GDS is no longer just a vision. It is an existing business practice, with rapidly growing adoption. The ability to share consumer data, rather than simply collect it, creates much of its value in the marketplace. According to a recent study, the data-driven marketing services industry in the USA was worth a staggering $156 billion in 2012. A fundamental building block for a collaborative supply chain, GDS provides real business benefits from which trading partners will equally benefit. In the world of data-dominated decisions, GDS is necessary to provide a foundation for future collaborative commerce.

"The Value of Data" report also found that data-driven marketing services employ 676,000 people. The researchers studied the revenues of more than 650 companies that it considered part of the sprawling marketing data and related services industry. The research indicates 70 percent, or $110bn, of the data-driven marketing industry relies on individual-level data exchanged among companies for things like ad targeting or email marketing. The two largest industry sectors creating value from consumer data in 2012 were commerce -- particularly e-commerce -- and postal production (i.e. direct mail). Each accounted for around 20 percent of the marketing data economy, according to the report. Large retailers represented a significant portion of the money spent on data-driven commerce. The report estimated 20 percent of sales at Amazon, Staples, Apple, iTunes and Walmart involved data-driven marketing. Some of these firms are realising substantial business benefits from implementing GDS.

From fax to GDSN-certified data pools

Initially, data exchange was limited to unstructured messaging via catalogues, listings, mail or fax. Far from perfect, it was then replaced by National EDI or Electronic data interchange. EDI is commonly used by big companies for e-commerce purposes, such as sending orders to warehouses or tracking their order. Much more than a mere e-mail, it enables organizations to replace bills of lading and even cheques with appropriate EDI messages. An early standard for EDI, Tradacoms was primarily used in the UK retail sector, only to be replaced by Global EDI (EANCOM). Prior to GDSN, non-standard data sync was also in use (national and industry catalogues). Finally, the world of trade received a God's gift in the form of Global Data Synchronisation. With GDS standards available and a Global Registry in place, a number of data pools are now exchanging item data within an operational Global Data Synchronisation Network. Perhaps most importantly, trading partners are now actively engaged in the synchronisation of item data and are proving that GDS provides many of the original projected benefits.

How does it work?

The GS1 Global Data Synchronisation Network (GDSN) enables a single point of truth for master data. What may sound a bit cryptic to a layperson, is in fact a fairly straightforward process. To put it simply, every company has a database filled with master data about the products they make, or sell, or buy. But when one company needs to change any bit of information in their database or add a new item to it, another database may not be up to date anymore. That's where synchronising data through the GDSN comes in. It helps to share reliable master data. Both supply and demand sides run their own product databases, containing such information on goods as their height, width, depth, weight, items per case, cases per pallet and GTIN (Global Trade Item Number). By synchronizing their master data, trading partners can rely on the information stored in their database.

Money-saver and sales booster

It has been proved that GDS is real and is making a difference. It drives unnecessary costs out of the supply chain. Other perks include improved order accuracy, fewer forms to fill out, fewer duplicate systems and processes. When a supplier and a customer know they are looking at the same accurate and up-to-date data, it is smoother, quicker and less expensive for them to do business together. Moreover, GDSN helps to increase value in logistics, accounting, customer service and inventory management. It enhanced reporting, order tracking and planning. Result? Simpler additions and changes, fewer complaints and disputes, better accuracy of orders and shipments, not to mention lower logistics and labour costs and increased sales. Trading partners have much greater confidence in the shared information. A couple of facts and figures prove the point. Benefits for a supply side include time-to-shelf reduced by an average of 2 to 6 weeks, order and item administration improved by 67 percent, and item data issues in sales process reduced by an average of 25- 55 percent. In the case of demand side, order and item administration improve by 50 percent, coupon rejection at the check-out is reduced by 40 percent while data management efforts shrink by 30 percent. By using GDSN, a leading Japanese retailer AEON have reduced their item management costs by $2m, and Johnson & Johnson have virtually eliminated data integrity related out-of-stocks at Wal-Mart in the USA.

Sources: http://adage.com; http://www.gs1.org