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WHITE PAPE R
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE 1
A 5-Point Best Practice Process to Improve Product Data AccuracyIndustr y Cal l to Act ion:
Summary
Nine leading companies - Ahold USA,
Coca-Cola Company, Hershey, McLane
Company, PepsiCo, Procter & Gamble,
J.M. Smucker, Wakefern Food Corp. and
Wegmans - worked together to focus on
improving the accuracy of data shared
between manufacturers and their trade
customers, including case weights and
dimensions. They collaborated to identify
the causes of inaccurate product data, and
in the course of this collaboration, they
have identified and validated five industry
best practices that, if followed, will help to
ensure the highest levels of data accuracy.
THEIR CONCLUSIONS?
The persistent problem of inaccurate
data shared between manufacturers
and their trade customers is an
enduring and significant problem
that demands industry resolution.
A significant driver of data inaccuracies
is the need for manufacturers to
communicate product data to trade
customers many months in advance
of new item production. This preliminary
information is generally not validated
and updated with final production data.
Manufacturers need to adhere to specific
processes that include taking
measurements from product samples
from a production environment, and
then recording, updating, and
communicating those measurements
back to their trade customers. These
steps are part of a 5-Point Best
Practice Process for manufacturers
to improve data accuracy. This
5-Point process is a clear, cost-
effective framework that allows
flexible implementation methods
for manufacturers.
A coordinated industry effort is needed
to help make the 5-Point Best Practice
Process a standard process for
manufacturers moving forward.
Narrowing the Data Quality Focus
In this informational, Big Data age of business,
data creates the foundation for managerial
decision-making, insights into markets and
consumer behavior, and the physical and
electronic flow of commerce. Doing good
business demands high quality data – whether
it’s master data, consumer data, transactional
data, or supply chain movement data.
Unfortunately, the complexities involving
people, processes and systems result in data
quality problems that affect all companies in
all industries on many levels. Where to start?
The nine participating companies agreed to
narrow the focus. Leveraging the Data Quality
Framework governed by GS1 since 2006,
they assessed data quality in terms of
a) completeness, b) standards-based,
c) consistency, d) accuracy, and e) time-
stamped. They decided to focus on solving
specific accuracy issues that have a significant
impact on the supply chain. The objective
was to solve for the pervasive issue of low
accuracy of case weights and dimensions
and the accuracy of select foundational
attributes passed through the GDSN.
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CONNECTING TRUSTED PRODUCT DATA EVERYWHERE 2
These accuracy issues are felt most
profoundly by retailers, distributors and
foodservice operators – the data recipients
in the GDSN. When these measures and
attributes are inaccurate, they result in high
costs and disruptions:
1. Incorrect pallet height and dimension
configurations
2. Incorrect truck configuration, cubing
and load optimization, where trucks are
under-filled or over-filled
3. Inefficient warehouse storage
optimization and inefficient pick/pack
abilities
4. Invoice errors requiring extensive
reconciliation efforts
5. Shelf labeling errors, directly impacting
consumers
Recipients in the GDSN community
confirm that the incidence of poor data
accuracy remains high, despite public
score-carding by some retailers and a
heightened awareness of data quality
issues over the last several years.
Wegmans, for example, began measuring
and scorecarding supplier data in 2005.
“When we first measured the accuracy of
newly synchronized data to Wegmans, we
audited our Grocery warehouse and found
11% accuracy,” said Kathy Welch, Manager,
Master Data, at Wegmans. “Today, after
eight years of auditing and score-carding,
the measurement for accuracy across all
categories has improved, but is still only
75%,” she continued.
So important is the accuracy of data to
their operations, many retailers and
distributors have devoted extensive
resources to take their own case
measurements. They use measurement
devices and training personnel in their
Distribution Centers and Warehouses to
create their own measurements of record.
This, of course, creates duplication of
efforts, a differing set of measurement
values, and increased costs for the entire
supply chain. “Obtaining case samples
is important to our organization,“ said
Beckey James, Electronic Commerce
Manager at McLane. “We check the
barcode, weights, dimensions, pack and
net content. In addition, data is compared
with what has been submitted in GDSN.
If discrepancies are found, additional
follow-up is required with suppliers.”
