Henry C. Co

1
Foundational Technologies of Collaborative
Commerce

• Henry C. Co
• Technology and Operations Management,
• California Polytechnic and State University

2
Outline

• The Collaborative Commerce Model
• The EPCglobal Network
• Auto-ID Center, Auto-ID Lab, EPCglobal
• EAN, UCC, and GS1
• RFID and the EPC code
• Fundamental Elements of EPC Network
• The RFID Mandates
• Global Data Synchronization
• Peer-to-Peer Data Synchronization
• One-to-Many Data Synchronization
• How GDSN Works
• GDS Benefits

3
What is Collaborative Commerce?

• Definition -
• Processes, technologies and the supporting
  standards that allow continuous and automated
  exchange of information between trading partners
  

Through collaboration, suppliers and retailers
can work together to fulfill consumers wishes
better, faster and at less cost by improving
business process efficiency and reducing waste.
4
Collaborative Commerce Model

• Developed by
• A. T. Kearney and Kurt Salmon Associates for the
  Grocery Manufacturers Association and the Food
  Marketing Institute.
  
• Consists of two major sections.
• Two technologies and standards embody the first 3
  steps
  
• Electronic Product Code (EPC)
• Global Data Synchronization (GDS).
• Steps 4 through 7 correspond to the collaboration
  activities in CPFR.

5
Data synchronization
The EPC Network
Data registration
Common Data Standards
Electronic Product Code (EPC) physical
carriers Global Data Synchronization (GDS) en
abler for maintaining uniform, standards-based
data usable throughout the supply chain.
6
Collaborative Commerce Foundational Steps

• Electronic Product Code (EPC) physical
  carriers
  
• Global Data Synchronization (GDS) enabler for
  maintaining uniform, standards-based data usable
  throughout the supply chain.

7
Driver

• Inaccurate information forces delays and causes
  bad judgment calls from stock clerk and plant
  manager alike.
  
• Current bar codes provide identification of
  products, but not of individual items and not
  without manual, line-of-site intervention.

8
http//www.barcodefactory.com/PDF/1_XPLANE-WhatIsE
PC.pdf

9

• With the EPC Network, computers will be able to
  see physical objects, allowing manufacturers,
  distributors and retailers to track and trace
  items automatically throughout the supply chain.

10
What is Auto-ID

• Methods of collecting data and entering it
  directly into computer systems without human
  involvement. Technologies normally considered
  part of auto-ID include bar codes, biometrics,
  RFID and voice recognition.

11
Who is the Auto-ID Center?

• Industry-funded university project (created in
  1999 at M.I.T.) to look at how industry could use
  RFID technology to improve the supply chain. In
  October 2003 the Auto-ID Center was replaced by
  the Auto-ID Labs and EPCglobal.
• The Auto-ID Labs is responsible for managing and
  funding continued development of EPC technology.
  
  
• EPCglobal is an organization charged with
  managing the new EPC Network.

12

• Created the concept of a unique code EPC that can
  be stored on the tag and, once read by an RFID
  reader, the code can be used to look up
  information about the tagged item.
• Code uses very little chip memory, chips can be
  very small and very low cost.
  
• Suitable for ubiquitous deployment on pallets,
  cases, innerpacks, and even on individual
  consumer items.

13
Who is GS1?

• GS1 (Formerly EAN and UCC)
• As part of a unified, global approach to
  standards development for the global supply
  chain, EAN International becomes GS1 (May 03)
  and UCC becomes GS1 US (Feb 03).

14

• GS1 Worldwide standards for unique product and
  company identification.
  
• Standards for global data synchronization

15
Who is the UCC?

• Uniform Code Council (UCC) The nonprofit
  organization that overseas the Uniform Product
  Code, the barcode standard used in North
  America.
• 97 Member Organizations Around the World

16
Overview UCC
Jim Petragnani, EAN.UCC System Update,
PowerPoint Presentation, Aftermarket Council on
Electronic Commerce, August 2, 2004.
17
Who is the EAN?

• European Article Number, International
  administers the barcode standard used throughout
  Europe, Asia and South America.
  
