RVCF Members Recognize the Value in Digital Standards

By Paula Giovannetti, Supply Chain Best Practices Adviser, Retail Value Chain Federation

RVCF Publishes Business Process Guides

Each year RVCF members provide input on a business process that could be improved. In 2023 the process was automated receiving using an EDI 856 Ship Notice / Manifest and the GS1 Logistics Label. RVCF members, including retailers, merchandise suppliers, and solution providers, created a guideline for Error Prevention and Notification for EDI Ship Notices and Labels. The guide includes best business practices; a list of ship notice and label errors; basic terms and concepts for both EDI and supply chain; how to produce quality bar code labels; and resource links for standards organizations.

Because misaligned PO data between retailer and supplier systems causes ship notice failures, the next guideline, completed in 2024, was on the PO change process (RVCF Business Process Guideline for PO Changes). This guide includes information about the original PO process; relevant EDI transactions; PO types and terms; methods used for PO changes; data most often changed and tools to synchronize the PO in the supplier and retailer system.

The guides are written for those in business operations and acknowledge the importance of standardizing the terms and definitions used in digital communications. In retail, an integral part of the automated receiving and PO change processes includes EDI transactions. It also includes retail standards for barcodes, the shipping label format, and rules for GTIN allocation and package measurements. 

RVCF’s role in industry standards is to help their membership identify relevant standards bodies and existing standards. We also work with the appropriate standards group to submit change requests.

New X12 EDI Qualifiers Approved for Use in US Retail

The guide for automated receiving includes a matrix of all ship notice, label and carton errors. The comprehensive list is the result of surveys, monthly group discussions, and error lists from several major retailers. It includes an error name, definition, the relevant EDI segments and elements and the associated X12 EDI error codes. Of the seventy errors listed, we identified a need for forty new EDI codes (also referred to as qualifiers). RVCF followed the ANSI X12 Change Request process to receive approval for the new EDI qualifiers.  

Likewise, with the work on the PO change process, three new EDI qualifiers were requested and approved. The new codes further define the type of Purchase Order:  Ship to DC/Mark for Store; Ship to Store/Mark for Consumer; and Ship to DC/Mark for Consumer.

The new codes are available in version 8060. Using the relatively new EDI ISX envelope as part of the EDI transmission “wrapper” it is possible to use the latest code list with an older version of EDI. Please see X12.org for more information.

The Next RVCF Business Process Guide – Item Master Data

The next business process guide will be on item setup and attribute maintenance, always key to the order-to-cash  process. Surveys showed that incorrect item master data was the second biggest reason for PO changes and a significant cause for Ship Notice failures, so the 2025 business process guide will be on item setup and attribute maintenance.

With the roll out of two dimensional bar codes on the consumer package, complete and accurate item data will be critical for both retailers and merchandise suppliers if they are to meet consumer expectations.

Improving Communication in Retail

RVCF recognizes the importance of harmonizing the language and terms used for retail business processes. When business partners use the same terms, associated with clear and unambiguous descriptions, communication is greatly improved. Each party is able to aggregate like-data to provide root cause analysis for issues, predict future business trends and meet consumer expectations.

Register now and join us on 2/19 at 2pm (Eastern) for our first Business Process Guidelines Group Meeting of the New Year.  Contact SHaupt@RVCF.com to learn more. 

RVCF - The Retail Value Chain Federation (RVCF) provides platforms and opportunities for communication between retail industry stakeholders. They promote education through live events, teleconferences, webinars and research. They offer benchmarking of best practices, technology solutions, and strategic initiatives. RVCF works with Retailers and Merchandise Suppliers to address their individual priorities helping them to become more collaborative trading partners. They are committed to the advancement of the retail industry as a whole. RVCF celebrates their 25 anniversary in 2025. Contact RVCF at Info@rvcf.com

GS1 US® helps companies power their supply chains to deliver safe, consistent, authentic, and trusted experiences. GS1 is a not-for-profit, global data standards organization that creates the common language that helps companies and their trading partners identify, capture, and share trusted data that links their physical and digital supply chains. GS1 US, best known as the recognized source for UPC barcodes, is the GS1 Member Organization for the US, (GS1US.org).

