A method used to classify articles according to sales volume. Depending on the strength of sales they are divided into classes A, B or C. The ABC analysis enables retail partners to improve the planning of sales promotional measures. It’s generally based on current and past sales figures, which are stored in the retail company’s merchandise management system.

A committee founded by the American National Standards Institute (ANSI) in 1979, which is responsible for defining generally applicable EDI standards (Electronic Data Interchange) in the USA. The committee is made up of members of the government and representatives from industry. The standards defined by the ASC X12 are presented to the ANSI for approval and subsequent publicizing.

Fixed order for arranging goods on the shelves. As part of Shelf Management METRO Group uses a standardized article chronology in every store of a sales division in order to guarantee a homogeneous appearance, making in easier for customers to get their bearings in the stores.

Master data.

European Article Number (EAN).

Total of all goods offered by a retail company to its customers. They are usually differentiated by breadth and depth of the assortment. The assortment breadth represents the number of all products carried. The assortment depth is determined by the selection of brands, types, sizes, colors, qualities etc. within one article group.

Characteristic to differentiate between Maintenance groups. The Assortment Component defines the number of articles within the maintenance group and therefore determines the scope and size of these. METRO Group generally numbers the Assortment Components with figures 1 to 7. The bigger the number, the larger the number of goods in the maintenance group.

Process in which a retail company’s buying division puts together the best possible goods offer for its stores. The objective is developing an Assortment for every Category which is customer-oriented and encourages sales. In METRO Group Assortment Development is the task of the central buying company MGB METRO Group Buying. This carries out regular events where selected suppliers present their goods for a certain category such as textiles or household goods. MGB checks the product range, selects articles and puts them together in an assortment. In this process MGB compiles and processes all Master Data belonging to the selected articles. It transfers information such as product name, weight and packaging size to the group’s Inventory Management System so that these can be retrieved at any time, for instance for orders or auditing. In order to efficiently develop Master Data Management the central data pool MMS-CAT is used, the Metro Merchandising System Catalog.

The name for a group of goods used in connection with METRO Group’s Shelf Management System. The shelf management system differentiates between three types of categories, for which planograms are created: Assortment Groups, Maintenance Groups and Store Groups. In an Assortment Group certain articles are grouped into one Category, which is the same for all stores of a METRO Group sales division – for instance “everything for children”. Assortment Groups are also known as Categories.

Scientific organization at the Massachusetts Institute of Technology (MIT) in Cambridge, USA. In 1999 the Auto ID initially worked developing the Electronic Product Code (EPC), working closely together with numerous companies and universities such as the University of Cambridge in Great Britain and the Swiss University St. Gallen. When the EPC became ready for marketing the results of this research were passed on to EPCglobal in 2003. The main task of this organization is to develop the EPC further and establish it in the international market. The Auto ID Center ceased its work on 26 October 2003.

Scientific institutes which perform research work on behalf of EPCglobal, with the objective of further developing the Electronic Product Code and the EPC Network. Auto ID labs have been set up at the following universities and institutions: Massachusetts Institute of Technology (MIT), Boston, USA; University of Adelaide, Australia; University of Cambridge, Great Britain; Keio University, Japan; University of St. Gallen, Switzerland; Shanghai Fudan University, China.

A comparison variable/model used by a company for orientation when defining its objectives, in order to optimize its own processes and become more efficient. Benchmarking works as a competitive analysis tool and for continuously checking a company’s market positioning.

Orientation towards the best process structures of a selected company to optimize a company’s own processes. This is done as follows: After defining goals in certain business areas other suitable companies are chosen which are regarded as Benchmarks. The performances of all companies are compared with each other to determine the “best practice“, so to say the most efficient approach. Using this the necessary measures for optimizing a company’s own methods are identified and implemented.

Variant of Continuous Replenishment Programs, which are used to ensure constant supply of goods from manufacturers to retailers. BMI means that, in contrast to Vendor Managed Inventory (VMI) and Co Managed Inventory (CMI), retailers manage their goods supplies alone.

METRO Group’s Campaign Management is part of Customer Relationship Management (CRM). The objective of Campaign Management is to meet customer demand with tailored activities, retain customers and therefore increase sales. METRO Group marketing experts can quickly and efficienctly run a great number of target group tailored campaigns thanks to special software.

Grouping together various articles with certain characteristics, for example "everything for childrenGrouping together various articles with certain characteristics, for example "everything for children” or “everything for BBQs”. Category Management.

A report in the information system Metro Data Warehouse. METRO Group suppliers can use this repot to see how a complete Category has been selling on different days of the week – compared to the same days of the previous year. This enables METRO Group and its suppliers to recognize changes in customers’ buying behavior early on and to react in good time.

Consistent optimization of an assortment in line with customer requirements. Category Management is a joint planning process between manufacturers and retailers with the objective of defining Categories and placing and displaying them in stores in the best possible way. Category Managers rely on a great amount of data. They use both information from within the company as well as investigations carried out by market research institutions. The latter provides insights such as which products consumers are buying from which retailers. This and other data are important decision making aids for Category Managers and their partners to define customer groups, determine categories, establish sales strategies and optimize the assortment. Based on a targeted, customer-oriented assortment policy Category Management contributes to increasing sales and revenues and strengthening long-term customer relationships.

Joint planning process between manufacturers and retail companies for strategically defining and managing categories. The CM process is made up of eight steps. First of all, the Category Manager defines customer target groups and bundles various products into categories. Then they assign roles to the categories (image building products, staples, complementary, seasonal). In the next step each category is checked for its potential and evaluated, then the Category Management Team, made up of Category Managers and Category Partners, define objectives, strategies and measures. The last steps are the actual implementation in stores and finally success monitoring.

Person responsible for Category Management. The Category Manager manages Categories as strategic business units. He or she compiles assortments, identifies significant customer groups and defines sales strategies, to place and display products in stores in the best possible way. In the Category Management Process retail companies and manufacturers form a cross-company team, where the Category Managers are from retail and the Category Partners are from manufacturing.

The Category Partner is the person responsible on the manufacturing side for the joint Category Management Process with the retail company. He or she is part of the Category Management Team, together with the
Category Manager in this process.

European committee for standardization. The German member of the CEN is the German Standardization Institute in Berlin.

Person in charge of procuring goods for the entire METRO Group.

GS1 Germany.

Changes to packaging sizes, for instance for new products or advertising campaigns. In the future METRO Group’s
Shelf Management System will automatically take changes to measurements into consideration and incorporate these in Planograms.

Software used by METRO Group to develop Category Management efficiently. The software is available for all parties involved in the Category Management Process via the Internet. The program brings together all internal and external data relevant for the CM process, analyzes and structures it and uses it to derive recommendations, e.g. for compiling assortments. A central element of CMplus is the so-called CM Scorecard, which gives a target/actual comparison for defined categories. In addition CMplus supports the Category Managers and their
Category Partners in planning promotions together. Furthermore, CMplus is linked to Spaceman, software used to assist Shelf Management.

Variant of the Continuous Replenishment Program. CMI means that manufactures and retailers manage the good’s supply process together. Manufacturers organize the supply of standard goods; retailers on the other hand organize the supply of promotional goods.

