gs1 australia - grocery & liquor industry presentation in supply chain week september 2011

Australia

GS1 Australia - Supply Chain Week 2011

Grocery & Liquor

Andrew Steele – GS1 Australia

© 2008 GS1

Agenda

• Welcome & Introductions• Guest Presenters

• AFGC/ECRA – John Cawley• Metcash – Michael Haire• Coles – John Bacon• Woolworths – Val Richardson

• GS1 FMCG Industry Update• Recallnet• Barcode Update• GS1 Assistance• Extended Labelling

- Wrap up & Close – 12:30pm

Australia

GS1 Australia – An overview

Australia

About GS1The global language of business

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A history lesson

EANEuropean Article

Numbering

UCCUniform Code

Council

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Global reach, local presence

108 Member Organisations.150 countries served.

Over 1,000,000 members companies.

Countries with a GS1 Member Organisation

Countries served on a direct basis from GS1 Global Office (Brussels)

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• Administer & maintain the GS1 System of supply chain standards in Australia

• Current membership 16,500 companies across multi-industries

• In excess of 18 industry sectors

• Over 100 staff in Melbourne & Sydney

• http://www.gs1au.org

GS1 Australia Office at Mt Waverley, Melbourne GS1 Australia Office at Botany, Sydney

Who is GS1 Australia?

© 2008 GS1

GS1 has four key product areas

Global standards for electronic business messagingRapid, efficient & accurate business data exchange

Global standards for electronic business messagingRapid, efficient & accurate business data exchange

The network for global data synchronisationStandardised, reliable data for effective business transactions

The network for global data synchronisationStandardised, reliable data for effective business transactions

Global standards for automatic identificationRapid and accurate item, asset or location identification

Global standards for automatic identificationRapid and accurate item, asset or location identification

Global standards for RFID‐based identificationMore accurate, immediate and cost effective visibility of information

Global standards for RFID‐based identificationMore accurate, immediate and cost effective visibility of information

GS1 Identification Keys (e.g. GTIN, GLN, SSCC ) and attribute data

Underpinned by

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GS1 RecallnetFood safety through global standards

© 2008 GS1

In June 2009, with leadership from the Australian Food and Grocery Council leading

manufacturers, wholesalers, retailers and government agencies started collaborating to

establish a singleWeb based portal for the

management of Recall & Withdrawal notifications.

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GS1 Recallnet - Project Overview

Move from the current manual,

paper form

To a standards based, secure, auditable web based portal

Developed by ECRA in 2005

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GS1 Recallnet - Who is involved?

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At the same time….

The ACCC was undertaking a review of the Australian product recall system

The review examined:• The existing consumer product recall system• The regulators involved in its oversight; and• The ways in which the risks associated with

unsafe goods can be addressed by suppliers and regulators

The review resulted in recommendations by ACCC to improve the recall process

• Notification of the product recall• Communication of the product recall to

consumers• Retrieval of the recalled product• Closure of a recall

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Online notification portal enables trading partners to have a direct and secure relationship regarding

product recalls & withdrawals

Standard form and notification workflowEnsures that only authorised recalls are issuedTargeted, secure communication with customersIncorporates notification to regulators (FSANZ, ACCC)Recipients receive recalls immediately and respond Complete audit trail reduces risk and confusionComplete data to enable product removal (inc images &

attachments)Easy to use with online help & data valuation for greater

complianceOperated on a cost recovery basis by a not for profit

organisation

About GS1 Recallnet

© 2008 GS1

Recallnet Notification ProcessINITIATOR (SPONSOR)

Initiator Approver

FSANZ

RECEIVERS

Retailer

Broker

Food Service

Manufacturer

Wholesaler

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Easy to use and navigate

Overall progress tracking

Drop down lists, online help and definitions to

minimise data entry

Mandatory data requirements

Broad set of data to cover multiple processes

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Targeted Information to Recipients

Easy targeting of notifications to trading partners

Recipient specific contacts and information

Targeted data and notification to

FSANZ

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Detailed product identifiers and traceability data

Alternate products identifiers where no

barcode exists

Image of products and labels to aid affected product identification

Comprehensive traceability data

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What‘s next?