“We have cubiscan devices in four different
facilities,” said Christine McMaster, Director
of Product Integrity, Replenishment and
Merchandising, at Wakefern. “We have
spent approximately 7,800 hours across
the company verifying measurements of
products, and validating core attributes
like UPC and net content. Additionally, we
validate accuracy for our DSD items and
our ECommerce site which represent a
significant allocation of labor, as well,”
she said.
Focusing on Root Causes: Understanding the New Item Introduction and Setup Process
As consumers, we delight in the thousands
of new products and line extensions that
hit the shelves every year. Manufacturers,
retailers and distributors know this is
no act of magic: they understand the
advanced planning that goes into the
product introduction process. Beyond the
core manufacturer R&D process to develop
a new item, there are Item Setup processes
that occur between manufacturer and
retailer, manufacturer and distributor, and
distributor and retailer. The nature of these
setup processes is the core challenge to
obtaining accurate and consistent case
weights and dimensions submitted
through GDSN.
SALES CALL The process begins when
a product sample prototype is first
presented by a manufacturer to its retailer
and distributor customers. Here, these
customers may accept or reject the item
based on merchandising assortment
considerations following their own
category management principles. The
important aspect of this step is that it
typically occurs well in advance of the
customer actually merchandising it on its
shelves, and well in advance of the product
being produced by the manufacturer.
Typically, case weights and measures
provided at this stage are based on rough
specifications or lab samples. “We work
collaboratively with our trade customers
to bring innovative products to our consumers,”
said Greg White, Director, Global Data
Management at Procter & Gamble. “That
collaboration begins as much as 6 months
before we produce the first production
cases and certainly before the product is
advertised or in full scale distribution.”
PRODUCT INFORMATION PROVIDED; RETAILER/DISTRIBUTOR ITEM SETUP Assuming the retailer or distributor
accepts the item, it requests detailed
information about the product from the
manufacturer. Depending on the customer,
the information requested could be
minimal or extensive, ranging in the
hundreds of attributes. Manufacturers
typically provide this information through
the GDSN, through portals, through paper
forms, or through e-mail. Retailers and
Distributors take this information and
begin the item setup process in their own
internal systems. They may submit early
Purchase Orders to secure inventory from
the manufacturer. Of note is the preliminary
nature of the data at this early point.
Very important for the retailers and
distributors at this stage is that certain
GS1 Foundational attributes, such as Global
Trade Item Number (GTIN), Universal
Product Code (U.P.C.), Brand, Net Content,
and Unit of Measure remain constant for
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE 3
that item. These are the attributes that
retailers and distributors “key” much of
their master item files and external
transactions to. Any change in any of
these attributes after setup can result
in a major disruption for the retailer
or distributor.
PRODUCTION BEGINS Manufacturers
begin producing product inventory, antic-
ipating certain levels of retail distribution
and consumer demand. Importantly, case
weights and dimensions will be finalized by
the manufacturer, once a stable production
environment has been created. Between
the initial prototyping of the product and
the final production, multiple changes may
occur that impact case weights and
dimensions. These could include changes
to primary and secondary packaging
materials, as well as corrugate cases and
inner-packing.
PRODUCT SHIPS Manufacturers begin
shipping product to retailers and distributors.
Product arrives at retailer and distributor
DCs and stores. By this time, retailers and
distributors have set up the items in their
systems to support supply chain
operations, store operations, merchandising,
purchasing and marketing. “Our systems,
warehouses, DCs, and stores are set up at
this point using the dimensions and
attributes provided by the manufacturer,”
said Craig Kreider, Sr. Manager of Data
Integrity at Ahold USA. “Since we move
and sell many thousands of brands and
items, it is imperative that data
inaccuracies aren’t creating disruptions
in our operations,” he said.
INVOICE AND PAYMENT TRANSACTIONPayment transactions occur between
Manufacturer and Distributor, Manufacturer
and Retailer, and Distributor and Retailer.
“We work collaboratively with
our trade customers to bring
innovative products to our
consumers”
- GREG WHITE
Director, Global Data
Management Procter & Gamble
The 5-Point Best Practice Process For Manufacturers
Reviewing the Item setup process between
the manufacturer and its trade customers,
the nine participants in the study collab-
orated to evaluate their own processes.
They observed that three best practice
focus areas drive the effective creation
and transfer of accurate measurement
data and foundational attributes between
manufacturers and their downstream
customers.
a) Strict adherence to GS1 Standards
and GTIN Allocation Rules
b) Strict internal accountabilities and
control mechanisms for a manufacturer
as it sets up products in its own internal
systems
c) Standard and consistent manufacturer
processes of taking measurements
of production samples, and
communicating updates back to their
trade customers through the GDSN.