Collaboration between manufacturers and retail companies for the efficient management of goods flows and optimization of inventories. The CPFR is basically a process divided into three phases: planning, forecasting and ordering and storing. In the planning phase retailers and manufacturers set down the rules of their collaboration. This is followed by the forecasting phase, where the partners work together to predict sales and ordering quantities as precisely as possible for selected goods. A vast amount of data such as sales figures form the basis for continuous updating of requirement forecasts. In the final phase orders are made and the assignment is completed. The three phases are made up of a total of nine steps: 1. Concluding a general agreement,
2. Developing a business plan, 3. Creating a requirement forecast, 4. Identifying variations to the forecasts,
5. Updating the requirement forecast, 6. Generating an order forecast, 7. Identifying variations to the forecasts,
8. Updating the order forecast, 9. Generating order and completing assignment.

Basic version of the Full Global Scorecard. The Global Scorecard is an evaluation model used by companies to measure the status of activities in the field of Efficient Consumer Response (ECR). There are four types of scorecards: Entry Level Scorecard, Intermediate Level Scorecard and Full Global Scorecard. A version of the Full Global Scorecard, the Compliance Scorecard, only presents the basic technology used such as Electronic Data Interchange and standards as well as selected performance figures and key data regarding the degree to which ECR activities have been implemented.

IT-based computer ordering system for retailers. It automatically generates suggestions for orders based on sales figures, sales forecasts, replacement times, target stock quantities and data (weather, competitor campaigns etc. The relevant suppliers can be provided with this data (in aggregated form) directly. CAO is an important requirement for efficient Cross Docking.

Program for the continuous supply of goods within Efficient Consumer Response, which achieves a continuous supply of goods throughout the entire logistics chain from manufacturer to retailer. Replenishment is triggered by the actual demand or forecast requirement for goods rather than by the retailer. CRP differentiates between three types of good’s supply: Vendor Managed Inventory (VMI), Buyer Managed Inventory (BMI), Co Managed Inventory (CMI).

System to translate messages from a standard into the respective in-house format and from an in-house format into a respective standard for message transmission.

Horizontal cooperation: Collaboration of various companies on one value creation level, such as logistics providers (Networks). Vertical cooperation: Collaboration of companies on different levels of the Value Creation Chain (upstream and downstream), such as raw material suppliers, manufacturers of product parts, manufacturers of semi-finished and finished products, logistics providers, retailers.

Collaborative Planning, Forecasting and Replenishment.

Goods distribution system which does away with stock keeping in distribution warehouses. Manufacturers put together a retail company’s goods order and transport it to their distribution warehouse where the goods are received and shipped immediately to the stores. There are two versions of Cross Docking. In the first version a retail company’s stores send their orders to the manufacturer independently of one other, but at the same time. The manufacturer picks the individual orders onto pallets and issues a delivery note and invoice for each store. They then transport the goods to the retail company’s distribution warehouse from where they are forwarded directly to the stores, without being repacked. In the second version the retail company accumulates the orders of its stores and sends them to the manufacturer all together. The manufacturer treats the collective order as one single large order. This means, they pack all ordered goods onto pallets, without sorting them by individual store. The manufacturer transports the goods to the retail company’s distribution warehouse where the delivery is first picked for the individual stores and then sent out. Cross Docking allows manufacturers and retailers to save costs for transport and the transshipment of goods. In addition, the faster supply to stores improves the availability of goods and the need for storage capacities is reduced because less storage space is required.

The Customer Life Cycle model assumes that every customer proceeds through different phases. A typical Customer Life Cycle differentiates between acquisition, relationship enhancement and retention phase.

METRO Group differentiates between different kinds of Customer Segments such as large scale segments with several hundred thousand customers for broadly based campaigns as well as smaller segments which are tailored to a specific offer.

Software for converting paper invoices into electronic invoices. Incoming invoices for goods or services are scanned with a simple table-top scanner. The data capture software installed on the PC of the processor scans the invoices for relevant data fields and converts these into the message language of Electronic Data Interchange (EDI).

Two to four digit reference number of the EAN 128 standard at the beginning of a data element. The data indicator clearly defines the format and content of the following data element – e.g. the EAN Article Number, the weight of the article or the batch number.

Terminal at the exit of the Future Store, which customers can use to permanently deactivate RFID Transponders on the products they’ve bought. Customers place the purchased goods on a plate with an integrated RFID reader. The RFID Transponders are read automatically and the stored number code appears on a display. The customer deactivates the chip with the click of a button.

Physical unit which is put together for a delivery and may not be broken up during the delivery process. A delivery unit could be, for instance, small loading equipment, a pallet box or a container with goods and packing aids.

Term used in Efficient Consumer Response (ECR). The ECR strategy differentiates between measures on the
Supply Side and the Demand Side. The Demand Side of ECR includes marketing tools such as Efficient Promotion, Efficient Product Introduction and Efficient Assortment. The objectives are to put together customer-oriented assortments, manage advertising measures efficiently and to manage sales floor and shelf space in the best possible way. In this way retailers and manufacturers can fulfill consumer requirements more effectively and maximize their own sales volume and growth potentials. A central practice of ECR on the Demand Side is Category Management.

Dispatch Advice, an electronic delivery notification. This includes detailed information on goods, which have been delivered under agreed terms or are awaiting delivery. DESADV is a form of message of the EANCOM message standard.

Delivery to individual retail stores by the manufacturer directly, by-passing regional distribution warehouses in so-called third-party deals.

International standard for encoding basic and additional logistical information for an article (e.g. batch numbers, best before date, EAN article number). The EAN 128 Standard takes the form of a barcode. It is a so-called
Data Identifier Standard.

A label standardized in format and content for marking shipping units and transport packaging. It includes article, logistics and consumer information, which takes the form of either plain text or a barcode (EAN 128 Standard).

Internationally harmonized, uniform 8, 13 or 14 digit article number which is unique worldwide for products and services. This forms the basis for using scanner technology and makes electronic communication much easier.
Global Trade Item Number.

EAN Article Number).

Internationally applicable message standard for encrypting and electronically transferring data (Electronic Data Interchange). EANCOM is the most frequently used application standard of UN/EDIFACT in the consumer goods industry. This standard, defined by the United Nations Economic Commission for Europe, for Electronic Data Interchange for Administration, Commerce and Transport (EDIFACT) ensures that each information segment in an EDI message is in a specified position. For almost all transactions in a retail company’s process chain there is a corresponding EANCOM message standard – for example, ORDERS for orders, DESADV for announcement of deliveries and INVOIC for invoices. In total there are more than 40 internationally applicable EANCOM message types which represent the business processes between retailers and manufacturers.

EANCOM.

GS1.

EAN-Standards

Internationally applicable numbering and coding system which assigns unique numbers worldwide to clearly identify goods, services and companies. Also known as EAN/UCC systems. Specific logistical information such as article descriptions and characteristics of shipping units are encrypted numerically using EAN standards and made so as to be machine-readable. This information takes the form of a barcode on articles or packaging or it’s translated into a special message language (EANCOM) for electronic communication (Electronic Data Interchange (EDI)). The EAN standards basically consist of three major numbering and coding systems: the European Article number EAN or Global Trade Item Number (GTIN) for standardized marking of goods and services, the International or Global Location Number (Global Location Number (GLN)) to identify companies or parts of companies and the Serial Shipping Container Code (SSCC) to identify transport and storage units such as pallets. These standardized, internationally applicable numbering systems do away with the need to transfer addresses, article descriptions or other detailed information in business communication, which can be costly and prone to errors.