The American National Standards Institute (ANSI) is a private, non-profit organization that administers and coordinates the U.S. voluntary standards and conformity assessment system. Founded in 1918, the Institute works in close collaboration with stakeholders from industry and government to identify and develop standards- and conformance-based solutions (ansi.org).

X12, chartered by ANSI, develops and maintains EDI standards. X12's diverse membership includes technologists and business process experts in health care, insurance, transportation, finance, government, supply chain and other industries. X12 members develop and maintain EDI standards that facilitate consistent electronic interchange of business transactions for business-to-business operations (X12.org).

Supply Chain Collaboration: Building Trust, Breaking Barriers

By David Verette, Vice President of Sales, SPS Commerce, spscommerce.com

Supply chain collaboration has become more crucial than ever as organizations face mounting pressure to do more with less to stay competitive. Recent SPS Commerce research across retailers, suppliers and third-party logistics providers (3PLs) reveals insights into how organizations are reimagining collaboration to create more resilient and efficient supply chains.

Three pillars of effective collaboration

The research identified three critical elements that form the foundation of successful supply chain partnerships.

1 - Clear, open and empathetic communication

The overwhelming consensus among participants was that effective communication serves as the cornerstone of successful collaboration.

A supplier management professional noted, "Communication is key, and it needs to be on both ends. We have excellent communication with our vendors, letting them know what we need so we can deliver the right product.” This sentiment was echoed across all sectors, with over 75% of participants emphasizing the importance of maintaining open lines of communication.

2 - Unified goals and priorities

Shared objectives are essential for driving successful partnerships. However, the research revealed that prioritization plays an equally critical role, with 73% of respondents citing it as a key success factor.

An inventory manager at a 3PL explained, "The problems are that (1) the goal is not always defined well, and (2) there are too many goals. Deciding on the priority helps everyone be on the same page."

3 - The power of personal connection

The human element remains irreplaceable in supply chain collaboration. Nearly 80% of participants emphasized the value of building personal relationships with their partners. From knowing suppliers' and drivers' names to fostering close working relationships, these connections create the foundation for long-term mutual success.

Breaking down barriers to collaboration

The research also identified several significant obstacles that organizations must overcome to achieve effective collaboration:

• Time constraints: Retailers must navigate an expanding array of sales channels, supply chain disruptions and customer demands while trying to build and maintain supplier relationships at scale. Many teams find themselves consumed by immediate problem-solving rather than focusing on strategic relationship building.
• Siloed decision-making: 70% of respondents identified isolated decision-making as a major barrier that creates ripple effects across the supply chain.
• Fragmented data: The lack of a unified, real-time source of truth emerged as a critical barrier, with 76% of organizations reporting increased confusion and inefficiencies.
• Ego and competition: Three-quarters of respondents (76%) pointed to competitive mindsets as a significant obstacle to effective teamwork and collaboration.
• Misaligned objectives: Conflicting goals between teams undermine operational efficiency, an issue highlighted by 70% of survey participants.

Building tomorrow’s partnerships

Organizations seek more sophisticated forms of collaboration that go beyond traditional partnerships. The research highlights several key characteristics of this evolved approach:

Multi-stakeholder engagement

A clear pattern emerged: successful supply chains now depend on multi-stakeholder collaboration. As one supplier noted, “Network-oriented would be the most appropriate (approach) because it allows you to work across brands, platforms and organizations.”

Human-centered automation

Despite the push for automation, successful collaboration maintains a human touch. Organizations seek ways to personalize interactions while automating tedious processes. One respondent explained, “You have to make a personal connection. Sometimes that’s what it takes, going to each individual supplier and each individual person at each business.”

Technology plays a crucial role by automating routine tasks and giving teams the right information at the right time. This shifts the focus from day-to-day operational tasks like tracking basic order and inventory status to strategic relationship building. With the right technical foundation, organizations can move quickly from identifying supply chain issues to finding solutions, giving teams more time to focus on future planning and supplier collaboration.

