9 Companies Close the Product Data Gap
When it comes to new product introductions in the consumer goods world, there is a persistent problem regarding the accuracy of data shared between manufacturers and retailers, especially when it comes to case weights, dimensions and additional GS1 (www.GS1US.org) standardized attributes.Focusing on root Causes
Today, it is common practice for a manufacturer to communicate preliminary data about a new product during a sales call with a retailer, many months in advance of actual production and launch. This preliminary information, which can oftentimes change between product prototype and production, is rarely validated or updated before the product arrives at the retailer.
The disparities equate to time, money and resources lost for retailers and distributors who use measurement devices with trained personnel to create their own measurements of record. This, of course, creates duplication of efforts, a differing set of measured values, and increased costs for the entire supply chain.
Other disruptions include incorrect pallet height and dimension configurations; incorrect truck configuration, cubing and load optimization; inefficient warehouse storage optimization; invoice errors requiring extensive reconciliation efforts; and shelf labeling errors that directly impact consumers.
“Industry has made great progress in the nine years since we began auditing and score-carding manufacturer data,” says Kathy Welch, manager, Master Data, at Wegmans. “While we’re not quite there yet, it is essential that the final gap closes because the demand for rich and accurate data is increasing.”
Room for improvement
Recognizing a strong need for improvement, nine companies — Ahold USA, The Coca-Cola Company, The Hershey Company, McLane Company Inc., PepsiCo, The Procter & Gamble Company, The J.M. Smucker Company, Wakefern Food Corporation and Wegmans — worked together to focus on closing the gap that currently exists in the new item setup process. The initiative was facilitated and driven by 1WorldSync (www.1worldsync.com).
The result of their collaborative work was the identification and validation of five industry best practices (see sidebar right) that, if followed, should help to ensure the highest level of data accuracy within the supply chain.
Most important are standard and consistent manufacturer processes to take measurements of production samples, and then communicating updates back to their trade customers through the Global Data Synchronization Network (GDSN).
As the primary focus of the pilot effort by the study participants, the manufacturers demonstrated that when they had qualified personnel performing measurements of product off the production line, their measurements were proven correct as validated by an external party.
FAST FACTS
Collaboration Rules
Wegmans, The Hershey Company and seven others collaborated to identify five actions that must occur to see drastic improvements in case weights and dimensions shared between manufacturers and trading partners. “Ownership and accountability are very important business principles for Hershey. Because we have clearly defined data governance practices, we can quickly and effectively investigate and resolve any data disparities that may occur with our retail customers.”
— Rob Hoffman, manager OTC, Customer Supply Chain, The Hershey Company.
5-Point Best Practice Process to Improve Product Data Accuracy
Principled Adherence to GSI Standards
1 Adhere to Foundational Attributes in internal setup: GTIN, UPC, Brand, Net Content, Unit of Measure - The item must change if any of these change
Strict Item Setup Accountability and Control Mechanisms
2 Attribute owners are clearly identified and accountable with written control mechanisms documenting validation procedures
3 Single group and individual accountable for shepherding and gathering item attributes from attribute owners - ensures control mechanisms followed
Production Measurement and Communication
4 All new items are measured off a stable production environment
5 Production measurements are communicated internally and externally