Voluntary Inter-Industry Commerce Standards

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Voluntary Inter-industry Commerce

Standards
• A non-profit organization that focuses on improving product and information flow throughout the
supply chain. It is responsible for establishing rules and guidelines for Collaborative Planning,
Forecasting and Replenishment (CPFR®), when customer and supplier decide to work together.
• Since 1986, VICS, the Voluntary Interindustry Commerce Standards Association, has worked to
improve the efficiency and effectiveness of the entire supply chain. VICS pioneered the
implementation of a Cross-industry standard, Quick Response (QR) that simplified the flow of product
and information in the retail industry for retailers and suppliers alike.
• VICS is made up of large and small companies who have proven that a timely and accurate flow of
product and information between trading partners significantly improves their competitive position. It
has been demonstrated that cross-industry commerce standards facilitate better customer service
while reducing costs. VICS‘ participation with hundreds of small and large companies, has established
that the implementation of VICS‘ business processes and standards achieve excellent returns that go
far beyond initial expectations.
• The Voluntary Interindustry Commerce Solutions (VICS) Association has enabled companies in the
retail and consumer-focused industries to eliminate billions of dollars of waste and delay. By creating
voluntary guidelines, VICS has created new best practices that ultimately lead to lower costs and
better availability of products for consumers.
• VICS’ volunteer members improve the flow of products and information throughout retailing and the
consumer-focused industries that supply retail.
• The Association provides leadership and an environment in which executives can make a difference in
their industry, their company performance - and their personal commitment to make the world work a
little bit better. VICS’ members help define the next best practices in the industries and thus anticipate
and optimize business processes and costs.
GS1 US and Voluntary Interindustry Commerce Solutions
Association to Merge
• The merger is designed to streamline the standards adoption process for industry and give the not-for-
profit organizations’ members access to standards for a broader range of supply-chain functions. 
• The joint GS1 US-VICS initiative will reside in the GS1 US Apparel and General Merchandise group,
opening the door for cross-industry synergies, and providing expanded resources, technical expertise,
and global reach.
• The merger will also provide a venue for industry thought leadership and change, as well as continued
development, sponsorship, and functioning of various VICS workgroups and committees. These
committees address such industry issues as floor-ready merchandise, logistics, product images, and
the industry-driven VICS Item Level RFID Initiative (VILRI).
• The connection between GS1 US and VICS focuses on processes, procedures, and guidelines that use
GS1 Standards. For example, VICS helped drive adoption of the U.P.C. barcode in the apparel industry,
in addition to guiding the industry in the adoption of best practices for Floor Ready Merchandise,
Collaborative, Planning, Forecasting and Replenishment (CPFR), Logistics, and other important
initiatives. 
• Both the VICS Item Level RFID Initiative and the GS1 US Item Level Readiness Program are designed to
provide the education, training, tools, and community support that apparel and general merchandise
retailers – and brands – need to implement Electronic Product Code (EPC) item level tagging into day-
to-day operations.
Collaborative, Planning, Forecasting, and
Replenishment(CPFR)
• Collaborative Planning, Forecasting and Replenishment (CPFR®) is a business practice that combines
the intelligence of multiple trading partners in the planning and fulfillment of customer demand. CPFR
links sales and marketing best practices, such as category management, to supply chain planning and
execution processes to increase availability while reducing inventory, transportation and logistics
costs.
• Three modes of CPFR
 Basic CPFR: a limited number of business processes integrated between a limited number of
supply chain partners
 Developed CPFR: will typically involve a greater number of data exchanges between two partners,
and may extend to suppliers taking responsibility for replenishment on behalf of their customer.
 Advanced CPFR: goes beyond data exchanges to synchronise forecasting information systems and
coordinate planning and replenishment processes

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