© 2008 GS1

Register for GS1 Recallnet !

Register for GS1 Recallnet

Please note there is an 8-Week Waiting Period from the time of registration to the time of activation

Become familiar with GS1 Recallnet by reviewing the user documentation

Contact GS1 Recallnet Support if you have any questions on 1300 366 033.

Free weekly webinars

This is also a great opportunity to review your Recall Plan, processes, insurance covers etc

8 Week Waiting Period waived for companies that register before

October 31st 2011

Australia

Numbering & Barcoding

© 2008 GS1

Are you scared of bar codes?

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Level 2

Grouping ofretail items

Level 1

Retail item

Level 3

Logistic unitEAN/UPC

ITF-14

GS1-128Logistic Label

EAN/UPC

© 2008 GS1

The GS1 General Specifications recommend verification at each label print run, as each run can produce significantly different results due to inks, substrate, color density, print methods etc. Annual testing is considered a reasonable compromise to more frequent testing.

Because packaging and print runs can result in changes to the barcode quality, GS1 Bar Code Verification reports are only valid for a 12 month period.

In 2009/10, 9% of barcodes presented were rejected by GS1 without further testing and a further 12% failed when tested. This amounted to approx 20,000 barcodes that would have translated to potentially millions of products that would not have scanned at POS or at retailers DC’s.

Why is there a ongoing requirement for annual testing?

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General rule is:

“Where there is a change in the consumer declaration of a trade item then the GTIN should change”

Visit www.gs1au.org for GTIN Allocation Rules

When to change a GTIN?

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Print & Apply Barcode Labelling

The Final Frontier of Numbering & Bar coding……

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Automated ( Tilt Ray ) Carton SorterAutomated Pallet LevelingAutomated (Cross belt) Carton Sorter

General Distribution environment

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Pre-Printed Carton Barcode

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X

Mistakes can still happen though

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Print & Apply Labelling

It’s all about the process……..

Maintaining consistent label quality requires anintegrated quality process incorporating people,processes, procedures and equipment.

Major considerations for companies include:• Introduction of quality inspection and assurance practices• Staff should be trained to visually check labels for split bars, label

creasing and other print quality issues that might cause the label not to scan

• Scanning of the label to ensure readability• Ensure the labelling equipment is serviced and cleaned on a

regular basis

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WIDGETS AUSTRALIA

SSCC

393123450000000013

CONTENT COUNT

09312345000005 20BEST BEFORE (ddmmyy) BATCH

01.12.05 246813

Baked Beans 12 x 410g

(00)393123450000000013

(02)09312345000005(37)20 (15)051201(10)246813

Logistic Unit (Pallet) Labelling for the Australian Grocery and Liquor Industry

© 2008 GS1

GS1 DataBar and GS1 DataMatrix

Australia

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GS1 DataBar: Business needs

To provide better ways to automatically identify:

• Very small items (e.g. syringes, vials, and telecommunications circuit boards)

• Variable measure retail items utilising full product identification (e.g. meat, poultry, and bagged produce)

• Individual produce items (e.g. apples and oranges)

• Sunrise date: 2014 for GS1 DataBar to be accepted in all scanning environments

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GS1 DataBar: Small items

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GS1 DataBar: Fresh produce

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GS1 DataBar: Meat and other variable measure products

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Data Matrix key points

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• Not suitable for all commercial applications• Not for general use for POS• Requires 2D imaging scanner (cannot be read by

conventional scanners)• Adheres to specific guidelines

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GS1 DataMatrix

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QR Code

• QR code is a 2D matrix bar code that has gained significant market share and is generally used to allow smart phones to access URL (Websites)

• Currently QR code is not a supported bar code in the GS1 standards. However, you can access Technical Specifications for QR at ISO www.iso.org . Please not: these technical specifications do NOT advise of the application to be used, only how the symbol is created.

