gs1 australia link magazine - issue 5

ISSUE NO. 5DECEMBER 2004

Now circulated to over 15,000 people!

> THE INAUGURAL EAN AUSTRALIA CONFERENCE,IMPETUS 2004, HIGHLIGHTS

> NOMINATE NOW FOR 2005 EAN AUSTRALIA INDUSTRY AWARDS!

> EPCGLOBAL AUSTRALIA OFFICIALLY LAUNCHED AT IMPETUS

> SPECIAL FEATURE - BAR CODE QUALITY

> GROCERS GEAR UP FOR UBF FADEOUT

CASE STUDIES> STOP PRESS - CHANGES TO THE EAN•UCC USER MANUAL

> EAN AUSTRALIA WINS LAA AWARD

25 years -the past, the present

and the future© EAN Australia Limited

www.ean.com.au

02 Chairman’s message

03 CEO insights

04 25 years - the past,the present and the future

05 1978 to 2004: 25years on

06 Bill Pratt: back tothe beginning

07 EAN•UCCChampions awarded

Nominate now for 2005 EAN AustraliaIndustry Awards!

08 Impetus conferenceall about collaboration

Moving from theory to practice at Impetus

09 The manufacturer,the retailer andRFID stripped bare:Gillette and Wal-Mart tell

10 EPCglobal Australiaofficially launched at Impetus

Who’s alreadyjoined EPCglobalAustralia

Patties first end userto join EPCglobal Australia

11 Defence considersits next move

12 SPECIAL FEATURE:Maximising yourknowledge

When and where toget the EAN•UCC Essentials

13 EAN ‘encyclopaedia’on CD

Learning made easy online

Cash in your free voucher and save

14 Paving the way for RFID and EPC in Australasia

EAN International global re-brand:one organisation,one standard

15 CASE STUDY:Harvey Nichols

16 SPECIAL FEATURE:Bar code quality

18 STOP PRESS -Changes to theEAN•UCC User Manual

19 Community Matters

UCC companyprefix not neededfor exports to USor Canada

20 Grocers gear up for UBF fadeout

21 EAN Australiapeople: Spotlight on John Lane

EAN Australia wins LAA Award

22 CASE STUDY:Oracle lays e-business foundation for Sunny Queen

24 Online access to Solution Providers

25 Alliance PartnerUpdate

26 New overseaslegislation affectsAustralianexporters

Cobra assists local suppliers meet new legislation

27 EAN Christmas Trading Hours

EAN event diary

CONTENTS

LINK DECEMBER 2004

Tell us what you thinkWe are interested in your feedback.The newsletter’s primary role is to keep EAN Australia members informed and updated on the latest developments in supply chainmanagement and ecommerce. If you have any ideas, comments, points-of-view or criticisms, please forward to [email protected]

CHAIRMAN’S MESSAGE

In this edition of SupplyChain LINK, we'recelebrating 25 years ofservice to the Australianbusiness community. It'sremarkable just howmuch things have changedin that time.

We take the black andwhite stripes of the barcode for granted now, buttake a look at Bill Pratt'sstory on page six andyou'll see just how strangeand frightening theyappeared 25 years ago.In a way, that fear wasunderstandable becausebar codes really didchange the face ofretailing almost overnight.Supermarket checkoutswere revolutionised.

In fact, the changes at thecheckouts were only thetip of the iceberg. Assimple as they are, barcodes have become thevery heart of Australiansupply chains. Over thecourse of EAN Australia'shistory, they must havereaped business billions ofdollars in savings.

The humble bar code hasgone far beyond thesupermarket now and canbe found on products asdiverse as steel, liquor andeven car parts. Justrecently, the health sectorembraced EAN•UCC andexpects it will save lives.

The bar code's success istestament to itseffectiveness, the

progressive nature ofAustralian businesses andto the efforts of the teamat EAN Australia. Yourindustry organisation hasbeen proactively bringingtogether enterprises,industries andgovernments for decadesnow. On pages 12 and13, you can also readabout some of the manyeducation offeringsdeveloped by EANAustralia to help spreadthe word.

The latest of these is EANAustralia's inauguralconference, Impetus 2004,which drew more than342 people to share ideaswith their peers andexperts from around theglobe - find out more onpages eight and nine. Thebig news was all aboutRFID and EPC, of course,but the rise of datasynchronisation in theform of the Global DataSynchronisation Network(GDSN) and EANnet® isessential to lay thefoundation for suchtechnology. And on page24, you'll see thatAustralians are one stepahead and are flocking toEANnet.

Yes, it is remarkable howmuch has changed in 25years, but even moreremarkable is how quicklywe're adapting as thepace of changeaccelerates.