From ideas to action

Leading organizations are embracing new collaborative approaches, including:

• In-person workshops to solve problems and plan initiatives.
• Regular check-ins with partners.
• Integrated communication tools, such as messaging platforms and videoconferencing.
• Clear tracking of commitments and follow-ups.

Moving forward

The evolution toward collaborative supply chains represents a strategic imperative. Successful organizations will:

• Build open, accountable partnerships.
• Connect teams through shared data and clear communication.
• Balance technology with human relationships.
• Align priorities across departments and partners.

As supply chains grow more complex, strong supplier partnerships will be a key differentiator.

Death, Destruction, Devastation and Hope: A Critical Time for Corporate - Humanitarian Partnerships

By Ben Barras at World Vision

This has been a season of unprecedented humanitarian crisis resulting from the frequency and power of devastating storms that have wreaked havoc throughout the Southeastern United States, and we are more than a month away from the traditional end of the hurricane season.

Individuals, communities, small businesses and major retail and consumer goods organizations have all been affected.  As a member of a World Vision Humanitarian Relief Team that visited Western North Carolina, I saw firsthand the deadly devastation that Helene delivered to entire communities.  I also witnessed the power of partnerships between Retail and Consumer Goods companies and Humanitarian Relief organizations like World Vision, coming together to deliver lifesaving aid and restore dignity and a sense of normalcy to people devastated by the storm.

If you, or your company would like to be a part of such life saving efforts, for the benefit of individuals, communities and customers, please consider reaching out to World Vision via this link, or other Humanitarian Relief organizations that you may have a relationship with, to learn more about ways you can help.

Peace and Gratitude!

Ben Barras @ World Vision

News from the RVCF Business Process Guidelines Work Group

The RVCF Business Process Guidelines Work Group was created to provide a forum to identify and document best industry practices for a specific business process including the use of automated, digital communication. They are written in business language and intended for those in business operations.

• Our first guide, “Error Prevention and Notification for EDI Ship Notices and Labels” includes information about preventing and fixing issues with the EDI 856 Ship Notice (ASN) and barcoded logistics labels. The guide includes a comprehensive list of issues with names, descriptions, and error codes. It also includes a section on EDI basics and a section on printing and troubleshooting shipping labels.
  
  
• Our second guide is the “Business Process Guide for PO Changes” and includes information on the types of PO’s and PO Changes used in retail today, including a PO replace, PO cancel / reissue and an EDI PO Change.

Previous work groups identified incorrect master data as a leading cause of ASN errors and PO changes so for 2025 the Work Group will address the topic of Master Data Management. 

Retailers, Merchandise Suppliers and Service Providers are welcome to participate, including those working in business operations, finance, vendor relations, customer service and automated technologies such as EDI.  We will meet monthly, starting in February.  RVCF Membership is not required and there is no cost to participate.  We ask that you register at rvcf.com.  Access instructions, an agenda, and a list of registrants will be sent prior to each meeting session.

Documents from past and current Work Group Projects are available in the Business Process Guidelines Group on RVCF.com.   Members can log in and request to join the RVCF Business Process Guidelines Group. Non-Members, use this link to request group access. 

No One Does It Alone

By Paula Giovannetti, Supply Chain Best Practices Adviser, Retail Value Chain Federation

The Disney Legends Awards for 2024 included fourteen very talented and successful honorees, including Harrison Ford, James Cameron, Jamie Lee Curtis, John Williams and Frank Oz. During their acceptance speeches they all had the same message:  “No one does it alone.”

Collaboration and communication is key for RVCF, with both our retailer, merchandise supplier and solution provider members and with key industry organizations. We’ve recently worked with several organizations to help provide our membership with educational webinars, training material, business process guidelines, and new EDI codes.

It is true that no one does it alone and we are grateful for the time, effort and contributions made by these vital organizations. We look forward to working in concert with them in the future. Our collaborative work includes the following:

GS1 US (www.gs1.org) had representation on our Business Process Work Group for Error Prevention and Notification for EDI Ship Notices and Labels. They will join Susan Pichoff from RVCF at the RVCF Fall Conference in November to discuss Techno Tools and Supply Chain Transformation for the Future of Retail. GS1 US  and Susan also collaborated on a Back to Basics webinar in August that focused on the importance of data standards and essential business processes like inventory visibility, trading partner communication, and master data accuracy and availability. 