Understanding these three focus areas,
the participants investigated industry
best practices and created a 5-Point Best
Practice Process that manufacturers must
follow in order to deliver high accuracy
data in the GDSN.
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE 4
Step One
ADHERENCE TO FOUNDATIONAL GS1 ATTRIBUTES IN INTERNAL ITEM SETUP OF A MANUFACTURER
Trade customers recognize five important
foundational attributes of a consumer
product as it is set up in their systems.
These are GTIN, U.P.C., Brand, Net Weight,
and Unit of Measure. Retailers and
distributors key most of their internal and
external transactions to these attributes.
If any one of these attributes were to
change after the item has been setup in its
systems, it could negatively impact supply
chain and store operations, resulting in
numerous and costly disruptions,
ultimately effecting shoppers and
consumers.
As a best practice, manufacturers should
treat adherence to these foundational
attributes as an inviolable rule within their
four walls: when setting up an item in their
own systems, they should be conscious of
any changes in these attributes. If one of
these foundational attributes does change,
an entirely new item should be created.
Otherwise, both the manufacturer systems
as well as their customers could have a
GTIN with an incorrect associated
attribute, such as net weight.
During piloting, manufacturers evaluated
their own understanding of GS1 GTIN
Allocation Rules, and recognized that
a focus on core foundational attributes
throughout their own internal processes
helped ensure they remained compliant to
their customer needs. “The community of
manufacturers, distributors, and retailers
understand that the GS1 GTIN Allocation
Rules help ensure effective and efficient
commerce,” said Angela Fernandez, Vice
President, industry Engagement at GS1 US.
5-Point Best Practice Process to Improve Product Data Accuracy
1 Adhere to Foundational attributes in internal setup: GTIN, UPC, Brand, Net Content, Unit of Measure – The item must change if any of these change
Principled Adherence to GS1 Standards
2 Attribute owners are clearly identified and accountable with written control mechanisms documenting validation procedures
Strict Item Setup Accountability and Control Mechanisms
3 Single group and individual accountable for shepherding and gathering item attributes from attribute owners – ensures control mechanisms followed
4 All new items are measured off a stable production environmentProduction Measurement and Communication
5 Production measurements are communicated internally and externally
Step Two
PEOPLE WHO CREATE AND PROVIDE ATTRIBUTE INFORMATION ARE HELD ACCOUNTABLE THROUGH WRITTEN CONTROL MECHANISMS.
One single product of a manufacturer
carries with it hundreds of attributes in
its “item master” files – both for the
finished goods and for its components
and ingredients. Industry studies have
shown that as many as 200 individuals in
a company can contribute to the creation
of item data for a single product. Typically,
a manufacturer has a workflow process
whereby attributes are provided through
different clusters and groups in the
organization, such as R&D, Regulatory,
Engineering, Operations, Finance,
Marketing, and Sales.
The study participants identified that the
best practice for these attribute creators
and providers is that they be clearly held
accountable to the accuracy of their data,
and that written control mechanisms are in
effect for the capture and communication
of their assigned attributes. These would
include, among others, time-stamping
when tests or evaluations were performed,
and documenting that final attributes
went through a two or three-tiered
review system.
As part of the pilot process, each
manufacturer involved in the study was
able to identify the different groups that
provided attribute data to the central data
file and the control measures in place for
effective Item Setup.
Step Three
A SINGLE PERSON OR ENTITY IS AS-SIGNED TO GATHER ALL ATTRIBUTES AND TO ENSURE THAT ALL CONTROL MECHANISMS HAVE BEEN FOLLOWED IN STEP TWO.
Most large manufacturers have centralized
master data groups that shepherd product
attribute data through the various departments,
so it can be set up in the manufacturer’s
own master item file (often an ERP
system). Like retailers and distributors,
this master item file becomes the “key” to
enable transactions to be performed relat-
ing to that item, both internally
and externally.
The best practice identified by the participants
is that good data governance demands
that there be clear ownership by the group
and individuals who have to gather the
product information, and that these
individuals or entities ensure that
the written control mechanisms of the
attribute owners have been followed.