• 99 EAN Member Organizations

18
99 EAN Member Organizations
One Million Members ? Over 100 Countries ? 23
Industries
Jim Petragnani, EAN.UCC System Update,
PowerPoint Presentation, Aftermarket Council on
Electronic Commerce, August 2, 2004.
19
Bar Code

• The barcode was adopted in the 1970s because the
  bars were easier for machines to read than
  optical characters.
  

EAN-13 symbol EAN/UCC-13 structure
UPC-A symbol UCC-12 structure
UPC-E symbol UCC-12 structure
EAN-8 symbol EAN/UCC-8 structure
20
RFID What is it?

• RFID
• Technologies that use radio waves to
• automatically identify individual items
• ID Information
• Stored on a microchip that is attached to an
  antenna

21

• RFID are smart tags consisting of a small chip
  and an antenna.

Microchip holds an identification code
Antenna enables the chip to transmit the
identification information to a reader using
radio waves
22

• RFID tags are powered by the electromagnetic
  field (radio wave) generated by the reader
  
• The tag's antenna picks up the magnetic energy
  from this field
  
• The tag modulates the radio wave to transmit data
  back to the reader
  
• The reader receives the identification
  information from the RFID tag and passes it to a
  computer system
  
• Data transmitted back to the reader is sent to
  the host computer

23
RFID Tag
RFID Reader
http//ie.eng.ua.edu/Courses/IE464/Lectures/ppt/RF
ID20update.ppt401,8,RFID Tags/Labels (Accessed
14 March, 2007)
24
The wave with the data is received at Reader
This field powers tag
http//ie.eng.ua.edu/Courses/IE464/Lectures/ppt/RF
ID20update.ppt401,8,RFID Tags/Labels (Accessed
14 March, 2007)
25
RFID Tags/Labels

• Do not need line-of-sight access to be read
• You can read tagged items inside of a case
• Can be read simultaneously when many tags are
  present
  
• Read all the cases on a pallet

26
RFID Tags/Labels

• Carry more data than barcodes, letting us
  identify individual items
  
• The tag is updateable in some cases. Readers can
  write new data to the tag
  
• Can interface with environmental sensors to
  record time, temperature, shock among other
  things.
  
• Distance from the tag to the reader is very
  important.

27
What is the EPC?

• EPC is the business application of RFID
  technology to the supply chain. The EPC code
  uniquely identifies an object. It is embedded in
  an RFID tag attached to an object (item, cases,
  pallets, etc.).

Jim Petragnani, EAN.UCC System Update,
PowerPoint Presentation, Aftermarket Council on
Electronic Commerce, August 2, 2004.
28

• Expanded serialized electronic version of a UPC
  bar code using RFID technology.
  
• Developed for the Consumer Packaged Goods (CPG)
  industry by
  
• MIT Auto-ID Center
• Uniform Code Council (UCC introduced bar code to
  retail and consumer products industries in the
  1970s)
  
• Gillette Company
• Procter and Gamble
• many others.

29

• Electronic Product Code is the unique object
  identifier (license plate) on the tag
  
• A pointer to information about the item
• Contains
• Header
• Manufacturer/EPC Manager Number
• Product/Object Class
• Serial Number
• GTIN and other EAN.UCC keys can be used to
  construct unique EPC numbers

Jim Petragnani, EAN.UCC System Update,
PowerPoint Presentation, Aftermarket Council on
Electronic Commerce, August 2, 2004.
30
RFID Middleware
31

• Information Flow
• High Resolution
• Real-time
• Process Based
• High Accuracy

Process Agility
RFID
Alien Device Deployment Kit Alien RFID Provider
32
BizTalk RFID server provides a common platform
for RFID applications to interact with diverse
RFID devices such as readers and printers.
33
MySQL Database
Logical Overview (EBZ 451)

EPC Data Management
Apache
IE
HTTP HTML
JOLT
SQL
1
Web Server
APP Server
Browser
Online Address Directory
2
MSFT Dynamics
SQL
Manual Data
MSFT SQL Server
Adapter
RFI D
) ) )
Alien
MSFT BizTalk

34
BizTalk Logical Overview
35
(No Transcript)
36
Fundamental Elements of EPC Network

• The Electronic Product Code
• The ID System (EPC Tags and Readers)
• Savants
• ONS, EPC_DS, EPC_IS
• Physical Markup Language

37
(No Transcript)
38
(No Transcript)
39
The EPCglobal Network
40
(No Transcript)
41

• The EPC uniquely identifies each individual
  instance of a product within the supply chain
  
• EPC has digits to uniquely identify the
  manufacturer, product category and the specific
  item in the supply chain.
  
