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Background
Since the introduction of the 12-digit Universal Product Code (U.P.C.) more than 30 years ago, the use of the EAN UCC System has expanded rapidly to facilitate global commerce. To meet the need for improving commerce efficiency, the Uniform Code Council, Inc. (UCC) has announced that by January 1, 2005 all U.S. and Canadian companies must be capable of scanning and processing EAN-8 and EAN-13 symbols, in addition to 12-digit U.P.C. symbols at point-of-sale.
Given this knowledge, how prepared are most companies to meet this initiative? A review of the current state of systems and system initiatives in process is needed, followed by a suggested future state.
Research:
As previously indicated, there is a mandate by 2005 to accept EAN-13. Most likely it is not a significant change to table structures1; however, with EDI, RFID and ever changing technologies, it is important to modify fields for future uses. One option to quickly come into alignment with industry practices, and to keep pace with retail giants such as Wal-Mart, is to use a subscription service such as UCC.net.
Subscribers use technology-neutral, XML-based trading community to communicate instantly and in a highly secure environment with trading partners. The purpose is to share industry standards-compliant, synchronized item content and receive immediate notification of product life-cycle events. Some examples include new item introductions, item maintenance, authorizations and de-authorizations. The implications are immense but the implementation is not.
UCC.net answers the global mandate for real-time, synchronized, industry standards-compliant item content to drive collaborative commerce to the next level. It is also the essential universal registry for global trade item numbers, global location numbers and global partner profiles for the entire international business community.2
Deadlines and Roadblocks:
Some sense of urgency is needed since the deadline for compliance is January 1, 2005. Although a voluntary mandate by UCC, as manufactures and distributors conform, retailers must be able to use the same data.
There are potential roadblocks for companies to achieve compliance. These may include strategic initiatives currently in progress, synchronization of all software projects underway, and the always scarce resource pool.
Conlusion:
If primary business systems are legacy and heavily modified to fit unique business requirements, the task can appear more daunting. Each system may have varying field lengths. The suggested field length is not less than 24, but potentially as long as 26 to accommodate RFID technology. Finally, the table structures within each system should be reviewed to ensure 24-26 data characters could be captured.
As technologies continue to evolve, proactive preparation is the best alternative. As Wal-Mart goes, so goes the industry. Whether an organization actually supplies Wal-Mart or not, the implications to the industry are so dramatic that all retailers will be effected.
1 www.uc-council.orgean_ucc_system/stnds_and_tech/2005_sunrise.html
2 UCCnet KnowledgeBase2002 – www.uccnet.org/etours/technologyInterface
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Sten Sundelin is an experienced team leader with a Master’s degree and more than 16 years of experience as a programmer, software analyst/designer and project/staff manager. He has demonstrated proficiencies in the integration and EDI/E-business supply-chain execution arena together with a well-developed ability to combine technical architecture and design skills with business process analysis. His analytical skills are strong and he is focused on satisfying customer needs, delivering solid solutions for the benefit of the client. Mr. Sundelin has a multi-cultural background and good communication skills as well as a proven record of problem-solving and innovation. He is an intelligent and organized hard-worker with strong work ethics who is not afraid to pull up the sleeves and ’do the dirty work’ when required to make the team deliver on time and within scope.
Originally from Sweden, Sten is fluent in English and Swedish and also conversant in Norwegian/Danish and German. He has worked for several corporations including Philips Elektronikindustrier (aka Bofors Electronics) and Industri-Matematik International, where one of his major accomplishments was managing the EDI Order Management implementation project for Panasonic USA. Sten is currently working at Canon, USA on behalf of Navesink Logistics.
Congratulations to Sten Sundelin as this month’s featured consultant.
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Do you know if you have a handle on your transportation costs? A simple “Overview Study” will provide you with the “peace of mind” you hope for or expose the fact that attention needs to be given to this important area of your overall logistics/supply chain program. Think of this “Overview Study” as a one (1) time insurance policy for transportation costs conducted by a third party logistics firm with a staff of well trained experts.
A good overview study will include, but is not limited to, the following:
· Carrier Selection
· Carrier Rates/Pricing
· Mode Selection Alternatives
· Billing Accuracy
· Discount Programs/Rate Bases Utilized
· Classification - Critical Area of Review
· Consolidation Opportunities
· Small Package Programs
A Findings and Recommendation Study must follow the subject review. In addition, any company paying freight charges should have a Post-Audit Program in Place. Although The Trucking Industry Regulatory Reform Act of 1994 reduced the time available for the shipper to file a freight bill claims from three years to six months or two years depending on the type of freight bill. This audit is of critical importance. Carrier incorrect billings and mathematical errors contained in carrier freight bills tend to range from 2 to 5% depending on the mode. The standard fee for post-audit freight bill services is 50% of the amount recovered. If there aren’t any errors found, the audit costs absolutely nothing. For large volume shippers fee is usually 40% of the recovered amount.
Remember, if you don’t have your freight bills audited you can’t recover any money that is rightfully yours.
I have been asked frequently to write an article on “The Bill of Lading - A Legal Document” and Developing an Inbound Transportation Program (a "Gold Mine”). These articles will follow in the late summer/early fall. Can’t wait? Contact Navesink Logistics for a discussion of our consulting services.
Mr. truck is Professor/Instructor at the Institute of Logistical Management (formerly the Academy of Advanced Traffic)
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Introduction
