6/5/2014 206: How to Do Business With McLane Company Beckey James, McLane Company Tuesday, June 10, 2014 1 6/5/2014 MCLANE COMPANY • McLane Company, Inc., is a $44 billion supply chain services leader, providing grocery and foodservice supply chain solutions for convenience stores, mass merchants, drug stores and chain restaurants throughout the United States. • McLane, through McLane Grocery, McLane Foodservice and recent foodservice acquisition, Meadowbrook Meat Company, Inc., (MBM), operates 80 distribution centers and one of the nation’s largest private fleets. © GS1 US 2014 ALL RIGHTS RESERVED 2 2 6/5/2014 MCLANE COMPANY • The company buys, sells and delivers more than 50,000 different consumer products to nearly 90,000 locations across the U.S. In addition, McLane provides alcoholic beverage distribution via McLane Beverage Distribution, Inc., and its acquisitions of Empire Distributors, Inc., Horizon Wine & Spirits and Delta. • McLane is a wholly owned unit of Berkshire Hathaway Inc. (NYSE: BRK) and employs 20,000 teammates. • McLane Grocery operates 20 Distribution Centers © GS1 US 2014 ALL RIGHTS RESERVED 3 3 6/5/2014 BENEFITS OF ACCURATE DATA • Purchasing – Weights and cubes have to be accurate within our system as well as our suppliers system so we are creating accurate Purchase Orders • Do I have a full truck? • Am I in the correct cost bracket? © GS1 US 2014 ALL RIGHTS RESERVED 4 4 6/5/2014 BENEFITS OF ACCURATE DATA • Receiving and Storing the Product – Assigning spaces for putting away receipts are based on the dimensions and weight of the product • Assigning a slot once instead of getting the product to the slot and having to readjust the slot or assign a new one – In our Missouri DC the product comes back to our Pallet Hospital to correct any issues before the automated process puts the product in a high bay location © GS1 US 2014 ALL RIGHTS RESERVED 5 5 6/5/2014 BENEFITS OF ACCURATE DATA – For items sold to our customers at the inner pack or each level, we “QC” each tote to ensure order accuracy. The tote is weighed and tare weight of the tote is removed to determine the actual product weight. – If there is a weight discrepancy it requires the tote to be manually checked to ensure order accuracy which adds additional distribution costs to the product – Product is scanned to ensure the proper product is in the tote and mispulls have not occurred © GS1 US 2014 ALL RIGHTS RESERVED 6 6 6/5/2014 BENEFITS OF ACCURATE DATA • Shipping – Efficient utilization of our trucks requires accurate dimensions and weights to ensure we are maximizing available space. This is important at each level of the product hierarchy, we could be shipping any level. © GS1 US 2014 ALL RIGHTS RESERVED 7 7 6/5/2014 DATA SYNCHRONIZATION WITH MCLANE COMPANY • Publish to our Corporate GLN: 0083967000016 • Send all levels of your product hierarchy, as a distributor we could sell our customers the case, the inner pack, or the each level of the hierarchy, please ensure BEFORE, you publish a hierarchy for the first time that the number contained is accurate as well as all other attributes. If you have questions about how to publish please contact your solution provider BEFORE publishing. If the product hierarchy is wrong it delays new item setup when the hierarchy has to be deleted, wait 25 hours, and then publish a correct product hierarchy and number contained within each hierarchy! © GS1 US 2014 ALL RIGHTS RESERVED 8 8 6/5/2014 DATA SYNCHRONIZATION WITH MCLANE COMPANY • Send gross weights on ALL levels of product hierarchy, including consumer units • If Base Unit Indicator = “Yes” then the Net Content field becomes required • Product Description must be populated with a detailed item description with no abbreviations • Send TI/HI either at the pallet level or at the case level, which is required by McLane Company. • Make sure that: eanuccCode is: • The data structure assigned and marked on a physical product. • Make sure you are publishing the dimensions of the items in accordance with GS1 requirements © GS1 US 2014 ALL RIGHTS RESERVED 9 9 6/5/2014 DATA SYNCHRONIZATION WITH MCLANE COMPANY • McLane Company is synchronizing many of our suppliers attributes into our back end systems and it is imperative that the item data is accurate. Dimensions and weight at every level of the hierarchy are used for our purchasing, receiving, slotting, and quality control process for shipping outbound to our customers. The product description from GDSN is being populated to use with our pick to voice system, as well as to create a McLane short description at the time of new item setup. • We will determine what levels of the product hierarchy we sell and will modify the “Orderable” flag