UCCnet Educational Series Part 1

Building a Better Bottom Line

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Agenda• Why UCCnet?• Why eCollaboration?• Industry Overview and Impact• Who is UCCnet? • UCCnet Offerings • The Benefits of Using UCCnet

– The Case Studies• How it Works/Impact• UCCnet Community • Next Steps

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Why UCCnet?

• Retailers and manufacturers, distributors, etc., are getting involved in data synchronization efforts – Increase supply chain efficiency– Reduce costs for the industry

• Support the adoption of eCollaboration by the industry– Implement common data standards of the EAN.UCC

System– Subscribe to UCCnet GLOBALregistry™ – Implement UCCnet SYNCengine for item

synchronization

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The Industry:UCCnet, UCC, EAN, FMI,

GMA, VICS,Transora, WWRE, ECCC, GCI, Wal-Mart, Kraft,

Colgate, Wegmans, P&G, Ahold, Microsoft, IBM, SAP,

UDEX, etc…

2. Single item registry

3. Item synchronization

4. Collaborative transaction management

5. Collaborative supply chain management

6. Collaborative sales & promotion planning

7. Collaborative insight & product development

1. Common data standards

eCollaboration

You

Why eCollaboration?

Source: A.T.Kearney for GMA - FMI

Foundation for eCollaboration •Provides 10 basis points in benefits•ROI in less than 6 months

Additional eCollaboration Activities•200-300 additional basis points of benefits

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Industry OverviewIndustry leaders agree electronic collaboration

is a critical business priority– Industry leaders estimate eliminating inaccurate

supply chain information could save the CPG and Retail industries $25-50 billion per year

– Almost $1 billion has been invested in enabling the continuous exchange and automation of item information

– Electronic collaboration (synchronization) is the first step to other forms of collaboration

– The need for a standards-based platform and business process

Source: GMA-FMI Trading Partner Alliance

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Who is UCCnet?UCCnet is a not-for-profit, neutral, global, standards-based subsidiary of the Uniform Code Council (UCC).

– Provides a common means for many companies and industries to trade and communicate

– Lowers the costs of doing business– Simplifies and streamlines business

processes– Essential for global commerce

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UCCnet Offerings• UCCnet Registers, Validates, and

Synchronizes UCC/EAN product and location information for trading partners within industries served by the UCC.

– A single vision for registry with industry partnerships.

• Enables collaborative relationships through standards compliant, internet based technology and business processes

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The Benefits of Using UCCnetWal–Mart Case Study

• 98% of the items synchronized were updated • Item maintenance that normally took 15 to 30

days went to same day maintenance• Recognition of carry over of 30% of de-listed

items• 5-15% increase in market share for early

arrival of new items

“We knew there were benefits with UCCnet, we didn’trealize how much more we would find”

Source: Randy Salley – Wal-Mart, Retail Systems 2002 Presentation

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Staples Case Study“UCCnet will have a cross-channel

impact”• On average 25% of store communications errors are

related to product data inaccuracies• New item introductions take up more than two and a

half resources to follow up and get complete information

• 25% of item maintenance/week is updates to basic attributes controlled by suppliers: UPC, Model #, Vendor #, Description, Sell UOM, TiHi, Dimensions

• Item dimensions can differ per distribution center for the same product based on measuring methods

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Estimated Benefits of Using UCCnet:Lowe’s Case Study

“Accurate product data and streamlined business processes will allow us to focus

more time selling your products ”

• 44,400 hours in Merchandising activities saved per year

• 17,543 hours in Payables activities saved per year• 5,200 hours in Marketing activities saved per year

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The Benefits of Using UCCnetProcter & Gamble Case Study

• P&G US saved $2-$5 million in productivity costs by consolidating their databases and centralizing information

• 10% reduction in shelf out of stocks = $10 million reduction recovery

• Saved 30-50 thousand administration hours in rework of information

• 80% reduction of listing time for new items

“We had over 60 databases world wide, and not one hadInformation correctly listed”

Source: Steve David, Procter & Gamble, January industry meeting

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UCCnet – How it Works

Manko– Staples– Wal*Mart Example•Manko: enters product data into the GLOBALregistry™ •Manko: product data validated •Product data is ‘registered’•Where product data should be sent is identified•Utilizing the SYNCengine:

•Manko’s product data sent to retailers•Staples/Wal*Mart: send response to Manko

•Product data is ‘sync’d’

GLOBALregistry™ : A single location where standards compliant and location data is registered, identifies the ownership and accuracy of the information is validated.

SYNCengine: performs thetransactions of sending and receiving validated product information betweenpartners.

SYNCengine SYNCengine

MancoManco

Wal*MartWal*MartStaplesStaples

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How it Works/ImpactItem Maintenance/Item Change/Delete :• Item and party (owner of item) information stored in a central location

(GTIN/GLN compliant) • Electronic delivery of transacting information (public/private)• Immediate response for item changes (“intelligent routing”)

New Item• Electronic delivery of transacting information (public/private) • Capability to provide information to the accounts in advance with

“release dates

Benefits:– Attribute information impacting store operations, merchandising,

warehousing, accounting/finance.– Accountability and maintenance of most up-to-date item information

available– Real-time search and browse feature of items – Speed to market of products and increased market share due to

compliant data– Data Delivery: private or public transmission of information by

market group, retailer, or community

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UCCnet Community1/19/2004

Per month growth of 100 –125 Manufacturers and 2-4 Retailers

• 2500+ Manufacturers

• 29 Retailers

• 16 Industries

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Sampling of UCCnet Subscribers

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Next Steps• Subscribe:

– On-line www.uccnet.org – Contact UCCnet at 1-800-219-8232

• Get educated:You will have access to:– Experienced community members– UCCnet Subscriber Website– UCCnet Online Document Library (eRoom)– UCCnet Help Desk 24/7 support– Educational Web Seminars:

http://knowledgebase.uccnet.org/events/webEvents.asp?n=2-13&iEventType=13

• Get implemented: Training, Solution Partners