1. No category

6/10/2013
67: How to Do Business with
Wakefern Food Corporation
Michael Durning
Wakefern Food Corporation
AGENDA
• Who is Wakefern?
• The GS1 Standards Solution at Wakefern
• Understanding the Data Quality Challenge
• Steps to Manage Vendor Item Data
• Our Data Quality Initiatives
• Increasing Demands for Accurate Data
2
© GS1 US 2012
1
6/10/2013
Background
• Wakefern Food Corp. is a member
owned cooperative
–Fiscal
Fi
l 2012 generated
t d $13.6
$13 6 Billi
Billion in
i
Retail Sales
–249 ShopRite Supermarkets
–Plus 52 PriceRite alternate formats
• All retail stores are located in the MidAtlantic and Northeast regions
–NJ, NY, PA, CT, DE, MD, MA, and RI
3
Background
• Scope of Wakefern Product Data:
– 147 Item Attributes (currently stored)
– Over 70,000 SKUs
– Purchased from over 2,000 suppliers
The Challenge?
Managing all of this data
4
2
6/10/2013
GS1 Standards Solutions at Wakefern Food
Corporation
stan·dard - noun - \stan-dərd\
– something established by authority, custom, or general consent as
a model or example
– something set up and established by authority as a rule for the
measure of quantity, weight, extent, value, or quality
(From the Merriam-Webster Dictionary)
• GS1 Standards used by Wakefern
– EDI
– Bar Codes
– Global Data Synchronization
5
GS1 Standards Solutions at Wakefern
Electronic Data Interchange
• Electronic Data Interchange (EDI) is the computer-tocomputer interchange of strictly formatted messages that
represent documents.
– EDI is not intended for human intervention, processing
of messages is by computer only
• Wakefern uses EDI (Electronic Data Interchange) to
exchange business information with our trading partner
using two of the standard formats
– ANSI X-12
– UCS (Uniform Communication Standard)
6
3
6/10/2013
GS1 Standards Solutions at Wakefern
Electronic Data Interchange
Wakefern supports 12 transaction sets
Transaction Set
EDI Document Name
810
Invoice
880
Invoice
875
Purchase Order
850
Purchase Order
852
Product Activity (Warehouse or POS)
856
ASN (Advanced Ship Notice)
Text Message (For notification of Invoice 864
Rejections)
855
Purchase Order Acknowledgment (For Vendor
Purchase Order Acknowledgment (For Vendor Managed Inventory)
997
Functional Acknowledgment
832
Pricing Catalog
812
Credit/Debit Adjustment
820
Payment Order/Remittance Advice
UCS X‐12 X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
7
GS1 Standards Solutions at Wakefern
Electronic Data Interchange
• Wakefern processes over 1M EDI documents every year
• Over 400,000 Purchase Orders are transmitted through
EDI
• The EDI invoice is used by Accounts Payable to
reconcile and pay our suppliers for more than 90% of
Wakefern Purchase Orders
• Many Wakefern programs are made possible with EDI
transactions
• EDI works very effectively for Wakefern
– Suppliers and Retailers follow the rules and guidelines
established in the EDI standards
8
4
6/10/2013
GS1 Standards Solutions at Wakefern
Bar Codes
• Wakefern supports many types of Bar Codes for
identification
– EAN/UPC (in
(i multiple
lti l fforms)) used
d ffor retail
t il point-of-sale
i t f l
(POS) and Logistics
– GS1 DataBar used at POS, they are smaller than the
EAN/UPC and can carry additional information
– ITF-14 used to carry a GTIN, but not for use at POS
– GS1 QR Code is a "2D Matrix" symbol used with
applications on mobile devices
9
GS1 Standards Solutions at Wakefern
Bar Codes
• Bar Codes are used in many ways by Wakefern and our
member stores
– Identify
Id tif items
it
sold
ld to
t the
th consumer
– Identify product in the warehouse
– Assist in receiving purchase orders
– Scan and verify Coupons At the Cash Register
• Bar Code standards work very well for Wakefern
– Suppliers and Retailers follow the rules and guidelines
established in the different Bar Code standards
10
5
6/10/2013
GS1 Standards Solutions at Wakefern
Global Data Synchronization
• Global Data Synchronization (GDS) is the electronic transfer of standardized product and location
