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Case studies at the Center
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Subject:
Retail Exchange: Synchronizing the grocery vertical
The importance of good data consistency and platform standards

August 14, 2001

In 1998, a group of manufacturers and retailers from the grocery industry approached standards body UCC for a vertical-specific solution.

The problem was twofold: on the one hand, bad data made synchronization difficult and expensive; on the other, there was no trusted third-party that could provide a platform for competitors to engage in cross-industry initiatives. UCC tried to address these problems by forming UCCnet, a neutral, not-for-profit organization that served as a data synchronization and registry service for the grocery vertical. UCCnet’s services were aimed not only at existing partners but also at exchanges (including the WorldWide Retail Exchange, Transora, and GNX).

UCCnet has recently set up an Advisory Council (UAC) whose mandate is to further understand and serve the needs of the grocery vertical with regards to UCCnet services and UCC standards. UAC’s elected members include Transora, Ahold, Food Lion, Kraft Foods, Pfizer, Procter & Gamble, Ralston Purina, Shaw's Supermarkets, SUPERVALU, Wal-Mart Stores, and Wegmans Food Markets.

UAC is an important component of UCCnet’s Trading Partner Forums, one of which is currently taking place in Cincinnati. Two hundred companies, including the vertical’s major exchanges, are among the attendees, enthuses UCCnet VP Tom Duffy. Mr. Duffy explained the significance of UCCnet by speaking about legacy systems of exchanging data. “Even in the best cases, 30 percent of the data is poor. Because of the historical process -- phone calls, faxes, and keystrokes -- data was often misentered and didn’t match up. Standards were always in place, but they were voluntary. Now they’re built into a system. Where people used to have their own terminology and processes, now they have a common platform.”

Duffy was careful to point out that the UCCnet platform is not primarily about technology, but about business concurrence. “Standards are business rules. Something like ebXML is more like a technology platform -- almost like Windows. From where I sit, I see a greater emphasis on the vertical. We might like to think that UCCnet would fit 23 industries, but we need to understand the requirements for each vertical.” UCCnet plans to hold another four Trading Partner Forums this year, with UAC being a big part of each.

Story from Line56.

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