Global Product Classification (GPC) - GS1 Austria · Traditionally for most retailers ... GS1...

Global Product Classification (GPC)The Global Language for Classifying Goods

Third EditionApril 2005

3235-GS1-GPC Brochure-sm-def corrigée.xp 8/06/05 15:58 Page 29

Table of Contents

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1. Introduction 4RationaleBenchmarkWhy do we classify things?Why do we need a globally accepted, flexible, adaptable and constantlymaintained classification system?

2. GS1 Global Product Classification (GPC) 7Why GPC?What is the basis for GPC as an industry standard?What is the classification system used in the Global Data SynchronisationNetwork (GDSN)?What are the benefits of having the GPC in the GDSN?What is the difference between a Global Data Dictionary (GDD) Attributeand a GPC Brick Attribute?Single Product versus Product Groups

3. GPC Format and Structure 10GPC General PrinciplesSchema principles

4. Creating the Schema - Industry Collaboration 12Generic GPC Business RulesGPC Hierarchy RulesGPC Brick RulesBrick Attribute RulesBrick Attribute ValuesSchema Numbering SystemGPC Rules Governing Codes

5. Main Areas of Usage 16Summary of Product Classification ProcessMain Areas of UsageData SynchronisationCategory management projects

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Buying Programmes - Product SearchInternal and External Benchmarking and Routing

6. GPC Lifecycle 18Creating / Validating InformationBefore Mapping - Understand the LogicMappingMapping ExamplesTransmit / Store InformationUsing Information

7. Practical Implementation Examples:

What’s in it for me? 20If I am a ManufacturerIf I am a RetailerIf I am a Service Provider

8. GPC and UNSPSC alignment considerations 21Potential Alignment Benefits

9. GPC Governance 22GPC GDSN Version AlignmentGPC Development Process triggered by Change Requests

10. GPC Classification Development Status 24

11. New Offering 25Access to GPC Work In Progress Schemas

12. Conclusion 26Why do classifications matter?


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RationaleWithout effective education andimplementation support, GPC, as afoundational standard could be abarrier to data accuracy.

BenchmarkBy 2007 in catalogues 80 % ofGTINs will have consistentlyclassified with GPC (GCI GlobalScorecard).

Why do we classify

things?Nearly every aspect of our lives issubject to classification. Weclassify almost everything, dividingour world into a variety of arbitrarycategories. Different peopleclassify things in different ways.Some individuals place all theirsocks in one drawer; others mayseparate white socks fromcoloured ones.

In business, classification is anecessity. Even on a bilateral basiswhen a seller and a buyer aretrading, common definitions areneeded. They do not discussindividual product GTINs, but usecommon groupings of products. Adairy product manufacturer and agrocery retailer negotiate based oncategories of dairy products.

No classification system isinherently ‘better’ than another.The only measure of success of aclassification system is its value.Different people have differentneeds, so what works for oneindividual may not work foranother. Yet, this lack ofuniversality doesn’t dissuade eachof us from working out a system

that is right for our purposes. Tryas we might, we cannot avoidgrouping, organizing, andclassifying.

Why do we need a

globally accepted,

flexible, adaptable and

constantly maintained

classification system?The basic philosophy behind theseparation of product within aretail food store was historicallybased on a departmentalorganisational structure. Thisstructure was established on suchcriteria as: employee skills, storagetemperature, source and similarityof the product. The buyingstructure on the other handfocused on the supplier as thebases for grouping product.Buyers were assigned supplierswith similar products. This wasdone to achieve maximumeffectiveness in the transportationof the product. If a single personcontrolled the entire productrange from a supplier then thehauling cost and inventory couldbe minimized. Suppliers alsomaintained their own category

1. Introduction


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structure and this structure moreloosely employed somecommonality of attributes of theproduct. This varied from supplierto supplier.

With the advent of CategoryManagement many of thesecriteria within the retail communitywere left in tact. The newstructure still closely resembled theway product was grouped withinthe store and the philosophy onwhich it was built. In themeantime supplies remained thesame, perhaps even improvedbased on the advent of suchindependent structures asACNielsen, IRI, GFK, etc.