standardized product location information and the continuous synchronization of that data for the life of an item
continuous synchronization of that data for the life of an item
– Product information may include:
• Attributes required in the supply chain (e.g., dimensions, weight and net content)
• Basic product marketing information (e.g. features, benefits)
– Location information includes:
• Ph
Physical or virtual locations involved in trade (e.g. headquarter, i l
i t l l ti
i l di t d (
h d
t
store, warehouse, accounts receivable)
• A standards based solution that is supported globally by GS1
11
GS1 Standards Solutions at Wakefern
Global Data Synchronization (GDS)
• Wakefern has adopted GDS as part of our overall Item Master solution to ensure complete, accurate, and
timely distribution
of business information
and timely
distribution of business information throughout the enterprise
– Fully integrated with our Vendor Item Portal to support both New Item submissions and updates to existing items
12
6
6/10/2013
GS1 Standards Solutions at Wakefern
Global Data Synchronization
• Wakefern has integrated the following publication types to support the processing of item data from the Global Data Synchronization Network (GDSN)
Global Data Synchronization Network (GDSN) – New: used for the submission of a new item to Wakefern
• Salesperson ‘pulls’ the publication into the portal and adds some additional information to complete the process
– Initial Load: used to synchronize item data for items presently carried by Wakefern. • All
All previously existing items must be synchronized using this message previously existing items must be synchronized using this message
type
– Item Changes or Modifications: used to update our item master for synchronized items with changes made by the publisher for the item
13
GS1 Standards Solutions at Wakefern
Global Data Synchronization
Wakefern processes for item publications:
Initial Loads
• Initial Load Publications are matched to existing items existing items in Wakefern’ss Item Database & any data exceptions are Item Database & any data exceptions are
Wakefern
reviewed to determine accuracy or acceptable tolerance. • Items without variances are automatically ‘Synchronized.’
• Items with data exceptions may be challenged and an email will be sent for that item
• Item
Item Change publications will be processed for items Change publications will be processed for items
with a status
status of Review, Accepted & Synchronized.
Item • Ensures that all changes published for your products are processed timely and efficiently.
Changes
• The Data Review process is critical to affect changes in a multi‐warehouse environment
14
7
6/10/2013
GS1 Standards Solutions at Wakefern
Global Data Synchronization
Wakefern processes for item publications:
New Items
Item Deletes
• The new item publication from the GDSN is made as part of the new item submission process
‘available’
available as part of the new item submission process
• Maximizes benefits of Data Synchronization by capturing and integrating the maximum number of data attributes
• Increases the efficiency of both the sales person and category manager by reducing manual data entry.
• Item Delete publication is stored in Data Sync repository and not integrated with internal processes at this time.
• Requires manual intervention and follow through
15
GS1 Standards Solutions at Wakefern
Global Data Synchronization
• With our trading partners and Global Data Synchronization,
have we achieved:
– Perfect
P f t item
it
data?
d t ?
– Reduced out of stocks?
– Increased productivity?
– 100% Consumer Satisfaction?
• GDSN standards work well for Wakefern . . . but . . .
– Vendor understanding & compliance has opportunity for
improvement.
16
8
6/10/2013
GS1 Standards Solutions at Wakefern
Global Data Synchronization
• If a vendor is synchronizing item data through
the GDSN, where is the disconnect to Data
Quality?
