| September 2003 | WebSphere Business Integration Express for Item Synchronization © 2003 IBM...

| September 2003 | WebSphere Business Integration Express for Item Synchronization © 2003 IBM Corporation

WebSphere Business Integration Express for Item

Synchronization

WebSphere Business Integration Express Plus for

Item Synchronization

Last Updated: 9/29/03


Today suppliers and retailers face inefficiencies and inaccuracies

• Industry leaders estimate eliminating inaccurate supply chain information could save the CPG and Retail industries $25-50 billion per year

• 30% of item data in retail catalogs in error: each error costs $60–$80

• 25 minutes of manual cleansing per SKU per year

• 60% of all invoices generated have errors; 43% of all invoices result in deductions; each invoice error costs $40–$400 to reconcile

• Average 4 weeks to roll-out a new product

• 10 days for item and price changes to get to market

Source: A.T. Kearney

Product data transactions through point-to-point systems

Supplier

Retailers


Allows trading partners to register and synchronize item data and location information within industries served by the Uniform Council Code (UCC)

Automates product life-cycle processes such as new item introductions and item maintenance

UCCnet acts as a standards-based hub for retailer-supplier communications

Supplier

Retailers

UCCnet


Data synchronization is the alignment of item, price, and promotion elements between suppliers

and retailers

Master Files• Item• Price• Promotion

Store

Master Files• Item• Cost• Promotion

Eff.DatesItems Costs Promo

Supplier Retailer

Common view of partnership's data


Item synchronization scenario examplesRetailerSupplier

Managing a common database of product, price, and promotion data

Common Data Repository

Source of Mismatch Solution

Item not yet in retailer system

Cost mismatch

Matched / synchronized

1

2

3

4 Old items in retailer system

Retailer authorize or reject

Resolve and agree on price

No action necessaryRetailer delete, if

desired

UPC1 2L1.56

UPC2 2L1.56

UPC3 2L1.56

UPC4 6pk. 16oz.2.09

Item UOM Price

UPC1 2L1.56

UPC2 2L1.56

UPC3 2L1.56

UPC4 6pk. 16oz.2.09

Item UOM Price

UPC2 2L1.59

UPC3 2L1.56

UPC4 6pk. 16oz.2.09

UPC5 6pk. 16oz.1.59

1

2

4

1.56

3

Item UOM Price


Adoption of UCCnet is taking-off

Source: UCCnet

Jan 2002 Jun 2003

600-

500-

400-

300-

200-

100-

0-

Trading Partners subscribed to the UCCnet registry services

Total subscribers as of June: 587 Total subscribers as of September: 1170 “In Production”:

US Retailers: 7 US Suppliers: 124


Momentum and opportunity continue to grow

Less than <1% of global CPG volume is currently registered in UCCNet’s GLOBALregistry

Initial focus on CPG; plans to extend to all industries served by UCC

Automotive Aftermarket Construction Public Sector (Defense & Govt.) Foodservice Service Industries Telecommunications Utilities

GTIN* – Global Trade Identification Number


Mid-market suppliers require cost competitive, easy to use, flexible solutions

Mid-market Item Synchronization Requirements

• Aggressively priced and competitively justified

• Easy to install, easy to use

• Support for key platforms – Windows 2000, OS400, Linux

• Complete solution that does not require additional software purchases.

• Flexible, scalable range of offerings

• UCCnet certification

• Ability to extend the offering as needed (including backend integration)


Retail Mid-market integration drivers

• Business challenges– Customer loyalty and revenue generation– Operational efficiency and lowering costs– Lack of resources to implement and support business solutions– Increasing demand to leverage and modernize mature applications

• Industry “Gorilla” Supply Chain Management cost reduction initiatives e.g.:– Initiative: UCCnet (Exchange – US), WWRE (Exchange - Worldwide) , UDEX

(Exchange EMEA), SINFOS (Exchange – Germany), ECC (Exchange – Canada)

A few of the Gorillas who have announced UCCnet supply chain initiatives

"Most MSBs (Midsized businesses) make an IT investment decision because they are forced or severely pressured to do so based on the threat of lost market share or need to integrate with larger enterprise customers."


Item synchronization is the foundation for future retail supply-chain market opportunities

As the retail industry moves toward Extended Enterprise Collaboration, the item synchronization solution will serve as the backbone for this transformation

8. Extended Enterprise

Collaboration

2. Single item registry (UCCnet)

4. Collaborative transaction & product information management

5. Collaborative supply chain management

6. Collaborative sales & promotion planning

7. Collaborative insight & product development

1. Common data standards (EAN & UCC)

3. Item synchronization

Time/Degree of trust & complexity

Ind

us

try

/Co

mp

any

be

nef

its


Product overview: WebSphere Business Integration Express for Item Synchronization

Firewall

AS2 Channel UCCnet

- Select 3 adapters-Manage up to 1,000 GTINs as base** One instance of eMail adapter is already included

