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Business Requirements Analysis Document (BRAD) - Trading Partner Performance Management, Release 1.0.0
7-Nov-2008, Approved All contents copyright © GS1 2008 Page 6 of 81
1. Executive Overview
1.1. Business Opportunity and Business Needs
Many retailers and manufacturers engage in joint performance scorecarding initiatives in their ongoing
trading relationships. To date, the means of calculating metrics values and communicating results has
been proprietary. As the availability of data increases and scorecards proliferate, the diversity of
measurements, systems and access approaches adds costs and hampers collaboration. GS1
standards-based performance management is needed to yield the value and productivity that trading
partner scorecards can provide.
Standards are needed in two areas:
1. Comprehensive measure definitions.
□ Companies need to have enough standard measures available to represent diverse
performance measurement requirements. They must include revenue, margin, market
share, inventory, logistics, data quality, product quality, order management, invoicing and
payment.
□ Definitions need to be precise enough that independent companies working with the same
underlying data will derive the same metrics result.
2. Standard communications mechanisms:
□ Both goals and measures need to be shared at whatever level of detail makes sense for
the trading relationship.
□ Both manufacturers and retailers need to be able to submit measurement data to be used
in the scorecard.
□ A standard format for messages allows each company to use its own technology (if
desired) to aggregate, display and analyze results.
1.2. Business Intention
1. Create a reference set of business measures that can be used to evaluate trading partner
performance (leveraging existing standards such as the GCI Scorecard)
2. Identify a core set of measures for general use
3. Express common calculation alternatives precisely enough that independent companies working
with the same underlying data will arrive at the same results
4. Express goals and results at any level of trading relationship (store, DC, company; item, category,
brand; ship point, supplier)
5. Set goals and measure results at whatever time scale is business appropriate
6. Leverage global standard messages to transmit business goals and results between trading
partners
7. Enable both manufacturers and retailers to contribute goals and results data
1.3. Business Justification
■ Provide a means to harmonize business results across trading relationships, in order to
uncover systemic opportunities or issues.
source: gmaonline.org