• The EPC number is held in an RFID tag attached
  to the item.
  
• The RFID tag comprised of a silicon chip and an
  antenna, which is attached to an item.
  
• Using radio identification technology (RFID), a
  tag communicates its number to a reader.

42

• As the item moves through the supply chain, it is
  detected by RFID readers at different locations
  and the information is passed to Savants to
  consolidate information, remove duplicates, apply
  appropriate filters and passes filtered
  information to enterprise systems.
• Savant is a software technology that acts as the
  central nervous system of the EPCglobal Network
  
• Savant manages and moves information in a way
  that does not overload existing corporate and
  public networks.

43

• The enterprise system uses the EPC code from the
  objects tag or other EPC Manager Numbers to
  query the Object Naming Service (ONS)
  
• ONS is an Auto-ID Center-designed system which
  tells the computer systems where to locate
  information on the network about the object
  carrying the EPC code.
• The ONS returns the Internet address of an EPC_DS
  server which can provide to the requester
  pointers to EPC_IS servers which hold information
  about the object in question, or the direct
  address of an EPC_IS server for certain queries.

44
What is the EPC Discovery Service (EPC_DS)

• EPC_DS is an EPCglobal Network service that
  allows companies to search for every reader that
  has read a particular EPC tag.

45
What is the EPC Information Service (EPC_IS)?

• The EPC_IS is an EPC network infrastructure that
  enables companies to store data associated with
  EPCs in secure databases on the Web.
  
• The EPC_IS enables companies to provide different
  levels of access to data to different groups.
  Some information associated with an EPC might be
  available to everyone. Other information might be
  available only to a manufacturer's retail
  customers. The service also includes a number of
  applications, such as the EPC Discovery Service.

46

• Physical Markup Language (PML) is used as a
  common language in the EPCglobal Network to
  define data on physical objects.
  
• An Auto-ID Center-designed method of describing
  products in a way computers can understand. PML
  is based on the widely accepted eXtensible Markup
  Language used to share data over the Internet in
  a format all computers can use. The idea is to
  create a computer language that companies can use
  to describe products so that computer can search
  for, say, all "soft drinks" in inventory.
• PML Server A server that responds to requests
  for Physical Markup Language (PML) files related
  to individual EPC. The PML files and servers
  will be maintained by the manufacturer of the
  item. The name PML server has been replaced by
  EPC_IS.

47
RFID How is it used?

• Luggage tracking for airports
• Document tracking
• Express-parcel tracking
• Library checkout and check-in
• Livestock or pet tracking
• Logistics and supply chain
• Retail shelf management

48
Mandates

• In October, 2003, the Dept. of Defense announced
  that all of its suppliers must use EPC starting
  January 2005
  
• In November, 2003 Wal-Mart spelled out its June
  mandate saying that all of its suppliers must be
  EPC compliant by the end of 2006
  
• In January 2004, the Metro Group, the world's
  fifth largest retailer said its 100 largest
  suppliers will attach EPC tags to pallets and
  cases by November 2004

49

• In February, 2004, The U.S. Food and Drug
  Administration announced that all manufacturers,
  distributors, drug stores, and hospitals will
  use the EPC Network to track all drugs at the
  unit level by 2007
• 2005 Large companies compliant
• 2006 Mid size companies compliant
• 2007 Everyone compliant

50

• In March 2004, Target, Americas fourth largest
  retailer, announced that all of its suppliers
  must be start toward EPC compliance in Q1 2005
  
• In March 2004, Albertsons issued a mandate
  requiring its top 100 suppliers to tag all cases
  and pallets they ship to the retailer with EPC
  tags by April 2005