Traditionally for most retailerswhen the new item is set up it isthen assigned into the categorystructure that the retailer uses. Inthe past one of the main problemsin communicating new itemselectronically was the inability ofEDI to target a particularrepresentative with the retailorganisation. EDI also had no wayfor the retailer to communicateback that it accepted the item anddata on the item. Unlike the othermore popular transmission likeInvoice, Price, Promotion that

already had a link connected in theretailer’s back end this link for newitems had to be set manually. Thisconnection was established by theretailer when the item wasassigned to a particular buyerusually on a “New Item Form’.

UCCnet in the late 1990’sintroduced the concept ofsynchronisation. This was thesolution to the two problems thatwere inherent in the EDI solution.First it centred on a set of definedresponses issued from the retailerlegacy applications and provided amechanism for targeting withinthe retail organisation. Theutilization of a common categorystructure was employed tocommunicate a new item betweena seller and a buyer. However, thisforced the supplier and retailer tochoose between employing thenew structure internally andmapping their existing structure tothe new one. Depending howclose the two structures where thelevel of effort varied. Mappingbecame a many to many situationwhere often multiple buyersreceived the information. Howeverby not choosing the mapping asituation was created where two

systems using different structuresto maintain the same people, rolesand capabilities were required.

Experience shows that thereare three types oforganisations with regards toclassification:• Organisations that have more

than one classification systemin place (~30 %)

• Organisations that have onlyone classification system inplace(~27 %)

• Organisations that have noclassification system in place(~43 %)

While there are no right and wrongways to classify things, tradingpartners would ideally use acommon language to groupproducts. Along with their legacyclassification systems, the commonlanguage would simplifycommunication just as the Englishlanguage is accepted and used asa common language ofnegotiation in internationalbusiness.


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A common standard languagefor product classification bringsmany benefits to supply chains /networks:• Improve accuracy of product

information• Eliminate redundant activities

and reduce the cost of itemset-up and maintenance

• Allow mapping to differenttrading partner or third partysolution provider views,reducing costs

• Opportunity to groupproducts with categoryspecific attributes

• Simplify publication andsubscription processes

• Enable simple searchmechanisms with consistentresults

Manufacturers need to be able toprofile products in multiple viewsin order to maximise selectionexposure to the retailers. They alsohave to align this with their owninternal classification systems thatmay be based on sourcing,production, or sales departments.

Retailers need to be able to alignproducts to a variety of internalstructures such as by buyer, byhow the product is merchandised,or by how the product istransported. In addition, retailershave different classificationstructures unique to their ownorganisations.


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2. GS1 Global Product Classification (GPC)

Why GPC?Retailers and manufacturers havetried to establish a common way ofclassifying products countlesstimes over many years. Globally,the classification systems failedeither to be adopted because theywere too rigid or too detailed;good enough for statistics orfinancial reporting, but notappropriate for trade.

The Global Commerce Initiative(GCI) - a global user groupcomprised of the world’s biggestmulti-national manufacturers,retailers and service providers -agreed on the business rules forsetting up a globally standardisedmodel: the Global ProductClassification (GPC) Schema. Theobjective is to improve supplychain performance betweenmanufacturers and retailers by thevoluntary adoption of industrystandards for product groupidentification.

The GS1 community owns the GPCSchema. EAN International hasappointed ACNielsen as the serviceprovider to host and manage theGS1 Classification Schema onbehalf of the industry.

Manufacturers and retailersexchange a variety of information.Historically manufacturers supplytheir retailers with cataloguescontaining detailed descriptions ofproduct offerings. Retailers thensearch through the catalogues ofall potential suppliers. The productinformation is expressed in specificterms and formats, not allowing foreasy comparisons betweendifferent supplier offers. Thisprocess of reviewing variouscatalogues is inefficient andcumbersome for bothmanufacturers and retailers.

GPC allows trading partners tocommunicate more efficiently andaccurately throughout their supplychain activities. It is expensive forcompanies to develop their owncoding systems that cannot beused for external communication.A single universal codingconvention acts as a cost-effectivelink in the supply chain, even ifcompanies customise it for specificpurposes.

Classification codes are necessaryfor effective searching of productsand services, for identifying whereexpenditures are made, and forpromoting products to potential

buyers. Global DataSynchronisation is dependent ontrading partners using the sameglobal standard productclassification schema to enableproduct search, view andsubscription and publicationactivities.

