bonnie ryan, gs1 australia - enabling productivity of the supply chain – a case for global...

© 2008 GS1

Australia

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Enabling Productivity of the supply chain – a case for standards…

Bonnie Ryan, Industry Manager Trade & Transport

Ausintermodal Conference 2013

© 2008 GS1

Australia

Agenda

• What’s the problem

• Visibility & Interoperability

• Impediments to adoption

• What we are doing

• Overview of GS1

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© 2008 GS1

Australia

WHAT’S THE PROBLEM

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Australia

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Growing Freight Task

© 2008 GS1

Australia

Freight is Big Business

• The sector contributes around $150 billion to Australia’s

Gross Domestic Product (2011)

• Represents up to 15 percent of the economy when

indirect and related activity in other sectors is taken into

account

© 2008 GS1

Australia

Productivity Challenge

Achieving improved productivity through use of

technologies, better information flow, greater

collaboration and adopting best practice.

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Australia

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Australia

VISIBILITY IN A DYNAMIC

LOGISTICS CHAIN

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© 2008 GS1

Australia

What does that mean and why do I care?

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© 2008 GS1

Australia

Visibility and Interoperability

defined

Supply chain visibility

“the awareness of, and control over,

specific information related to product

orders and physical shipments,

including transport and logistics

activities and the statuses of events

and milestones that occur prior to and

in-transit”

Interoperability

Many organizations find it useful to categorize interoperability as follows:

Operational or Business Interoperability defines how business processes

are to be shared.

Information Interoperability defines how information is to be shared.

Technical Interoperability defines how technical services are to be shared or

at least connect to one another.

© 2008 GS1

Australia

#1

Improve Productivity

in Transport and Logistics

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Australia

#2

“Track and Trace”

has issues

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Australia

A business need…

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Shippers and Logistic Service Providers need to know

exactly where their shipments are at any given time

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Australia

Meeting the challenges of all

actors, from one end of the SC to

the other

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With access to real-time information about the flow of

products and transactions in their supply chains,

companies and their logistics service providers can make

decisions that drive business value and reduce cost.

© 2008 GS1

Australia

Supply Chain Visibility and T&L

T&L milestones need to be included and T&L Parties need to think End-to-end supply chain Parties need to speak the same language and use the same ID keys

To achieve full supply chain visibility

Manufacturer Visibility

inbound

Manufacturer Visibility

outbound

Retailer Visibility inbound Retailer Visibility outbound

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Australia

What do customers say?

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Leaders: Top 20% Performers Followers: Bottom 80%

Only 1 in 25 (4%) IN ERROR on outbound Deliveries to Customers

Every 1 in 9 (11%) IN ERROR on outbound deliveries to Customers.

Only 1 in 17 (6%) IN ERROR on inbound Orders received from Suppliers

Every 1 in 8 (13%) IN ERROR on inbound Orders received from Suppliers.

1 in 3 (33%) has reduced year-on-year landed per unit cost in 2012

Less than 1 in 5 (18%) has decreased total landed per unit cost in 2012

1 in 2 (50%) work with five or more LSP. Only 1 in 4 (25%) work with five or more LSP

Only 1 in 5 (20%) does NOT manage to find, within reasonable time, and access OUTBOUND supply chain data needed for decision making.

More than 1 in 2 (57%) does NOT manage to find, within reasonable time, and access OUTBOUND supply chain data needed for decision making.

Only 1 in 15 (7%) does NOT have online visibility into INBOUND in-transit shipment status.

1 in 3 (69%) does NOT have online visibility into INBOUND in-transit shipment status.

ALL LEADERS (100%) are compliant to GS1 standards and track at the item level.

Only 1 in 4 (25%) are both compliant to GS1 standards and track at the item level.

6 in 7 (85%) of survey respondents plan to increase their current level of end-to-end Supply Chain Visibility.

Source: Aberdeen Group Study May 2013

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Australia

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By interfacing with these providers & our legacy

systems we want to:

• Have a more accurate profile of order status

& inbounds

• Provide a one-stop shop for our customers

• Backed up with a full B2B message suite

• Have control & visibility of our supply

chain

Source: David McNeil

Market Execution Manager

Onesteel

© 2008 GS1

Australia

Organisation Deals With Retailer Transport Provider T5

Transport Provider T5 Transport Provider T1

Transport Provider T5 Packer P1

Packer P1 Transport Provider T2

etc

Transportation Chain

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Australia

Transportation Chain

members are not all

“Trading Partners” but

form a chain of “Trading

Partners.”

They want “Integration” with

companies

that they do not trade with

(and actually do not even know)

© 2008 GS1

Australia

Integration is expensive,

technical and normally a…

I’ll have “My people” talk to

“Your People” experience!

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Australia

So how do you do it when

you don’t know

who they are?

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Australia

Soft Infrastructure Solutions

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Australia

IMPEDIMENTS

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Australia

Common myths about standards

adoption by LSPs

“My proprietary interface/system offers my company a

competitive advantage by ‘locking in’ my customers. It

makes it difficult for them to leave.”

“In today’s challenging

market, we need a logistics provider that is

equipped to deliver operational excellence

– a partner that can give us,

at a moment’s notice, visibility into our shipments.”

David McNeil, Market Offer Execution Manager,

Onesteel

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Australia

“My customers do not mandate that I use open

standards yet… and I am winning new customers even

with a proprietary interface.”

“When considering a logistics provider,

we prefer to work with companies that are using

GS1 Standards since they can provide us

with the needed supply chain visibility to meet

our required performance expectations.”

Marc Cox, Senior Business Analyst,

Warehousing / Logistics / MIS, Philips International B.V.

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Australia

“My competitors are not changing to standards-based

systems, so I will wait.”

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“In many areas, DHL is now among the front runners

in the deployment of and compliance with the

international open System of Standards that are well-

known and also widely adopted by many DHL

clients.”

Jaco Voorspuij,

IT Business Development Lead in EMEA, DHL

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Australia

INDUSTRY ENGAGEMENT

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Australia

Industry Working Group

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ALC Supply Chain

Standards Industry

User Group Leadership

Team

GS1 Australia

T&L

Industry Support

Industry Work

Group Inter-modal

interoperability

Industry Work

Group

Logistics Labelling

“We are encouraging

companies to build

frameworks that use open

GS1 Standards for better

interoperability throughout

Australia and the world.”

Michael Kilgariff, CEO,

Australian Logistics Council

© 2008 GS1

Australia

Participants include…

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© 2008 GS1

Australia

WHO IS GS1?

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© 2008 GS1

Australia

Learn more!

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Download our brochures and case studies featuring

real-world implementations of GS1 Standards providing

visibility into the T&L processes of Tesco, Unilever, DHL

Supply Chain, Stena Line, the U.S. International Trade Data

System Product Information Committee, Kibun Japan…

Australia

Thank you

bonnie.ryan@gs1au.org