51

• In April 2004, Wal-Mart began the roll out of
  receiving EPC compliant product from its top 100
  suppliers
  
• While focused on pallets and cases, 21 products
  are being tagged at the item level as well
  
• In May 2004, HP announced that overseas partners
  making HP Printers must start using EPC tags
  
• In May 2004, Boeing and Airbus, two very fierce
  competitors, announced a collaboration project to
  EPC enable the aviation supply network

52
Collaborative Commerce

• Collaborative Commerce Foundational Steps
• Electronic Product Code (EPC) physical
  carriers
  
• Global Data Synchronization (GDS) enabler for
  maintaining uniform, standards-based data usable
  throughout the supply chain.

53
Global Data Synchronization

• Electronic exchange of product information, in a
  standardized format, between a manufacturer and
  the Registry, and from a retailer and the
  Registry.
• The continuous harmonization of data attribute
  values between two or more different systems,
  with the end result being the data attribute
  values are the same in all of the systems.
  
• Global Commerce Initiative (GCI)

54
Drivers

• High, unnecessary costs due to master data
  problems, such as supply chain information
  inefficiencies and inaccurate data in
  transactions. Invoices with errors are
  responsible for a large part of these costs.
• Globalization of trade has generated an
  accelerated need for smooth inter-company flow of
  goods and better control of supply chain
  processes, which can be achieved via synchronized
  communication among trading partners.
• One version of the truth allows suppliers to
  trade globally, increase data accuracy among
  trading partners, and reduce supply chain costs.

55
Ways to Synchronize Data

• Peer-to-peer global standards-base
  synchronization
  
• One-to-many data synchronization through
  interoperable data pools (GDSN)
  
• Mixed model synchronization

56
Peer-to-Peer Data Synchronization

• Bilateral data synchronization
• Collaborative Product Information Management
  (CPIM) System

57
Data pool is maintained internally as part of an
integration engine or collaborative product
information management (CPIM) system.
The CPIM systems serve as a data exchange service
for standardized information to pass-through
among trading partners.
58
Peer-to-Peer Data Synchronization

• Manufacturer aggregates data from internal
  databases into a master catalog.
  
• Information in the master catalog is then
  cleansed, standardized, and uploaded to the
  manufacturers CPIM data pool. See PowerPoint on
  Internal Data Synchronization.
• The manufacturers CPIM sends basic information
  about all items and the location of each item to
  the Registry.
  
• Retailer searches the Registry, via its CPIM, for
  an item (by GTIN or by description).
  
• The Registry returns details of items to the
  retailers CPIM system.
  
• The trading partners synchronize the item
  information between their respective CPIM
  systems.

59
The CPIM

• Acts as an internal data pool.
• Customize data for specific partners
• Particularly useful where a retailer requires
  additional product information beyond that
  defined by the core item standards.
  
• Trading partners can synchronize (a) core data
  that is supported by the global registry, and (b)
  relations-specific data (e.g., prices and
  promotions).
• Gives the retailer or supplier a greater sense of
  security around the data being shared.

60
One-to-Many Data Synchronization

• Global Data Synchronization Network

61
How GDSN Works

• 1. Register ? 2. Subscribe ? 3. Publish ? 4.
  Review ? 5. Respond ? 6. Monitor

62
Global Registry Interoperable Data Pools
GS1 Registry
Supplier
Datapool (Company)
Datapool (Country Catalogue)
Retailer
Supplier
Supplier
Datapool (Exchange)
Datapool (Solution Provider)
Retailer
Retailer
Jim Petragnani, EAN.UCC System Update,
PowerPoint Presentation, Aftermarket Council on
Electronic Commerce, August 2, 2004.
63
http//www.intel.com/business/bss/industry/retail/
SupplyChain.PDF

64
What is a data pool?

• Electronic catalog of standardized item and price
  data.
  
• Data pools allow trading partners to upload
  (publication) and download (subscription) item,
  party, and location data.

65
GS1-Certified Data Pools

• Standards-compliant (GS1) data pools insure
  continuous synchronization of master data among
  participating trading partners.
  
