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Coded Data Electronic Transactio ns Spend Analytics Integrated Systems Anglo Procurement and Supply Chain Systems Linda Wedderburn and Maurice Mason October 2006 ECCMA Conference: eOTD Cataloguing

eOTD Cataloging Wed Der Burn

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Page 1: eOTD Cataloging Wed Der Burn

Coded Data

Coded Data

Electronic Transactions

Electronic Transactions

SpendAnalytics

SpendAnalytics

IntegratedSystems

IntegratedSystems

Anglo Procurement and Supply Chain SystemsLinda Wedderburn and Maurice Mason

October 2006

ECCMA Conference: eOTD CataloguingECCMA Conference: eOTD Cataloguing

Page 2: eOTD Cataloging Wed Der Burn

“The Long Road”

An Industry Perspective of eOTD Cataloguing

For Products

ECCMA Conference: eOTD CataloguingECCMA Conference: eOTD Cataloguing

Page 3: eOTD Cataloging Wed Der Burn

• Anglo American

• ACW – What is it

• The Process

• The Challenges

• The Value

TopicsTopics

Page 4: eOTD Cataloging Wed Der Burn

Anglo American: Coding StandardsAnglo American: Coding Standards

Cataloguing of Materials:• Current:

– Various including BRISCH in South Africa

• Standards moving to:– UNSPSC for classification (v.11.2)

• Considering moving to v 13.2 due to significant enhancements to services section

– ECCMA eOTD for cataloguing / codification

Still Under Investigation:• Coding of services & repairs• Vendor standard

– Have implemented a “methodology” with a common naming standard and supplier hierarchy.

– Manually mapping ERP supplier names to a common name– Multiple standards: D&B; country specific used.

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• Anglo American

• ACW – What is it

• The Process

• The Challenges

• The Value

TopicsTopics

Page 6: eOTD Cataloging Wed Der Burn

A standardised, structured coding system that will uniquely identify items by their

specific properties

What is ACWWhat is ACW

Anglo Content Warehouse

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1. Institutionalise a common Anglo classification and coding protocol for purchased materials and services across all of Anglo American

2. Maintain a repository in which to access and store the common coded materials and services

3. In a timely manner, with a focus on the needs of cross-BU category / commodity teams, populate ACW with “fit-for-purpose” quality data based on the ECCMA eOTD coding standard and the UNSPSC classification standard.

4. Enable business value to be delivered by BUs through the use of ACW and the availability of Anglo common codes.

ACW ObjectivesACW Objectives

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ModelModel Manage Manage UseUse

Meta Model

Rules

Workflow

Meta Model

Rules

Workflow

Classify

Value Extract

Enrich

Classify

Value Extract

Enrich

Search

Subscribe

Export

Search

Subscribe

Export

Ag

gre

gat

eA

gg

reg

ate S

ynd

icateS

ynd

icate

Content Managers End- Users

What is ACWWhat is ACW

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• Anglo American

• ACW – What is it

• The Process

• The Challenges

• The Value

TopicsTopics

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• Current Catalogues consist of a list of numbers (stock code) and descriptions

• Converting the existing catalogue into an ACW format (database) involves 5 Steps:1. Classification2. Template Commercialization (Identification Guide)3. Value Extraction4. Content Enrichment5. Template Finalization

• For new items, will select the appropriate Commercialised template which will guide the cataloguer through the allowed properties / attributes and valid values / reply codes.

The ProcessThe Process

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What is the item in question?

Step 1 - ClassificationStep 1 - Classification

ECCMA identifies items based on the principle of a noun and a modifier (a class)

In this case:

Tire: Pneumatic; VehicularECCMA Concept Identifier: 0161-1-01-005403

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What do I need to know about this Tire in order to commercially acquire it and manage it in my supply chain?

