The development of electronic commerce and the use of electronic data interchange procedures have highlighted one of the fundamental problems faced by trading partners, namely ensuring the compatibility of master data. Inaccurate product data and its inefficient exchange are a source of additional costs and often call into question the profitability of EDI solutions. Few companies have so far implemented the electronic PRICAT message, which is used, among other things, to standardize product data among trading partners. Most companies use traditional descriptions, which are transmitted via traditional means such as fax or Excel files. Unfortunately, this form of data transmission results in discrepancies in the description of the same goods between the supplier and the recipient. These often lead to errors in invoices, the correction of which entails unnecessarily significant costs.
Creating a network
Furthermore, the process of trade globalization has intensified the need to ensure the smooth flow of goods into and out of companies and better control of procurement processes. A help in achieving these goals and eliminating costs resulting from imprecise data is the synchronization of communication between trading partners. Meeting the needs of trade, the GCI (Global Commerce Initiative) association, a voluntary body bringing together the largest companies in the world from the FMCG industry, in cooperation with EAN International and the ECR Europe and USA boards, developed the Global Data Synchronization (GDS) model in 2002. This model assumes the creation of a network of certified databases – so-called product catalogs, registered in one global registry and communicating with each other using standard messages. It is based on the identification and communication standards of the EAN.UCC system. The entire year 2003 was devoted to work on detailed technical specifications, enabling the fastest possible implementation of the model into business practice. The launch of the GDS network is planned for October 2004. The GDS model scheme is illustrated in Fig. 1. The implementation of this model is intended to ensure that the product data available to the recipient is exactly the same as that entered into the network by the supplier.
What data is subject to synchronization
In every business transaction, the first thing that needs to be determined is who, where, and what is intended to be traded. In response to these questions, the EAN.UCC system has developed a set of identification keys, which include: Global Trade Item Numbers (GTIN) and Global Location Numbers (GLN). GTIN numbers are assigned to all products and services, so they can be easily and accurately identified by anyone, regardless of their country of origin. GLN numbers are an internationally accepted way of identifying legal entities and locations such as: headquarters, factories, offices, shops, etc. The rules for creating these numbers are accompanied by detailed specifications regarding, among other things, the method of:
– presenting them in the form of a barcode or saving them in an RFID tag
– placing the identifier on the packaging.
The article comes from the magazine “e-Fakty” 2/2004.