EAN-Standards.

An initiative created by ECR Germany to help small and medium-sized companies (SMEs) in particular to optimize their business processes. ECR Germany offers workshops where experts explain the central components of
Efficient Consumer Response (ECR). They demonstrate how a company should proceed step by step to implement ECR measures in practice.

Electronic Data Interchange.

One of three possibilities for suppliers to exchange electronic data with METRO Group (Electronic Data Interchange). The business partners create orders or invoices in their own IT system and store them in a file format used internally by the company. A so-called EDI Gateway (converter) changes these files into the standard format
EANCOM. The business partners then exchange these EANCOM messages via a mailbox system or the Internet. EDI TradePortal,METRO Group EDI Center (MEC).

Also UN/EDIFACT. International, cross-industry standard defined by the United Nations Economic Commission for Europe for Electronic Data Exchange. EANCOM.

The EDI Process Manager automatizes and simplifies METRO Group’s reports for implementing EDI for sales divisions and business partners. Furthermore, it displays the activities by supplier, sales brand and country in the METRO Group intranet.

Application for Electronic Data Interchange via Internet for suppliers; also known as Web EDI. Suppliers can log into the portal with a user name and password and sort, send and file orders, delivery notes and invoices online by retail partner.

Collaboration of retailers and manufacturers for planning and presenting an assortment. The objective is to utilize the available sales floor in a store as efficiently as possible.

Joint initiative of retail companies, manufacturers and service providers with the objective of fulfilling consumer expectations and needs as much as possible and in the most efficient way. ECR examines business processes throughout the entire value creation chain from the sub-supplier and manufacturer to the retail company and consumers. By optimizing the availability of goods, for example, or merchandise management, both customer satisfaction and value creation can be increased. The ECR strategy differentiates between measures on the Supply Side and the Demand Side. On the Supply Side the focus is on Efficient Replenishment, on the Demand Side the focus is on the topics
Efficient Promotion, Efficient Product Introduction and Efficient Assortment.

Collaboration of retailers and manufacturers with the objective of planning and implementing the introduction of new products together in order to achieve the best possible consumer acceptance.

Collaboration of retailers and manufacturers for planning and implementing sales promotion measures. The objective is to align these with consumer needs in a more efficient manner.

Collaboration of retailers and manufacturers with the objective of developing the flow of goods from manufacturer to consumer so as to involve minimal handling and interruptions and to improve the flow of goods by using EDI for information flows between partners.

Standardized system for developing the economical use of packaging and transportation units, such as pallets. Unit Loads can be said to be efficient if all components along the process chain (i.e. packaging, pallets, shelves, lorry loading floors, loading ramps, incoming and outgoing goods gates and warehousing and transshipment terminals) are coordinated with each other in the best possible way. Manufacturers and retailers can considerably reduce their logistics costs by using EUL. A requirement for this is applying the so-called EUL standards, which define, for instance, quality requirements and the use of single-use transport items. These should have certain dimensions to allow the space of transportation pallets or warehousing/sales shelves to be utilized to the full. There are also specific EUL standards for Reusable Transport Items such as pallets, boxes or crates. One example is the so-called Europalette.

Electronic Advertising Displays provide up-to-the minute information about products and special offers using still shots and video animations.

The transfer of structured data from one computer to another using defined message standards. For EDI to work, the communication partners have to formulate their messages into a common language. Therefore in 1987 the United Nations Economic Commission for Europe defined a worldwide, cross-industry standard EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport). The EDIFACT application standard used most frequently in the consumer goods industry is EANCOM. Data transferred by EDI can be automatically processed further. Companies use EDI to significantly improve their business processes and communication with their business partners.

DESADV.

Number for clear identification of individual articles and shipping units in the process chain. The Electronic Product Code is made up of the EAN Article Number and a nine digit serial number. Combining both of these numbers not only provides product data, such as brand or manufacturer name, but also makes every single article by a manufacturer unmistakable. This can be used to trace the path of the goods within the process chain. The Radio Frequency Identification (RFID) is the carrier technology for the EPC. The EPC is stored on the so-called RFID Transponder. This is a chip with a miniature antenna which is generally embedded in a label. RFID Transponders – also called Smart Chips – can be read by a computer-controlled device (RFID Reader) without needing to make visual contact. If a company wishes to access EPC data, alongside RFID Readers it has to use a special system comprising software and server technology. This system is called EPC Network. The EPC is being further developed and established in the market by the organization EPCglobal.

Price marking on the sales shelves using electronic price labels (LC displays). These are managed using the local radio network (Wireless LAN) via a price management system, which is linked to the checkout system. Price changes are sent automatically to the display on the shelf and to the checkout at the same time, ensuring that price labels are always up-to-date and identical to those at the checkout.

Enabling Technologies.

Internationally established identification and communication standards such as the Global Trade Item Number (GTIN) and the uniform EANCOM message format for Electronic Data Interchange (EDI). These are the basis for
ECR Processes and are therefore frequently called base technologies.

Entry level version of the Global Scorecard, an evaluation model used by companies to measure the status of their activities in the field of Efficient Consumer Response (ECR). The Entry Level Scorecard can be used to evaluate fundamental ECR processes. It includes 52 questions on three central topics: Firstly: Readiness, i.e. the degree of readiness to implement ECR in the company. Secondly: Consumer Focus, i.e. the degree of customer-orientation achieved. Thirdly: the efficiency of the operating business. Intermediate Level Scorecard,
Compliance Scorecard, Full Global Scorecard.

Electronic Product Code (EPC).

An international organization which is involved with Standards for Radio Frequency Identification (RFID). The objective of EPCglobal is to develop the Electronic Product Code (EPC) further and establish it in the market. As a data standard the EPC is a central requirement for using RFID technology consistently worldwide. The EPC is embedded in the EPC Network. The EPC technology was developed by the Auto ID Center, a scientific organization at the Massachusetts Institute of Technology (MIT) in Cambridge, USA. EPCglobal is assisted by four
Auto ID Labs today.

A part of the system architecture of RFID technology and components within the EPC Network. The computer system EPC Information Services (EPCIS) sends the product description to the terminal which started an enquiry in the EPC Network. For this the system uses a special language: the Physical Markup Language.

Special system architecture which assists users in accessing the Electronic Product Code (EPC) to find additional information about the respective goods or shipping unit. The EPC Network creates the link between the EPC and the associated data. As well as the EPC itself, the EPC Network includes the following components: RFID Reader, reference software and Object Naming Service (ONS). The individual EPC Network components take over the following functions: The Reader “asks” the RFID Transponder for the EPC and then forwards this to the reference software. The reference software is the backbone of the EPC Network. It processes and filters data coming from the Reader and forwards this to the application systems – for instance, to a computer in a warehouse’s incoming goods. The Object Naming Service (ONS) is a database in which an Internet address can be saved for every EPC, which the reference software uses to retrieve detailed product information. The Physical Markup Language (PML) is another component of the EPC Network. This is a standardized transmission format which allows all product information to be presented and sent in a uniform manner.

Traceability of foodstuffs.

One of two departments spun off from the European Conference of Postal and Telecommunications Administrations (CEPT), which is involved in developing standards and guidelines for using Radio Frequency Identification (RFID).

