Data synchronization
Data Synchronization
Data synchronization is the process of establishing & maintaining consistent, accurate values for all attributes within and between two supply chain organizations that share a trading relationship. Data synchronization is made of three key processes: 1) internal data alignment, 2) external data alignment, and 3) ongoing synchronization. While data synchronization may encompass any type of data maintained by a business, the current focus in the retail and wholesale supply chain includes the areas of product information and price and promotion information.
The GS1 Global Data Synchronization Network™
To automate the process of data synchronization worldwide, the GS1 Global Data Synchronization Network (GDSN™) was formed. The GDSN, based on standards developed by GS1, is an Internet-based, interconnected network of interoperable data pools and the GS1 Global Registry™ (a worldwide directory to help the GDSN community locate data sources and manage ongoing synchronization relationships, also known as subscriptions, between trading partners) that enables suppliers and retailers around the world to exchange standardized and synchronized supply chain data with their trading partners. The GDSN assures that data exchanged between trading partners is accurate and compliant with universally supported standards. Two primary goals of the GDSN are to to help industry streamline supply chain transactions and reduce supply chain costs.
The GDSN relies upon fundamental data keys in order to ensure the exchange of accurate product information. These keys are the Global Trade Item Number® (GTIN) – a unique number assigned to a product in the supply chain, the Global Location Number (GLN) – a unique number assigned to an organization, a location, or an entity within the supply chain, and the Target Market (TM) – the designation of a country or country and subdivision combination in which the trade item is intended to be sold. A specific combination of GTIN, GLN, and TM is unique globally and is known within the GDSN as a catalogue item.
The Global Data Synchronization Process
The process of data synchronization within the GDSN is shown in the image below
1. Suppliers (sources) prepare internal data and systems to match GS1 standards [GTIN, GLN, Global Product Classification (GPC), etc.], and then publish their accurate and standardized data to a GS1-certified source data pool of their choice (in-house or third party). GS1 GDSN maintains the list of certified data pools.
Organizations have multiple options for contributing product data to their data pool. While large organizations often use the GS1 XML format, others with small amounts of data might send a spreadsheet, flat file, or Electronic Data Interchange (EDI) document through web-based forms, e-mail, an FTP file transfer, or a Value Added Network (VAN).
2. The data pool registers a small subset of the supplier's information about each item (or party) with the GS1 Global Registry. The GS1 Global Registry holds this information and the location of each item's (or party's) data pool
3. Retailers (recipients) search the GS1 Global Registry via their chosen data pool for the item(s) or party for which they want to subscribe. Subscriptions can be created for any combination of GTIN, GLN, GPC and/or Target Market, with the exception of GTIN and GPC, as these are mutually exclusive. The GS1Global Registry identifies the source data pool(s) of the requested item(s) or party.
4. Data pools process the exchange of information, known as item publications, between the trading partners via their respective data pools. As product attributes change, suppliers immediately update the item information with their chosen data pool, which ensures that all recipients/retailers within the GDSN community who are subscribing to this information are notified of the updated information via their recipient data pools.
5. Recipients review the item publication data and respond with a confirmation message, indicating whether they agree with the information provided, or whether certain values are in question and require further review, or whether they do not wish to receive any further updates on the item.
Benefits of global data synchronization
Some of the benefits of data synchronization are:
- Time savings
- Data synchronization occurs through a certified data pool, which allows companies a single point of entry into the GDSN, and only one connection for managing the process with several trading partners
- Departments including sales, merchants/buyers, customer service, warehouse/logistics, finance will spend less time managing item information with an automated process
- With the increased efficiencies associated with data synchronization, new items can be delivered to market faster
- Improved inventory management
- Reduction in inventory overhead – for both supplier and retailer
- Simplified shipping and receiving processes
- Ability to refine business systems and processes
- Consolidate internal product information
- Re-focus personnel; less manual intervention
- Better manage the order-to-cash process
- Foundation for future strategic initiatives
- Extended synchronization – party, price, promotions
- Collaborative Planning, Forecasting, and Replenishment (CPFR®)
- Radio-Frequency Identification (RFID)
Challenges to implementation Some of the common challenges trading partners have found in implementing data synchronization:
- Locating and consolidating accurate attribute data – data quality continues to be the chief concern among companies participating in the GDSN
- Re-vamping internal processes for managing new products and product maintenance – doing data synchronization correctly starts with the management of information within the enterprise, but many companies feel business process re-engineering makes a data synchronization initiative too costly
- The relative infancy and continued evolution of data synchronization standards – there are many attributes that trading partners need to exchange to streamline business processes, but broad implementation must be a phased process that takes months or years to achieve