Insights
Are you a retailer in the FMCG sector, connected to GS1, and do you have a machine-to-machine interface? Do you face the same challenges every quarter to keep up with the pace of GS1 Global Data Model changes, as announced in the GS1 release? Below, we describe the importance of the GS1 datapool for retailers and provide tips to help you successfully and systematically implement periodic GS1 data model changes. As a leader in Europe, with a successful data quality program, the Benelux data model is used as a basis in this article.
Since a retailer, unlike a supplier, must have everything in order on the day of the release, the pace of consecutive releases can be challenging for retailers. While a supplier has up to three months after the release to implement the changes, as they need to gather, record, and forward the new information, a retailer must do this before the release. This is especially challenging when it involves many, sometimes legally required, changes. Think, for example, of previous releases.
GS1 provides a central source for high-quality product data across various sectors, including the FMCG sector. The Global Data Syndication Network (GDSN) is used, with 45,000 companies currently connected. The central source for product information is the GS1 datapool, where the data model is leading. In the data model, suppliers and retailers reach a consensus on what the standards in the sector should be. Besides expertise in product information from various sectors, legal guidelines also shape the data model. Think of legal provisions regarding ingredients, environmental levies, and hazardous substances. The standards are embedded in the form of fields with validations, input instructions, and code lists. Changes in international GS1 standards are always included when they concern the Benelux data model.
Given the continuously growing demand for information, stricter legislation, and changing international standards, it is crucial to keep the data model up to date. You could say that the pace of the world of product information dictates the pace of GS1 changes. Therefore, a new data model release takes place four times a year. The GPC product classification list is updated twice a year. These updates are incorporated into the releases, with two relatively larger and two smaller each year. By timely implementing the data model changes, you always comply with the law. Additionally, it positively impacts competitiveness because complete and correct product information contributes to the shopping experience and builds trust, encouraging consumers to purchase.
The impact of a GS1 data model release on your organization varies depending on the size of the release and your product range. If your organization has a wide and variable assortment with a very fast turnover of products, it is almost impossible to create or enrich all product data yourself. The dependence on a datapool then becomes significant.
To succeed in PIM, a retailer must first look inward. What does my assortment look like? What product information is needed to ensure internal processes run smoothly and safely? What information is legally required to be shown to consumers? What product information positively impacts my competitiveness? The impact of the release thus depends on the purpose of the data.
Without in-depth knowledge of the assortment, it is very difficult to assess which data model changes apply to your organization and what the impact is. To gain insight into this, an integrated approach is needed, where data mapping and data governance are crucial.
For an initial implementation of a PIM system, GS1 data model, or other related digital transformations, Squadra uses the SCOPE model. This model supports clients at every stage of their digital transformation. In this article, you can clearly see some aspects of that model. If you would like to learn more about our SCOPE model or the implementation of GS1 in your organization, please feel free to contact us!