–Suppliers may not understand where or how
the data recipient is using the supplier item
data
–The guidelines and rules created to support
the GDSN are not universally applied
17
Understanding the
Data Quality Challenge
Vendor Data
Wakefern Item Master
The Consumer
18
9
6/10/2013
Understanding the
Data Quality Challenge
• Data Quality is dependent on our suppliers – Understanding and adhering to all of the rules and guidelines that support the GDSN
id li
h
h GDSN
– Publishing item data according to these rules and guidelines
– The Rules to adhere include:
•
•
•
•
•
GDSN Validation Rules
GDSN Trade Item Implementation Guide
GDSN
Trade Item Implementation Guide
Data Quality Framework
GTIN Allocation Rules
Package Measurement Rules
19
Understanding the Data Quality Challenge
GTIN Allocation Rules
• The GTIN Allocation Rules provide the brand
owner with a guide to assign Global Trade
Item Numbers to their items
– Critical for identifying an item at all points in the supply
chain and to differentiate any variation of an item for
the benefit of the customer (Distributors, Retailers
and Consumer)
“The guiding principle is if the customer is expected to
distinguish a new trade item from an old trade item and
purchase accordingly, a new GTIN should be assigned.”
(1.1.General Rule)
20
10
6/10/2013
Understanding the Data Quality Challenge
GTIN Allocation Rules
http://www.gs1.org/1/gtinrules/
21
Understanding the Data Quality Challenge
GTIN Allocation Rules
• Suppliers create major difficulties for their customers
when GTIN Allocation Rules are violated
– Two GTIN Rules that have significant importance
to retailers, as they both impact the Consumer
• Changes to the Declared Net Content (4.1.3)
• Unique UPCs/GTINs on similar Retail items,
like flavors of yogurt or ice cream (4.2.2)
22
11
6/10/2013
Understanding the Data Quality Challenge
GTIN Allocation Rules
Impact of changes to the Net Content
CODE
UPC
330710
330680
330750
330730
44700‐06145
44700
44700‐06147
06147
44700‐06145
44700‐06190
DESCRIPTION
Selects Applewood Smoked Turkey
S l t A l
Selects Applewood Smoked Ham
d S k d H
Selects Slow Roasted Turkey
Selects Rotisserie Chicken
CURRENT SIZE
NEW SIZE
9z
9
9z
9z
9z
8z
8z
8
8z
8z
23
Understanding the Data Quality Challenge
GTIN Allocation Rules
24
12
6/10/2013
Understanding the Data Quality Challenge
GTIN Allocation Rules
Dept.
p
Grocery
Grocery
UPC Code
Item Description
p
84646200074 TT Curry Madras Paste
72745200011 La Morena Whole Jalapeno
Size on Shelf
Label
10oz
27.75oz
Size on Item
10.5oz
28.2oz
Grocery
Grocery
4133102751 Goya Tamarind Nectar
4133102752 Goya Mango Nectar
7.1oz
7.1oz
5 fl oz
5 fl oz
Grocery
Grocery
Produce
4133102755 Goya Guayaba Nectar
9955509805 Café Escape Chai Latte K-cup
8573770003 Sunsweet Cashews-Salt
7.1oz
5.9oz
3.51oz
5 fl oz
5.8oz
3oz
15 4o
15.4oz
45 fl oz
7lb
14 3o
14.3oz
42 fl oz
5.7lb
9.5oz
9oz
Grocery
Grocer
Grocery
Grocery
Grocery
5170079170 Finish Gel Pacs Fresh Scent
75703733746 Oxi Clean Stain Fighter Fresh Scent
1901400886 Iams ProActive Health Dog Food MiniChunk
2840003375 Ruffles original
Violation Date:
4/16/2013
25
Understanding the Data Quality Challenge
GTIN Allocation Rules
Impact of changing the flavor of
an item
26
13
6/10/2013
Understanding the Data Quality Challenge
GTIN Allocation Rules
• The continued lack of adherence to these rules
prompted GS1 US to write a letter to the industry
reminding
i di th
them off th
the importance
i
t
GTIN
Allocation Rules play in delivering accurate
information and product to the consumer
• This letter has been mentioned in a number of
industry association news briefs
– Grocery Manufacturers Association (GMA)
– National Grocers Association (NGA)
27
28
14
6/10/2013
Understanding the Data Quality Challenge
GTIN Allocation Rules
