How do Manufacturers and Retailers Synchronize Master Data?
Retailers and manufacturers exchange master data in different ways, traditionally by fax or mail: Suppliers transfer all necessary information via a written product ID, so that retailers can incorporate the goods into their assortment. This data exchange by paper is elaborate and prone to errors, since larger manufacturers then need to compile a flood of product IDs for numerous customers, while taking the individual requirements of each business partner into consideration. The employees at the retailer need a lot of time to enter all information into their computer systems and keep it continually updated. Even minor typos in important master data like the package dimensions or the article number slow down the process significantly: pallets are too large to fit into the high racks or scanners at the check-out cannot recognize a product.
Things are Smoother Online
Today retailers and suppliers increasingly exchange master data via the internet. In order to download data, business partners turn to electronic data interchange (EDI). EDI allows the transmission of information on the basis of defined standards, such as EANCOM. EANCOM is an established message format that was developed as a so-called subset for the UN/EDIFACT-Standard (United Nations Electronic Data Interchange for Administration, Commerce and Transport). This format determines the exact type, volume and sequence of data and guarantees that master data is consistent and comparable for all EDI-users. The work load involved in bilateral data transfer is nonetheless relatively high. A market participant with 100 EDI partners has to send 100 e-mails and resolve several questions on a case-by-case basis, for example:
All in One
Due to the weaknesses of data transfer between two partners, participants have started to increasingly communicate via data pools. One of these pools is SA2 Worldsync (
www.sa2.com), which is also used by the METRO Group. Manufacturers enter their product master data into the pool and all connected retailers can download the data when needed and import it into their merchandize management system. An advantage for both sides: There is only one central address for data delivery and retrieval. This means that the use of bilateral product IDs via mail, fax or internet is no longer necessary.
Three Ways into the Pool
Suppliers send product master data to SA2 Worldsync. The data pool offers three different levels of entry. The simplest way to gain access is via the web with the client software SINFOSplus•Easy, which is compatible with all browsers. This option is suitable for suppliers with a product range of up to 50 articles. Manufacturers enter their product master data manually using an internet entry-template and then send this data to the GS1 Germany SA2 Worldsync web server. SA2 Worldsync offers a second access option with the turnkey user-software SINFOSplus•Pro. Besides manual data entry, this software allows flexible import and export to and from in-house data bases. The EANCOM message format PRICAT is available as a third alternative for entering and transferring product master data to the SA2 Worldsync data pool. The METRO Group uses this third option.
Finding Your Way through the Data Jungle
Data in SA2 Worldsync is stored in a default grid of text fields. Consequently the data collection has a clear structure and trading partners can orientate themselves very quickly. SA2 Worldsync lists various product groups: The category Food/Nonfood for example contains the full assortment of food retailers—from butter to light bulbs. Each product is described with numerous attributes e.g. the article number, dimensions, weight, packaging, colors and flavor. These are complemented by short descriptions and particular specifications such as a hazardous material warnings. Manufacturers can also add illustrations and photos which are a valuable resource for retailers’ marketing departments and their promotions. Suppliers are responsible for data quality and regular updates. In addition SA2 Worldsync also checks all information.
The More Join the Better
Many companies today exploit the potentials of data pools: SA2 Worldsync now has more than 1,600 participants from manufacturing and retailing. Cross-border exchange of master data is also possible, since the SA2 Worldsync system is based on internationally standardized content and rules. The portal is now being operated in seven European countries: Germany, Austria, the Netherlands, Finland, Denmark, Italy and Spain.
