Synchronization: A Cure for Bad Data (page 3)
-- Supply Chain Management Review, 5/1/2005
Page 3 of 4
The retail customers received the data from Sync’d Up and validated them against the data residing in their internal systems. Once confirmed, the data were considered in sync. In some cases, this exercise revealed many data discrepancies between the trading partners. With one primary customer, for example, 98 percent of all the item elements in Sync’d Up’s system had to be changed or corrected as a result of the synchronized effort. This project took a year from inception to the external synchronization. The five key steps for successful UCCnet implementation based on this experience are shown in the accompanying sidebar on page 62.
Counting the Benefits
*The time needed to set up new items in the company’s systems and communicate the information to customers has decreased. The process has gone from taking up to 30 days to being done in a single day using UCCnet.
*Short pays have been dramatically reduced, thereby greatly enhancing the productivity of customer-service and accounts-payable personnel. UCCnet also makes it easier to identify and reconcile invoice discrepancies.
*Sales order cycle times have improved thanks to the elimination of time formerly spent cross-referencing part numbers between trading partners. Items are immediately identified as being in sync between the trading partners. Importantly, no other action is needed to interpret what parts or services are being ordered.
*Customer satisfaction has improved with the elimination of pricing discrepancies between partners using UCCnet.
*Productivity in receiving has increased because advanced shipping notices and data are now in sync. Going forward, Sync’d Up expects to realize the additional benefits from increased revenues through the UCCnet implementation. For example, UCCnet allows the company to promote new items in the marketplace by submitting (or publishing) them to its buyer subscriber-base. This feature decreases the time to market and time to revenue for new products. In addition, UCCnet functionality allows Sync’d Up to quickly quote on bids or request for proofs while ensuring that the customer has the correct part and price information, thereby reducing review time from months to days. This functionality helps potential buyers save on purchases while enabling the publisher of the data—the seller—to more accurately and competitively price its product. From a competitive standpoint, having the UCCnet tool and having data synchronized with multiple partners gives Sync’d Up an advantage from several different angles. For example, the company can aggressively compete against companies not using UCCnet and its features. At the same time, participation in the UCCnet effectively raises a barrier to entry against nonparticipating companies that may have designs on Sync’d Up’s existing business. Continued...
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