• GS1 Connect provides the best opportunity for you to
learn more about the GTIN Allocation Rules
– GTIN Allocation Rule Workshop (2 Sessions)
• Wednesday, June 12 at 9:00AM
• Thursday,
June 13 at 9:00AM
• Meet with your customers during the conference to
learn how the GTIN Allocation Rules affect their
supply chain and ability to market your products to
the consumer
– Round Table Sessions to be hosted by Wakefern
• Tuesday,
June 11
01:00 - 01:50 PM
• Wednesday, June 12
12:00 - 12:50 PM
• Thursday,
June 13
12:40 - 01:30 PM
29
Understanding the Data Quality Challenge
GDSN Package Measurement Rules
• The GDSN Package Measurement Rules
establish rules for the ‘measurement of
product packaging’ for both ‘retail and non
retail products from the consumer unit to the
case level and all intermediate packaging
levels’
– Two categories of rules
• Consumer Trade Items
• Non-Consumer Trade Items
30
15
6/10/2013
Understanding the Data Quality Challenge
GDSN Package Measurement Rules
• Key things to know about the Package
Measurement Rules
– Measurement Tolerances
• 4% for most Non Consumer Trade Items (Section 6.2 Package Measurement Rules)
• +/- 0.25 inches applies to most Consumer Trade Items
(Section 6.3 – Package Measurement Rules)
– Linear measurements are rounded up to the nearest
.05 of an inch
• Making the old fashioned ruler inadequate
31
Understanding the Data Quality Challenge
GDSN Package Measurement Rules
• New Items frequently require lead times in
excess of 8 weeks for retailers to properly plan
and prepare
• Most suppliers are forced to publish New Items
with preliminary (pre-production) data
• Good Data Quality practices require suppliers
to complete the data capture of production
samples AND communicate updated
information to their trading partners before first
shipment
32
16
6/10/2013
Understanding the Data Quality Challenge
Steps to Manage Vendor Item Data
• What happens when suppliers don’t follow the
rules and guidelines established in the GDSN
standard
t d d tto guarantee
t Data
D t Q
Quality?
lit ?
• Your customers must assume the responsibility for
validating and correcting your item data
– Preventing breakdowns in the supply chain
– Preventing any negative impact to the ultimate
customer - the consumer
33
Understanding the Data Quality Challenge
Managing Vendor Item Data
• Without reliable item information, retailers are
forced to take measures to control data quality
– Wakefern reviews and audits vendor item data in
a number of departments to ensure quality item
data in our item master
• Data Integrity Department
• Warehouse
• eCommerce
34
17
6/10/2013
Understanding the Data Quality Challenge
Managing Vendor Item Data
• The Wakefern Data Integrity group audit key data
attributes when processing New Items
•
•
•
•
•
•
•
•
•
•
Product Descriptions
Brand
Net Content
UPC
Unit Pricing for Shelf Labels
Kosher Certification
T bilit
Taxability
SNAP and WIC eligibility
Product Hierarchies
GTIN Assignments
35
Understanding the Data Quality Challenge
Managing Vendor Item Data
• In our warehouse facilities
– CubiScan® devices are used to
measure Case and Inner Pack
dimensions and weights
• In our General Merchandise
facility
– Audit Shippers and Mixed Mods
before shipment to our customers
• Verify the items and quantities
contained
t i d are what
h t were promised
i d
– Ensures that each item is
properly supported for our stores
» POS
» Store Inventory
36
18
6/10/2013
Understanding the Data Quality Challenge
Managing Vendor Item Data
• Our eCommerce team obtains Consumer focused item
information for marketing items on our on-line web
pages
p
g
– ShopRite From Home
• This group is responsible for maintaining the accuracy
of the following information
– Nutritional Information
– Food Allergens
– On-line
