June 22, 2006

GS1 US & GS1 Canada

North American Upstream Initiative

©2005 GS1 Canada2

Agenda:

• Overview• “Pain-points”• Identification• Solutions

• North America Upstream Work Group• Formation• Commitment to Pilot

• XML • EDI

©2005 GS1 Canada3

Background:

• What is the Global Upstream Supply Initiative (GUSI)?• GUSI started as an initiative to identify ways to drive

increased supply chain efficiency between Consumer Packaged Goods manufacturers and their packaging and raw material suppliers.

• Who is involved?• European suppliers and manufacturers

• GCI (Global Commerce Initiative)

• GS1

©2005 GS1 Canada4

Background:

• Goal of the GUSI Working Group• Gain benefits from electronic communication between

manufacturers and their suppliers of raw materials.

• Develop a set of standards that all parties can use in their solutions

• Develop a “common language” for electronic business transactions between trading partners for:• Business Processes• Data Exchange Standards

©2005 GS1 Canada5

Background:

• The work of the GUSI Working Group resulted in the following:

• An Upstream Integration Model (UIM) providing a flexible model of processes and messages covering:• Integration Agreements• Data Synchronization• Purchase• Demand Management and Planning• Incoming Goods• Financial Accounting Transactions

©2005 GS1 Canada6

Background

• Results cont:

• Enhanced XML Standards

• Developed collaboratively between GS1 and GUSI

• Based on the UIM

• Intended to compliment the GS1 XML Standards

• Soon to include EANCOM

©2005 GS1 Canada7

©2005 GS1 Canada8

Building Blocks Manufacturer Process Transactions Supplier Process X12

Integration Agreement Agreement on Business RulesIntegration Agreement

Agreement on Business Rules 816

Data Alignment Maintain Master Data Item Master Data Maintain Master Data 832

Purchasing Conditions Agree Purchasing ConditionsPurchase Conditions

Agree Purchasing Conditions

Report Inventory Inventory Report Inventory 846/852Purchase Order 850

Net RequirementsConsumption

Forecast 852

Replenishment Forecast (instead of Inv. & R. Forecast)

855PO/Net

Requirements Confirmation 855Delivery Plan

Await ShipmentDespatch

NotificationPick and Pack Goods

856

Receipt of GoodsPhysical Shipment

of GoodsShipment

Check Goods Receipt Notification Goods Receipt Notification 861

Consume GoodsConsumption

ReportConsumption Notification

Invoice Receipt Invoice Create Invoice 810Create Self-Billing Invoice Self-Billing Invoice Invoice Receipt

Invoice ConfirmationInvoice

ConfirmationInvoice Confirmation

997

Create Remittance AdviceRemittance Notification

Payment Notification820

Initiate Payment Physical Payment Payment Receipt EFT

Depatch, Receipt & Consumption

Financial Settlement

Gather Material Requirements Plan Production and Supply

Integrate Information Confirm Delivery

Demand and Supply Signals

©2005 GS1 Canada9

“Pain Points” – issues:

• Pain-Points of Supplier/Manufacturer business process

• Need for Standards that covers wider supplier base in North America

• Small and Medium Enterprises do not have the technical tools or internal systems and process integration yet, to expand to EDI or XML

• Cost savings for supplier communication not an industry priority at this time

• Finding a supplier who realizes there is a supply chain problem and is willing to do something about it

©2005 GS1 Canada10

“Pain Points” – solutions:

• How can GS1 North America solve the pain-points?

• GUSI has developed standards for the “Plan to Cash” process. Other business processes being reviewed.

• GUSI Upstream Integration Model can be used for adopting the business process as a stepping stone to e-commerce

• Cost Benefit / ROI calculator being created to show companies why this initiative needs to be a priority

• North American Upstream Working Group can provide education on needs and initiative to suppliers

• Once communication is established with suppliers, pilot projects will be initiated

©2005 GS1 Canada11

Let’s Get Started - Work Group Formation:

• Determine Level of Interest

• Commitment to Pilot

• Technology• EDI

• XML

©2005 GS1 Canada12

Contact detailsCanada

Mary Shaw Manager, Standards Development

T: 416-380-1516 E: mary.shaw@gs1ca.org

Mike Sadiwnyk VP, Industry Relations

T: 416-510-8039 ext. 2212 E: mike.sadiwnyk@gs1ca.org

United States

John Terwilliger VP, Market Development

T: 609-620-4561 E: jterwilliger@gs1us.org

Mary Wilson Sr. Director, Standards Management

T: 609-620-4516 E: mwilson@gs1us.org