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Advocates see GDS and participation in the GlobalData Synchronization Network (GDSN) as the best path to improving the timeliness and accuracy of their supply chains, particularly once these efforts are broadly supported across the retail supply chain landscape. The GDSN industry initiative promotes the concept of a unified global data synchronization effort, coordinated and implemented by standards organizations. The premise is that businesses should implement now, then wait to see eventual benefit once end users and commercial service providers have worked through all of the obstacles.Overlooked in this premise is that many sectors within retail, particularly general merchandise and apparel, have been employing data synchronization best practices for nearly 20 years via business-to-business data exchange using industry standards. These users are already receiving the ROI that is promised by GDS advocates, whose system will require some level of new investment. No wonder there is a considerable undercurrent of discussion among retailers, suppliers and others questioning the value and direction of certain components of the GDSN standards initiative. So why is there a push to adopt new standards and processes?Data synchronization leverages technology and automation to enable suppliers and their channel partners (e.g., retailers, distributors and brokers) to exchange, approve and manage accurate product, pricing and forecasting data. GDS is the effort to create a common set of standards and infrastructure across the retail and consumer goods landscape. The goal is to ultimately create a global framework with one central registry receiving and sending messages via a network of interconnected data content providers.But confusion and skepticism abound about how to implement GDS and where the return on investment might come from. Many end users have complained that there is little added value and unnecessary extra technical layers and cost by engaging with efforts such as GS1's GDSN initiative. Although subscriptions to the GS1 global registry have grown from January 2005 to August 2006, anecdotal evidence sug gests a healthy percentage are joining in response to mandates and plan minimal compliance. Uncertainty of the GDSN model is particularly high among retailers and suppliers outside mass merchant and grocery, whose Tier One members have dominated the global data synchronization movement.In fact, thousands of vendors, manufacturers, suppliers and their retail customers are already actively exchanging information to support billions of dollars of transactions annually using standards-based data exchange technology and services (e.g., portals, product catalogs, value-added networks, peer-to-peer connections via software applications, etc.). These systems have been configured to process and maintain millions of product items and have evolved over time to support a more flexible and scalable set of product data elements or attributes. The key to success for the early pioneers of data synchronization was standards-based access, which drove mass adoption. Current efforts related to GDSN may not be completely aligned with core best practices.A SHORT HISTORY OF THE GDSNIn 1999, a small but powerful group of grocery retailers and large consumer goods suppliers, established a new data synchronization initiative backed by the Uniform Code Council (UCCnet). This new initiative was initially positioned as a "registry" and product item set-up service through which all other solution providers had to connect. UCCnet leveraged affiliation with the UCC and its status as a not-for-profit organization to push for a retail industry "global" data synchronization (GDS) vision based on an open, standards-based development and deployment model. This model required service providers to establish product functionality through a consensus process based on cross-industry representation.The initial UCCnet model proved unsuccessful, with very low adoption rates during the first three years. This forced two very important industry developments in 2004: the UCC-EAN International merger to create GS1 and the restructuring of UCCnet into a separate, competing data pool service. The creation of GS1 brought together the two largest standards organizations for global identification and communication of products, services and locations. The combined organization now has the capacity to establish a single point of identification and tracking for source component parts and finished goods. In addition to GDS, GS1 also manages the standards development for RFID and RosettaNet.
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