Kellogg Achieves Rapid UCCnet Implementation with Commerce One
UCCnet announced today that Kellogg (NYSE: K), the world`s leading producer
of cereal, successfully
implemented nearly 80 percent of its Morning Foods volume into the UCCnet
GLOBALregistry and
synchronized item information with Wal-Mart and Wegmans.
The company used the Commerce One (Nasdaq: CMRC) Xpress Start program to
quickly achieve data
synchronization with Wal-Mart. Ninety-nine products were published to
Wal-Mart in only two weeks.
Kellogg then asked Commerce One to implement its full-featured Xpress
Conveyor machine-to-machine
integration solution to manage all aspects of retailer data synchronization
through the UCCnet
GLOBALregistry.
With Commerce One`s Xpress Conveyor, Kellogg was also able to publish 97
items to Wegmans using
minimal staff members in nine weeks. The company will continue to interact
with Wegmans and Wal-Mart
through a machine-to-machine interface, requiring limited staff upkeep on
the system.
"Commerce One has exceeded Kellogg expectations by bringing us up on UCCnet
more quickly and
cost-effectively than we thought possible," Ray Shei, Vice President and
CIO of Kellogg Company.
"We are on-board and eager to work with as many UCCnet retail members as
possible."
Kellogg, who subscribed to UCCnet last year, partnered with Commerce One
after reviewing a variety of
integration and implementation solutions offered through UCCnet`s certified
alliance community. Specifically,
Kellogg was interested in utilizing a reasonably priced solution that would
integrate with an existing SAP
product-management system and Transora`s marketplace solutions.
Kellogg projects a direct return of nearly $30 per month for each product
that is fully maintained through UCCnet.
The company`s goal is to continue implementing UCCnet with additional
retail partners.
"Standardized item data gives businesses the foundation to develop truly
collaborative supply chain
processes," said Andy Hayden, senior vice president of Global Services at
Commerce One. "Commerce
One has extensive experience in helping businesses communicate and transact
more effectively with their
trading partners. We are leveraging this experience as we work closely with
UCCnet to help the CPG industry
streamline complex supply chain processes under a common set of global
standards."
"Kellogg expects that our partnership with UCCnet will help lower
administrative costs and increase our speed
to shelf for new items," Ray Shei, Vice President and CIO of Kellogg
Company. "Ultimately, we see reduced
deductions as a key benefit that will positively impact our bottom line."
A study recently completed by A.T. Kearney estimated that $40 billion, or
3.5 percent, of total sales lost each
year are due to supply chain information inefficiencies. Specifically, the
study showed that 30 percent of item
data in retail catalogs have errors, which cost between $60 and $80 each
and consume 25 minutes of manual
cleansing per SKU. Other findings revealed that 60 percent of all invoices
generated errors and 43 percent
of all invoices resulted in deductions.
To alleviate these costly errors, UCCnet enables registration and
synchronization of item information, such as
weight and dimensions, by providing a repository for standardized item,
location and trading partner data.
Suppliers, such as Kellogg, load item, location and trading partner
information into the UCCnet GLOBALregistry.
UCCnet checks the data for compliance to industry standards and
synchronizes the data with demand side
partners, ensuring that all trading partners are using identical, updated,
standards-compliant data.
"We are extremely excited about the work that has been achieved between
Kellogg, Commerce One, Wal-Mart
and Wegmans," said Tom Duffy, Vice President of Marketing and
Administration at UCCnet. "As both large
and small companies continue to implement, the clear message is that UCCnet
integration is a well-defined
process with valuable resources that drive success for any subscriber."
Contact:
Mark J. Silvey
Elias/Savion Advertising,
Public Relations & Interactive
(412) 642-7700 Phone
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