Grocery industry exchange: a preview of MRO's future?

By Staff -- Industrial Distribution, 9/1/2000

It may be worthwhile for MRO distributors and suppliers to check out a new standards-based Internet trading community created for the grocery industry.

UCCnet, an Internet subsidiary of the Uniform Code Council, Inc., launched services in late July that it says will increase efficiencies among B2B trading partners. UCCnet (www.uccnet.org) says it will provide a trading platform of synchronized product data that will help subscribers cut costs associated with paper work, miscommunication and incorrect pricing and product information.

Initially the exchange is meant for the grocery industry, which sponsored UCCnet, but officials say it will later be available worldwide. The non-profit UCC sets multi-industry standards for product identification and related electronic communications.

Through UCCnet, participating companies will be notified immediately of new items and product modifications. Eventually, UCCnet will also link to solution providers and trade exchanges.

Procter & Gamble and H.E. Butt Grocery Co. highlighted successes in a case study. According to UCCnet, these include: fewer invoice discrepancies and product delivery errors; a 30 percent improvement in quality purchase orders; a 100 percent match between purchase order and invoice data; thousands of hours saved each year in adjustment time and administration.

While it supports the organization, access and exchange of item data, UCCnet does not monitor how the information is actually used. Officials say the exchange provides a "technology neutral," open architecture that offers participants a secure and reliable way to synchronize item content.

"UCCnet will be to business communciation over the Internet what the Universal Product Code (UPC) has become to commerce today," says Thomas Rittenhouse, CEO of the UCC.

UCCnet also says it will encourage voluntary participation of all solutions providers-hardware and software vendors, Internet service providers, etc.-to develop service offerings and products that are consistent with its open platform.