What is the basis for

GPC as an industry

standard?Experts within the industrydevelop GPC. Existing commodityexpertise was used whereverpossible. The issue is determiningwhat is local expertise in a globalenvironment. There are existingsolutions today all over the worldand all are different.Recommendations of industryexperts have to be agreed by anindustry work group before theyare implemented. This group havedeveloped the rules on which theschema operates.


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What is the

classification system

used in the Global Data

Synchronisation

Network (GDSN)?The classification system used inthe GDSN is the GPC. Only itemsclassified according to the GPC willbe registered in the GS1 GlobalRegistry i.e. GPC Brick is mandatory

in GDSN.

What is the difference

between a Global Data

Dictionary (GDD)

Attribute and a GPC

Brick Attribute?There is no overlap between GDDand GPC attributes. They aremaintained in two different

databases separately.

GTIN as a key identifies the singleproduct. GDD Attributes describethe individual products. (e.g.: BrandName, Manufacturer, Length,Width, Height, Price, Colour, etc.)

GPC Brick Code is the key toidentify the product group.

Brick Attributes and Brick AttributeValues provide the requiredgranularity by describing furtherthe Brick. Segment, Family andClass are the hierarchycomponents together with theBrick.

Each GTIN should be assigned to aGPC Brick. That Brick can befurther characterised with a BrickAttribute set and the associatedBrick Attribute Values.

The GS1 standard package enablesconsistent use of the GS1standards globally. The use ofspecific keys and their associateddata carriers are supported byallocation rules, Bar Code or RadioFrequency specifications and otherregulations.

What are the benefits

of having the GPC in

the GDSN?The GPC provides one commonsystem for classifying itemsglobally. The classificationsystem supports the publicationsubscription, validation andsearch processes in the GDSN.

The benefits provided by theGPC in the GDSN are listed below:• GPC enables internal, external

and network synchronisationprocesses by organising andvalidating data.

• Allows globally standardisedpositioning of products bydenoting what type of productit is.

• Simplifies matching thepublication data withsubscription data.

• Enables category analysis andplanning support.

• Eliminates redundant activitiesand improves accuracy of itemset-up and maintenance.

• Allows mapping to differenttrading partners or third partysolution providers – reducingcosts.

• Improves integrity of the data.• Provides an opportunity to

group products with categoryspecific product groupattributes.

• Enables granularity andaggregation internally within acompany and between tradingpartners.


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Single Product versus

Product GroupsSingle Product identification keys,such as the GTIN or GLN, are usedto make the unique identificationfor of a product. There is a one-to-one relationship between theproduct and the keys. Thereforeidentification codes can neither beaggregated nor used for reportingor category analysis purposes anddo not allow comparisons amongdifferent manufacturers. In a typicalcatalogue, suppliers identify theGTIN, GLN and also describeproducts with additionalcomponents called Attributes.Attributes are characteristicsshared by products within a group.

Product Group keys are classificationkeys and are used to group similarproducts into common categories.

A key property of classifications isthat such groups can be clusteredwith others to create a hierarchy.I.e., any group within aclassification can be divided intosmaller groups based on commoncharacteristics.es”.

The differences between SingleProduct Identification andDescription and Product GroupIdentification and Description arelisted in the table overleaf.

Classification with GPC is theact of saying: “This productbelongs to this Brick, this Brickhas hierarchy components(Segment, Family and Class),and this Brick can be furtherdescribed with a BrickAttribute set and theassociated Brick AttributeValues”.


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GPC General Principles• Modularity and flexibility of the

classification.• Logical grouping of bricks. The

logic behind the schema istransparent

• Universally applicable and notculturally biased.

• Initially published in OxfordEnglish.

• Facilitate the collection of relevantclassification informationacceptable by the industry.

Schema principles• The GPC schema provides an

optional 4 - tier hierarchy –Segment, Family, Class and Brick.

• Each level of the schema isdetermined by rules and/orprinciples, and also industrydecision. However the rulesapplied differ depending on thelevel – Segment, Family, Class,Brick, Brick Attributes and BrickAttribute Values.

• The business rules apply to anylevel or entity of the schema

• Each Brick has assigned 1 or moreBrick Attributes; in turn each BrickAttribute has a set of associatedBrick Attribute Values.

3. GPC Format and Structure


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Example of a Brick and associated Brick Attributes and Brick Attribute Values:


Built on a foundation of rules,balanced with reality (what isrequired by the industry).