One of two departments spun off from the European Conference of Postal and Telecommunications Administrations (CEPT), which is involved in developing standards and guidelines for using Radio Frequency Identification (RFID).

Projector, which projects an image on the floor just in front of the shelf-space. Helps customers find what they are looking for.

Exceptions are so-called reasons for testing, which SAF Superwarehouse, a special software for automatic warehouse merchandise planning, displays in the form of a warning signal if irregularities are found. A frequent reason for testing is the risk of running out of stock.

The number of sales units on a shelf which are visible from the front, irrespective of how many rows these are arranged in (depth) or how many layers (height). Planogram.

Short-dated consumer goods.

Logistical term for articles with a high turnover frequency (Turnover), i.e. they are sold faster than other products and sales shelves need to be re-stocked more often. Above all this includes staple foods.

METRO Group Future Store Initiative (FSI).

A version of the Global Scorecard, an evaluation model used by companies to measure the status of their activities in the field of Efficient Consumer Response (ECR). This is the most comprehensive method used to monitor the success of ECR measures. All four ECR dimensions are considered in the Full Global Scorecard: Demand Management (Demand Side), Supply Management (Supply Side), Enabling Technologies and Integrators. The Full Global Scorecard also includes a number of key figures: Key Performance Indicators (KPIs), which are used to identify the efficiency of individual processes, such as the service level and quality of invoices, and Implementation Measures, such as delivery punctuality and availability of goods or the degree of implementation of Standards.

This card is issued to customers who regularly shop at the Future Store and is a kind of a key to the PSA. It also allows customers to take part in the Payback bonus system.

Future workshop of the METRO Group Future Store Initiative. In the Future Store METRO Group and its partners test the use and interplay of new key technologies under genuine conditions, such as Radio Frequency Identification (RFID) as well as technology applications such as the Personal Shopping Assistant (PSA), Info Terminals, Intelligent Shelves, Personal Digital Assistant (PDA), Intelligent Scales, Electronic Shelf Labeling (ESL) and Self Payment Checkout. The objective is to provide consumers with a more convenient, individually-tailored and faster shopping experience. In addition, processes such as ordering, storage and transport can be optimized.

Organization founded by retail companies and manufacturers which works on creating uniform standards and logistical processes. It forwards its recommendations to the standardization organization GS1. The objective of the member companies united in the GCI is to do away with technical and communication barriers in the supply chain, so that the goods can flow freely. The GCI is funded by eight organizations which represent the interests of more than one million companies worldwide.

Internationally applicable EAN Standard to clearly identify companies or physical, functional or legal units of companies and/or parts of companies such as warehouses or incoming goods ramps.

Standardized tool used to measure the degree of implementation of methods, standards and technologies in
Efficient Consumer Response (ECR) in a standardized manner all over the world. Using the Global Scorecard companies can identify which ECR processes are still in need of improvement and how they can perform well in competition in the international environment. There are four different types of Global Scorecard, which each have varying scopes and are geared towards the objectives of the respective company and its experience with ECR:
Entry Level Scorecard, Intermediate Level Scorecard, Compliance Scorecard and Full Global Scorecard.

The Global Standards Management Process (GSMP) is a standardized procedure for adapting and developing worldwide uniform Standards. The GSMP is monitored and coordinated by the standardization organization
GS1.

Internationally harmonized, uniform 8, 13 or 14 digit article number which is unique worldwide for products and services. It forms the basis for using scanner technology and makes electronic communication much easier. After the merger of the standardization organizations EAN International and Uniform Code Council (UCC) the name GTIN gradually replaced the names European Article Number (EAN) and Universal Product Code (UPC).

Global Standards One. Merger of the standardization organizations EAN International and Uniform Code Council (UCC). GS1 was founded in January 2004, to replace the existing EAN and UCC standards with a uniform, worldwide, cross-industry numbering system. Since January 2005 EAN International and UCC have only operated under the name GS1. GS1 has103 member organizations in 101 countries.

German member organization of GS1, formerly Center for Co-organization (CCG). One of the major tasks of GS1 Germany is to develop and establish uniform communication standards such as the Global Trade Item Number (GTIN) between partners in the consumer goods industry. In addition to this GS1 Germany is involved in shaping the logistical processes between retailers and manufacturers in accordance with the principles of the
Efficient Consumer Response (ECR) concept.

North American member organization of GS1. Formery called Uniform Code Council (UCC). Before the merger with EAN International, the UCC managed the UPC, the US equivalent of the European Article Number (EAN).

Web-based METRO Group Inventory Management. In the future as a central computer the I-Webstore will supply all affiliated stores with the necessary data via the Internet. METRO Group is working towards controlling inventory management for all sales divisions consistently via the Internet. Therefore, it’s no longer necessary to install inventory management systems in the individual stores, just an Internet connection to the central computer.

Central database presenting all allocated location master data under the respective ILN (International Location Number).

Specific key figures of the Global Scorecard. These represent the extent to which a company has already implemented the so-called Enabling Technologies, such as EAN Standards or Electronic Data Interchange
(EDI).

Sequence of specific operations in the delivery of goods to the store or warehouses and the acceptance of goods by the receiver. The Incoming Goods Process includes comparing orders and deliveries (simplified by using the
SSCC), allocating an incoming goods number, handing over goods (e.g. on an incoming goods ramp) and incoming goods checking, i.e. checking the goods delivery in commercial and technical terms.

Fixed, interactive computer in the Future Store, which offers the customer a broad range of information for a particular product group about manufacturing, content, prices and even recipe suggestions. At the “Eggs” Info Terminal, for example, customers can find out about the quality and origin of eggs. The “Multi-media” Info Terminals give the customer the chance to listen to music or watch film trailers. The Info Terminal for the product group “Wine” is connected to the so-called Everywhere Display

Special data format in an application.

Encompasses all administrational operations, from order receipt to invoicing and preparing despatch instructions that are required to deliver the products/services. Integrated Order Management Systems use product files to combine and pre-confirm order data (article number, promotion codes, prices, etc.). The systems transfer the orders electronically via EDI to the manufacturer and update the payment systems.

Business models which combine individual ECR processes into one overall approach. An example of this is the concept Collaborative Planning, Forecasting and Replenishment (CPFR). This links the Supply Side and Demand Side together and uses sales at the Point of Sale as a trigger for the entire process chain. Integrators are one of the four components of the Efficient Consumer Response (ECR) strategy.

Computer applications for processing administrative ordering operations from receipt of the order to invoice issuing and preparing the shipment. Retail companies can use Integrated Purchase Order Management Systems to compile article-specific order data such as article number, information on planned promotional campaigns or prices, and confirm this in advance. POM systems transfer orders electronically via Electronic Data Interchange to manufacturers and update the payment systems.

Fruit and vegetable scales fitted with a digital camera and special image recognition software. This uses the surface texture, color, size and thermal image of the product to recognize automatically the type of fruit or vegetable, weighs it and prints off the corresponding price label. The Intelligent Scales are used in the Future Store.

Sales shelf which uses Radio Frequency Identification (RFID) to automatically detect if a product has been taken or has been put in the wrong place. The Intelligent Shelf’s base is fitted with RFID Readers. If an article fitted with a RFID Transponder is taken off or put on the shelf, the latter recognizes the change and updates the inventory data in the Inventory Management System straight away. If the stocks fall below a certain amount store employees automatically receive a message on their Personal Digital Assistant (PDA). So products can be re-stocked in good time and sell-outs can be prevented. The Intelligent Shelf is one of the innovative technology aspects in the Future Store.

