Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Classification SystemsJune 2007
Global Product Classification (GPC)
©2006 GS1 Canada3
Introduction
• The Global Commerce Initiative (GCI) (a global user group
comprised of the world ’s biggest multi-national
manufacturers, retailers and service providers) agreed on the business rules for setting up a globally standardized model:
• Global Product Classification (GPC) Schema.
• Objective
• to improve supply chain performance between manufacturers and
retailers by the voluntary adoption of industry standards for product
group identification
• GPC allows trading partners to communicate more efficiently
and accurately throughout their supply chain activities
©2006 GS1 Canada4
Introduction
• The GS1 community owns the GPC Schema
• Global Data Synchronization is dependent on trading partners using the same global standard product classification schema to enable product search,view and subscription and publication activities
• The Global Data Synchronization Network (GDSN) uses the GPC system
• Only items classified according to the GPC will be registered in the GS1 Global Registry
©2006 GS1 Canada5
Business Rationale
• Global positioning:
• group products the same way globally (synchronization)
• to enable product search, view and validation as well as
publication and subscription match.
• Global comparison• Independent of internal reporting classifications• Language barriers could be eliminated• Multitude of brands globally • Normalization of class attributes • Ability for potential usage of POS data
©2006 GS1 Canada6
• Improve accuracy of product information• Eliminate redundant activities and reduce the cost of
item set-up and maintenance• Allow mapping to different trading partner or third
party solution provider views, reducing costs• Opportunity to group products with category specific
attributes• Simplify publication and subscription processes• Enable simple search mechanisms with consistent
results
Benefits to supply chains/networks
©2006 GS1 Canada7
What does GPC consist of?
Brick Code (Classification Key)
Brick Attributes (typically max. 7 per Brick)
Brick Attribute Values
GPC Segment
GPC Family
GPC Class
CL
AS
SIF
ICA
TIO
N
IDENTIFICATION KEY
Product Group
DESCRIPTION
Key to the Classification Hierarchy was the definition of the Lowest level - Bricks – not the hierarchy
EVERY product MUST be assigned to 1 Primary Brick!
brick code is MANDATORY for GDSN
An industry segmentation or vertical
A broad division of a segment
A group of like categories
Categories of like products
©2006 GS1 Canada8
GPC Bricks
• A Brick entity contains product types that can be characterised by the same set of attributes and provide granularity and global recognition
• Each brick is associated with up to 7 attributes that classify the grouping of the items.
• Each attribute has a set of acceptable values. Thus, each brick is supplied with a detailed definition of the types of products that are contained therein
• The attributes are purely for product classification purposes, so there is no brand, weight, size, etc. information
©2006 GS1 Canada9
GPC Bricks
• GPC brick as a nomenclature identifies a categoryincorporating trade items (GTINs) that
• Serve a common purpose
• Are processed to similar methods
• Used and applied in a similar manner
• Are of a similar form and material
• Share the same set of category attributes
• Designed to be shareable by other internal or external classification systems
• GPC can be the driver of category specific trade item attributes in catalogues
©2006 GS1 Canada10
For the above example
Segment Code = 50000000
Family Code = 50180000
Class Code = 50182100
Brick Code = 10000161 (Biscuits/Cookies (shelf stable))
CL
AS
SIF
ICA
TIO
N
IDENTIFICATION KEY
In GPC today…
©2006 GS1 Canada11
• Once the brick is identified, up to 7 attributes may be used
to describe the type of product• The attribute does NOT describe the product, the value associated with the attribute provides the information in a particular context• Therefore you can’t have one with out the other
In GPC today…
©2006 GS1 Canada12
GPC – Currently defined segments (http://www.gs1.org/services/gsmp/technical/gpc/)
• Arts/Crafts/Needlework
• Audio/Visual/Photography
• Automotive - Light Application [new]
• Baby Care
• Beauty/Personal Care/Hygiene
• Building Products [new]
• Camping
• Clothing
• Communications
• Computing
• Electrical Supplies [new]
• Food/Beverage/Tobacco (FBT)
• Footwear
• Fuels [new]
• Healthcare
• Home Appliances
• Homecare
• Household Kitchen Merchandise
• Household/Office Furniture/Furnishings
• Lawn/Garden Supplies
• Live Animals [new]
• Lubricants [new]
• Music
• Personal Accessories
• Pet Care/Food
• Plumbing/Heating/Ventilation/Air
Conditioning [new]
• Safety Protection - DIY
• Safety/Security/Surveillance [new]
• Sports Equipment
• Stationery/Occasional Supplies
• Textual/Printed/Reference Materials
• Tool Storage Workshop Aids
• Tools Equipment - Hand
• Tools Equipment - Power
• Toys/Games
• Cross Segment
• Combined Published Schema
United Nations Standard Productsand Services Code® (UNSPSC®)
©2006 GS1 Canada14
What is the UNSPSC®?