Generic GPC Business

Rules• Application of clear & consistent

structuring.• Use of non-culturally biased terms

and spellings.• Application of a standardised

naming convention.• Ensuring that each Segment,

Family, Class and Brick has thenecessary coverage and scope,with the ability to add appropriatenew values as identified.

• Avoid ambiguity through clearand concise definitions.

• Provide a generic andstandardised schema by ensuringthat all products are uniquelyplaced.

• A Brick must as far as is practicalcontain products that can becharacterised by the same set ofattribute types relevant to theproduct.

• Products that are grouped andsold together (excluding kits) willbe classified as variety packs. Thisapplies to the Class, Family &Segment level of the hierarchy.

Variety packs should only becreated where necessary.

• The schema will allow for thecreation of a Class specific Brick tocapture product that cannot beimmediately placed into anexisting Brick or the industrydetermines that they should notbe broken out. These Bricks arecalled ‘others’.

• Grouping products based on whatthey physically are.

GPC Hierarchy Rules• Resulting Bricks must be grouped

coherently and logically.• Categorised information must be

recognised globally.• Hierarchy groupings must be

relevant and suitable for all searchfunctionalities.

• Provides a flexible classification.• The hierarchy should be created

describing the types of productsand not which channel / verticalthey will be sold in. This willensure products that are availablein different channels / verticals canbe classified and identified easily.

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4. Creating the SchemaIndustry Collaboration


GPC Brick RulesThe list of rules below is acomprehensive list of rules thathave been used for Bricks acrossverticals. These rules are not‘general’ in the sense that they arenot appropriate for all segments.They should be used where theyare relevant and are applied in allrelevant segments.• Broad Area of Differentiation• Broad Area of Application• Products Serve a Common

Purpose and Use• Processed to Similar Methods• Products are Used and Applied in

a Similar Manner• Products are of a Similar Form and

Material• Split between Powered vs. Manual

Products• Replacement parts will be

classified in one Brick per Class• Storage and Preservation• Variety Packs • Other• Application and Function

Brick Attribute Rules• Brick Attributes must be globally

applicable and not biased towardsa region, culture or country.

• Brick Attributes must be

recognised, understandable andrelevant to the industry, in termsof product classification.

• Brick Attributes must be unique(intention, format, technicalities),objective and mutually exclusive –includes both Brick Attributes andtheir Brick Attribute Value choices.

• Brick Attributes must be based onobjective logic, and must not besubjective or emotive.

• An example of a non-classificationattribute would be a marketingview e.g. Indulgence.

• Brick Attributes must not relate toglobal, regional or local legislationrequirements. It is a piece ofinformation required globally, butwill be governed / legislatedlocally. E.g.: If Organic, FoodQuality / Food Assurance Claimsetc.

• Brick Attributes must bestandardised in terms of naming.

• High-level descriptor – Would auser require or expect to search,subscribe or publish informationthrough his view? The bestmethod for collection is notnecessarily how the User wouldpublish. I.e.: the ideal method ofcollection may require moregranularity.

• Single, comprehensive and

exhaustive code list.• No ambiguity in any terms / words

used.• All Brick Attributes will be

described to show whatinformation they are seeking toidentify.

• No Brick Variant will be used.• The number of Brick Attributes

should be the minimum of 1 andan average of 3-4 and targeted to7.

• Brick Attributes should refer tohigh-level classification (Brick)descriptors of product groupsrather than describing theindividual product concerned.

• An example of a non-classificationattribute would be Brand, as itrelates specifically to an individualor small group of products.

Brick Attribute Values• Normalised value pick list. Only

one Brick Attribute Value could bepopulated per each Brick.

• Brick Attributes must contain adefault value in cases of limitedinformation or non-applicability –unclassified and unidentified.

• Brick Attributes must possess asingle comprehensive andexhaustive code list.

• Brick Attribute Values must be

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managed and maintained by theService Provider and wherenecessary the GPC Task Group(GPCTG)

• Duplicate Brick Attribute Valuesare not permissible; all valuesshould be uniquely defined.

• There should be no abbreviationswithin Brick Attributes values.

• Brick Attribute Values should be inalphabetical order and created onthe basis of key words.

• Contentious terms or words usedas a value or within a value mustbe added to the glossary, alongwith a concise definition.