Radio Frequency Identification (RFID).

A version of the Global Scorecard, an evaluation model used by companies to measure the status of their activities in the field of Efficient Consumer Response (ECR). The Intermediate Level Scorecard comprises a total of 95 questions on the three basic ECR strategies Demand Management (Demand Side), Supply Management
(Supply Side) and Enabling Technologies. These three components are in turn split into several segments.

EAN-Artikelnummer.

Global Location Number (GLN).

Department of Metro Cash & Carry International responsible for Metro Article Pooling (MAP) within the sales division. International Procurement Coordination (IPC) works closely with MGB METRO Group Buying. As METRO Group’s central buying company MGB is responsible for managing the Metro Article Pooling process throughout the group.

The International Telecommunications Union (ITU) regulates the use of radio frequencies at a global level and is involved in developing standards and guidelines for the use of Radio Frequency Identification (RFID).

Computer-aided information system, which records and manages article-specific goods according to quantity and value in the fields of merchandise planning, ordering, incoming goods, auditing, outgoing goods, checkout processing and invoicing. The purpose of an Inventory Management System is to manage inventories and control success. Inventory Management Systems provide retail companies with evaluation and control information about suppliers, customers and goods. In METRO Group MGI METRO Group Information Technology GmbH operates the group’s information technology nervous system as the central IT provider. MGI continually optimizes the web-based Inventory Management System. Automatic merchandise planning systems which automatically recognize the risk of gaps in supply and re-order according to need, simplify the processes nowadays and reduce costs.

Electronically generated invoice. One of the types of message in EANCOM format. Suppliers and retail companies can use INVOIC to exchange invoices electronically (Electronic Data Interchange).

Abbreviation for Inventory Report. One of the types of message in EANCOM format.

Abbreviation for Integrated Services Digital Network. Advantages of ISDN: better quality thanks to greater bandwidth (phone and fax), faster transmission (data and teletex).

A form of Intermediate Scorecard. This can be used by all METRO Group sales divisions, together with business partners of their choice, to develop potentials for improvement in their collaborations.

The person responsible for looking after a company’s main or “key” customers. They create customer development plans and practice strategic customer marketing. METRO Group works closely with the Key Account Managers of its suppliers, for instance for planning, forecasting and managing inventories together (Collaborative Planning, Forecasting and Replenishment, CPFR).

Key figures for evaluating the efficiency of internal, external and cross-company business processes and whether business objectives have been achieved. They are a component of the Full Global Scorecard and the Compliance Scorecard alongside a number of other key figures. They provide information including the quality of service or invoicing.

Application of a label containing logistical information such as the Serial Shipping Container Code.

Good's flow management. Logistics is a crucial part of the value creation chain in a retail company. By using a well thought-out good’s flow management transport and storage costs can be reduced.

Generic term for EANCOM Message Types, which contain instructions or information concerning articles and quantities. Examples: DESADV, RECADV, PRICAT, INVRPT, PARTIN.

A group of goods which represent the assortment for a certain selection of stores of a METRO Group sales division. The term is used in conjunction with METRO Group’s Shelf Management System. The Shelf Management System differentiates between three types of categories created for Planograms: Maintenance Groups, Assortment Groups and Store Groups. Every Maintenance Group is defined by two characteristics: Firstly the region, generally one of Germany’s major regions (east, west, north, south or central), and secondly the so-called Assortment Component. This defines the number of articles within the Maintenance Group.

Degree of positive change in the size of a market as a percentage or absolute value based on a comparison period.

The largest possible market capacity for a certain product in a certain time period or maximum turnover or sales to be achieved for the product.

Share of a brand or company’s sales quantity or turnover in a defined total market as a percentage.

Level of a brand or company’s turnover in a defined market.

Sales quantity of a brand or company in a defined market.

Important basic data to identify articles (EAN Article Number and Article Name) and suppliers, information on the size and weight of the product or the nature of the packaging. The collection of all data together forms the master data set. The structure and scope of this data compilation varies depending on company and product. For instance, for some goods dangerous goods labels or information on how to handle the goods during storage and transport are part of the master data set. Master data is a requirement for a number of business processes: for ordering,
Shelf Management, Logistics and Marketing. Nowadays manufacturers and retailers are increasingly exchanging their master data via data pools like SA2 worldsync. Organizations such as the Global Commerce Initiative (GCI) and GS1 are working towards the worldwide standardization of master data.

Exchanging Master Data, for example via online data pools such as SA2 worldsync.

All activities directed towards an efficient exchange and processing of master data. This includes the management and updating of article information using external and internal data pools like SA2 worldsync and MMS-CAT.

Data pool used by retailers and manufacturers to exchange, manage and update their Article Master Data efficiently. METRO Group’s central, internal Master Data Pool is MMS-CAT. The group also uses external data pools like SA2 worldsync.

Master Data.

EANCOM.

The structure of a UN/Edifact/EANCOM message is broken down into the "building blocks" element, element group and segment. The data element is the most basic block and is comparable to a data field and contains information (order number, price, etc.). The element group is a summary of data elements, which are factually or logically connected. The segment is a group of data elements and/or data element groups. It is comparable to a data set. Data elements and data element groups are in a defined sequence in segments. They can be identified based on their position in the segment. Pooling all segments which related to a transaction makes a message. The message is identified with details in the message header (UNH). The message ends with the message end segment (UNT).

EANCOM.

Application in Metro Link for METRO Group suppliers. The group’s partners can use this to retrieve Point of Sale, inventory and incoming goods data for their articles which is updated daily from a password-protected area of the Internet, such as delivered and sold quantities, warehouse stocks in individual stores or open orders. The application helps the group to lower process costs and increase the reaction speed of suppliers.

Central METRO Group company for procuring, processing and coordinating advertising services. METRO Group Advertising GmbH works towards the objective of pooling volumes, creating international market transparency and establishing a high level of quality internationally.

Tool developed by METRO Group for Electronic Data Interchange (EDI). The group’s retail partners can use this to exchange data with METRO Group online. For instance, suppliers create their invoices in MEC or transfer them directly into ASCII format. A METRO Group converter then creates the ASCII file in the internationally standardized
EDIFACT Format and sends the invoice document to MGP METRO Group Account Processing. The retail company’s EDI files are in-turn made available to the manufacturing partners, who can print out this information or save it in their IT system in ASCII format.

METRO Group’s own Internet portal with comprehensive information on the topic Electronic Data Interchange
(EDI). The portal offers suppliers three options for exchanging data with METRO Group electronically: EDI classic, METRO Group EDI Center and EDI TradePortal.

Cooperation between METRO Group and SAP, Intel, IBM and T-Systems as well as other partner companies from the fields of information technology and the consumer goods industry. It works towards the objective of promoting the national and international modernization process in retailing. The initiative is a platform for technical and process-related developments and innovations in retailing. As part of the METRO Group Future Store Initiative technologies and technical systems are already being tested in practice and developed further today. Standards which can be implemented consistently all over the world are to be created In the long term. The most significant project of the initiative is the Future Store.