• “United Nations Standard Products and Services Code®”
• An open standard• A taxonomy of products and services• A practical business tool
©2006 GS1 Canada15
Open Standard
• Publicly available specifications • Not proprietary
• Available to all to read and implement
• No royalty or license fees for usage
• No restrictions on sharing codes with trading partners
• No lock-in to one commercial solution
• Do not discriminate or favor; level, neutral playing field
• Participation in development is open and transparent
• Decisions are made on a consensus basis
©2006 GS1 Canada16
Taxonomy
• A technique of classifying products and services bought and sold
• A hierarchical tree structure, which enables “drill down” and “roll up” analysis
• A practical tool, responsive to user needs• Use in Enterprise Resource Planning, e-Commerce,
Business Intelligence systems
©2006 GS1 Canada17
Example: Biology
Canis lupus familiaris
©2006 GS1 Canada18
Example: UNSPSC
©2006 GS1 Canada19
Advantages of UNSPSC®
• The UNSPSC is available in 10 languages:
• Chinese, Dutch, English, French, German, Italian, Japanese, Korean, Portuguese and Spanish
• Standard codes eliminate ambiguity• Segments exist for
• raw materials
• industrial equipment
• components and supplies
• end-use products
• services• Comprehensive: over 20,000 commodity code categories• Responsive to the marketplace
©2006 GS1 Canada20
Advantages of UNSPSC®
• Avoid Expense of Developing Your Own Classification System
• Typical home-grown coding systems take a year or
more to develop – you can download the complete
UNSPSC® today
• Avoid duplicated effort, where every trading partner
codes differently
©2006 GS1 Canada21
UNSPSC® Design
• Hierarchical 4-level tree structure: Segment, Family, Class and Commodity
• Note: “Commodity” is not defined as bulk materials but in
the sense as any article of trade or commerce including capital equipment, high-value products, and professional services.
• Category titles are unambiguous and mutually exclusive
• Products appear in only one category; categories each have only have one parent
• Products are grouped according to dominant usage in world market
©2006 GS1 Canada22
UNSPSC® Components
• UNSPSC Code: 8 digits, e.g. 44103103
• Title: natural language text up to 120 characters
long, e.g. “Toner”
• Definition: free form text gives concise explanation
• Business Function: 2-digit codes for Rental or Lease, Maintenance or Repair, Manufacturer, Wholesale, Retail, Recycle, Installation (optional to use)
©2006 GS1 Canada23
UNSPSC® Code Structure
Segment 44000000 Office Equipment and Accessories and Supplies
Family 44100000 Office machines and their supplies and accessories
Class 44103100 Printer and facsimile and photocopier supplies
Commodity 44103103 Toner
44103103 - Toner
©2006 GS1 Canada24
UNSPSC® Segments
Family, Class and Commodity codes are arbitrary, and
reflect no logical sequence.
The 55 Segments are arranged in a logical sequence that reflects how value is progressively added to products
Office Equipment and Accessories and Supplies 44
©2006 GS1 Canada25
Value of Implementing the
UNSPSC®
• Automate gathering and analyzing
• Uniform, enterprise-wide view of spending
• “Roll up” analysis
• Centralize procurement function
• Collaboration with Customers
• Control maverick spending
• Product standardization = Reduced inventory
©2006 GS1 Canada26
Value for Suppliers
• Facilitate sales function
• Qualify as a Preferred supplier
• Speed new product introductions
• Facilitate globalization
• Collect consistent sales data
• Contract Compliance via Collaboration
©2006 GS1 Canada27
Realizing the Benefits
• Drill down - focus your on categories that
represent the most spend
• Roll up - identify ‘contractible groups’,
reduce the number of vendors
• Use with decision support tools
• Regular periodic reports, to monitor and alert
• Ad hoc, to identify new savings opportunities
©2006 GS1 Canada28
UNSPSC® Conclusion
• Manage spend to improve the financial health of your organization
• Rationalize vendors
• Standardize products
• Leverage volume to negotiate better pricing
• Improve operational efficiency of purchasing function
• Think about how to maximize benefits
GPC and UNSPSC®
Integration
©2006 GS1 Canada30
GPC & UNSPSC®
are Complementary
• GPC
• well-proven, robust business rules
• managed through Global Standard Management
Process (GSMP)
• the classification schema used in the GDSN by data
pools, retailers and suppliers
• UNSPSC®
• covers 55 segments, including products and services
• a globally recognized system
• visibility of spend analysis: cost-effective procurement optimization and exploitation of electronic commerce
capabilities
©2006 GS1 Canada31
What will Alignment look like?
©2006 GS1 Canada32
Vitamin Example: Integrated UNSPSC/GPC System Extension to Commodity Attributes and Product Attributes
©2006 GS1 Canada33
Integration Benefits
• Further improve the spend visibility and analysis• Optimize cost-effective procurement and strategic
sourcing
• Map products to existing internal and external classifications systems
• Extend classification system to commodity attributesand product attributes
• Improve decision making with better statistics and reporting
• Be linked to a broader global GS1 Standard package
©2006 GS1 Canada34
Integration Project Description
• Align the two schemas by integrating the GPC brick structure into the UNSPSC® Commodity level
• UNSPSC® hierarchy will serve as the primary basis
• GPC to provide necessary granularity for certain sectors
• Commodities (Bricks), defined attributes and attribute values
• Current GPC brick definitions will be preserved in the UNSPSC®
structure at the commodity level
• One-to-one mapping of GPC brick codes to new UNSPSC® commodity
codes
• Post integration, both code sets will be maintained
• Minimizes rework/conversion on the part of GPC user base
• Key Milestones
• Mapping work began in January 2007
• Completion of project in 2007
©2006 GS1 Canada35
Impact to the Community
• The ECCnet Registry will have an interim solution supporting both codes as optional data fields
• In order to support the Canadian Community and its
adoption of Global Data Synchronization
• Once the UNSPSC® and GPC codes are completely aligned and if the decision is made that both are no longer supported on the Global level, the ECCnet Registry will be adjusted accordingly
©2006 GS1 Canada36
For More Information
GSMP Technical webpage http://www.gs1.org/services/gsmp/technical/
Find out more about GPChttp://www.gs1.org/productssolutions/gdsn/gpc/
GPC Standardshttp://www.gs1.org/services/gsmp/technical/gpc/
UNSPSC®
http://www.unspsc.org/UNSPSC® Codeset Downloads
http://www.unspsc.org/Default.aspx?sid=41704UNSPSC® Introduction and Overview
http://www.unspsc.org/webseminar.asp
©2006 GS1 Canada37
Questions?