Russell Stucki:Chairman,

EAN Australia

EAN AUSTRALIA - FROM STRENGTH TO STRENGTH

CEO INSIGHTS

03

It's tempting to be sweptoff your feet by RFID buthere at EAN Australia,we're keeping a cool head.

Hype is everywhere. Thepress is full of claims thatRFID will be as much arevolution as bar codeswere 25 years ago.

At EAN Australia, we tooare excited about thistechnology that promisesso much. And yes, it is ourjob to cut through thehype and let you knowwhat RFID really means toAustralian business.

You need to know howbest to plan for RFID, whatare the appropriateapplications and how muchyou can benefit. To equipyou with the answers, EANAustralia's Impetus 2004conference presented theexpertise of speakers fromaround the world andasked local businesses toshare their experienceswith delegates.

From here, EAN Australiawill be with you all the wayin your journey towardsRFID. As the home of thenewly launched EPCglobalAustralia, we will managethe standards governingRFID in the supply chainjust as we work as thecustodians of EAN•UCCbar code standards. RFIDand EPC is simply inevitableand EAN Australia is readyto help you make ithappen.

Although we've spent a lotof time talking about thefuture of RFID in Australia,we have not forgotten ourmission. EAN's numberone priority is to serveyou, its subscribers. Thatmeans staying focused onthe here and now whilepreparing to take Australiancompanies on the journeyof the next wave of supplychain technology.

You can expect EANAustralia to continueimproving its subscriberservices, from bar codeverification right through toEANnet and supply chainmanagement consulting.Our feet are firmly plantedon the ground and we areas committed as ever inour quest to help youbecome more profitablethrough the use of globalstandards.

Maria Palazzolo:CEO, EAN

Australia

KEEPING OUR EYES ON THE BALL

NOTIFICATIONThere is a change in terminologyreferring to paid users of theEAN•UCC system.

Effective immediately, an EANAustralia member will now bereferred to as a subscriber.

04 LINK DECEMBER 2004

25 YEARS -THE PAST, THEPRESENT AND THE FUTURE

By any measure, EANAustralia is a success story. Its25 years to date are markedby a single-minded focus onthe needs of its subscribers,rapid growth, continualinnovation and excellentrelationships with government,industry and internationalpartner organisations.

EAN Australia has grown to representaround 14,000 Australian businessesfrom 18 industries, representing 52% of Australia's GDP and 55% of itscompanies, which employ 70% of thecountry's workforce. The impressivenumbers hint at the high profile enjoyed by EAN Australia among its international counterparts.

From early on,Australians have beenleaders in supply chain management.Founding chairman of Australian ProductNumbering Association (APNA), EANAustralia's predecessor, Bill Pratt, saidthat while we were a nation of scepticsinitially,Australians were “well to thefront” when it came to making barcodes an integral part of doing business.Just eight years after APNA's firstmeeting, 90% of Australia's groceryitems carried EAN numbers and bar codes.

Central to that success has beenrelationships. APNA was formed withthe blessing of the Australian RetailersAssociation (ARA) and financed with a loan guaranteed by the GroceryManufacturers of Australia (GMA).

Today, EAN Australia enjoys partnershipswith many industry associations,technology providers, governments atboth state and federal levels and

universities. These relationships allowEAN Australia to remain relevant andconnected to its subscribers and theorganisations that support efficientsupply chain practices, both now and in the future.

EAN Australia pioneered the AlliancePartner programme to provide a linkbetween subscribers and suppliers ofthe technology needed to implementEAN•UCC systems. Partnerships withgovernment united diverse groups inprogress towards better outcomes invital community sectors like health. Withan eye to the future, memorandum of understanding with Deakin andSwinburne Universities has seen supplychain management become one of thehottest new disciplines for the nextgeneration of business leaders.

Overshadowing all of these are therelationships EAN Australia shares withits subscribers and their trading partners.On an average day, 300 subscribersconnect with EAN experts to make thepromise of the EAN•UCC system areality for their businesses. This is whatmakes EAN Australia great and the next25 years are set to be every bit asexciting as the last.