• Tire: Pneumatic; Vehicular• Type• Rim Diameter• Width• Aspect Ratio• Ply Arrangement• Ply Rating• TRA• Tread Material• Air Retention Method• Load Index and Speed Symbol• Tread Pattern• TKPH Rating

Commercialized Template

Step 2 – Template CommercialisationStep 2 – Template Commercialisation

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• Tyre– Type– Rim Diameter– Width– Aspect Ratio– Ply Arrangement– Ply Rating– TRA– Tread Material– Air Retention Method– Load Index and Speed

Symbol– Tread Pattern– TKPH Rating

From: A “wish list” of all attributes / properties we would like to be reflected in our code

To: A defined ECCMA class with associated properties standard across the industry

ESCI ESCN

005403 TIRE:PNEUMATIC;VEHICULAR

ESPI ESPN

026920 SERVICE TYPE FOR WHICH DESIGNED

009734 TIRE RIM NOMINAL DIAMETER

009737 TIRE WIDTH

049442 ASPECT RATIO

021458 TIRE PLY ARRANGEMENT

017622 PLY RATING

021453 TIRE & RIM ASSOCIATION NUMBER

015388 TREAD MATERIAL

019264 TIRE AIR RETENTION METHOD

021457 TIRE LOAD INDEX AND SPEED SYMBOL

021491 TREAD PATTERN

??? TKPH RATING

Step 2 – Template CommercialisationStep 2 – Template Commercialisation

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What do I already know about this item from my current catalogue/code?

Current DescriptionTYRE BRIDGESTONE 445/95R25 E3 RADIAL 2* SP VHB 445/95R25 (16.00R25) VHB 2* E3 4N

Brand Rim Diameter Ply Arrangement Star Rating Tread Pattern Aspect Ratio

Step 3 – Value ExtractionStep 3 – Value Extraction

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What do I already know about this item from my current catalogue/code?

Partially Populated Commercialised Template

Missing Properties

Tire: Pneumatic; Vehicular

Service Type for Which Designed  

Tire Rim Nominal Diameter 25'

Tire Width 445mm

Aspect Ratio 95%

Tire Ply Arrangement Radial

Ply Rating  

Tire & Rim Association Number E3

Tread Material Standard

Tire Air Retention Method Tubeless

Tire Load Index and Speed Symbol  

Tread Pattern VHB

TKPH Rating  

Step 3 – Value ExtractionStep 3 – Value Extraction

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Populating the missing properties to complete the coding process.

Tire: Pneumatic; Vehicular

Service Type for Which Designed  Loader

Tire Rim Nominal Diameter 25'

Tire Width 445mm

Aspect Ratio 95%

Tire Ply Arrangement Radial

Ply Rating  2*

Tire & Rim Association Number E3

Tread Material Standard

Tire Air Retention Method Tubeless

Tire Load Index and Speed Symbol  NA

Tread Pattern VHB

TKPH Rating 80 

Step 4 – Content EnrichmentStep 4 – Content Enrichment

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• Sequencing– Affects the automatic description of an item

• Numbers– Units of Measure (Imperial, Metric, mm, cm etc)– Number Format

• Text is a little more challenging– What text will we permit (Valid Values / Reply Codes)?– Do we require abbreviations?– What are the translations (Spanish, Portuguese) – ECCMA

How Exactly are we going to capture the relevant information about this item into the template we have approved in ACW?

Step 5– Template FinalisationStep 5– Template Finalisation

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Example - Tyres

Example - TyresExample - Tyres

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ACW

To this:Structured, Disciplined Database with:

• Numeric Fields• UOM• Attribute Level Search Capability

From this:Largely “free text” based system:

• In order to compare 2 items you would have to read the description

56329845 – Tyre BS 435/R25 Standard Purpose E3 2 Star Radial VRLS 85 TKPH

Tire: Pneumatic; VehicularService Type for Which Designed  Loader

Tire Rim Nominal Diameter 25'

Tire Width 445mm

Aspect Ratio 95%

Tire Ply Arrangement Radial

Ply Rating  2*

Tire & Rim Association Number E3

Tread Material Standard

Tire Air Retention Method Tubeless

Tire Load Index and Speed Symbol  NA

Tread Pattern VHB

TKPH Rating 80 

The ResultThe Result

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• Anglo American

• ACW – What is it

• The Process

• The Challenges

• The Value

TopicsTopics

Page 21: eOTD Cataloging Wed Der Burn

Challenges on the JourneyChallenges on the Journey

Selecting appropriate properties - Coding Detail Abbreviations Translations Units Of Measure – (symbols –> ERP limitations) Defining Valid Values / Reply Codes Colloquial names QTAG Process Metric and Imperial Enrichment Time and costs

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Are two items the same, when do we have a common item?