• Data pools were measured against a set of
  development standards established by the GS1 GDSN
  Task Group as well as test plans and criteria
  defined by Drummond Group Inc. (DGI).
• To be certified, a data pool must demonstrate
  full interoperability with all other
  participating data pools and the GS1 Global
  Registry using DGI's Interoperability Compliance
  Process, a robust interoperability process
  methodology.

66
10 Data Pools and the GS1 Global Registry v1,
release 12 successfully passed the GDSN
Interoperability Certification test conducted by
Drummond Group Inc. (DGI) on December 17, 2004.
67
Sterling Committee, Data Synchronization From
Compliance to Collaboration An Essential Guide
to Understanding Your Opportunity, Whitepaper,
2004, http//www.sterlingcommerce.com
68

• Register Publisher of source data registers an
  item with the UCCnet GLOBALRegistry service.
  
• Publishers gather their product information and
  assign a unique 14-digit Global Trading Item
  Number (GTIN) to each product.
  
• Because products may be shipped in many ways, a
  unique GTIN is required for all packaging levels
  of a product (e.g., unit, inner packs, cases,
  pallets, etc.).

69

• Subscribe Recipient of data indicates interest
  in receiving information updates by subscribing
  to items published by a specific manufacturer, or
  by any manufacturer that fits a particular
  product category.

70

• Publish Publisher can manage who sees what
  data.
  
• Publisher uses a unique Global Location Number
  (GLN) for each retailer.
  
• The supplier may publish publicly to every
  store in the retailers organization or get as
  granular as publishing GTIN information to a
  single store.

71

• Retrieve/Review Subscriber retrieves and
  inspects the published data from UCCnet
  services.
  
• Decides whether or not to continue receiving
  published updates for the item.
  
• Decides whether it agrees with the business
  content published.
  
• Subscriber accepts the published value (and
  updates its internal system) or
  
• Publisher publishes a corrected value to override
  the previously published data.

72

• Respond Subscriber notifies publisher of the
  status of published data Review, Authorized,
  Synchronized, or Rejected.
  
• Retrieve Publisher monitors for messages from
  subscribers and reacts accordingly.
  

73
GDS Benefits
http//www.cpfr.org/BHoganUCCnet_CPFR.ppt
74
Benefits

• A study by UCCnet has determined that retailers
  and manufactures can experience
  
• 75 reduction in deductions due to invoice
  pricing and product delivery discrepancies
  
• 30 improvement in the number of quality purchase
  orders
  
• An average of 1,320 total hours saved in paper
  administration and data keying
  
• 80 improvement in speed to retail for new items,
  price changes, and promotions the time required
  to communicate and execute changes can be reduced
  from up to two weeks to two days

http//www.hammer.net/subpage.asp?template/templa
te.asp?menu3D476

75
Benefits For Retail

• Cost Reduction P.O./Invoice discrepancies
  Paper administration
  
• Standard Visibility to Supplier Product
  Information One common view of Price,
  Promotions and Images
  
• Improved Speed To Market Of New Items
  Manufacturer data is delivered to systems online
  
• Visibility Of More Available Items
• Standardized search and browse functionality

76

• More Accurate Compliant Information Forced
  Adherence to UPC Guidelines Shelf Tags match
  product
  
• Easier Data Interface via XML No version
  constraints in updating functionality
  
• Transmit Demand Information Universally in Real
  Time Standard transmission of POS data
  
• Engage Interactive Category Management Common
  Categorization Scheme

77
Benefits For Manufacturers

• Standardization of Multiple Catalogs Solution
  Partners
  
• Ability to build/host a single catalog or
  virtual catalog
  
• Catalog interoperability based on industry
  compliance
  
• Broad access to compliant exchanges solutions
• Standardized Communication of ALL Product
  Attributes
  
• Nutritional info, image, commercial ads, warranty
  info.
  
• Provides pricing elements Brackets, Allowances

78

• Understand Improve Trading Partner
  Relationships
  
• Uniformly view retailer store, DC, market,
  corporation
  
• Elimination of mundane, non-value-added
  administration
  
• Ensure that Data is Synchronized With Retailers
• XML functionality will guarantee delivery
• Functionality will return XML message from legacy
  DB