this makes gross weight mandatory on all levels of the product. We will register and publish the appropriate level of GTIN’s using our GLN as a reseller of the item • Therefore, it is imperative that all data sync issues and corrections be made before we publish to retailers so that they receive correct data the first time. © GS1 US 2014 ALL RIGHTS RESERVED 10 10 6/5/2014 SUPPLIER PROVIDES NEW ITEM INFORMATION • The Supplier publishes an item as new or republishes the item as new if it is in historical, supplier’s use a web interface or an excel spreadsheet to register items with 1SYNC. • The item appears in Product Intro under “ready to list” for the supplier to add the cost and other information and then submits the items. © GS1 US 2014 ALL RIGHTS RESERVED 11 11 6/5/2014 CODE DATE INFORMATION • This can be found by clicking on the case and then scrolling down, if this • Information is not present click on send back to supplier and ask them to publish the information © GS1 US 2014 ALL RIGHTS RESERVED 12 12 6/5/2014 COMMENTS AND ATTACHMENTS © GS1 US 2014 ALL RIGHTS RESERVED 13 13 6/5/2014 WORKFLOW HISTORY © GS1 US 2014 ALL RIGHTS RESERVED 14 14 6/5/2014 WHAT IS NEXT? • The item comes back to New Item Setup, information is validated against the case sample if available, cost and GDSN information is printed and then they click “submit” to pass to the UIN Desk. • If the vendor is certified the paperwork is given directly to the UIN desk, if not it is attached to the case sample or an exception has been requested. • The item is then validated again by the UIN department, and then cubiscaned, the dimensions and weight are added to Product Introduction and if there is more than a 4% variance the item is sent back to the supplier to correct. • Once correct the UIN department approves the item in PI, it is downloaded to Corporate Item Maintenance to assign the UIN. This is done via an hourly XML message from 1SYNC. • The New Item Department then cascades the item to the DC’s that were noted in PI and then New Items validates that the item went live in the appropriate DC’s the next day. © GS1 US 2014 ALL RIGHTS RESERVED 15 15 6/5/2014 AUDIT PROCESS PERFORMED AT MCLANE COMPANY • Once the case is received the following information is audited for accuracy: – The Case, Inner pack, and retail GTIN matches what has been published in Data Synchronization and that the correct EAN/UCC code and type is being published. – The Case, Inner pack, and retail barcode scans and it is using an accurate barcode format. (ITF-14, GS-128,UPCA,EAN13,EAN8) If you are using a GS-128 application identifiers should be present) – Item description matches what has been published – Declared Net Content matches what has been published for retail items – The pack matches what has been published. – The dimensions and weight are within tolerance © GS1 US 2014 ALL RIGHTS RESERVED 16 16 6/5/2014 COMMON REASONS NEW ITEMS ARE DELAYED 5. Supplier has not published the item as new or republished as new 4. The supplier has provided inaccurate or incomplete information 3. GTIN allocation rules have not been followed 2. The supplier is not registered with GS1US http://gepir.gs1.org/v31/xx/ 1. The case sample has not arrived © GS1 US 2014 ALL RIGHTS RESERVED 17 17 6/5/2014 HOW TO BECOME A CERTIFIED SUPPLIER WITH MCLANE • Publish ALL items currently carried by McLane Company through the Global Data Synchronization • Setup new items using the 1SYNC Production Introduction Solution • We will ensure that all items that we carry have been published and we will review all items sent to make sure we have accurate information in our system • We will compare what is being sent to us through GDSN and what we have previously cubiscaned and e-mail you with any disparities • Follow ALL GTIN allocation rules, we should not receive corrections on items that are actually violations of the GTIN allocation rules and not true corrections (example: Net Content should not be published as a correction when the item has been in existence for years) • All items must have unique scanable barcodes at each level of the hierarchy © GS1 US 2014 ALL RIGHTS RESERVED 18 18 6/5/2014 QUESTIONS ASKED OF THE SUPPLIER • What process do you have in place to publish new items to us? • Do you weigh and measure your cases after they are produced? • How are you weighing and measuring your cases? • What processes have been put in place to ensure Data Accuracy is retained? © GS1 US 2014 ALL RIGHTS RESERVED 19 19 6/5/2014 WHAT’S NEW? FOOD SERVICE INFORMATION © GS1 US 2014 ALL RIGHTS RESERVED 20 20 6/5/2014 CHEMICAL INGREDIENTS FLAG © GS1 US 2014 ALL RIGHTS RESERVED 21 21 6/5/2014 QUESTIONS? © GS1 US 2014 ALL RIGHTS RESERVED 22 22