StaplerStaple Size # 16

Same Item!

Challenges on the Journey – Coding DetailChallenges on the Journey – Coding Detail

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Are two items the same, when do we have a common item?

StaplerStaple Size # 16

Color Brown / Black

Material Metal/Plastic

Different Item!Additional Properties

Challenges on the Journey – Coding DetailChallenges on the Journey – Coding Detail

Page 24: eOTD Cataloging Wed Der Burn

??

??

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??

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Template Name Properties Platinum Coal Base Metals Kumba

ROLLER:CONVEYOR           

Service Type for Which Designed  Loader Loading

Iron Ore Handling

Tire Rim Nominal Diameter 25' 25 inch 25 25

Tire Width 444 320 300 350

Aspect Ratio 0.95 100 1 95

Tire Ply Arrangement Radial Bias Radial Radial

Ply Rating  2* 13 2 Star N/A

Tire & Rim Association Number E3 E5 D4 D2

Tread Material Standard Cut Resistant Ultra Cut 350 Standard

Tire Air Retention Method Tubeless Tube Tubeless Tubeless

Tire Load Index and Speed Symbol  NA N/A N/A N/A

Tread Pattern VHB VRLS Super Rock Grip VRL

TKPH Rating 80  100 N/A 95

Challenges on the Journey – Valid ValuesChallenges on the Journey – Valid Values

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Data can be categorized in accordance with one of the following quality levels:•Level I: The item is identified in terms its source of supply and has a reference sufficient to successfully place an order for the item. (Sufficient for contracting with a specific supplier)

•Level II: The item is identified and has been assigned a class sufficient to allow the classification of the item for the purposes of spend analysis

•Level III: The item is identified and partially described, a class has been assigned and some of the properties specified in the Identification Guide for the class have been provided.

•Level IV: The item is identified and completely described in accordance with the buyer’s Identification Guide (sufficient for competitive bid, identification of duplicates, standardisation analysis, etc).Note: In some instances where the item is considered by the buyer as being a true commodity, that can be obtained from many sources, the level IV description may be sufficient to identify the item and the buyer may refer to the item only by its internal stock number and may not retain the supplier or manufacturer part number.

The Coding ContinuumThe Coding Continuum

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• Anglo American

• ACW – What is it

• The Process

• The Challenges

• The Value

TopicsTopics

Page 27: eOTD Cataloging Wed Der Burn

One Common Anglo Number

ACW Common Coding

56329845 – Tyre BS 435/R25 Standard Purpose E3 2 Star Radial

965123465 – Tyre Bridgestone Part Number 12345

52368965412 – Tyre Bridgestone 435/95 R25

Standardised Long Description:Tire: Pneumatic, Vehicular: Service Type for Which Designed:  Loader Tire Rim Nominal Diameter: 25' Tire Width: 445mm Aspect Ratio: 0.95 Tire Ply Arrangement: Radial Ply Rating:  2* Tire & Rim Association Number: E3 Tread Material: Standard Tire Air Retention Method: Tubeless Tire Load Index and Speed Symbol:  NA Tread Pattern: VHB TKPH Rating: 80 

Standardised Short Description:Tire Pneumatic: Loader 25‘ 445mm 0.95 2*

The ValueThe Value

125435 – Bridge Stone 25inch 435/95

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Stock Code Item Description

Imagine a list like this for over 200,000 items!!!

381240119 20.5-25AFirestoneL5X-Ply16PlyCRSuper Deep Tread HRB 20.5-25 Super Deep Tread 16Ply L5 HRB