This demands that the identified individual
or group be intimately familiar with the
various processes surrounding attribute
creation, and the control mechanisms
associated with those processes. “We’ve
identified an individual role and department at
Smucker that is accountable for gathering
all attributes,” said Lori Bigler, Director,
Enterprise Analytics & Insights at J.M.
Smucker. “In evaluating the different
processes, we decided that this person
and department perform the actual
measurements of our cases, and checks
the foundational attributes. There is
definite accountability,” she said.
“Ownership and accountability are very
important for Hershey,” said Rob Hoffman,
Manager OTC, Customer Supply Chain.
“Because we have clearly defined governance
practices, and because we abide by the
foundational attributes, we can quickly
and effectively investigate and resolve any
exceptions that may occur,” he said.
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE 5
“Because we have clearly
defined governance practices,
and because we abide by the
foundational attributes, we
can quickly and effectively
investigate and resolve any
exceptions that may occur.”
- ROB HOFFMAN
Manager OTC,
Customer Supply Chain
Step Four
ALL NEW PRODUCTS GET WEIGHED AND MEASURED UPON PRODUCTION AS A “FINAL” MEASUREMENT. THIS CAN BE PERFORMED BY A 3RD PARTY PROVIDER
For most manufacturers, measuring, recording
and updating case measurements has neither
been a priority nor an engrained standard practice.
Perhaps the single most important best
practice identified by the study participants,
this process requires manufacturers to carefully
evaluate their item introduction processes, and
evaluate the resources needed to implement.
As the primary focus of the pilot effort by
the study participants, the manufacturers
demonstrated that when they had qualified
personnel performing measurements of
production product, their measurements were
proven correct when validated by an external
party. For the pilot effort, solution providers
Gladson, ItemMaster, and Strategic Solutions
Inc. performed these validations. These providers
were also active contributors to the entire study.
Of note, the manufacturers agreed that the
option of using a 3rd Party provider can be
an efficient and manageable option for
manufacturers, especially if manufacturers
take advantage of the additional value-added
services that the companies provide. Each of
the participant solution providers, for example,
were able to provide an in-depth set of product
images back to the pilot participants, in addi-
tion to measuring the products and validating
the manufacturers’ own production measure-
ments. “There are several solution providers
that are able to provide an external data record
for those who wish to use them. Those GS1 US
certified providers bring invaluable knowledge
and expertise about GS1 standards to the table,”
said Barbara Richardson, Director of Supply
Planning, Coca-Cola Refreshments Industry
Product Standards.
The critical factors in choosing between the
utilization of 3rd party providers or internal
resources to measure are a) organizational
capabilities and b) total costs. Costs using a 3rd
party provider include the cost of the product,
shipping the product, and paying the 3rd Party
provider fee. Costs for measuring product
internally include the cost to train qualified
personnel, and the costs of the measuring
equipment. Both options require a standardized
‘flagging’ process to identify products that
need to be audited, and a process to mark the
audited products with a time stamp.
Step Five
FINAL PRODUCTION MEASUREMENTS ARE RECORDED AND UPDATED IN MANUFACTURER SYSTEMS. UPDATES ARE COMMUNICATED BACK TO RETAILER AND DISTRIBUTOR CUSTOMERS THROUGH GDSN.
There’s one thing to measure production
product, there’s another thing to do
something with the measurements. The
must practice identified by the participants
is a necessary component of Step 4 -
Updates must be communicated to the
trade customer, and updated in a
manufacturer’s own internal systems.
This is a process that is not widely
practiced by manufacturers. Key learnings
from the pilot effort included the need
for manufacturers to locate and identify
what constitutes the “system of record”
upon measurement, and how this record
makes its way to the GDSN professional
responsible for updating the GDSN record
for retailers and distributors. For large
manufacturers, this ‘system of record’ is
typically an Enterprise Resource Planning
(ERP) system.
The participants agreed that any GDSN
update must occur prior to the first arrival
of manufacturer product to the retailer or
distributor warehouse, DC or stores. As
the GS1 and GDSN community explore
the “Preliminary Trade Item” initiative
associated with the next major release,
these companies recommend this primary
business rule be built into the process. For
example, a “final” update submission in
GDSN must be provided prior to First Ship
date (there is no Arrival Date attribute).
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE 6
“There are several solution
providers that are able to
provide an external data
record for those who wish
to use them. Those GS1 US
certified providers bring
invaluable knowledge and
expertise about GS1 standards
to the table.”