METRO Group supplier portal. Metro Link combines a variety of information and analysis tools which are used to optimize a wide range of processes. A central application is the Metro Data Warehouse. Suppliers can use this to retrieve master and dynamic data which is updated daily for their articles via the Internet. METRO Group intends to use Metro Link to improve communication and cooperation with its retail partners throughout the supply chain and to ensure that the supply of goods is as good as it can possibly be.

METRO Group’s central buying company. MGB METRO Group Buying GmbH is responsible for procuring food and non-food goods, nationally and internationally. It analyzes, pools and negotiates procurement volumes with the suppliers, working closely with METRO Group sales divisions.

Central provider of METRO Group information technology services. The tasks of MGI METRO Group Information Technology GmbH include system development and consultation, operating computer centers, performing network services and coordinating the group’s information technology strategy. MGI developed METRO Group’s web-based
Inventory Management System and is responsible for logistics, e-commerce, management information systems and archiving systems in the group.

METRO Group’s logistical service and competence center. METRO Group Logistics GmbH manages the good’s flow for METRO Group companies all over the world. It is responsible for the smooth transportation and distribution of more than 1.2 million packaging units daily to over 2,300 METRO Group stores in 29 countries. Its work is based on a procurement logistics concept which it developed itself. MGL organizes the collection of goods destined for Metro sales divisions from the manufacturer and coordinates the immediate delivery to individual stores, doing away with intermediate storage of the transported goods and reducing stock keeping costs. In addition, the number of delivery processes on the store’s loading ramps is reduced, again leading to savings for the sales divisions.

Specified minimum number of Facings on the sales shelf. In METRO Group’s Shelf Management those responsible in the store may arrange the facings as they please, as long as a specified minimum number of facings is reached. If the instruction reads, for example, “three facings” then three of the articles concerned are placed next to each other.

Difference between the forecast and actual sales and the delivery time of ordered goods. To calculate the minimum inventory level factors like level of service, demand fluctuations and lead time are taken into consideration.

Central data pool used by METRO Group to exchange Article Master Data with its suppliers. The abbreviation MMS-CAT stands for Metro Merchandising System Catalog. With MMS-CAT all master data can be sent from suppliers to METRO Group quickly and simply, where it can then be processed. The data pool MMS-CAT is particularly important for Assortment Development, i.e. the compilation of the goods offer by the group’s buying division.

METRO Group’s Merchandise Management System at store level. MMS Store constantly supplies the software
SAF Superstore with data such as article master data and sales figures. Using this input data SAF Superstore forecasts the sales for every single article for a defined time period and develops suggestions based on these for optimal order quantities.

Hand-held reader for scanning the Serial Shipping Container Code (SSCC). This is a technological aid for handling the Incoming Goods Process. A member of staff uses the mobile data recording device to scan the SSCC on the pallet, calling up the data set stored in the inventory management system. The mobile data recording device then displays all information necessary for complete and rapid acceptance of the goods. The mobile data recording device makes work easier for incoming goods staff and speeds up the process as a whole.

Computer installed on a trolley which is linked by radio to a store's central computer without wires. With the Mobile Inventory Management System all inventory management functions can be performed from any location in the store or warehouse.

Device to transmit analog data on phone lines.

A part of the RFID Technology system architecture and a component within the EPC Network. The Object Naming Service (ONS) is a type of directory. It converts the Electronic Product Code (EPC) into a so-called Uniform Resource Locator (URL) in the Internet. The URL is used to get additional information about the product, packet or pallet via an Internet protocol address.

Message type of EANCOM Standard. This defines the format and language of a goods order via Electronic Data Interchange (EDI).

Abbreviation for Orders Response. Message type of EANCOM Standard. This defines the format and language of an order confirmation via Electronic Data Interchange (EDI).

Proportion of an article of a store or category which, at a certain time, is listed but out of stock.

Small, portable, hand-held computer fitted with a barcode reader, telephone and email function. Staff can use the PDA, also called Mobile Assistant, to request the current inventories on the Intelligent Shelves in the Future Store at any time. They don’t have to check every single shelf, just call up the information from the Inventory Management System which they can access with their PDA. Using this staff can recognize faster when goods run short on the selling floor or in the warehouse of the Future Stores and fill up the shelves in good time, avoiding empty spaces. This means a more reliable availability of goods for customers.

Small, mobile computer with a touch screen and barcode scanner, which can be fixed to the shopping trolley. The PSA is used in the Future Store. The device helps customers when shopping with a number of advisory and information services. Using the PSA the customer can scan products themselves and call up detailed information for the product, show the total price of the chosen products or ask where an article can be found in the store. This shortens waiting times at the checkout as prices for the scanned goods are sent directly to the till system. So the customer can pay without having to put the goods on the belt.

A part of the system architecture of the Radio Frequency Identification (RFID) and component within the EPC Network. The Physical Markup Language creates a uniform, standardized vocabulary to present article information, packet and pallet data. Retail companies need this information for inventory management and for Tracking Goods. A company only fully benefits from RFID through the interplay of Physical Markup Language (PML), RFID Middleware, Object Naming Service (ONS) and EPC Information Services (EPCIS).

Standard regulations for presenting goods in sales shelves. The placing guidelines vary from sales division to sales division in METRO Group. Basically, products can be grouped and presented according to brand or user-oriented criteria. The customer perspective is a decisive factor here: Are they looking for products of a certain brand, such as ready-made Knorr or Maggi soup? Or are they looking for certain uses, such as skincare products or hair cosmetics?

Also shelf plan. Planograms map out shelf design taking into consideration the necessary spaces and Facings per article. METRO Group creates planograms as part of its Shelf Management System, the core of which is the software Spaceman.

Marketing term for the place in which buying takes place (from the point of view of the consumer), i.e. the store or sales outlet. Point of Sale.

Marketing term for the place in which selling takes place (from the point of view of the seller), i.e. the sales floor or sales outlet. Point of Purchase.

Abbreviation for Price Catalogue, a message type of EANCOM Standard. This defines the format and language of price information via Electronic Data Interchange (EDI).

Method used to determine the business costs. Process Cost Calculation can be used to model the cost effect of individual business projects, giving the retail partners alternative options for utilization of resources.

Or buying. All operational activities which are targeted towards supplying a company with goods, services, legal rights, finances and other resources. This includes searching for, selecting and looking after suppliers and negotiating with them, processing and reviewing orders and other tasks such as checking delivery deadlines and incoming goods. MGB METRO Group Buying GmbH is a central buying company in METRO Group responsible for procurement.

Logistical principle, under which pooled goods are collected from manufacturers and delivered to the stores or warehouses of a retail company. MGL METRO Group Logistics GmbH centrally organizes the collection of goods from manufacturers for all METRO Group sales divisions.

Generic term for all temporary measures for promoting sales. You can differentiate between the following types of promotion: advertisement by leaflet, advert in printed media, in store radio, price reductions (price off), events and advertising campaigns at the Point of Sale.

Software for promotion planning. The PFE analyzes the results of past promotional campaigns and automatically creates article and store-related sales forecasts for future promotional campaigns. In addition, retail companies can use the software to automatically create high-quality order suggestions. The sales forecasts also improve the availability of goods in promotional campaigns. Suppliers benefit from the forecast too as they can design their stock keeping and ordering more efficiently.