Schema Numbering

System• All numbers are 8 digits in length,

non-negative integer• Unique identification• Constant, i.e. the description can

change, but the number remainsthe same

• Brick Numbering• The code always starts with a ‘1’• Brick Attribute Numbering• Repeatable field• The code always starts with a ‘2’• Reusable against another Brick,

where applicable• Birck Attribute Value Numbering• Repeatable field• The code always starts with a ‘3’• Reusable against another Brick,

where applicable• Temporary GPC Brick Number• Devised by the GPCTG in

conjunction with the GDSN TaskGroup

• Stems from the mandatory use ofGPC in the Global Registry and theneed to register items that are notcurrently covered by the GPC

• Brick Code: 99999999• Brick Name: Temporary

Classification• Brick Definition: Temporary GPC

Brick Code

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GPC Rules Governing

Codes


Data Synchronisation

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5. Main Areas of Usage


GPC Brick has been mandated asthe common classification to beused in the GDSN. There are 3main areas where its function iscritical as one of the fourfoundational keys (together withGTIN, GLN and Target Market).

These are • Publication (i.e. suppliers denotes

what type of product it is), • Subscription (retailer determines

types of products they want toreceive), subscription is possibleby GTIN, GLN, Target Market, GPCBrick code and any combinationof these 4 keys, except GTIN andGPC Brick Code which aremutually exclusive.

• And validation (all parties ensurethat the classification is correct,and all the associated attributesare supplied)

Please note that GPC Task Group isrecommending to the GDSNcommunity to use additionalsubscription criteria in the nearfuture - not only the GPC BrickCode but also

• GPC Brick Code together withBrick Attribute Types and BrickAttribute Values

• Class level subscription• Family level subscription• Segment level subscription

Category management

projectsGPC is used as a commonlanguage to which participatingparties map their legacy schemas,and through this process can easilyunderstand how each localclassification compares.

Buying Programmes –

Product SearchGPC is used as a commonlanguage to search for productsacross different environments (e.g.catalogues and data pools) whereno common classificationpreviously existed). Through a mapbetween the buying categoriesand GPC the buyer can determinerequirements to return theappropriate products

Internal and External

Benchmarking and

RoutingGPC acts as a common languagebetween internal and also externalorganisations (across function,business unit or country) andprovides a single view againstwhich company performance canbe measured. This information canalso be used in sourcing projectswhere retailers want to comparesimilar products. Provides aframework for the centralisation ofsystems providing a commonclassification against whichproducts can be stored PIMs(Product Information Masters) etc.and can facilitate automaticrouting of information.

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Creating / Validating

InformationApplicable to• Suppliers (they own the product)• Retailers (who hold a lot of legacy

information)• 3rd parties (who either help create

or hold legacy information too)

Three main ways to approach this(either in-house or with support)• Identify the GPC information at

an atomic level i.e. associating itwith individual products orsimilar groups of products

• Creating a ‘map’ betweenlocal/own schema and GPC andthen associating the GPCinformation to products via asystem algorithm

• Cross referencing ‘meta data’from 3rd parties who can identifythe GPC information on behalf ofthe supplier or retailer

Before Mapping –

Understand the LogicAs a guide: look for the primaryand secondary rules which havebeen used to build GPC and yourschema

In some cases the logic may not be

readily apparent, especially if thehierarchy has been based on asubjective basis – in such ascenario it may be difficult to mapto the schema

MappingMaps may vary• One Brick may align to one client

group • One Brick may align to more than

one client group • Many Bricks may align to one

client group• Combinations – Alignment

through using different levels, i.e.bricks and attributes, and availablelevels within the client schema,GDD Attributes, and client specificinformation

Depends on source data• Depth/granularity• Subjectivity• Nature – Classification vs.

description• Technology bias!

Mapping ExamplesOne Brick = One Client Group• Brick=Sandwiches-Filled Rolls and

Wraps (Perishable) (10000255)• Client=Sandwiches, Cold Ready to

Eat, Fresh

One Brick = More than One ClientGroup• Brick = Fruit - Prepared and

Processed (Frozen-10000204• Client=Fruit - Apple / Pear Family -

Frozen• Fruit - Citrus - Frozen

Many Bricks = One Client Group

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6. GPC Lifecycle


• Brick = Extracts (1000050) + Soups- Prepared (Shelf Stable)10000262)

• Client - Soup / Bouillon / Stock -Ambient

Combinations within GPC• Client Foreign Pilsner Beer maps

to Brick =Beer ( 10000159)• Brick Attribute - Style of Beer

(20000170) - Pilsner (30003232)