381242053 23.5-25AGeneralE3X-Ply12PlySPND LCM23.5-25 ND LCM 12Ply E3

381242083 15.5-25 AGeneralL3X-Ply12PlyCRND LCM15.5-25 NHS ND LCM 12Ply L3

381242113 17.5-25AGeneralG3/L3X-Ply12PlySPND LCM17.5-25 ND LCM 12Ply G3/L3

381242131 26.5-25ABridgestoneL5SX-Ply32PlyUCRSTMS26.5-25 STMS 32Ply L5S D2A

381242132 29.5-25ABridgestoneL5X-Ply22PlyCRDL29.5-25 DL 22Ply L5 D2A LS

381242133 29.5-29ABridgestoneL3X-Ply28PlyCRRL29.5-29 RL 28Ply L3 D2A

381242135 20.5-25ABridgestoneL5X-Ply16PlyCRDL20.5-25 DL 16Ply L5 D2A

381242136 29.5-29ABridgestoneL5X-Ply28PlyCRDL29.5-29 DL 28Ply L5 D2A

381242140 21.00-35ABridgestoneE4X-Ply36PlyCRRLS21.00-35 RLS 36Ply E4 E2A

381242161 20.5-25 AGeneralL5X-Ply12PlyCRSEMI SLICK20.5-25 NHS SEMI SLICK 12Ply L5

381242166 17.5-25AGeneralG4/L4X-Ply12PlyCRND LCM17.5-25 ND LCM 12Ply G4/L4

381242167 14.00-24AGeneralG3X-Ply12PlySPCHEVRON GRADER14.00-24 TG CHEVRON GRADER 12Ply G3

381242171 29.5-25AGeneralL5X-Ply22PlyCRLD25029.5-25 NHS LD250 22Ply L5

381242208 35/65R33ABridgestoneL5Radial1*CRVSDL35/65R33 VSDL 1* L5 D2A

381242218 14.00-24AFirestoneG3X-Ply12PlySPSuper Rock Grip RB14.00-24 Super Rock Grip 12Ply G3 RB

381242220 17.5-25AFirestoneL4X-Ply12PlyCRSuper Rock Grip DT17.5-25 Super Rock Grip 12Ply L4 DT

381242221 23.5-25AFirestoneE3X-Ply12PlySPSuper Rock Grip 23.5-25 Super Rock Grip 12Ply E3

381242222 23.5-25AFirestoneL5X-Ply12PlyCRSuper Deep Tread LD 23.5-25 Super Deep Tread 12Ply L5 LD

The Value - From this:The Value - From this:

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Pivot Table & Data Base Drill Down Capability

Brand ClassificationTRA

Classification ConstructionPly / Star

Rating Tyre Size Stock Code

Bridgestone CR E4 Radial 2* 24.00R35 381245039

          37.00R57 381245086

      X-Ply 36Ply 21.00-35 381242140

    L3 X-Ply 12Ply 17.5-25 381242229

    L5 Radial 1* 29.5R25 381245147

          35/65R33 381242208

      X-Ply 22Ply 29.5-25 381242132

        38Ply 45/65-45 381242141

            381242142

  HR E4 Radial 2* 24.00R35 381245081

  SP E3 Radial 2* 29.5R29 381245079

          33.25R29 381245080

          445/95R25 381245148

Firestone CR E4 X-Ply 32Ply 18.00-25 381242588

    L4 X-Ply 12Ply 17.5-25 381242220

    L5 X-Ply 20Ply 17.5-25 381242252

  SP G3 X-Ply 12Ply 14.00-24 381242218

General CR L5 X-Ply 12Ply 20.5-25 381242161

        16Ply 20.5-25 381242241

        22Ply 29.5-25 381242171

  SP G3 X-Ply 12Ply 14.00-24 381242167

The Value – To This:The Value – To This:

Page 30: eOTD Cataloging Wed Der Burn

• Identifying Items– Who else uses the same/similar item?– Do I have duplicate items in my stores (between BU’s)?

• Standardisation/Rationalisation– Show me all 51 inch tires in my business/Anglo American– Do I need to specify a particular attribute (speed rating on a

bearing), do I pay a premium for it?

• Procurement - the item specification is in the code– Reverse Auctions– Tenders– Collaborative Purchasing – Finding the right code to order an item

ACW will enable the following questions to be answered:

The ValueThe Value

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Do faster & smarter !!!

With business value delivered quicker

The Road ForwardThe Road Forward

Page 32: eOTD Cataloging Wed Der Burn

Coded Data

Coded Data

Electronic Transactions

Electronic Transactions

SpendAnalytics

SpendAnalytics

IntegratedSystems

IntegratedSystems

Anglo Procurement and Supply Chain SystemsLinda Wedderburn and Maurice Mason

October 2006

ECCMA Conference: eOTD CataloguingECCMA Conference: eOTD Cataloguing