© 2008 GS1

QR Code

• Work is currently in progress within the GS1 Global Standards Management Process (GSMP) to introduce a GS1 version QR code into the GS1 System for use on consumer packaging to support extended packaging ie (GTIN plus URL). This solution will also support GS1’s currently approved 2D symbol GS1 DataMatrix

• QR in GSMP is still in development and it is anticipated that the process will be completed in the coming few months. Note that should this work result in the approval of this symbol into the GS1 standards then it will ONLY be approved for use in this application and NOT for general use with other keys or applications unless Work Requests get entered to do so.

© 2008 GS1

Extended LabellingReaching shoppers with trusted data

A joint initiative by GS1 Australia and the Australian Food & Grocery Council

© 2008 GS1

What is Extended Labelling?

Consumer/Product Mobile phone Brand/Retailer

Key concept: Consumers access to trusted product information or related services via their mobile phone

They receive the answer from a trusted source

A consumer has a question about a product they are

buying.

They use their mobile phone to scan the barcode

on the label.

© 2008 GS1

Industry is exploring ways of engaging with consumers via extended labeling…

FlyBuys

L’Oreal

Nestlé

Kraft

Good Guide

ShopSavvy

Starbucks

Tesco

ColesMyer

Wal-Mart

Zeer

Target

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Different mobilebarcodes

Some key questions from brands and retailers:

How can we ensure only our approved data is made available to consumers?

How can we ensure we develop scalable and interoperable systems?

How often will these technologies would change

… but the market is fragmented with…

Mobile PortalsMobile Portals

Different informationsources

WebsitesWebsites

Crowd SourcingCrowd Sourcing

3rd Party Databases3rd Party Databases

Mobile AppsMobile Apps

Different mobiledevices

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Drivers for Extended Labelling Data

1. Consumers

2. Retailers

3. Government

4. 3rd Parties

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3rd Parties

Explosion of 3rd party solution providers delivering Extended Labelling services to businesses and consumers….

But where is the data coming from?

© 2008 GS1

So where should the data come from?

2010 study in access to allergen data via smart phone conducted with Nestle Data and members of Anaphylaxis Australia

Based on 1st generation GS1 GoScan iPhone application

Revealed that when it comes to technical product composition data consumers trust data from manufacturers most:

86% … trusted the product label as a source of allergen data

© 2008 GS1

Addressing the challenge: GS1 GoScan

GS1 GoScan is an iPhone application to make trusted product data accessible to by users by scanning a product’s barcode. Data is always sourced from and validated by the Brand Owner.

• Allergens• Ingredients• Country of Origin• Nutritional information• Usage and Storage Instructions• Dietary suitability and Certification• Company Data – Twitter, Facebook, etc

© 2008 GS1

How does Extended Labellingwork?

GS1 Australia’sNetwork

GS1netGS1 Content Warehouse

Brand OwnersConsumer with Mobile Device

Product with Barcode

Retailers GovernmentAgencies

3rd Parties

A single, whole‐of‐industry source of

trusted, Brand Owner Authorised Item Data

© 2008 GS1

What is in it for you?

Engage with the shopper - influence the buying decision

Leverage the promotional opportunities in GoScan

Access reporting data on what products are being scanned

Reduce consumer demands on Customer Service

Avoid duplicating effort & cost in the provision of data

Ensure accurate data on your products by 3rd parties

Meet the retailer’s data requirements

Support the Food Composition Database

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Site Visits

Phone Support: GS1 Help Desk

Industry Engagement

and Pilots

Australia

Member Assistance

GS1 Australia Services and Support

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GS1Website

ON-line catalogue

Community Management

Tool

Australia

Member Assistance

Resources

Alliance Partners


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Supply ChainKnowledge

CentreClassroom

Series

OnlineE-Learn Web

Interactive Sessions

Australia

Member Assistance

Resources

Alliance Partners

Education and Training

GS1 Australia services and support

© 2008 GS158

eMessagingImplementations

Project Management /

Facilitation

Supply Chain Reviews

GS1net Implementations

AustraliaConsulting /

Implementation Services

Member Assistance

Resources

Alliance Partners



© 2008 GS1

What is the Toolkit

A comprehensive set of industry tools and best practice designed to maximise pallet label use within the industry.

