207: How to Do Business With IPC 6/5/2014

6/5/2014
207:
How to Do Business
With IPC
Lucelena Angarita, IPC/Subway
Rick Buttner, IPC/Subway
June 11, 2014
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6/5/2014
BACKGROUND
• Today, the SUBWAY® brand is
the world's largest restaurant
chain with 41,618 restaurants in
104 countries around the
world.
• Independent Purchasing Cooperative (IPC)
– Franchisee-owned purchasing cooperative for over 30,000
SUBWAY® restaurants in the US, Canada, Virgin Islands and
Puerto Rico.
– Negotiates the lowest cost for goods and services, while improving
quality, enhancing competitiveness and ensuring the best value to
SUBWAY® restaurants and their customers.
© GS1 US 2014 ALL RIGHTS RESERVED
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OUR COMPANY
• Rick Buttner, Director of Quality & Supply Chain Risk
–
–
–
–
Worked for 6 years at Subway Franchisee World Headquarters
Moved to IPC to start the Quality Net program
Co-leader of the Subway Incident Management Team
Strategic vision for data accuracy, food safety, and traceability throughout the
Subway system
• Acquired a GS1 Company Prefix (100,000 codes) in 2002
• IPC joined the Foodservice GS1 US
Standards Initiative in 2010
– How did it start?
• Produce suppliers presented the Produce
Traceability Initiative (PTI)
• Confirmed that the barcodes created were GS1
compliant
• We needed a vehicle to improve traceability
© GS1 US 2014 ALL RIGHTS RESERVED
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IPC’S DATA SYNCH GOAL
• Standards that will drive profitability & efficiency:
– Use GTIN’s instead of internal numbers for all transactions
• Use Subway® GTIN’s for Subway® branded items
• Use your GTIN for your private labeled products sold to Subway®
– Standard product attributes and definitions: speak one language
• Suppliers must publish all CASE LEVEL attributes required as
outlined in the IPC Implementation Guide
– Real-time exchange of product information
• Suppliers must publish all products sold to Subway® to the GDSN®
through their data pool by October 1, 2014
• Subway® labeled products published to Subway®
• Supplier labeled products published directly to our DCs
© GS1 US 2014 ALL RIGHTS RESERVED
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THE TIME IS NOW
• 2013 Surveys Revealed:
– 74% of Suppliers by volume
spend are publishing core
product data via GDSN
Our Distributors' GDSN data
Integration to Internal Systems
13%
– 87% of our Distributors have
confirmed to be receiving core
product data via GDSN
30%
57%
Currently
Integrating
Planning to
integrate
No plans/No
answer
• This progress aligns with the GTIN/GDSN 2014 Sunrise for the
Foodservice GS1 US Standards Initiative, December 31, 2014
© GS1 US 2014 ALL RIGHTS RESERVED
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KEY GDSN PILOT FINDINGS
• Synchronized with: 3 Suppliers, 2 Distributors
• Identified two primary sources of attribute discrepancies:
1.
Lack of standardized attribute definitions
2.
Limited attribute updates as products changed (Item Info
Worksheets are collected manually as necessary)
• Our Manual Process:
Supplier emails
Item Information
worksheet to
purchasing
Purchasing
reviews and
forwards to
internal systems
administrators
Each team
manually enters
information into
each system
Purchasing
emails excel Item
Info Sheets to
distributors one
by one
• NOTE: Any product updates are communicated to distributors by email as necessary
© GS1 US 2014 ALL RIGHTS RESERVED
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KEY GDSN PILOT FINDINGS
• Found 74% of the items synchronized had one or more core attribute
that differed
• First synchronization: received 70 publications, published 21 items to distributors
Supplier Publishes
Item Info to IPC
Product passes data
pool validations for
consistency (200)
IPC reviews
information and goes
back to vendor as
necessary
Accept or reject
product back to IPC
Distributors perform
physical validation
IPC Publishes
products to
Distributors
• Distributors validated the product attributes that we published via GDSN
–
Distributor 1: Only 4.4% of the validated total attributes had discrepancies
–
