IPC'07_Presentation.ppt

Foundational Technologies of Collaborative Commerce

Henry C. CoTechnology and Operations Management, California Polytechnic and State University

Foundational Technologies of Collaborative Commerce 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


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 consumer’s wishes better, faster and at less cost by improving business process efficiency and reducing waste.


Collaborative Commerce Model Developed by

A. T. Kearney and Kurt Salmon Associates for the Grocery Manufacturer’s 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®.


Data registration

Data synchronization

The EPC™ NetworkCommon Data Standards

Electronic Product Code (EPC™) – physical carriers

Global Data Synchronization (GDS) – enabler for maintaining uniform, standards-based data usable throughout the supply chain.

Collaborative Commerce Foundational Steps

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

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.

http://www.barcodefactory.com/PDF/1_XPLANE-WhatIsEPC.pdf

http://www.barcodefactory.com/PDF/1_XPLANE-WhatIsEPC.pdf

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.

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.

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.


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.

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).

GS1: Worldwide standards for unique product and company identification.

Standards for global data synchronization

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


Overview UCC

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

Who is the EAN?

European Article Number, International – administers the barcode standard used throughout Europe, Asia and South America.

99+ EAN Member Organizations


One Million Members ● Over 100 Countries ● 23 Industries

99+ EAN Member Organizations



Bar Code The barcode was adopted in the 1970s

because the bars were easier for machines to read than optical characters.

6 91 4 1 4 1 0 0 0 4 4

UPC-A symbolUCC-12 structure

UPC-E symbolUCC-12 structure

3 4 3 9 4 9 4 9 4 9 3 9 2

EAN-8 symbolEAN/UCC-8 structure

EAN-13 symbolEAN/UCC-13 structure


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


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


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


RFID Tag

RFID Reader

Host Computer System

http://ie.eng.ua.edu/Courses/IE464/Lectures/ppt/RFID%20update.ppt#401,8,RFID Tags/Labels (Accessed 14 March, 2007)


http://ie.eng.ua.edu/Courses/IE464/Lectures/ppt/RFID%20update.ppt#401,8,RFID Tags/Labels (Accessed 14 March, 2007)

A Reader Transmits a Radio Wave

A Tag enters the electromagnetic field created by the radio wave

The radio wave is modulated and reflected back to the reader with data

The wave with the data isreceived at Reader

This field powers tag


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


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.

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.).



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.


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


RFID Middleware


MiddlewareMiddleware

ERP SystemsERP SystemsInformation Flow

High ResolutionReal-timeProcess BasedHigh Accuracy

Process Process Quality andQuality andMeasuremeMeasureme

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ApplicationApplicationInnovationInnovation

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RFID

Alien Device Deployment KitAlien RFID Provider


BizTalk RFID server provides a common platform for RFID applications to interact with diverse RFID devices such as readers and printers.

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ServerAPP

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JOLT SQLEPC Data

Management

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Logical Overview (EBZ 451)


BizTalk Logical Overview

Fundamental Elements of EPC™ Network

The Electronic Product Code The ID System (EPC Tags and Readers)SavantsONS, EPC_DS, EPC_ISPhysical Markup Language


The EPCglobal Network


Would Wide Web EPCglobal Network

DNS 主導網路位置及郵件的途徑

ONS主導產品製造資訊記錄之途徑

WEB Sites 包含一特定主題資訊來源

Security Services 提供一資料交換及分享信任機制

Search Engines 蒐尋網頁的工具

EPC Information Services特定產品資訊來源例:過期日期

EPC Discovery Services蒐尋EPCIS之工具

EPC Trust Services提供EPC產品資料之安全性及流通控制


1. 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.

2. 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.


3. 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.


4. The enterprise system uses the EPC™ code from the object’s 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.

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.

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.


5. 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.


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


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 it’s 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


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


In March 2004, Target, America’s fourth largest retailer, announced that all of it’s 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


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

Collaborative Commerce

Collaborative Commerce Foundational Steps1. Electronic Product Code (EPC) – physical carriers2. Global Data Synchronization (GDS) – enabler for

maintaining uniform, standards-based data usable throughout the supply chain.

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)


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.

Ways to Synchronize Data

1. Peer-to-peer global standards-base synchronization2. One-to-many data synchronization through

interoperable data pools (GDSN)3. Mixed model synchronization

1. Peer-to-Peer Data Synchronization

Bilateral data synchronization Collaborative Product Information Management (CPIM) System


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.


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 manufacturer’s CPIM data pool. See PowerPoint on Internal Data Synchronization.

The manufacturer’s 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

retailer’s CPIM system. The trading partners synchronize the item

information between their respective CPIM systems.


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.

2. One-to-Many Data Synchronization

Global Data Synchronization Network

How GDSN Works

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


Global Registry & Interoperable Data Pools

DatapoolDatapool(Exchange)(Exchange)DatapoolDatapool(Exchange)(Exchange)

DatapoolDatapool(Company)(Company)DatapoolDatapool(Company)(Company)

DatapoolDatapool(Country Catalogue)(Country Catalogue)

SupplierSupplier

RetailerRetailer

SupplierSupplier

RetailerRetailer

GS1 GS1 RegistryRegistry®®

Global Registry MessagesGlobal Registry Messages

Datapool MessagesDatapool Messages(Not processed by Global Registry)(Not processed by Global Registry)

DatapoolDatapool(Solution Provider)(Solution Provider)

RetailerRetailer

SupplierSupplier



http://www.intel.com/business/bss/industry/retail/SupplyChain.PDF

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.

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.


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.


Sterling Committee, “Data Synchronization: From Compliance to Collaboration – An Essential Guide to Understanding Your Opportunity,” Whitepaper, 2004, http://www.sterlingcommerce.com


1. 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.).


2. 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.


3. 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.


4. 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.


5. Respond – Subscriber notifies publisher of the status of published data: Review, Authorized, Synchronized, or Rejected.

6. Retrieve – Publisher monitors for messages from subscribers and reacts accordingly.

GDS Benefits

http://www.cpfr.org/BHoganUCCnet_CPFR.ppt


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=/template.asp?menu%3D476


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


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


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


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

IPC'07_Presentation.ppt

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