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Bad Data Bytes

3/1/2005

Today's consumer-goods manufacturers, distributors and retailers face a fast-moving stream of data that tracks everything from inventory levels to replenishment processes to product pricing.

Toss in additional information generated among trading partners and the data stream can grow tenfold. Left unmanaged, bad data bytes can "bite back," hindering efficiency, eroding customer satisfaction, straining trading partner relationships, and ultimately reducing profits.

For organizations that want to compete effectively in today's marketplace, managing and synchronizing data is a must. Five years ago, the term data synchronization was not a common part of business vernacular; today, retailers and manufacturers in CPG and a wide range of other industries are recognizing that data synch is a critical supply chain initiative. But often, getting started is the most difficult part. Following are five simple steps that an enterprise can take to get in sync with its data:

  1. Establish a task force. Just as with any new project or initiative, an organization needs a data synchronization team or champion to focus on the issue. This team may involve IT, supply chain and logistics, manufacturing or a cross-functional group from multiple areas. Once formed, this group will act as the central nervous system to all things involving data synchronization.

  2. Start with the supply chain building blocks. Fundamental to implementing data synchronization is the use of the Global Trade Item Number (GTIN) and the Global Location Number (GLN), two "keys," or identification numbers, in the EAN.UCC System that enable unique identification of products and physical locations anywhere in the world. The GTIN and the GLN are the basic building blocks to accessing services that synchronize data.

  3. Review how data flows within the enterprise. Each individual business is unique. So it is understandable that its data flows -- how information is generated and how it gets from various points within the enterprise -- must be individually evaluated in preparation for data synchronization. For example, an enterprise must identify where product data is housed, what systems access this data (accounting, catalog, etc.) and how the products are described (by weight, height, etc.), among other things.

  4. Organize and clean the data in a single place. Once information flows have been mapped and the data has been retrieved, organizations can eliminate duplicate information and map this data to existing data attributes in their corresponding data pool, thereby making the data consistent worldwide.

  5. Synchronize, communicate about and tend to the data. In the modern business world, data is an organic and fluid commodity that requires a certain level of care and upkeep. Left unattended, some estimates place the industry price tag on at nearly $50 billion annually. By working with trading partners and keeping your data up-to-date, business efficiencies will follow, saving valuable time and money.

Breaking the Domino Effect
To help companies around the world break the "domino effect" of bad data, the Global Data Synchronization Network, or GDSN, was established in August 2004. Connected by the GS1 Global Registry, certified GDSN data pools enable participating companies to register data, ensure it is compliant with EAN.UCC System standards, and share and communicate the "clean" data with their trading partners. As more and more companies participate in data synchronization, the benefits of synchronized supply-chain data become clearer. In fact, in some companies, incorrect or expired data are no longer being accepted as "part of the cost of doing business."

Companies are recognizing that bad data can cost them business, making data synchronization a vital industry initiative. Moreover, as more and more retailers and manufacturers begin exploring the use of Electronic Product Code (EPC) technology within their enterprise, synchronization processes will become even more important to help manage the dynamic flow of real-time data in addition to static product data. Because of this, it is expected that companies implementing data synch will have an advantage as they begin piloting and implementing EPC technology within their enterprises. The technology will provide them with an easy migration path to begin using the EPCglobal Network, a network that enables the unique and immediate identification of items in the supply chain anywhere in the world.

More detailed information on data synch, the GDSN, online tools and additional tips can be found at www.uccnet.org. UCCnet is a not-for-profit subsidiary of the Uniform Code Council, Inc. (UCC) and a certified data pool in the Global Data Synchronization Network (GDSN). UCCnet offers data synchronization services that enable companies to quickly and efficiently exchange information that is accurate, up-to-date and compliant with universally-supported EAN.UCC System standards.

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