- BARBARA RICHARDSON
Director of Supply Planning,
Coca-Cola Refreshments
Industry Product Standards
Industry Call to Action
The participants have identified the
5-Point Best Practice Process as a must
practice, because they believe these five
actions must occur in order to see drastic
improvements in case weights and
dimensions shared between manufacturers
and their trading partners.
The key process insight by the group is
that the nature of the item setup process
between manufacturers and their trade
customers demands that preliminary
measurement data is provided months
before product production launch. This is
a standard business practice, and
won’t change any time soon.
The 5-point Process provides an actionable
guideline for manufacturers to evaluate
their adherence to GS1 Standards, the
governance of their own setup process,
and the processes to measure product
from the production line. “We think the
5-Point process is an excellent focal point
for industry to take a major leap forward,”
said Dan Wilkinson, General Manager,
1WorldSync Americas. “It focuses on
specific, vital aspects of the item setup
process, and provides specific actions that
manufacturers of all sizes, in all industries,
can implement to improve data accuracy
and their overall data governance
processes as well,” he said.
The participants urge immediate
momentum to broadcast the 5-Point Best
Practice Process, and to begin broader
industry discussions on how these can be
implemented. Options discussed by the
participants include two potential types of
certification. The first type of certification
includes certifying a company for
adherence to the 5-Point process. The
second type of certification includes
certifying product measurement data
through use of a 3rd Party Validation
agency.
About 1WorldSync
With more than 15,000 customers across
54 countries, 1WorldSync is the industry
leader in global product data management
and data pool solutions certified for the
GS1 Global Data Standardization
Network™ (GDSN®). 1WorldSync solutions
and services allow companies to share
trusted product information with one
another and with consumers, driving
business and convenience for everyone,
all around the world. 1WorldSync is a joint
venture of GS1 Germany and GS1 US.
For more information, visit
www.1worldsync.com.
About Gladson
Gladson creates, hosts and distributes
accurate, complete and standards-
compliant product information and images
to manufacturers, retailers, distributors
and brokers for retail and food service.
A GS1 US Certified Data Quality Solution
Provider, Gladson services are widely used
to accelerate GDSN implementations,
achieve rapid compliance with scorecards
and improve supply chain efficiencies in
transportation, warehouse management,
inventory and order entry systems.
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE 7
“We think the 5-Point process
is an excellent focal point for
industry to take a major leap
forward. It focuses on specific,
vital aspects of the item setup
process, and provides specific
actions that manufacturers of
all sizes, in all industries, can
implement to improve data
accuracy their overall data
governance processes
as well,”
- DAN WILKINSON
General Manager,
1WorldSync Americas
Connect With Us: CONNECTING TRUSTED PRODUCT DATA EVERYWHERE
1WorldSync1009 lenox drive, Sute 202, Lawrenceville, NJ 08648 USAT +1 866 280 4013 F +1 609 620 1200 E [email protected]
For more information, contact:
CHRIS LEMMONDSr. Director, Marketing and Commercial Operations1WorldSyncE [email protected]
ANGELA FERNANDEZVice President, Industry EngagementGS1 USE [email protected]
About GS1 US
GS1 US, a member of GS1, is an
information standards organization that
brings industry communities together to
solve supply-chain problems through the
adoption and implementation of GS1
Standards. More than 300,000 businesses
in 25 industries rely on GS1 US for
trading-partner collaboration and for
maximizing the cost effectiveness, speed,
visibility, security and sustainability of their
business processes.
www.GS1US.org.
About itemMaster
itemMaster is “The One Source for Free
Product Images and Data.” itemMaster’s
high-quality, digital product images and
data are available for free to any registered
user, assuring all retail outlets, etailers,
vendors, and companies supporting the
CPG industry will have access to accurate,
consistent product information.
Manufacturers also maintain complete,
unlimited access and distribution rights
to their digital assets.
About SS1
As a GS1 & 1WorldSync Solution Provider,
Strategic Solutions, Inc. data accuracy
services guarantee a world class solution
insuring manufacturers’ packaging meets
product weight, measurement and imaging
specifications that are verified
according to GS1 standards. Strategic
Solutions’ company focus is the collection
of product performance data throughout
the supply chain that exceed your
customer’s demands for GS1 certified data.
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