20.08.2024 | BJÖRN BAYARD
The GS1 Global Data Synchronisation Network (GDSN) is the world’s largest standardised network of data pools in the fast-moving consumer goods (FMCG) and healthcare sectors for the exchange of product information between industry and retail and between industry and hospitals in the context of healthcare.
Today, over 70,000 companies worldwide already participate in the GDSN and over 43 million article data records (GTINs) are registered in the GDSN. The number of articles published in the network as well as the number of companies using it has been growing continuously for many years, particularly due to the wide distribution globally. At the same time, the number of data pools in the network is also increasing.
Other sectors that already use GS1 standards today (in particular, other sectors of the consumer goods industry) can also use the GDSN. The challenge here is to set the flywheel in motion – the more data consumers participate, the more attractive it is for data providers to make the data available. The more data providers make the data available, the more attractive it is for data consumers to participate.
19.08.2024 | BJÖRN BAYARD
The GS1 Global Data Synchronisation Network (GDSN) is the world’s largest standardised network of data pools in the fast-moving consumer goods (FMCG) and healthcare sectors for the exchange of product information between industry and retail and between industry and hospitals in the context of healthcare.
Today, over 70,000 companies worldwide already participate in the GDSN and over 43 million article data records (GTINs) are registered in the GDSN. The number of articles published in the network as well as the number of companies using it has been growing continuously for many years, particularly due to the wide distribution globally. At the same time, the number of data pools in the network is also increasing.
Other sectors that already use GS1 standards today (in particular, other sectors of the consumer goods industry) can also use the GDSN. The challenge here is to set the flywheel in motion – the more data consumers participate, the more attractive it is for data providers to make the data available. The more data providers make the data available, the more attractive it is for data consumers to participate.
What are the advantages of the GDSN?
In order to sell products via the retail trade, brand manufacturers must distribute their product content to all their retail partners – and in optimum quality. This kind of bilateral data distribution can quickly lead to a high level of effort when a certain number of retail partners is involved, especially if brands frequently have to supply additional information or correct data records. Centralising and standardising this data exchange process therefore leads to efficiency gains on both sides. At the same time, the agreed standards ensure consistently high data quality. The basic idea: each ERP or PIM system of manufacturers and retailers is connected to a GDSN data pool via a direct interface so that product information can be synchronised fully automatically between the manufacturers’ and retailers’ systems.
Speed, transparency, and efficient supply chains are important not only for supporting manufacturers’ go-to-market but also for supporting retail partners in their product communication. In both the healthcare and food retail sectors, this is also about the safety of consumers and patients. This means that medicines and medical products can be made available more quickly and effectively or replaced by alternative products in the event of supply bottlenecks. A transparent supply chain and clear identification of individual products, batches, and product ranges are important in the event of recalls – for example in the case of contaminated food.
What are the advantages of the GDSN?
In order to sell products via the retail trade, brand manufacturers must distribute their product content to all their retail partners – and in optimum quality. This kind of bilateral data distribution can quickly lead to a high level of effort when a certain number of retail partners is involved, especially if brands frequently have to supply additional information or correct data records. Centralising and standardising this data exchange process therefore leads to efficiency gains on both sides. At the same time, the agreed standards ensure consistently high data quality. The basic idea: each ERP or PIM system of manufacturers and retailers is connected to a GDSN data pool via a direct interface so that product information can be synchronised fully automatically between the manufacturers’ and retailers’ systems.
Speed, transparency, and efficient supply chains are important not only for supporting manufacturers’ go-to-market but also for supporting retail partners in their product communication. In both the healthcare and food retail sectors, this is also about the safety of consumers and patients. This means that medicines and medical products can be made available more quickly and effectively or replaced by alternative products in the event of supply bottlenecks. A transparent supply chain and clear identification of individual products, batches, and product ranges are important in the event of recalls – for example in the case of contaminated food.
GS1 – the organisation behind it
GS1 is an independent organisation that has set itself the task of providing global standards for efficient business communication in a total of 25 sectors, including food retail, healthcare, transport and logistics, the DIY sector, and the technical sector. By standardising communication rules, GS1 aims to make industry-wide business processes more efficient and transparent, thereby promoting key aspects such as the sustainability and security of supply chains.
One of GS1’s best-known achievements is the implementation of barcodes in international trade. The first product with a barcode, a packet of chewing gum, was scanned in 1974. Today, barcodes and the unique identification numbers underneath them (GTIN - Global Trade Identification Number) are an absolute standard for retailers and manufacturers.
In addition to product identification, GS1 also offers classifications for products and product groups as well as different approaches for data exchange. These include not only the global data pools of the GDSN but also, for example, the GS1 Digital Link, which makes contextual product information available to various stakeholders such as consumers or retailers via a QR code on the packaging. The type and depth of the product information is determined by the type of application that retrieves the code.
