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May 1, 2005 Volume I

IN THIS ISSUE:

Retail EDI News 

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 UCC Sunrise 2005 - Summary of the Event 

  The Uniform Code Council's 2005 Sunrise date on January 1, 2005 was a requirement for U.S. retailers to be able to scan EAN-13 codes in addition to UPC codes. The EAN-13 is the European Article Number and is 13 digits long.  The UPC is used in the U.S. for item marking and is 12 digits. A UPC code can be scanned as an EAN-13 code with an assumed leading zero. The sunrise date was announced in 1997 to facilitate global commerce so that U.S. retailers could utilize the EAN product marking by having scanners and systems that are capable of reading the 13 digit code. Most U.S. retailers were capable of scanning the EAN codes well in advance of the sunrise date.

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GTIN Compliance

 

The Global Trade Identification Number (GTIN) expands the UPC and EAN to a 14 digit number with the 14th digit utilized to define packaging. As part of the Sunrise 2005 requirements from the UCC, there was a  recommendation that if upgrading systems be Sunrise 2005 compliant, that a company should also plan to become GTIN compliant.

A review of major department store EDI guidelines finds that most are not asking their trading partners to replace UPC codes with GTIN codes in their EDI documents.  An exception to this is May Company which is inserting 2 leading zeroes to put UPC codes into GTIN formats and asking their trading partners to do the same in the documents that they transmit.


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Retail Mergers and Acquisitions

 

The first part of the break up of Saks Inc. was announced on April 30 with the sale of Profitt's and McRae's to privately held Belk Inc. Up for sale are also the Boston Store, Carson Pirie Scott, Herberger's, Bergner's and Younkers department store chains, as well as 43 Club Libby Lu stores. Saks has indicated that they will continue to operate Saks Fifth Avenue and Parisians. 

The merger of Kmart and Sears as Sears Holdings Corporation closed on March 24, 2005.

Federated Department Stores and May Department Stores are working through FTC and SEC requirements with an anticipated goal of completing their merger in Q3.

Additional news and details can be found here.

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EDI Service Provider News 

During the last several months, there has been some significant merger activity amongst some of the major service providers. In November of 2004, Inovis (formerly Harbinger, Peregrine, Extricity) acquired QRS Corporation with the primary motive seeming to be the acquisition of the QRS Catalogue along with their significant customer base of retailers utilizing the VAN services. In January of this year, GXS (formerly GE) acquired the VAN services that were owned by IBM.  QRS had been a major reseller of the IBM VAN services. The speculation as to how Inovis would deal with this situation ended when when Inovis and G International (the IBM VAN services of GXS) announced in March that they were extending the VAN reseller agreement that existed between QRS and IBM. Inovis also announced in April that they had sold the QRS Managed EC business to Internet Commerce Corporation.

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Technology News 

Radio Frequency Identification, RFID, provides a means for identifying unique items using radio waves. The data is typically stored in a digital format in a microchip. An RFID tag can contain much more data than a barcode. An RFID reader can read several RFID tags at a time from up to a hundred feet away.

Target, Wal-Mart, and Albertsons are all implementing RFID technology with top suppliers.  The usage is case and pallet level markings.

In the U.K., Marks & Spencer, PLC is testing RFID tags on men's clothing. Metro AG is currently rolling out RFID technology across it's German stores.

Additional information on RFID applications can be found here.

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