Project of GS1 Germany to promote the e-business competence of small and medium-sized companies (SMEs). The objective is to simplify the introduction of integrated processes and standards for SMEs so that they can share in the global procurement and sales markets.

Personal Shopping Assistant (PSA).

The name for having goods available, or making them available at the right time, in the right quantity and at the right place.

Key technology for identifying goods without the need for contact, and following and managing them throughout the entire process chain (Intelligent Tagging). The Radio Frequency Identification (RFID) firstly allows the goods flow to be checked thoroughly. The core of the technology is a so-called RFID Transponder – a small, 2.5cm² label with an integrated memory chip and miniature antenna. Because if its special properties, METRO Group calls this a Smart Chip. Saved on this is the Electronic Product Code (EPC), a number which gives information about specific product characteristics such as best before date and weight. Depending on frequency range, the product information can be read with corresponding RFID Readers without having to be visible, from a distance of between one and ten meters. METRO Group uses RFID Technology in its Future Store. In November 2004 METRO Group began to introduce RFID throughout the group (RFID Rollout).

A system normally controlled manually, which regularly (mostly daily) compiles the store inventory of every product based on shelf inventory, incoming goods and the PoS data.

Packaging that can be used several times, generally used on a borrow and return basis or handed over in return for a deposit. Examples of this are pallets with and without deposits, drinks crates and recyclable crates and boxes.

Radio Frequency Identification (RFID).

A part of the RFID Technology system architecture and component of the EPC Network. This enables the interplay of RFID Transponders, RFID Readers and the store’s local IT infrastructure. RFID Middleware works similarly to an adapter: It communicates with Readers and computer applications via various interfaces and processes information in such a way that it can be read by the terminal. The RFID Middleware works in conjunction with the
Object Naming Service (ONS), EPC Information Services (EPCIS) and the Physical Markup Language (PML).

Computer-controlled device for reading the Electronic Product Code (EPC) on the so-called RFID Transponders. Depending on frequency range RFID Readers can record data stored on an RFID Transponder from a distance of up to six meters. The Reader sends out an electromagnetic frequency field which is received by the Transponder’s antenna. The stored data can be read, processed and modified if necessary using this electronic link. There are portable and fixed RFID Readers fitted, for example, to gates in a store’s incoming and outgoing goods, or warehouses. Sales shelves (Intelligent Shelf) can also be fitted with Readers. RFID provides decisive triggers for optimizing the process chain, presenting an efficient alternative to barcodes.

Concept for introducing the Radio Frequency Identification (RFID). METRO Group is the world's first company to implement RFID Technology gradually throughout the entire process chain. RFID Rollout.

METRO Group’s name for the gradual introduction of Radio Frequency Identification (RFID) throughout the entire process chain. Since 2 November 2004 the group’s manufacturing partners have been delivering pallets and clothes shipments fitted with RFID Transponders to the warehouses of Metro Cash & Carry, Real, Kaufhof and METRO Group Logistics Warehousing (MGL Warehousing). The METRO Group sales divisions and cross-companies have been fitting the incoming goods gates of the stores and warehouses with RFID Technology. From summer 2006 on partners from the consumer goods industry will also fit boxes with RFID Transponders and then other stores and new manufacturing partners will follow.

Radio Frequency Identification.

The core of Radio Frequency Identification (RFID). RFID Transponders are tiny computer chips with an antenna with a wafer-thin label embedded in it. It can be applied to pallets, packets and products. A number is stored on the Transponder or Smart Chip, the so-called Electronic Product Code (EPC). This is used to clearly identify shipping units or individual articles. The so-called passive RFID Transponders used in the consumer goods industry can only have a number code written on them once and they can be read an unlimited amount of times. They are passive because they don’t need their own source of power. They get their energy from the electromagnetic field sent out by a RFID Reader. The Transponder receives this signal and sends backthe EPC stored on the chip.

Master data information system. Data pool to exchange article master data (Master Data) between manufacturers and retailers. Manufacturers are responsible for uploading and maintaining their products, and for ensuring that data is up-to-date and correct. Data only has to be uploaded into the central SA2 worldsync pool once and from there all linked interested parties (retailers, service providers and other data suppliers) are automatically provided with the master data information.

Software for automatic inventory planning. SAF Superstore uses Article Master Data and sales figures to calculate the optimal goods inventory and suggests order quantities. The software is the core of METRO Group’s automatic merchandise planning system. The system aims at achieving economical inventory quantities, always stocking exactly the amount of goods demanded by consumers. In this way overly high inventories as well as availability gaps can be avoided.

Software to support automatic warehouse merchandise planning. SAF Superwarehouse calculates article-specific order suggestions, optimizing the goods supplies for a number of METRO Group stores.

Forecast of the sales figures for a product. In the future, suppliers will be able to call up Sales Forecasts in the information system Metro Data Warehouse.

Tool for evaluating the efficiency of companies (Balanced Scorecard) or projects / individual businesses (Global Scorecard). Scorecards are based on a defined system of key figures. Using the key figures the company’s success or progress of a project can be determined. The results assist management in decision making. One particular advantage of Scorecards is their transparency.

Outer packaging or additional packaging, i.e. packaging containing a certain number of articles. This packaging can be removed from the goods without influencing its properties. Examples of secondary packaging include boxes, cartons, cases or crates.

Presentation of the same article at another point in the store – generally in a separate campaign area.

Predecessor of the EANCOM Standard. National standard developed in 1977 by GS1 Germany for electronically exchanging invoicing data between retailers and consumer goods manufacturers. SEDAS is a German abbreviation meaning “Standard Regulation of Uniform Data Interchange Systems“. Nowadays, SEDAS isn’t used very frequently to transfer invoices.

Payment process in which manufacturers no longer issue invoices, but instead retailers automatically authorize payment after receiving goods.

A fully automatic checkout where customers can pay without the need for checkout staff. Customers scan their own products and place them in a goods bag. The checkout machine weighs the goods and compares the weight with the data saved in the Inventory Management System. Then the checkout displays the total price which the customer can pay in cash or debit/credit card. The Self Payment Checkout is used in the Future Store and in numerous self-service warehouses of the Metro sales division Real.

Internationally harmonized, uniform 8 digit number which is unique worldwide for marking Shipping Units such as pallets. With this number every transport unit in the logistics chain can be identified clearly and unmistakably, which is particularly advantageous for Recall Activities. The SSCC takes the form of a machine-readable barcode in the
EAN 128 Standard, applied to a label on the transport container.

Arrangement of individual articles on shelves or on other goods carriers. Planogram.

Concept of placing goods in the retailer's shelving systems so as to be customer-friendly and encourage sales.

Electronic system used by METRO Group Category Managers to create shelf plans, so-called Planogram. These map out exactly which articles will be placed and where on the sales shelf. The plans are automatically sent up-to-date listing and Dynamic Data via METRO Group's Inventory Management System. Using the descriptive shelf plans staff in the stores can arrange goods so as to be customer-friendly and encourage sales.

Planogram.

Physical, identifiable, unchangeable and traceable handling unit in the logistics chain (e.g. pallets, reusable transport items). Shipping Units are identified by the Serial Shipping Container Code (SSCC).

Non-perishable consumer goods.

Logistical term for articles with a low transaction frequency (Transaction), i.e. they aren’t sold as frequently as other products and therefore require shelf space for a longer time.

RFID Transponder.

