In response to its customers' increasing retail compliance challenges, Sterling Commerce has released two software packages said to help trading partners synchronize transactional data and manage the transport of products through the supply chain.
Sterling's Global Data Synchronization Solution (GDS) is said to enable users to create a "single version of the truth" across all product types, an increasingly common requirement from retailers that are seeking data definitional consistency across multi-channel supply chains. Specifically, suppliers can save time and money by only having to enter item descriptions into their order management systems once; they can then be shared with multiple retailers.
"Global data synchronization is a real issue between retailers and manufacturers, with [each side of the trading partnership] needing to identify a product accurately," said John Fontanella, an industry analyst with Aberdeen Group in Boston.
Because they often communicate without common data definitions, retailers sometimes receive items they didn't order, which can kick off a chain reaction that results in charge-backs and other financial consequences that often fall squarely on the shoulders of suppliers. "Most of the time, suppliers know that they are not compliant only after they receive a charge-back," said Ken Ramoutar, Sterling's director of product marketing.
And it's not just an issue between buyer and vendor. Often, concerns arise internally on the retailer's side before an order is even submitted. "One of the problems is that retailers don't fully appreciate the value of data management within their own enterprise," Fontanella said. When a manufacturer's product description differs from the retailer's expectation, the vendor, in many cases, will end up taking the blame, he noted.
Sterling's GDS product validates incoming data against 1,600 criteria, looking for definitional inconsistencies. The cost to implement the system is commensurate with the amount of a user's existing items and systems, as well as the quality of the existing data, Sterling said.
A component of the GDS product called "Attribute Value Pairs" enables suppliers and retailers to agree on a specific definition for a given item. It enables the consistent exchange of accurate information based upon the pairing of those terms (item plus description) to result in a unique identifier. The software then goes a step further by supporting specific data synch attributes that retailer Lowe's has requested from its suppliers. Although Lowe's mandates are highly specific to that company, Fontanella asserts that such mandates will eventually be seen throughout the entire industry.
The software uses definitions provided by the Global Data Synchronization Network (GDSN), which is an Internet-based system of interoperable data pools and a global registry that companies around the world use to exchange standardized and synchronized supply chain data with their trading partners. A recently released GDSN blueprint outlines business processes and timelines for implementing data definitions.
The problem of poor data synchronization doesn't end with the vendor-supplier relationship. The issue becomes more complex as the data exchanged between manufacturer and retailer is extended to involve other companies in the supply chain, such as transportation or logistics providers. "The supply chain becomes a network where data integrity is crucial for success," Fontanella said.
That's where Sterling's new Retail Compliance Kit comes in. The kit provides pre-configured compliance capabilities said to help control the costs associated with retailer mandates in the warehouse, including labeling, packing, parcel shipping, and load consolidation. It also supports specific labeling requests such as advanced ship notification. This enables suppliers to ensure that their products meet customers' logistics requirements before the products are shipped.
Sterling, a subsidiary of AT&T, has a solid history of providing network-driven services to CPG and hardline customers, focusing on fostering communication between buyers (retailers) and sellers (manufacturers) and effective and efficient collaboration between trading partners. Acquired by SBC Communications in 2000, the Dublin, OH, company became a subsidiary of AT&T with the merger of AT&T Corp. and SBC in November 2005.