Combinations with GDD andothers• Client Premium Pilsner Beer maps

to Brick =Beer ( 10000159)• Brick Attribute - Style of Beer

(20000170) - Pilsner (30003232)• GDD Attribute – Brand or Price to

determine “premium”

Transmit / Store

InformationPlaceholders are required• As attributes (Bricks and Brick

Attributes…possibly hierarchy)• And as a schema in the system

Validation• It is a ‘normalised’ field, therefore it

can be checked automatically andused when information is loadedinto systems and catalogues (datapools)

• The field will drive category

specific fields e.g. % alcohol

Publishing • Hold information in a ready state

to be sent into the GDSN

Ensuring the ‘pipeline’ is able tomanage GPC• It may that the information is

converted along the way and thequality is lost – what’s sent is notreceived!

• Encouraging all to use GPC and forall other standards to have basicsin place e.g. EANCOM

Using InformationAs part of the Pub / Sub process• Provides a common categorisation

to subscribe against• Initially using Brick… later using

the hierarchy and Brick Attributes• If cross referenced to local

category buyer can select localcategory and subscribe (systemwill convert and send outsubscription)

As part of GDS for retailers• Use the standards to automate

internal process flows and alsoaddress quality issues at the sametime

As a common language• Category management• Reduce mapping work• Reduce costs• Allow more alignment• Increase flexibility to create new

views

• Internal Benchmarking andRouting

• Used to group similar products forsourcing exercises

• Comparing assortments andperformance across countries

• Measuring company performancebased on categories

• Using a key to route informationautomatically in organisations

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If I am a ManufacturerAll externally facingcommunication that referencesproduct data will use GPC. Forinternal use, they may continue touse their proprietary classification.• Product Specs• Price Lists• Shipment and Share Reports• Inventory Positions• Product Image Mgmt• Category Management• POS Data• Shelf Data (plan-o-grams)• Joint Business Plans• Order Acquisition & Shipment

Status• Consumer Response

Better market research dataintegration

Improved category management• Category specific product

grouping• Data mapping from multiple

sources• Efficient communication• More direct response to

consumer’s behavioral pattern

Fewer stock outs

If I am a RetailerBetter view of buying spending –buying efficiency improvements• Sourcing/Procurement, Private

Label Management, Digital AssetManagement, Buying Catalogue

Efficiency improvement withcomplexity reduction

Improved category management

Wholesalers and retailers use GPCto support their merchandisingactivities.

Priority on horizontal vs. vertical;short-term representation iscritical; further vertical or industryspecific developments will addnew functionalities

B2B applications:• Online ordering for Not For Resale,

Data Synchronization, Vendorrelation management

• Pragmatic, streamlined exchangeof data therefore the GS1 GPC ismanageable and usable

Business Development Projectswith manufacturers:

Category management projects.

If I am a Service

ProviderKey areas to look at…

Identifying which GPC codes arerelevant to which products

Understanding its role as a centrallanguage and how it relates to(not replace) local categorisations

Conducting detailed crossreferencing with the local views tounderstand in practice how theycan align • Can you automate processes

such a routing to a buyer• Facilitate cross category

comparisons• Automatically (or at least easily)

assign the GPC codes or internalcategorisations using the standard

Integrating GPC into the businessworkflows and systems• Identifying where (systems) they

will hold GPC• Process to create, maintain, &

distribute GPC• Ongoing change management

processes…

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7. Practical Implementation Examples:What’s in it for me?


GPC has well-proven, robustbusiness rules; is managed throughTHE GSMP and has support fromGCI, the GS1 community, solutionproviders, data pools and theGlobal Registry.

UNSPSC covers many verticals,including products and servicesand a globally recognised brand.

UNSPSC and GPC arecomplementary. They do notcompete; GPC provides essentialdetailed classification and attributeinformation.

The potential business need forthe alignment of GPC and UNSPSCrequires validation. A ChangeRequest has been submitted and itcould trigger the whole process.The most critical component is thealignment of the differentgovernance models. Without thisarrangement GPC and UNSPSC canbe aligned via only a rather staticmapping. There are times whenthere may be alignment betweenCommodity and Bricks, at timesBricks may replace Commodity, attimes Bricks may sit aboveCommodity at the Class level andat times where there is no mapbetween Commodity and Brick. AnIntegration Project Plan will be

required to work from thedevelopment of a roadmap todetailed development activities.

