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In 2003, a group of manufacturers of Consumer Packaged Goods and their suppliers decided to define a common way to provide tighter integration of their supply chains. Their objective was to avoid costly and time-consuming IT integration projects with every manufacturer or supplier. At the end of 2004, the Global Commerce Initiative (GCI) initiated a new working group which incorporated the already-active GUSI members. The GUSI Working Group was born. It has developed and maintains the Upstream Integration Model (UIM) - the standardised processes and data interchanges underpinning upstream integration.
Role of GS1
GS1 has supported the initiative on implementation of the UIM notably for:
- tailoring the GS1 standards for item identifi cation and electronic communication
- supporting the developement of the message implementation guides
- providing assistance for implementations
Benefits
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Some of the world's largest consumer packaged goods manufacturers and their suppliers have identified significant benefits in using standard solutions. The companies reported:
- Faster integration:
- up to 75% reduction in the time taken to connect to new partners
- Reduced IT costs:
- Set-up: reduced development and training costs (both IT and business staff )
- Maintenance: due to phasing out of multiple non-standard interfaces
- Larger scope:
- Increased ROI by being able to implement across a larger scope of factories and suppliers. GUSI is for large and small companies.
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View Novozymes Case Study
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Therefore, GUSI works as a multiplier to help achieve collaboration benefits in the following areas:
- Service (product availability, lead time)
- Administration (forecasting, order processing, financial settlement, data management)
- Operation (physical receipt, manufacturing, change-over, truck fill-rate,...)
- Financial (working capital, inventory)
The adoption of the Upstream Integration Model allows companies to translate their internal processes and approaches into a common language that all other parties can use. As more companies adopt GUSI GS1 standards, the more rapidly the overall benefits rise as shown below.
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