Distributor 2: Only 11.75% of the validated total attributes had discrepancies
© GS1 US 2014 ALL RIGHTS RESERVED
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RETURN ON INVESTMENT
• Six Sigma tools helped us estimate:
– Logistics ROI $$
• Cleaner product information equals more accurate freight bids
• Example: 1.5 lb. difference in weight for mayo could potentially
add $100K to our annual freight cost
– Labor ROI $
• Item management: Data entry time + time to
find and fix discrepancies: 26% of an FTE
• Data mapping effort: 65% of an FTE +
Software vendor cost
– Cost of Data Errors
• Time to fix discrepancies:
• Via email: 15-30 business days for ONE product
• Via GDSN: ½ business day
© GS1 US 2014 ALL RIGHTS RESERVED
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DATA SYNCH PROJECT: LAUNCHED
• Our Supplier Campaign started on December 9th, 2013
• FSEnet Inc. is our Data Pool Provider
• Target: synchronize 75% of our product catalog (by
volume) with our suppliers and distributors by August
2014
Our Goals:
Be the “gatekeepers” of our data
throughout our supply chain
Be a bridge to ensure timely responses
on discrepancies
Ensure the right parties have the right
information that adheres to GS1
standards
© GS1 US 2014 ALL RIGHTS RESERVED
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GS1 STANDARDS ADOPTION: NEXT STEPS
– GS1-128 guidelines for foodservice were published in April 2014
• Acceptable barcode application practices
• Case layout redesign
• GS1-128 barcode definition
– Barcode with up to 48 characters
– Components
1. GTIN
2. Lot number
3. Production date/Use by date
– IPC supplier and distributor contracts are being updated to
include:
• Product data synchronization and barcode requirements
• Electronic sharing of all transactional documents (EDI, cXML, Flat File)
© GS1 US 2014 ALL RIGHTS RESERVED
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SUBWAY® SUPPLIER & DISTRIBUTORS
OBJECTIVES
DATA SYNC OBJECTIVES
SUPPLIERS
DISTRIBUTORS
5/1/2014
9/1/2014
Static Product Information Sharing - GDSN
• Publish/Receive GDSN item information for all products purchased by
Subway® to IPC
1/2/2015
• Implement Data Accuracy Processes for Supply Chain Data
Standardized Product Identification
•
Use GTIN’s for Subway® products in all business transactions
•
Prepare internal systems to receive product data via GDSN, including
14-digit GTIN
1/2/2015
1/2/2015
10/1/2014
Data Accuracy Processes for Supply Chain Data
•
Execute the Data Quality industry scorecard
1/2/2015
© GS1 US 2014 ALL RIGHTS RESERVED
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SUBWAY® SUPPLIER & DISTRIBUTORS
OBJECTIVES
TRACEABILITY OBJECTIVES
SUPPLIERS
DISTRIBUTORS
1/2/2015
1/2/2015
6/1/2015
6/1/2015
Dynamic Product Information Sharing
• Send all transactions electronically via EDI, XML, or flat file
Barcode Scanning
• Start applying/scanning SSCC/GS1-128 barcodes with Date-Batch/Lot
Numbers for all Subway® products if present for inbound
• Scan Subway SSCC/GS1-128 at time of pick
6/1/2015
• Scan Subway SSCC/GS1-128 if present for outbound, and at time of
delivery
1/4/2016
Standardized Location Identification
• Assign GS1 Global Location Numbers (GLNs) to all plants,
warehouses, DCs, and Re-Ds.
1/4/2016
1/4/2016
© GS1 US 2014 ALL RIGHTS RESERVED
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OUR FUTURE VISION
GDSN Product Data
Synchronization
GDSN becomes
Source of Truth for:
IPC and Subway HQ
Systems
Use of GTIN’s:
Simplified product
mapping
Trading partner
communication
Product
Traceability:
Add GS1-128
Barcodes
Add GLN’s to all
locations
EDI Transactions
© GS1 US 2014 ALL RIGHTS RESERVED
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RESOURCES
• IPC Data Synchronization Pilot:
http://www.ifdaonline.org/News/Data-Sync-Pilot-Tests-New-Publication-Workflow-IPC
• GS1-128 Guideline for Foodservice:
http://www.gs1us.org/industries/foodservice/tools-and-resources/gtin-gln-gdsn
• GTIN/GDSN 2014 Sunrise:
http://www.gs1us.org/industries/foodservice/foodservice-initiative/industry-sunrise-date
© GS1 US 2014 ALL RIGHTS RESERVED
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QUESTIONS
© GS1 US 2014 ALL RIGHTS RESERVED
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