Potential Alignment

BenefitsUsers• Better communication• Access to both the schemas• Efficiency improvement with

complexity reduction

GPC• Is linked to a broader global

standard• Establishes a role in UNSPSC to

define commodities• Enable a higher classification or

“roll-up” of Bricks

UNSPSC could• Allow the UNSPSC community to

leverage the expertise of GPC toimprove / maintain the code

• Provide users with greaterspecificity or “drill-down” forcommodities

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8. GPC and UNSPSC alignmentconsiderations


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The question of ‘Who managesthe GPC’ should be dividedinto two separate questions:Who manages thedevelopment of the GPC?And who manages theimplementation of the GPC?When phrased this way theanswer becomes apparent, theGPC task group is responsiblefor development,communication, education,guidelines and governance ofthe structure while the GDSNgroup is responsible for itscommunication andimplementation within thenetwork.

GPC GDSN Version

Alignment• To simplify the change process

and minimize the impact on thetrading partners only a singleversion be employed at one time.

• Theory is sound on versioningrelease (Modification-M; Addition-A; Deletion-D) by limiting amountof work on Deletes to only twice ayear while M and A can beupdated more frequently. Butdoes it meet the need of GPC?

• GPCTG regard the schema asongoing development, which

should not be subject to GDSNversion restraints. It was suggesteda full snapshot of the schema isdelivered to GDSN every quarterthat the GDSN should integrate.

• GDSN will use its own identifier forthe version published withinGDSN.

• Schema development and thusversion will be a continuousexercise and may be availablefrom other sources such as theGS1 website. GPC publications willidentify the GPC schema version incontext of its “as at” publisheddate.

9. GPC Governance


GPC Development

Process triggered by

Change Requests.Key methodology is used toprovide a quality Schema that actsas a common language allowing itto be linked to local categoryviews (hence the granularity andbuilding block approach).• An individual submits a Change

Request via the GSMP process.• This Change Request gets routed

to the GPC Task Group (GPCTG).• ACNielsen collects existing

schemas and further input fromacross the industry. This basisstarts off the review process(Strawman).

• The information is then reviewedand signed off by a GPCDevelopment Sub-team - anindustry group of category expertsincluding suppliers, retailers, and –more recently - other marketresearch groups. If the groupbelieves the GPC Schema doesnot meet industry needs, theyprovide feedback and suggestchanges. (Version 0).

• The Schema is then submitted tothe industry for open review. TheSchema is reviewed by the

industry, feedback is received andchanges are made.

• The GPC Development Sub-teamdevelops the attributes and theassociated values (Version 1).

• The Schema is then submittedagain to the industry for openreview. The Schema is reviewedagain by the industry, feedback isreceived and changes are made(Version 2).

• The GPC Task Group then votesand proposes it as a standard toGS1 management.

• GS1 management ratifies it andthe schema becomes an GS1standard.

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The development of futureclassification schemas depends onmarket demand. Retailers andmanufacturers working togetherwithin the GSMP develop allschemas.

Since GPC was launched thefollowing schemas have beendeveloped through the GSMP:

• Food, Beverage and Tobacco (FBT) • FMCG Non-food (Baby Care;

Beauty, Personal Care andHygiene; Healthcare; Homecare;Pet Care and Food)

• Cross Segment • General Merchandise: Arts, Crafts /

Audio Visual / Camping / Clothing/ Communications / Computing /Footwear / Furniture / KitchenMerchandise / MusicalInstruments / Personal Accessories/ Books / Sporting Goods /Stationery / Toys & Games;

• Hardlines: DIY / HouseholdAppliances / Automotive

Key figures on GPC

progress up to date:• Projected trends 26-30 Segments,

72-90 Families, 464-600 Classes, 5-9000 Bricks, 20-36000 Attributes,40-70000 Values

• Focused on FMCG retail categories• Phased schema delivery• Rules and principles updated and

published• Committed sub-team members

(15 GM + 3 Hardlines sub-teams) • Chairperson (s)• Conference calls, workshops• Sub-team population – not

enough industry participation • Three Types of GPC Change

Requests (CRs): CRs for newschema development, CRs forongoing maintenance of existingschemas, Industry feedback CRs -Service Requests

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10. GPC Classification Development Status


Targeted approach to usersupport. New business model andopportunity for Data Pools andMO’s. An opportunity to deployuniform answers globally, andsupport local needs. The modelsupports education, access anduse.