On line descriptions and marketing information
– Ingredients
– Images
37
Understanding the Data Quality Challenge
Managing Vendor Item Data
38
19
6/10/2013
Our Data Quality Initiatives
• Wakefern began piloting a Vendor Data Quality
Scorecard earlier this year
– Web based performance management tool
• Measurements are for New and Existing Items
• New Items Published
• Accuracy based on physical audits
• Items not synchronized through the GDSN
– Provides the vendor with the ability to sort and view
child information by GTIN
39
Our Data Quality Initiatives
• Wakefern, along with a group of retailers and
suppliers is actively working towards a new Data
Qualityy initiative
Q
– Identifies a 5 Step Process for suppliers to
ensure Data Quality in their organizations
• A session describing this initiative and the pilot
study completed by the work group
– Session 177: Data Quality Framework Initiative
• Wednesday, June 12 at 10:15AM
40
20
6/10/2013
Planning for Future Demands
• Suppliers are urged to plan for future demands in
Item Data with a focus on the Consumer
– Develop processes to capture the following
attributes
• Product images
• Nutritional Information, including Food
Allergens
• Ingredients
• Preparation and Serving information
• Marketing information
41
Steps for
Synchronizing GDSN Data
1. Once you have signed with a GDSN certified data pool, review
the available documentation on the 1WORLDSYNC landing
page to become familiar with Wakefern’s processes and
requirements.
http://pdm.1sync.org/customers/wakefern
2. Complete the Wakefern Data Sync Vendor Fact Sheet
– Return to [email protected]
3. Wakefern will send a subscription for your data (Catalog Item
Subscription
p
CIS)) based on yyour GLN to yyour GDSN – certified
data pool.
– Prior to publishing data, verify that a subscription has been
received for your item data (1SYNC users can verify using
the “Subscription Visibility Report” on Item Management)
42
21
6/10/2013
Steps for
Synchronizing GDSN Data
4. Register and load items into your data pool
– Ensure accuracy of your product data (pack, measurements, weights,
net content, etc.)
– Load all item levels in your packaging hierarchy – Each, Pack, Case,
Pallet
5. Understand the Publication Types – Catalogue Item Notifications (CIN)
– New is to be used if a trading partner is introducing a new item to
Wakefern
– Initial Load is used to synchronize item data for items presently
carried byy Wakefern. All existing
g items must be synchronized
y
using
g
this publication type.
• Item Changes or Modifications are used for all Synchronized
items to communicate changing item attributes).
– Delete is to be used when a item is being discontinued, this is not
currently processed by Wakefern
43
Steps for
Synchronizing GDSN Data
6. Publish a limited number of existing items (5 – 10)
with a Publication Type of Initial Load to the
Wakefern GLN: 0341190000006
7. Manage Catalogue Item Confirmation (CIC) –
Responses from Wakefern
– Initial Loads, Item Changes, and New
8. Synchronize the balance of your items and continue
to send ongoing item change notifications through the
GDSN.
9. Publish all new items being introduced to Wakefern.
44
22
6/10/2013
45
46
23
6/10/2013
Recommended Conference Sessions
– Session 177: Data Quality Framework Initiative
• Wednesday,
12 10:15AM
Wednesday June
June 12
10:15 AM
– GTIN Allocation Rule Workshop (2 Sessions)
• Wednesday,
12
9:00AM
Wednesday, June
June 12
09:00 AM
• Thursday,
13
9:00AM
Thursday, JuneJune 13
09:00 AM
– Wakefern Round Table Sessions
• Tuesday,
- 01:50
PM
Tuesday, June 11
June 1101:00
01:00 01:00 –
– 01:50 PM
• Wednesday,
W
dd d
d
June
J June 12
1212:00
1212 00
- 12:50
12– 50
PM
Wednesday,
12:00 12:00 –
12:50 PM
• Thursday,
13
12:40
PM
Thursday, JuneJune 13
12:40 12:40 ––- 01:30
01:30 PM
47
24