Johannesburg, 22 May 2001
EAN South Africa, the local co-ordinating body for international identification standards, has announced that all suppliers must be listed on the EAN FMCG industry product data catalogue (PDC) by 28 February 2002.
The catalogue is the only catalogue endorsed by EAN, industry associations and major retailers in the FMCG sector. The catalogue, hosted by Commerce Centre, is the e-marketplace company in the Datacentrix group. It forms the foundation of an electronic trading community servicing all players in the FMCG space.
The EAN PDC provides the FMCG industry with a low-risk entry into e-commerce and is part of the South African Efficient Consumer Response (ECR) initiative designed to improve supply chain efficiencies by providing a single distribution channel for static product data from suppliers to retailers. It is expected to reduce supply chain costs through accurate product alignment and the elimination of product-related backdoor problems.
"This is the first e-commerce community in South Africa that embraces an entire market sector and it`s the most important advancement in the industry since barcoding was introduced in 80s," says Commerce Centre retail director, Michael Lamb. "The benefits to both manufacturers and retailers are significant. Every year, the FMCG industry pays a heavy price for inaccurate data, poorly managed master files and poor scan rates. The PDC forms part of a global agreement among all FMCG players to create a single set of correct product data to maximise supply chain efficiencies, deliver cost savings to suppliers, and provide an easily accessible catalogue to retailers. Consumers will also benefit from improved stock coverage and the elimination of delays in product delivery."
In addition to providing one set of clean data to facilitate e-commerce, the PDC will benefit retailers by providing accurate dimensions and measurements, accurate barcode information, and ensuring hierarchical integrity of the relationship from consumer unit through the various packing levels - shrinkwrap, case, pallet.
Manufacturers stand to benefit from a reduction in costs and cycle times, credit note reduction and an enhanced payment system and improved cash flow. The PDC is also expected to facilitate the growth of electronic data interchange (EDI) while minimising and improving communication.
The EAN PDC will run on a centrally located computer installation and will be used by all suppliers to hold and update existing products and add new product data of a non-competitive nature to the retail trade. The annual charge for the services provided is R5 000 pa per company, for software, irrespective of usage or company size. No additional hardware or software is required. Commerce Centre offers an installation and training service for a once-off fee.
"We are encouraging suppliers and distributors to list on the PDC, as participation is fundamental to effective e-commerce in the sector and will soon comprise part of the Standard Terms and Conditions of Trade with the major FMCG retailers," says Lamb. "Standardisation is in everyone`s interests and will bring the SA FMCG industry in line with other global efforts to improve supply chain efficiency."
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