GS1 Member

Organisation (MO)

Business MotivationNo distribution and / ordevelopment cost. MOs can bethe ‘Sales Agents’ of GPC servicesto Non-GDSN users. Value addservices and translationopportunity. They can alsofacilitate Change Requests andprovide Helpdesk to their usercommunity.

Data Pool Business

MotivationFor GDSN users to provideinteractive access through a userinterface to facilitate item set up,Pub/Sub and search. For Non-GDSN users to provide accessthrough a user interface. FacilitateChange Request; Enable ChangeManagement by setting upclassification assignment;Helpdesk.

What happens to data

not covered by the

GPC?All items will be covered by theGPC. New products can beclassified as “TemporaryClassification” (Brick number99999999) until the classification isdefined and published by the GPCTask Group.• The complete set of GPC

schemas is published for:• Food Beverage and Tobacco• FMCG Non-food (Baby Care;

Beauty, Personal Care and HygieneProducts; Health Care; Home Care;Pet Care and Food)

Other schemas are available forindustry review:• Hardlines (Do It Yourself [DIY];

Automotive; Home Appliances)• General Merchandise (Clothing;

Footwear; Personal Accessories;Communications; Computing;Sporting Goods; Toys and Games;Arts and Crafts; Furniture andFurnishings; Kitchen Merchandise;Printed & Reference Materials;Stationery; Camping; Music; AudioVisual)

Will there be a plan to

migrate from various

classification systems to

the GPC?Trading partners are responsiblefor migrating their currentclassification system to the GPC.

Many data pools and GS1 MemberOrganisations can assist their usersin accomplishing this task.

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11. New Offering

Access to GPC Work In Progress Schemashttp://eroom.uc-council.org/eRoom/facility/AlignDataBusinessModelingGroupBMG/0_33e9b

If this link doesn’t work please try this path: http://eroom.uc-council.org

GSMP Align Data Business Requirement Group (BRG) >> Work Teams and Task Groups >> Global ProductClassification Work Team >> 1 PUBLISHED SCHEMAS

Login: guest ; Password: guest


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Why do classifications

matter? GPC is a powerful tool and a keypart of the common language tofacilitate buyer-seller relationships.Embedded in workinginfrastructures, it becomesrelatively invisible without losingany of that power. In this brochurewe have demonstrated thatclassification should be recognisedas a significant part of the GS1global standard package.

Overall, GPC can be summarised asfollows:• A rule-set based, fundamental GS1

global standard• Describesing the product group a

certain product belongs to andnot the product itself

• A Global business language ofclassification, both in a bilateraland multilateral tradingrelationship, but not necessarilyreplacing any current ‘local’classification systems

• Facilitates Facilitating publication,validation and subscriptionprocesses as part of themandatory fields in the GlobalData Synchronisation Network(GDSN)

• Supports Supporting selling /buying programs – high levelsearch and drill down

• An ‘Electronic Manual’ of globalcodes and definitions

• Its Users: Big or small tradingpartners (manufacturers, retailers,distributors), catalogues, datapools and the registry

• Note that GPC and UNSPSC will bealigned

• Improve product informationquality

• Eliminate redundant activities andreduce the cost of item set-up andmaintenance

• Spend analyses, standardisedproduct use, conduct supplierrationalisation initiatives

• Benchmark buying patternsagainst peer and competitorcompanies

• Conduct market share analysis• Allow mapping to different

trading partner or third partysolution provider views, reducingcosts

• Opportunity to group productswith category specific attributes

• Enable aggregation of electroniccatalogues by big buyingorganizations

We have argued that a key for thefuture is to produce a flexible,globally adaptable classification,whose users are aware of itsdimensions, and which explicitlyretains traces of its construction. Inthe best of all possible worlds, atany given moment, the only goodclassification is a livingclassification. GPC is a greatexample of a living classification.

12. Conclusion

For more information:Zoltan Patkai+32 2 788 [email protected]


Notes

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GS1 AISBL

Blue TowerAvenue Louise 326, b10B-1050 Brussels, BelgiumT +32 (0)2 788 78 00F +32 (0)2 788 78 [email protected]

www.gs1.org


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