurate reporting capabilities © 2002 Uniform Code Council, Inc.

Interoperability is Critical for Efficient e-Business § Companies are doing business with more trading partners than ever before § Supporting multiple systems and platforms has become costly and complex § Lack of software interoperability creates time-consuming supply chain bottlenecks © 2002 Uniform Code Council, Inc.

UCC Interoperability and Conformance Program § Jointly managed with Drummond Group, one of the world’s leading conformance consultancy groups § Standards-based conformance § Tests interoperability between different product offerings © 2002 Uniform Code Council, Inc.

UCC Interoperability and Conformance Program (cont’d) § Neutral testing environment § Conducted in a “real world” business environment § Certification at completion of test round © 2002 Uniform Code Council, Inc.

Program Benefits § Bring clarity and direction to the market § Makes interoperability a priority with solution providers § Ensures offerings are standards-based § Embraces software/system diversity § Certification allows users to select ebusiness software with confidence § Improves supply chain management © 2002 Uniform Code Council, Inc.

EDIINT – AS 1 Test § Seven companies are currently undergoing testing for AS 1 with results to be published at the end of July 2002: • • b. Trade, inc. Cyclone Commerce Inc. Hewlett Packard Company Inter. Trade Systems Corporation IPNet Solutions Sterling Commerce TIBCO Software Inc © 2002 Uniform Code Council, Inc.

EDIINT – AS 2 Test § Twelve companies are currently undergoing testing for AS 2 with results to be published at the end of July 2002: • • • b. Trade, inc. Cleo Communications Cyclone Commerce Inc. GE Global e. Xchange Services Hewlett Packard Company (formerly Compaq Computer Corporation) Inter. Trade Systems Corporation IPNet Solutions i. Soft Corporation Sterling Commerce TIBCO Software Inc. Vitria Technology, Inc. web. Methods, Inc © 2002 Uniform Code Council, Inc.

CPFR® Test § Seven companies are currently undergoing testing for CPFR with results to be published at the end of July 2002: • • i 2 Technologies, Inc. IPNet Solutions, Inc. JDASoftware Group, Inc. Logility, Inc. Manugistics Group, Inc. SAP Syncra Systems, Inc. © 2002 Uniform Code Council, Inc.

eb. XML Messaging § Four companies completed testing for eb. XML Messaging with results published earlier this year: • • b. Trade, inc. Cyclone Commerce Inc. Sterling Commerce Sybase Inc. § Another round of tests will start in July 2002 © 2002 Uniform Code Council, Inc.

One simple concept § Physical flow of trade items and logistic units § Information flow (POs, invoices, shipping notices, etc. ) § Business success requires both! The EAN. UCC system ties them together! © 2002 Uniform Code Council, Inc.