The toolkit contents include: Logistics Labels 2010 Status ReportGetting the Best Out of Logistics Labels. Industry ChecklistGS1 Logistics Labelling Service Short video on label location for different scenarios

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GS1 New Service

GS1 in conjunction with industry has developed a new onsite pallet label quality and process assessment service.

It includes a pre-questionaire followed by a site visit that will document & assess:

– Label Quality– Label Application Process

Site visit report will be generated documenting findings, including scan rate, ISO print quality grade and photos of all labels assessed

Site visits could be conducted on an annual/bi-annual basis for benchmarking & comparison purposes

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Onsite Assessment Service

Label quality• Number of printers (make and model)• Evidence of service or cleaning & maintenance logs or procedures• Adherence to technical specification and industry requirements

– ISO Grade & Scan Rate of barcodes on all labels assessed– Bar code height, magnification & other technical parameters

• Label, including product information has been formatted correctly– Correct company prefix used to create SSCC

Label Application Process• Is the label applied automatically online or manually• Has the label been applied within industry requirements (show videos)• Has the label been applied to the correct pallet• Is the product information correct• Is any part of the label scanned prior to despatch

© 2008 GS1

Onsite Assessment ServiceService has been designed to cover 99% of the major issues reported by

retailers• Label position incorrect 28.8%• No label in use 19.3%• Duplicated/Different SSCCs 14.8%• Damaged Label 11.6%• Will not Scan 11.0%• Under Stretch Wrap 9.2%• Pallet Label on 1 side only 2.5%• Incorrect Product Label 1.9%• SSCC number already used in last 12 months 0.5%

Service cost is variable depending upon number of printers to be assessed• 1-4 printers = ½ day service $735 +GST• 5-10 printers = 1 day service $1,470 +GST• >10 printers is POA

© 2008 GS1

Report Sample

Printed Label Quality (before pallet application)Printer Serial No:Printer Location:Issue: Blown print head pin, causing white lines to run vertically down the bar code. Top bar code fails ISO verification

Recommendations:

•Printer needs to be serviced and cleaned and possibly a new print head installed

•Review printer cleaning & maintenance procedures to ensure printer is cleaned on a regular basis, i.e. when a label roll is changed.

© 2008 GS1

Report sample

Pallets & Applied Label Quality -General Observations:Creased label – unable to be

scannedCreased printer ribbon – bar code

difficult to scanCreased Label unable to be

scannedDamaged Label unable to be

scanned

Recommendations:

Complete visual check and scanning of all Logistic label bar codes and replace any damaged labels prior to despatch.

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3 4

2

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Report sample

Pallet Stretch-wrap DagsStretch-wrap dags are an issue for the retailers automated DCs where pallets are conveyourised.

Recommendations:

All 3 are relatively minor and could be picked up by visual checks prior to despatch.

Also recommend training of staff, in order to enable them to identify such issues in future.

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3

2 3

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5. Issue & Recommendations

Label Printing AlignmentLabel is offset to the left

encroaching on left quiet zone

Label is offset to the right encroaching on right quiet zone

<Insert Photos Here>

Recommendations:

Train staff to print a sample label whenever a printer roll is changed. This should be incorporated into printer cleaning & maintenance procedures

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Member Assistance

Resources

Alliance Partners


Quality Support

Bar CodeVerification

Reports

Bar Code Accreditation

Imaging


© 2008 GS1

GS1net – Upcoming Important Dates

• Project Doublenet15-16 October

• Next Grocery/Liquor Usergroup Seminars

• Sydney November 8• Melbourne November 10

© 2008 GS1

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Australia Contact Details

Andrew SteeleIndustry Manager GS1 Australia LtdE [email protected] www.gs1au.org