Product information management systems for retailers

Sony Electronics' primary customers include large retailers that distribute Sony's products for direct consumer purchase. Several large retailers, including Wal-Mart and Sears, have begun to require that manufacturers adhere to a set of supply chain information standards developed by GS1 - an organization dedicated to the design and implementation of global standards for improving supply chain efficiency and visibility. In 2009 Sony embarked on a project to adhere to GS1 standards by January 1, 2010 - partly at the behest of its retailers, and partly for the benefits that Sony Electronics would realize by adopting these standards. The specific set of GS1 standards that Sony Electronics implemented is called Global Data Synchronization Network (GDSN).

Retailers require a myriad of information about each product, ranging from product basics such as name, model, color and price to feature listings to packaging information such as the exact size of the box. If any data element is incorrect or missing, it could result in the retailer charging Sony Electronics a fee. Further, if a customer returns an item due to incorrect information, the retailer could return the item to Sony. For Sony Electronics, different pieces of information are added or adjusted at different points of the supply chain for different reasons, leading to the risk of errors or the risk that a piece of information will be formatted for one purpose but be rendered unacceptable to the retailer. As a simple example, the size of a box may be rounded to one decimal place for marketing purposes but two decimal places may be required to ensure that the box takes up exactly the right amount of shelf space at the retailer. If this information is not accurate to the degree needed by the retailer, Sony Electronics may incur a charge from the retailer.

The big challenge for Sony Electronics was the process of identifying which data source to access for the product and packaging data that would be consolidated into a single Product Asset Library for transmission to the retailer in the GDSN standard format. Product information appears in multiple data sources, so it is important to choose the most accurate and reliable source system.

JCB's solution allows Sony to gain visibility into all pertinent data from various locations and integrate it into a single Product Asset Library (PAL) for effective data transmission. JCB worked with multiple GS1 on-boarding partners to gather insight into Wal-Mart's and Sears' specific requirements for Sony's system. By gathering and understanding these requirements, JCB created a comprehensive solution that began with source data to target mapping. This allowed end-users to receive the information they need from the best record source to ensure data quality and accuracy.

JCB also provided the framework for automating Sony's manual data processes, so that regardless of the step or system from which the data was retrieved there would be far fewer errors passed on. This involved both new data generation and internal quality assurance testing to ensure the new solution was capable of processing all necessary data. JCB documented this process in detail to provide a clear roadmap for Sony to develop solutions easily for other retailers' GS1 requirements. This included a Source System to On-Boarding Partner Operational Process Guide and Transmission Process. The Transmission Process Outline allowed Sony to identify when and where their information would be given to Wal-Mart and Sears to reduce data latency and improve shipment efficiency.

In addition, JCB was charged with ensuring the GDSN solution supported all pertinent business processes. JCB created a high level GDS process flow plan to show users how to access and monitor information across the supply chain. This included a detailed transmission timeline so that Sony and Wal-Mart or Sears knew when to expect information updates, new orders, and deliveries. A primary component of the solution improved the Return Code Corrective Action Process to reduce time and costs of any returned shipment due to transmission errors. A new product list was updated to provide Sony with immediate access to expected deliverables. When combined with the UPC to GTIN mapping solution, Sony had complete visibility into their products. To ensure success, JCB implemented a training program for users and provides a live support service to address future issues with the GDSN solution.

This project provided Sony with the automated GDSN solution needed to effectively transmit data with Wal-Mart and Sears. The solution automated what had been a manual process for providing retailers with product information, saving time and freeing Sony resources to provide better service to its key retailers. By having the ability to transmit a diverse dataset from source systems through the GS1 global registry and the end retailer, Sony improved supply chain efficiency, reduced charges levied by retailers from inaccurate data, and reduced customer returns.

Sony is now well-positioned to improve its supply chain efficiency and sales with other retailers as well. Sony Electronics will realize greater and greater efficiencies and increased sales over time and recognize a sizeable return on its investment.