Included in solution

Customdata input

via tech adapter

InterChange Server Express

Item Sync Collaboration

(fixed function)

iSoft

EMAIL**

JText

Adapters:

Adapters:

WebSphere MQ

XMLJMSJDBCWeb

ServicesJText

TM


OthermySAP.com

Product overview: WebSphere Business Integration Express Plus for Item Synchronization

* Future availability

Firewall

AS2 Channel UCCnet

Included in solution

InterChange Server Express

Item Sync Collaboration

(fixed function)

iSoft

EMAIL

JText

Adapters:

Adapters:

Process Designer

mySAP.com OtherTM

TM

WebSphere MQ

XMLJMSJDBCWeb

ServicesJText

- Select 3 adapters-Manage up to 5,000 GTINs as base** One instance of EMAIL adapter is already included


Scenario 1: Business Integration Express for Item SyncDry Towel Company

Express solution:

• Albe to send and receive item data to UCCnet’s GLOBALregistry.

• Works with existing IT assets

• High degree of integrated function minimizes administrative requirements

• Cost effective

Situation:• Single site operations• ~ 500 items• Lean organization with 250 employees, and a

tight budget• Item information managed in an Access

Database

ARIZONA

UCCnet


Scenario 2: Business Integration Express Plus for

Item Sync Game Day Toy Company

UCCnet

Express solution:• Albe to send and receive item data to UCCnet’s

GLOBALregistry. • Use SAP application adapter to access data from

existing data management systems• Developed customized review and approver steps• Automated Item Sync process reduces

administrative costs.

Situation:• Manufacturing in Asia, Eastern Europe,

Mexico and the U.S.• Anywhere from 2,000 to 2,500• Require process customization so that

managers can ensure accuracy of rapidly changing product information

• Item information managed in SAP


System requirements and AvailabilityPlatform Support

– Windows 2000– LINUX

• Red Hat Enterprise Linux WS/ES/AS for Intel 2.1, 2.4 Kernel• SuSE Linux Enterprise Server 7.3, 2.4 Kernel

– OS400

• IBM OS400 V5R2 (5722-SS1), which includes:

– DB2 UDB for iSeries

– QShell Interpreter (5722-SS1, Option 30)

– Digital Communication Manager (5722-SS1, Option 34)

– Other software products included on OS400 V5R2 distribution media

• AS400 Toolbox for Java (5722-JC1)

– IBM Developer Kit for Java (5722-JV1) Option 5 (JDK 1.3) and Option 6 (JDK 1.4)

– TCP/IP Connectivity Utilities for iSeries (5722-TC1)

– Crypto Access Provider for iSeries (5722-AC3)Database Support

– IBM DB2 Universal Database – Microsoft SQL Server 2000 with Service Pack 3 (For Windows 2000)


Express vs. Express Plus product positioning

Express Express Plus

Fixed function collaborationProcess Designer tool allows creation of additional process workflows

input only through technology adaptersBack-end application integration with supplied application adapters (mySAP.com).

Express Customers Express Plus Customers

The Express Plus product is for customers with complex product data management requirements (including applications such as SAP) who may also want to design and customize the item management process.

The Express product is for customers with simple product data management systems and requirements who can use the basic item synchronization process without any process customization.

Note: Express starting at 1,000 GTIN management capability. Express Plus starting at 5,000 GTIN management capability.


Benefits to line of business executives

• Low total cost of ownership– Ability to connect to a variety of back-end systems

– Flexible upgrade options allow room for future growth

• Increase profitability per SKU (estimates provided by UCCnet)– Automated process minimizes errors, incorrect shipments, and deductions

– Next and same day price changes now possible, accelerating time to market

– Reduce labor for contract administration

– Improvement in speed-to-retail for new products and item maintenance

• IBM offering reduces risk while ensuring success– Recognized as a Preferred UCCnet certified solution

– WebSphere Business Integration platform successfully implemented by over 2,000 customers


Benefits to IT staff

• Easy to implement, use, and maintain– Flexible connectivity to any application used to manage item data

– Integrate with existing applications to exploit the benefits of item synchronization while leveraging existing skills of IT staff

– High degree of integrated function minimizes administration requirements

• Extendable for future supply chain automation requirements– Scalable to grow with changing, long-term item management requirements

– Built on IBM’s industry-leading WebSphere Business Integration foundation, positioning company for the next stages in Extended Enterprise Collaboration

– Adaptable to changing business needs using tools for process customization


Planned Availability

• WebSphere Business Integration Express for Item Synchronization for Windows 2000– October 10, 2003 – Electronic

– October 31, 2003 – Media packs

• WebSphere Business Integration Express and Express Plus for Item Synchronization for LINUX, OS/400, and Windows 2000– December 30, 2003 – Electronic

– January 22, 2004 – Media packs


Product website

ibm.com/websphere/wbiitemsync/express

WebSphere Developer Domain - Business Integration Zone

http://www.software.ibm.com/wsdd/zones/businessintegration

For additional information contact

1-800-426-7080 priority code 102BJ016

For more information …


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