6/5/2014 207: How to Do Business With IPC Lucelena Angarita, IPC/Subway Rick Buttner, IPC/Subway June 11, 2014 1 6/5/2014 BACKGROUND • Today, the SUBWAY® brand is the world's largest restaurant chain with 41,618 restaurants in 104 countries around the world. • Independent Purchasing Cooperative (IPC) – Franchisee-owned purchasing cooperative for over 30,000 SUBWAY® restaurants in the US, Canada, Virgin Islands and Puerto Rico. – Negotiates the lowest cost for goods and services, while improving quality, enhancing competitiveness and ensuring the best value to SUBWAY® restaurants and their customers. © GS1 US 2014 ALL RIGHTS RESERVED 2 2 6/5/2014 OUR COMPANY • Rick Buttner, Director of Quality & Supply Chain Risk – – – – Worked for 6 years at Subway Franchisee World Headquarters Moved to IPC to start the Quality Net program Co-leader of the Subway Incident Management Team Strategic vision for data accuracy, food safety, and traceability throughout the Subway system • Acquired a GS1 Company Prefix (100,000 codes) in 2002 • IPC joined the Foodservice GS1 US Standards Initiative in 2010 – How did it start? • Produce suppliers presented the Produce Traceability Initiative (PTI) • Confirmed that the barcodes created were GS1 compliant • We needed a vehicle to improve traceability © GS1 US 2014 ALL RIGHTS RESERVED 3 3 6/5/2014 IPC’S DATA SYNCH GOAL • Standards that will drive profitability & efficiency: – Use GTIN’s instead of internal numbers for all transactions • Use Subway® GTIN’s for Subway® branded items • Use your GTIN for your private labeled products sold to Subway® – Standard product attributes and definitions: speak one language • Suppliers must publish all CASE LEVEL attributes required as outlined in the IPC Implementation Guide – Real-time exchange of product information • Suppliers must publish all products sold to Subway® to the GDSN® through their data pool by October 1, 2014 • Subway® labeled products published to Subway® • Supplier labeled products published directly to our DCs © GS1 US 2014 ALL RIGHTS RESERVED 4 4 6/5/2014 THE TIME IS NOW • 2013 Surveys Revealed: – 74% of Suppliers by volume spend are publishing core product data via GDSN Our Distributors' GDSN data Integration to Internal Systems 13% – 87% of our Distributors have confirmed to be receiving core product data via GDSN 30% 57% Currently Integrating Planning to integrate No plans/No answer • This progress aligns with the GTIN/GDSN 2014 Sunrise for the Foodservice GS1 US Standards Initiative, December 31, 2014 © GS1 US 2014 ALL RIGHTS RESERVED 5 5 6/5/2014 KEY GDSN PILOT FINDINGS • Synchronized with: 3 Suppliers, 2 Distributors • Identified two primary sources of attribute discrepancies: 1. Lack of standardized attribute definitions 2. Limited attribute updates as products changed (Item Info Worksheets are collected manually as necessary) • Our Manual Process: Supplier emails Item Information worksheet to purchasing Purchasing reviews and forwards to internal systems administrators Each team manually enters information into each system Purchasing emails excel Item Info Sheets to distributors one by one • NOTE: Any product updates are communicated to distributors by email as necessary © GS1 US 2014 ALL RIGHTS RESERVED 6 6 6/5/2014 KEY GDSN PILOT FINDINGS • Found 74% of the items synchronized had one or more core attribute that differed • First synchronization: received 70 publications, published 21 items to distributors Supplier Publishes Item Info to IPC Product passes data pool validations for consistency (200) IPC reviews information and goes back to vendor as necessary Accept or reject product back to IPC Distributors perform physical validation IPC Publishes products to Distributors • Distributors validated the product attributes that we published via GDSN – Distributor 1: Only 4.4% of the validated total attributes had discrepancies – Distributor 2: Only 11.75% of the validated total attributes had discrepancies © GS1 US 2014 ALL RIGHTS RESERVED 7 7 6/5/2014 RETURN ON INVESTMENT • Six Sigma tools helped us estimate: – Logistics ROI $$ • Cleaner product information equals more accurate freight bids • Example: 1.5 lb. difference in weight for mayo could potentially add $100K to our annual freight cost – Labor ROI $ • Item management: Data entry time + time to find and fix discrepancies: 26% of an FTE • Data mapping effort: 65% of an FTE + Software vendor cost – Cost of Data Errors • Time to fix discrepancies: • Via email: 15-30 business days for ONE product • Via GDSN: ½ business day © GS1 US 2014 ALL RIGHTS RESERVED 8 8 6/5/2014 DATA SYNCH PROJECT: LAUNCHED • Our Supplier Campaign started on December 9th, 2013 • FSEnet Inc. is our Data Pool Provider • Target: synchronize 75% of our product catalog (by volume) with our suppliers and distributors by August 2014 Our Goals: Be the “gatekeepers” of our data throughout our supply chain Be a bridge to ensure timely responses on discrepancies Ensure the right parties have the right information that adheres to GS1 standards © GS1 US 2014 ALL RIGHTS RESERVED 9 9 6/5/2014 GS1 STANDARDS ADOPTION: NEXT STEPS – GS1-128 guidelines for foodservice were published in April 2014 • Acceptable barcode application practices • Case layout redesign • GS1-128 barcode definition – Barcode with up to 48 characters – Components 1. GTIN 2. Lot number 3. Production date/Use by date – IPC supplier and distributor contracts are being updated to include: • Product data synchronization and barcode requirements • Electronic sharing of all transactional documents (EDI, cXML, Flat File) © GS1 US 2014 ALL RIGHTS RESERVED 10 10 6/5/2014 SUBWAY® SUPPLIER & DISTRIBUTORS OBJECTIVES DATA SYNC OBJECTIVES SUPPLIERS DISTRIBUTORS 5/1/2014 9/1/2014 Static Product Information Sharing - GDSN • Publish/Receive GDSN item information for all products purchased by Subway® to IPC 1/2/2015 • Implement Data Accuracy Processes for Supply Chain Data Standardized Product Identification • Use GTIN’s for Subway® products in all business transactions • Prepare internal systems to receive product data via GDSN, including 14-digit GTIN 1/2/2015 1/2/2015 10/1/2014 Data Accuracy Processes for Supply Chain Data • Execute the Data Quality industry scorecard 1/2/2015 © GS1 US 2014 ALL RIGHTS RESERVED 11 11 6/5/2014 SUBWAY® SUPPLIER & DISTRIBUTORS OBJECTIVES TRACEABILITY OBJECTIVES SUPPLIERS DISTRIBUTORS 1/2/2015 1/2/2015 6/1/2015 6/1/2015 Dynamic Product Information Sharing • Send all transactions electronically via EDI, XML, or flat file Barcode Scanning • Start applying/scanning SSCC/GS1-128 barcodes with Date-Batch/Lot Numbers for all Subway® products if present for inbound • Scan Subway SSCC/GS1-128 at time of pick 6/1/2015 • Scan Subway SSCC/GS1-128 if present for outbound, and at time of delivery 1/4/2016 Standardized Location Identification • Assign GS1 Global Location Numbers (GLNs) to all plants, warehouses, DCs, and Re-Ds. 1/4/2016 1/4/2016 © GS1 US 2014 ALL RIGHTS RESERVED 12 12 6/5/2014 OUR FUTURE VISION GDSN Product Data Synchronization GDSN becomes Source of Truth for: IPC and Subway HQ Systems Use of GTIN’s: Simplified product mapping Trading partner communication Product Traceability: Add GS1-128 Barcodes Add GLN’s to all locations EDI Transactions © GS1 US 2014 ALL RIGHTS RESERVED 13 13 6/5/2014 RESOURCES • IPC Data Synchronization Pilot: http://www.ifdaonline.org/News/Data-Sync-Pilot-Tests-New-Publication-Workflow-IPC • GS1-128 Guideline for Foodservice: http://www.gs1us.org/industries/foodservice/tools-and-resources/gtin-gln-gdsn • GTIN/GDSN 2014 Sunrise: http://www.gs1us.org/industries/foodservice/foodservice-initiative/industry-sunrise-date © GS1 US 2014 ALL RIGHTS RESERVED 14 14 6/5/2014 QUESTIONS © GS1 US 2014 ALL RIGHTS RESERVED 15 15