Software (developed by AC Nielsen) to assist Shelf Management in manufacturing and retail. Spaceman fulfils the variety of requirements: The program enables a shelf to be observed simply on the screen and various shelf data
(Planograms) to be processed as part of the so-called Shelf Management System.

Foundations for efficient business processes. Standards are fixed rules agreed between manufacturers and retailers to shape the exchange of goods, data and services to be developed as smoothly and low-cost as possible. You can generally differentiate between three types of standards: Identification Standards, Communication Standards and Process Standards. Identification Standards are used to clearly identify articles, services, companies and shipping units. These standards include the Global Trade Item Number (GTIN), the Global Location Number (GLN) and the Serial Shipping Container Code (SSCC). Communication Standards allow for fast and smooth data interchange between manufacturers and retailers. EANCOM is an example of such a standard, an internationally applicable message standard for data communication via EDI. Process Standards define optimal business operations, for instance in logistics (Efficient Unit Loads) or in Category Management. The organization GS1 is responsible for developing and passing standards.

Out of Stock Rate.

Logistical term for an article or shipping unit such as a pallet, which requires storage space.

Name for a group of goods used in connection with METRO Group’s Shelf Management System. The Shelf Management System differentiates between three types of category for which Planograms are created:
Assortment Groups, Maintenance Groups and Store Groups. In a Store Group all articles which are intended for a certain store are grouped together into a Category.

Acceptance test for new or modified products. Products are carried and sold in individual stores for a pre-defined period (test phase) on a trial basis. The sales data recorded is analyzed and compared with data from a preliminary phase (defined period before the test phase) and from control stores (stores where the test product wasn’t carried). In addition, in the test stores individual communication measures (posters, signs or second placing) are implemented during the test phase. The objective of Store Tests is to test the sale of new articles under realistic conditions before they’re officially introduced in the stores. They can also be used to test new display variations or price changes.

Subgroup of a UN/Edifact message, e.g. EANCOM.

The path taken by goods from the manufacturer to a distributor or intermediate warehouse and then to retail or wholesale. The planning and control of the supply chain is called Logistics. Retailers aspire to keeping the supply chain as short as possible, as well as optimizing delivery punctuality and quality. Legislation also defines clear requirements on the transparency of the supply chain (EU Regulation 178/2002, Traceability of Foodstuffs).
Radio Frequency Identification (RFID)) is an innovative new technology which considerably increases efficiency in planning and monitoring the supply chain.

Planning, management and optimization of the flow of money, data and material in the supply chain or Value Creation Chain over all stages including acquisition of raw materials, production, logistics and selling to the end consumer. SCM aims to shorten delivery times and reduce inventories, so as to increase value in all relevant processes.

Improving the processes throughout the supply chain from production to sales, with the objective to increase the efficiency of individual operations. Electronic Data Interchange (EDI) and Master Data Management play a crucial role in this and concepts from Efficient Consumer Response (ECR) are also applied.

Term used as part of Efficient Consumer Response (ECR). The ECR strategy differentiates between measures on the Supply Side and the Demand Side. The Supply Side of ECR involves methods for optimizing the supply of goods (Efficient Goods Flow). The objective is to improve the goods and information flow throughout the entire logistics chain and beyond – from product manufacturing and distribution to wholesalers and retailers, to the arrival of the goods on the store shelves. For all basic processes such as order management and distribution of goods there are special Supply Side strategies, for example Efficient Unit Loads and Cross Docking.

Templates which precisely specify individual process steps for implementing standards. Templates are also used to structure complex tasks more efficiently. METRO Group works with so-called Common Templates. These clearly define into which core and partial processes a certain field of activities should be split. For example, in the field of Human Resources it is specified exactly which steps personnel organization is to take, from when staff are recruited to when they leave the company and which tasks are involved.

Place where the turnover of goods takes place, i.e. loading and unloading of Shipping Units, for instance a retail company’s intermediate storage.

Loading equipment, used as storage and transport aids to transport, store and place Secondary Packaging. Pallets are an example of Tertiary Packaging.

Special obligation for marking foodstuffs. Since 1 January 2005 all foodstuffs must be marked in such a way that their path from the place of production to the sales shelf is transparent. (EU Guideline 178/2002). Retailers and manufacturers are obliged to install the appropriate systems. They should document from whom the goods originate and to whom they were delivered. This is particularly necessary for recall actions – for example in the case of contaminated food. To be able to trace products in the best possible way, ECR Germany recommends that companies in retail and manufacturing consistently apply EAN Standards, such as the European Article Number (EAN) or the Serial Shipping Container Code (SSCC). GS1 Germany and ECR D-A-CH have set up project groups to deal with the issue of traceability of foodstuffs and recalls of goods.

Typically tracing moving objects. Radio Frequency Identification (RFID).

Protected brand sold by a retail company with certain unmistakable external indicators such as a name or logo. The term “own brand” is often used as a synonym for trade brand.

Physical movement of unit loads between/across two interfaces. This process can contain loading and unloading
Shipping Units.

RFID-Transponder.

Term for the optimal utilization of trucks. The objective is to use the available loading room as efficiently as possible, i.e. to accommodate as many goods as possible.

Articles which are sold very rarely, i.e. they have an extremely low turnover frequency (Turnover). Very large or small sizes of clothes or highly priced spirits are examples of these.

EANCOM.

GS1 US.

International organization which defined the worldwide cross-industry Standard for Electronic Data Interchange
EDIFACT in 1987. EANCOM.

Loads consisting of several units (articles for example) or Secondary Packaging and grouped into one unit by one or more aids for purposes of handling, transport, stacking or storage (pallets for example). This term is also used to describe one single large Unit Load which is used for the same purpose. Efficient Unit Loads (EUL).

GS1 US.

Analysis procedure for determining and quantifying cost saving potentials throughout the Value Creation Chain.

Term for the architecture of all activity levels, from acquiring raw materials and production to selling to the end user, which contribute to value creation, i.e. to a company’s efficiency. Typical starting points for optimizing a retail company’s value creation chain are Logistics and Procurement. Improved processes in these areas can lead to increased availability of goods and reduced costs for stock keeping.

Version of the Continuous Replenishment Program.
VMI means that the manufacturer manages the supply of goods. They generate orders for retailers and use these to manage their inventories for them.

Association of manufacturing, retailing, consulting and IT companies with headquarters in New Jersey (USA), which is involved in shaping business processes throughout the entire Value Creation Chain so as to be more efficient. VICS promotes standards to simplify the flow of information and goods between manufacturers and retailers. At the end of the 90s the VICS developed the CPFR concept.

Metro Link, EDI, METRO Group EDI Center (MEC).

All mobile and some stationary units in the Future Store are interconncetd with the wireless local network ( Wireless Local Area Network, W-LAN). PDAs, Personal Shopping Assistants (PSAs), Info Terminals and Electronic Advertising Displays all have access to the store’s central server. Thanks to W-LAN the devices provide customers with up-to-the minute information about products, prices and special offers.

Wireless, local radio network used, for example, in the Future Store. The abbreviation LAN stands for Local Area Network.

Protocol for the transport of data via wide area networks. This is based on a packet transmitting network (DATEX-P in Germany). Every message to be transmitted is split up into smaller information units (packet) if required. These packets are then passed from node to node.

Protocol (collection of standards) for the transmission of e-mails.