Breakout 4: Relationship Dependent Data RDD: Whats Happening with PricePromotion Synchronization 4:0

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Breakout 4 Relationship Dependent Data (RDD)
Whats Happening with Price/Promotion
Synchronization400 PM - 445 PMApril 3,
2006Carolyn Kroll1SYNC
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Agenda

• History of the GSMP Price Standard
• Current Status of the GSMP Price Standard
• Timeline for Syncing Price in the GDSN
• Getting Started
• Appendix Details of the GDSN Pricing Model

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History
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Many Are Already Exchanging Price

• Multiple one off solutions
• Custom build per implementation expensive and
  resource intensive
• All requirements are not addressed
• No significant adoption of one standard

Industry Pain
EDI
XML
Proprietary
Trading Partner 1
Trading Partner 2
Trading Partner 3

• Harmonize the requirements in all the message
  types and provide one standard based solution

Solution
Warehouses
3-Tier DSD
2-Tier DSD
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Benefits of Harmonizing on 1 Standard for Price

• Reduce invoice discrepancies
• Improve order accuracy and process
• Streamline check-in process
• Execute against promotional events
• New item setup and execution

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How Does Price Sync Fit Into the GDSN Landscape?

• Party Sync Who
• No current activity, but trying to regroup
• Item Sync What
• Implemented within GDSN
• Item Authorization Where
• GDSN pilot in progress, with certification in
  Q206
• Price Sync How Much
• GDSN pilot in Q406, with certification in Q107
  or Q207

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The Path to the Standard

• Approved Standards
• Business Requirements approved

• Approved Standards
• Price
• Price Bracket

2002
2004
2003
2005 - 2006

• CR 03-000045
• Component Based Pricing
• Price Sync (inside outside GDSN)

• Develop Standards
• Message Choreography
• Sync List Requirements
• Validations
• Move to 1 Message Doc

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Why the Long Timeline?

• The standard incorporates global requirements
  from all verticals and business models
• Sync transaction price or components
• Sync my catalog of bracket prices
• Sync targeted promotion and allowance activity
• Sync line item invoice-level components
• Sync at corporate level, at division level, at
  store
• Sync rate, percent, or amount, along with the
  calculation sequence
• Success includes establishing a comfort level
  with security, auditing, and trace-ability

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3 Elements of the Prior Model
Condition Document Monetary Document Business
Requirements Document
Conditions
Partner Profiles
Amounts Values
Trading Partner Profile Business Requirements
Document
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GDSN Analysis Feedback

• Difficulty finding pilot partners for the 3
  message model
• Architectural analysis suggested that a 1 message
  model might reduce the complexity of the 3
  message model
• GS1 Australia, GS1 Canada and GS1 Columbia have
  experience with price synchronization using 1
  message
• Adoption of the crawl phase would provide less
  functionality then currently exists and would be
  viewed as a step backwards.

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1 Message Proposed - Why?

• Experience could be demonstrated
• The bar for CRAWL could be raised
• Better integration Easier to compose, transmit,
  interpret and store than to receive multiple
  documents to re-assemble
• Compatible with existing price activity
• 1) GS1 Australia, Canada and Colombia have
  implemented a single message price sync
• 2) American c-stores have implemented PCATS
  single message price sync. Work is underway to
  harmonize PCATS with GDSN standards.
• Easier for EDI users to understand

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Current Status
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Revised Phase 1 Crawl Has Broader Scope

• Price synchronization in the crawl phase will
  include the following pricing components
• Simple transactional pricing
• Bracket pricing
• Allowances Charges
• Promotions

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Overview of Pricing Model
Relationship Segment

• Provides specific information about the trading
  partner relationship

• Communicates a price related component
• Can define a summary level condition, example
  swell allowance
• Can define a line item depiction for a bracket
  component

Item Depiction Segment

• Communicate the Catalog Item pertaining to the
  price component

• Communicates a price related component
• Used to define line item depictions
• Defines allowances or charges

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Consolidate to 1 Message Accomplishments

• Developed Message Choreography
• Defined Data Pool Sync Lists
• Determined Validation Requirements
• Applied Sequencing Rules to Business Use Cases

