GS1 GDSN DATA SYNCHRONIZATION. Speaking ONE Language throughout the supply chain

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2 GS1 GDSN DATA SYNCHRONIZATION Speaking ONE Language throughout the supply chain

3 Background Today, the SUBWAY brand is the world's largest restaurant chain with 42,744 restaurants in 108 countries around the world. Independent Purchasing Cooperative (IPC) Franchisee-owned purchasing cooperative for over 30,000 SUBWAY restaurants in the US, Canada, Virgin Islands and Puerto Rico. Negotiates the lowest cost for goods and services, while improving quality, enhancing competitiveness and ensuring the best value to SUBWAY restaurants and their customers.

4 What is GS1? GS1 Standards for identifying, capturing, and sharing information About products, business locations, and transactions End Result Speak one language Product traceability Supply chain efficiencies Compliance

5 Why is IPC Adopting GS1 Standards? IPC joined the Foodservice GS1 US Standards Initiative in 2010 How did it start? We needed a vehicle to improve traceability Produce Suppliers introduced PTI Subway bought 100,000 GTIN s Why now? Product Information Management Increased efficiencies throughout our supply chain Foundation for Improved traceability Lower project cost & complexity Regulatory demands (FSMA)

6 Foodservice Industry Support IFDA Manufacturer Letter Data Synchronization Industry Sunrise: December 2014

7 IPC GS1 Program Implementation Starting Point: Data Synchronization- establish the foundation Objective: Proper standardization or agreement around product identifiers and attributes. Accurate, up to date transactional attributes = $$$ REDUCTION in purchasing, distribution, logistics, item management THIS IS IPC s CORE MISSION

8 Data Sync Six Sigma Study Identify the main source of PAIN for our business, measure and fix it! Measure Ongoing Process Performance Describe the problem & identify possible causes Collect Baseline & Benchmark data Analyze Data to Identify Root Causes Recommend Alternatives & Implement Solutions

9 Problem & Root Cause IPC s/subway s product information does not follow an automated standard identification process, causing inaccuracies and delays in the supply chain No automated data validation Lack of standard attribute definitions Redundancy- no single source of truth No defined accountability for data accuracy Limited updates as products changed Multiple Numbering systems

10 Solution Identify all products with unique Global Item Number (GTIN) throughout supply chain Speak ONE language through defined standard attributes ONE Source: Synchronize real-time through Global Data Synchronization Network (GDSN) IPC to be the gatekeepers for Subway item information Accountability: Holding suppliers accountable for data completeness and accuracy Monitoring: Distributors physically validate with a cubiscan and report back discrepancies

11 Data Synchronization Benefits $$ Logistics ROI $$ Cleaner product information equals logistics COST AVOIDANCE Identified and fixed discrepancies for 83 high volume SKU s Truckload & Material handling impact is BIG! Labor ROI $$ Item management: Data entry time + time to find and fix discrepancies: 26% of an FTE Data mapping effort: 65% of an FTE + Software vendor cost Data Alignment Prior to GDSN: GDSN vs IPC: 74% items with core discrepancies IPC vs various distributors: avg. 82% items with core discrepancies Published through GDSN: Distributor states, IPC has published the cleanest data we have received Time to fix discrepancies: Via business days for ONE product discrepancy Via GDSN: ½-5 business days for ALL discrepancies per supplier

12 Traceability benefits Customer Safety & Brand Protection Faster, more accurate, complete product withdrawals Focused withdrawals to store level Fewer operational interruptions at restaurants Reduction in good product being discarded Fewer product outages which would reduce lost sales Regulatory Compliance

13 Subway Supplier & Distributors Objectives DATA SYNC OBJECTIVES SUPPLIERS DISTRIBUTORS Static Product Information Sharing - GDSN Publish/Receive GDSN item information for all products purchased by Subway to IPC Implement Data Accuracy Processes for Supply Chain Data 5/1/2014 9/1/2014 1/2/2015 Standardized Product Identification Prepare internal systems to receive product data via GDSN, including 14-digit GTIN Use GTIN s for products sold to Subway in all business transactions Data Accuracy Processes for Supply Chain Data Ensure product attributes are within tolerances defined by GS1 Data Quality group Help monitor data accuracy by physically validating product and reporting discrepancies 1/2/2015 1/2/ /1/2014 1/2/2015 1/2/2015

14 Thank You Speakers: Rick Buttner, Director Quality and Supply Chain Risk, IPC Lucelena Angarita, Quality/GS1 Program Manager, IPC Stop by the IFDA Booth! GS1 US will be available to answer questions during expo hours