Transora, UCCnet, The Coca-Cola Company, Kraft Foods/Nabisco, PepsiCo and Sara Lee Bakery Group Embark on Development of Direct-Store Delivery - DSD - Data Synchronization Solution

Business Wire, Nov 19, 2002

Business Editors

CHICAGO--(BUSINESS WIRE)--Nov. 19, 2002

Joint effort will utilize Global Standards Management

Process Standards to deliver an industry-based,

scalable solution to reduce costs

Transora, the B2B exchange for CPG manufacturers today announced that UCCnet, Coca-Cola, Kraft Foods/Nabisco, PepsiCo and Sara Lee Bakeries have formed a steering committee led by Transora to define, develop and implement a data synchronization solution that addresses the unique requirements of DSD manufacturers and the retailers they serve. The objective of the initiative is to add DSD-specific functionality to the Transora Data Catalogue and UCCnet's GLOBALhub to facilitate information exchange at the store level.

According to studies conducted by the Grocery Manufacturers of America, DSD All Commodity Volume (ACV) represents 25% of volume shipped to retailers in the US and 80% of the invoices. Developing a solution for DSD data synchronization will benefit both retailers and manufacturers by reducing invoicing errors, out of stocks, and lost sales.

"Improving the quality and speed of information exchanged with our retail partners will reduce inefficiencies and costly errors that result from bad data," said Dan Marr, Chief Customer Officer, Coca-Cola Enterprises. "DSD has unique data synchronization requirements and we believe that we must work together to create a solution that goes beyond proprietary solutions available today."

Currently some manufacturers and retailers are piloting proprietary systems to exchange DSD information with retailers. While these solutions have provided value, they have not been scalable nor have they incorporated the global standards expected in 2003. To address this problem, the steering committee was formed to create a standards-compliant, industry-based solution that can be rapidly and efficiently deployed.

"Proprietary solutions are not going to solve the problem long term," said Al Carey, Chief Operating Officer PepsiCo Beverages and Foods. "By taking a community-based approach to solving this problem we can ensure that the result of our efforts is a scalable model, with critical mass for wider industry adoption that is cost-effective and standards-compliant."

"Transora and UCCnet are committed to developing a solution that can be applied globally," said Judy Sprieser, CEO of Transora. "As a result, we will be working closely with both the Global Commerce Initiative and Grocery Manufacturers of America DSD committees to build from their success, avoid duplication of efforts while ensuring we create a solution that is beneficial to both manufacturers and retailers. We will also extend an invitation to the entire community of DSD manufacturers to join us in adopting the solution we develop."

"We are pleased to be working together with industry leaders to define an industry solution for data synchronization for DSD. DSD is an integral component of daily business for many of our subscribers," said Fred Geiger, Senior Vice President, Product Management, UCCnet. "Only by defining a common standards-based solution, can the industry reap the maximum benefits. We are especially pleased that this effort will be done in conjunction with EAN*UCC Global Standards Management Process."

Using Transora's Data Synchronization solution as the foundation for this service, the committee will solicit retail partners to participate in a U.S. pilot in Q2'03 and expects to have a solution generally available in Q3 of 2003. Item synchronization, item pricing and promotional pricing will be included in the solution.

"The challenge of exchanging accurate information between retailers and DSD manufacturers is magnified by the need to communicate down to the individual store level," said Barry Beracha, CEO of Sara Lee Bakery Group and a board member of Transora and the Uniform Code Council. "Product lists, item pricing and promotional pricing varies by store, creating enormous complexity and great potential for significant improvement through data synchronization. The efforts of Transora and UCCnet will help us address this complexity and reap benefits. With more accurate information flowing in real-time, retailers and manufacturers will benefit from more accurate orders and invoices and from reduced out-of-stock situations."

About Transora

Transora is the consumer packaged goods (CPG) industry's business-to-business exchange. Established by members of the Grocery Manufacturers of America in mid-2000, Transora offers solutions that reduce costs and streamline trading relationships among manufacturers, suppliers and retailers. Transora's investors include more than 50 of the world's largest CPG manufacturers, representing over $650 billion in annual revenues. With headquarters in Chicago, Transora's global operations include regional offices in Amsterdam, the Netherlands, Sao Paolo, Brazil, and Mexico City. To find out more about Transora, visit Transora.com or call 1-312-463-4467.