Philips starts standardising logistics interfaces. To do so, the electronics group uses the GS1 eCom XML standard, which ensures that Philips only needs to maintain 12 interfaces with logistics service providers, instead of hundreds.
Hundreds of interfaces
Philips has dozens of warehouses worldwide, most of which are outsourced. Until 2009, communication with these warehouses took place via bespoke interfaces. As there were at least ten interfaces per warehouse, the total number quickly ran into the hundreds. “Maintaining them had become unmanageable,” says Marc Cox, senior business analyst at Philips. “For example, if we wanted to upgrade our own ERP system, we had to update and test all those interfaces.”
Version 3.0
In its quest to improve communication standards, Philips turned to the GS1 standard. Over the past two years, Philips has therefore been working alongside multinationals such as Unilever, General Mills and DHL to improve the GS1 eCom XML standard. This has resulted in version 3.0, which Philips is currently busy implementing. This version includes separate messages for goods-in, goods-out and warehouse operations. Furthermore, support for hazardous substances, amongst other things, has been expanded, ensuring that no misunderstandings can arise with logistics service providers regarding the storage conditions of the goods.
Slow implementation
Philips is a pioneer in the implementation of this improved version. The interfaces with the first three warehouses are currently being tested. It will be some time yet before all warehouses communicate with Philips in accordance with the standard. This is because they are waiting for the contract with a logistics service provider to expire. “Implementation will be a lot easier if we make the standards mandatory in new contracts,” explains Cox.
LogistiekProfs Editorial Team
Image: Michael Heiss
