Synchronization: A Cure for Bad Data (page 2)

-- Supply Chain Management Review, 5/1/2005

Page 2 of 4

Synchronization as the Solution
One answer to the bad-data problem is global data synchronization, also known as GDS. Data synchronization means achieving consistent information values for items or products within and between organizations. Put another way, it means that everyone is working off the same data page. These so-called “target information values” typically include part numbers, units of measure, release dates, UPCs, hazardous-material codes, weights, descriptions, tariff codes, pricing, and so forth. Oftentimes, this information is organized and stored in item master files. Global data synchronization is executed in two steps, internal synchronization and external synchronization.

Internal Synchronization
Internal synchronization involves a company’s assessing its own information management processes to ensure that the target information values for any given item are identical across the company. Often this synchronization needs to be done across many disparate systems. The goal of internal synchronization is to ensure that the information used is consistent throughout the organization.

It is not easy to develop internal processes to manage the activities that are necessary to ensure data consistency throughout the organization. Many companies have done this successfully by deploying a single enterprise resource planning (ERP) system across their organization. The ERP system can be a significant enabler of internal synchronization among an organization’s various plants, divisions, and offices. Many companies with a single ERP system might have other systems that manage their customer-service or product-development activities. Thus, a company running SAP, for instance, might have to integrate this ERP system with their customer relationship management system, which might be from a different vendor. Middleware solutions make this task a lot easier than it used to be. Once a company achieves internal synchronization, the focus can shift to external synchronization.

External Synchronization
External synchronization refers to the process of linking two or more separate and independent companies so that they can readily share consistent and accurate product information. Today, many small and even mid-sized businesses do not have the means to synchronize data with customers other than through the old spreadsheet method of filling out a template for a customer. The manual keystrokes and multiple hand-offs inherent in this process are prone to errors that hinder data consistency and effectively prevent synchronization. This problem typically manifests itself in customer orders. The customer thinks that she is buying one item but, in fact, has ordered something completely different. This results in a return, which creates extra shipping, freight, receiving, quality inspection, and put-away in the warehouse. How can a company synchronize its data with its customers and vendors in a way that ensures data integrity with all partners? Put another way, how can they achieve global data synchronization? One answer is to register with UCCnet. UCCnet (www.uccnet.org) is a tool developed by UCC.EAN, a not-for-profit organization created to implement and maintain global standards for business information and communication. The objectives of UCCnet are twofold. First, to provide a global registry service that acts as a central repository of core item-related information and company information across all users. Called the GS1 Global Registry, this service is a single location where corporations can register standards-compliant data. The registry also identifies the owner of the information (by company name and, in some cases, by individual or title) and validates that the information is accurate. UCCnet’s second objective is to act as a source for the ongoing synchronization efforts between buyers (known as “the subscriber” in the UCCnet terminology) and sellers (or “publishers”). UCCnet charges registered users an annual subscription fee, which is based on annual company sales.

A Synchronization Case Study
The following case study illustrates how one small company effectively synchronized its data via the UCCnet GS1 Global Registry. It’s a real company, but its name has been changed to “Sync’d Up Inc.” for confidentiality reasons. Sync’d Up is a $90-million manufacturer of professional tools that are sold through major retailers like Home Depot. It initially signed up with UCCnet on the organization’s Web site. Sync’d Up’s registration fee came to $7,500 for the first year, based on annual sales falling in the $75 million to $100 million range.

The company began the process by entering its product data into the GS1 Global Registry. In the initial pass that product data included the company’s internal part number, the UPC, its catalog part number, the units of measure, standard quantity (or size), list price, Harmonized Tariff Schedule (HTS) code , product-revision level, and the date that the product was approved for manufacturing. When the data were received into the database, UCCnet validated the data to its standards. Once validated, the item data are considered “registered.” Next, Sync’d Up had to determine which trading partners would receive the data. The company decided to proceed in stages, initially sending the information to its primary customers, such as large retail customers like Home Depot. The data were sent via a service from UCCnet called Sync Utility. (Exhibit 1 gives an overview of the process.)

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