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Consolidate to 1 Message Remaining Deliverables

• Change Tracking Requirements
• Pilot Test Specifications
• Implementation Guide Best Practices
• Security Requirements

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Timeline
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GDSN Price Schedule
May 8 Draft Standards Available For
Development Piloting
Optional Certification Price Sync Jan 2007
2007
2006
Apr May Jun Jul Aug Sep
Oct Nov Dec Jan Feb Mar
Apr May
Development of Pilot Specifications and
Implementation Guide
Price Sync Standard Delivered
Data Pool Development / Minimum Four Months
Pilot
Cert
Pilot Feedback
eBallot
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GDSN Price Schedule
Optional Certification Price Sync April 2007
May 8 Draft Standards Available For
Development Piloting
Gates
2006
2007
Apr May Jun Jul Aug Sep
Oct Nov Dec Jan Feb Mar
Apr May
Price Sync Standard Delivered
Development of Pilot Specifications and
Implementation Guide
Data Pool Development / Minimum Four Months
Cert
Pilot
eBallot
Pilot Feedback
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Getting Started
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Getting Started

• Begin building your companys ROI
• Utilize available tools
• GMA, Invoice Accuracy 2002 Industry Survey
  Benchmarks
• GDS Launch Pad provides a business calculator and
  a business case development tool
  (www.gdslaunchpad.com)
• GCI Global Data Synchronisation at Work in the
  Real World Illustrating the Business Benefits
  provides sample KPIs and critical success factors
• Include KPIs that will be used to track your
  progress
• Obtain senior-level sponsorship
• Address security and transparency issues
• Obtain buy-in from both business and technology
• Incorporate KPIs into performance reviews

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Getting Started (continued)

• Mobilize your organization
• Designate project champion and create charter
• Provide strong project management/project manager
• Manage Change
• Project structure Phased implementation plan
• Business process change Involve users
• People Find and reward those who will make a
  positive contribution
• Team Structure Qualified people who can
  dedicate time
• Communications Lots of them
• Success Factors
• Choose a data sync partner who has built and
  maintains the highest level of security
• Ensure that you have a solid business plan,
  senior level support, and qualified, dedicated
  resources to make it happen
• Monitor progress and reward success

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Getting Started (continued)

• Other
• Consider Participating in the GDSN pilot
• Understand the data model and the attributes
• Begin locating and cleaning your data
• Talk to your data pool
• Data Pool implementation plans
• Timing
• Structure of out-of-network supplier and
  retailer connections

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Overcoming Barriers to Adoption

• Waiting for an ideal standards-based solution
• Security
• Someone is going to access my data who
  shouldnt
• A 3rd party will send my data to wrong place
• Price Promotion sync will shift the balance of
  trading power

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Questions?

• Further Information
• http//eroom.uc-council.org/eRoom/facility/GSMPRDD
  -GDSNIndustryRequirementsTeam
• Contact Information
• Ckroll_at_1sync.org

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Appendix The GDSN Price Sync Model
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Overview of Pricing Model
Relationship Segment

• Provides specific information about the trading
  partner relationship

• Communicates a price related component
• Can define a summary level condition, example
  swell allowance
• Can define a line item depiction for a bracket
  component

Item Depiction Segment

• Communicate the Catalog Item pertaining to the
  price component

• Communicates a price related component
• Used to define line item depictions
• Defines allowances or charges

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Overview of Pricing Model
Price Synchronization Header
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Overview of Pricing Model
Relationship Segment
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Overview of Pricing Model
Relationship Segment
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Overview of Pricing Model
Condition Segment
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Overview of Pricing Model
Condition Segment
Can provide list Of Catalog Items
Provide either Catalog Item or Class Code
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Overview of Pricing Model
Condition Segment
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Overview of Pricing Model
Item Depiction Segment
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Overview of Pricing Model
Item Price Type Segment
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Overview of Pricing Model
Item Price Type Segment
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Overview of Pricing Model
Item Price Type Segment
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Overview of Pricing Model
Item Price Type Segment