For example, consumers can use a consumer app to view information on nutritional values, ingredients, and the product supply chain, while retailers can use their own application to view information on logistics and transport – all with the same QR code.
These are just a few examples of how GS1 supports the efficiency, transparency, and security of supply chains in various industries. As a non-profit organisation, GS1 brings together experts from trade, industry, and technology in its governing bodies to jointly find answers to current challenges – such as the digital product passport, which is to be implemented as part of the EU Green Deal – and to drive innovation.
GS1 – the organisation behind it
GS1 is an independent organisation that has set itself the task of providing global standards for efficient business communication in a total of 25 sectors, including food retail, healthcare, transport and logistics, the DIY sector, and the technical sector. By standardising communication rules, GS1 aims to make industry-wide business processes more efficient and transparent, thereby promoting key aspects such as the sustainability and security of supply chains.
One of GS1’s best-known achievements is the implementation of barcodes in international trade. The first product with a barcode, a packet of chewing gum, was scanned in 1974. Today, barcodes and the unique identification numbers underneath them (GTIN - Global Trade Identification Number) are an absolute standard for retailers and manufacturers.
In addition to product identification, GS1 also offers classifications for products and product groups as well as different approaches for data exchange. These include not only the global data pools of the GDSN but also, for example, the GS1 Digital Link, which makes contextual product information available to various stakeholders such as consumers or retailers via a QR code on the packaging. The type and depth of the product information is determined by the type of application that retrieves the code.
For example, consumers can use a consumer app to view information on nutritional values, ingredients, and the product supply chain, while retailers can use their own application to view information on logistics and transport – all with the same QR code.
These are just a few examples of how GS1 supports the efficiency, transparency, and security of supply chains in various industries. As a non-profit organisation, GS1 brings together experts from trade, industry, and technology in its governing bodies to jointly find answers to current challenges – such as the digital product passport, which is to be implemented as part of the EU Green Deal – and to drive innovation.
The data pools
There are now 48 data pools worldwide. Thirty-two of these are based in Europe, ten in North America, three in South America, two in Asia, and one in Australia. In principle, manufacturers and retailers can choose any of the 48 data pools, as the data pools are networked with each other. The following criteria, among others, help in the search for the right data pool:
• Coverage of the requirements from the data model
• Expertise on specific compliance rules
• Helpful content and support on the basics of the GS1 system
• Number of successful implementations
• Provision of best practices
• Experience and distribution of the data pool in the respective industry
• Geographical distribution
• Additional services, training, and further support
• Validation mechanisms to ensure data quality
• Costs (implementation costs, usage fees, support fees, etc.)
Data exchange between industry and retail in reality
As mentioned above, the GDSN is already firmly established in the food industry, and the industry-wide data exchange processes as well as the standardisation and enforcement of data quality are regulated by the GDSN standards.
However, not all manufacturers and retailers are connected to the GDSN. As a result, the exchange of product data between industry and retail usually takes place in different ways. In addition to the GDSN, product information continues to be shared bilaterally – for example, via dedicated supplier portals that are directly connected to the retailer’s ERP. These can also be Excel tables or web links via which partner companies can download the required information as XLS, XML or JSON.
The prerequisite for effective sharing of product information is a well-functioning infrastructure that not only enables this data exchange across all relevant channels but also helps to ensure the necessary data quality.
It is important to understand that the GDSN primarily maps the transport of product data and sets some basic quality standards. On this basis, it is the responsibility of industry and retail to set up product content management in such a way that the requirements of marketing and sales are comprehensively covered. Manufacturers must know and understand the requirements of their retail partners and integrate them into their own data model. At the same time, they should also make use of the opportunities offered by retail in the context of retail media or enhanced content and provide optimised product content via suitable syndication processes.
Data exchange between industry and retail in reality
As mentioned above, the GDSN is already firmly established in the food industry, and the industry-wide data exchange processes as well as the standardisation and enforcement of data quality are regulated by the GDSN standards.
However, not all manufacturers and retailers are connected to the GDSN. As a result, the exchange of product data between industry and retail usually takes place in different ways. In addition to the GDSN, product information continues to be shared bilaterally – for example, via dedicated supplier portals that are directly connected to the retailer’s ERP. These can also be Excel tables or web links via which partner companies can download the required information as XLS, XML or JSON.
The prerequisite for effective sharing of product information is a well-functioning infrastructure that not only enables this data exchange across all relevant channels but also helps to ensure the necessary data quality.
It is important to understand that the GDSN primarily maps the transport of product data and sets some basic quality standards. On this basis, it is the responsibility of industry and retail to set up product content management in such a way that the requirements of marketing and sales are comprehensively covered. Manufacturers must know and understand the requirements of their retail partners and integrate them into their own data model. At the same time, they should also make use of the opportunities offered by retail in the context of retail media or enhanced content and provide optimised product content via suitable syndication processes.
Would you like to learn more about GDSN?
Best regards – Björn Bayard