Recent work with AIM Global (www.aimglobal.org) has produced the 2024 updated RFID FAQ’s for Retail. It covers the basics and is intended for those in business operations. RVCF worked with retailers to create a list of questions and the AIM RFID Experts Group verified the answers. We are currently working with AIM to publish a next level Retail RFID FAQ that covers the more technical aspects for those tasked with creating and maintaining an RFID system. A Two-Dimensional Barcode for Retail FAQ is in the works, focusing on the basics for 2D bar codes (e.g. QR) on the consumer package, augmenting and perhaps someday replacing the UPC.

We are also working with RFID Journal Live to include the RFID FAQ for Retail on their website.

RVCF and Drs. Brian Gibson and Glenn Richey of Auburn University's Harbert College of Business & Center for Supply Chain Innovation combined resources to present sessions that focused on critical supply chain issues at the last two RVCF Fall Conferences.

In the US, the American National Standards Institute (ANSI) maintains standards for EDI. Our work on the business process implementation guides for EDI Ship Notices and EDI PO Changes brought to light additional EDI codes, also referred to as qualifiers, needed in retail for the 850 Purchase Order and the 824 Application Advice, used to send error notifications for the 856 Ship Notice. We submitted an ANSI X12 Change Request and helped carry it through the process for approval. It includes three Purchase Order Type codes which will provide clarity on the type of PO being exchanged. The Change Request also includes forty Application Advice codes which makes it possible to use the 824 Application Advice to notify suppliers of errors encountered with the EDI Ship Notice, the shipping label and the carton, with enough specificity so the suppliers can fix and determine root cause for shipping errors. The new codes will be published in January. The relatively new EDI envelope ISX level allows for the use of newer codes with older EDI versions.

Both NEECOM (New England Electronic Commerce / EDI User Group) and RVCF have supported each other throughout the years. NEECOM’s (NEECOM.org) virtual and live conferences are an excellent resource for information on current EDI initiatives.

Information for each organization:

GS1 US® helps companies power their supply chains to deliver safe, consistent, authentic, and trusted experiences. Best known as the recognized source for UPC barcodes, GS1 is a not-for-profit, global data standards organization that creates the common language that helps companies and their trading partners identify, capture, and share trusted data that links their physical and digital supply chains (GS1US.org).

AIM’s Mission Statement:  As the unbiased resource for networking, education, advocacy and standards, AIM will help its members grow their businesses by fostering the effective use of Automatic Identification and Data Capture (AIDC) solutions.  AIM’s Vision is advancing the effective use of automatic identification and data capture (AIMGlobal.org).

The American National Standards Institute (ANSI) is a private, non-profit organization that administers and coordinates the U.S. voluntary standards and conformity assessment system. Founded in 1918, the Institute works in close collaboration with stakeholders from industry and government to identify and develop standards- and conformance-based solutions (ANSI.org).

X12, chartered by ANSI, develops and maintains EDI standards. X12's diverse membership includes technologists and business process experts in health care, insurance, transportation, finance, government, supply chain and other industries. X12 members develop and maintain EDI standards that facilitate consistent electronic interchange of business transactions for business-to-business operations (X12.org).

The New England Electronic Commerce Users’ Group (NEECOM) is a nonprofit organization established in 1990. Today our members are large and small organizations in a variety of industries. Our members include manufacturers, distributors, retailers, hospitals, insurance companies, motor carriers, universities, banks and government agencies. The common thread is our interest in EC/EDI and related technologies. We welcome companies who are at any stage in their implementation of Electronic Commerce (NEECOM.org).

Auburn University's Harbert School of Business, the largest academic unit within the university, offers continuing education for Supply Chain professionals. The Department of Supply Chain Management (auburn.edu) provides learning opportunities that address business complexity⁠ by combining logistics and operations management training and providing a practical understanding of procurement, operations, and logistics.