05

1978 TO 2004: 25 YEARS ONHOW THE HUMBLE BAR CODE HAS BECOME THE BACKBONE OF eCOMMERCE

MIL

ESTO

NES

1978> Australian Product Numbering

Association (APNA) was formed, withMr Bill Pratt,Australian head of SafewaySupermarkets and representative of theAustralian Retailers Association (ARA),as its Chair

> Dr Robin Shaw appointed CEO of APNA

> Grocery Manufacturers of Australia(GMA) guaranteed a loan to provideinitial funding for APNA

1979> APNA officially launched and

commences trading

> Rowntree Hoadley became APNA'sfirst subscriber

> SIMS Supermarkets become the firstscanning store in Australia

1984> 1,000 subscribers registered

1986> 500 stores used scanning technology

throughout Australia

> 90% of grocery items sold in Australiacarried EAN numbers and bar codes

> Brian Smith was appointed APNA'sExecutive Director

1987> APNA celebrates its tenth birthday

> 2,000 APNA subscribers

1988> Grace Brothers became the first

scanning department store in NSW,while Kmart was the first in Victoria

> 3,000 APNA subscribers

1990> Franklins became the first supermarket

chain to introduce scanning in all of its191 stores around Australia

> Retail scan code received federalendorsement

> North America adapted to an EAN13-digit code

> Industry Information Serviceintroduced

> The pharmacy industry adopted APNbar coding

1991> The wine industry was the most

advanced in the adoption of bar codingamong Australia's large liquorproducers and distributors

1993> APNA changed its name to EAN

Australia

> EAN Australia launched ICON,electronic communication forsubscribers

1994> EAN's Sydney office opened and

began operating a bar code testingservice

> The nursery industry endorsedstandard EAN bar codes

1995> EANWorks was launched

> 5,860 EAN Australia subscribers

1996> Mobile EANWorks was launched

> Government IT head backed the EAN•UCC system

> Product images became available to subscribers

> Laurie Wilson was elected Chairman of EAN Australia

1997> Australia's Deputy Prime Minister,Tim

Fischer, officially launched EANnet

> 400 subscribers joined EANnet within its first month of operation

> EAN Australia moved into otherindustry sectors, including steel

1998> 9,856 EAN Australia subscribers

2000> EAN Australia celebrated its

21st birthday


2001> Memorandum of understanding signed

by EAN Australia and DeakinUniversity

> The Professional Services andAccreditation Programme wasintroduced

> Laurie Wilson was re-elected asPresident of EAN International

2002> The Alliance Partner Programme

began with Symbol as its first partner

> Maria Palazzolo appointed as EAN Australia's new CEO

2003> EAN Australia appointed Russell Stucki

as new Chairman

> EAN Australia moved into newpremises to better service growingsubscriber base

> EAN Australia offers a scholarship in Graduate Certificate in Supply Chain Management at Deakin University

> The new EAN Supply ChainKnowledge Centre, both portable andfixed, officially launched

> UCC joined EAN International

> Department Health & Aged Care wasselected by EANnet to host Australiancatalogue of medicine


2004> Memorandum of understanding signed

by Swinburne University of Technologyand EAN Australia

> RosettaNet Australia launched

> EAN celebrates 25 years of servicingAustralian business

> EPCglobal Australia launched



BILL PRATT: BACK TOTHE BEGINNINGImagine being labelled as a criminal for using a barcode. While it might seemridiculous today, the bar code was once almostoutlawed as a real threat to health and commerce.In an environment of fear, it took someevangelical visionaries to make Australiaone of the leading lights in supply chaintechnology. One of them was Bill Pratt,who instigated and became thechairperson of EAN Australia'spredecessor, the Australian ProductNumbering Association (APNA).Recently, Bill told Supply Chain LINKhow everything seemed stacked againstthe bar code.

The idea of shooting a laser beam at theaverage packet of biscuits was not onlyunfathomable to most subscribers of the grocery industry but equally asunpalatable to unions, government andthe bureaucracy.

Unions were initially concerned thatcheckout operators would be blinded bythe lasers, while the Victorian Health

Department conducted months of testingin case they would turn cornflakes topoison. Manufacturers and wholesalerscould not see any merit in the strangestripes either.

“People could barely understand how barcodes worked and it was almostimpossible for them to see how theycould save time and money,” Bill said.

“The manufacturers came up with everyreason in the world as to why bar codeswould destroy their labels and thedistributors said they could find theirstock already, so why bother?”

None of this dampened the spirit of BillPratt. The most senior Australian atSafeway Supermarkets at the time, Billhad been following the progress of barcodes in the United States for more thana decade. Having seen the scanners atwork, spoken to supermarket staff andquizzed customers, he knew they meantbig savings for Australian retailers,distributors and manufacturers alike.

And then, a meeting with the thenVictorian Minister for Consumer Affairs,Peter Spyker, nearly stopped bar codes intheir tracks.

“The Minister announced he was makingthe price marking of all products essentialand bar coding illegal,” Bill said.

Bill was shocked by the minister'srationale for his proposed legislation.

“The Minister said: 'The price will be thesame in Darwin as in Melbourne becauseit will be printed on the packet'.”

“I said:“Do you know what these stripessay?',” Bill recalled.

“I told him all it said was K-E-L-L-O-G-G-S-C-O-R-N-F-L-A-K-E-S, but he didn't seemto understand that the numbers simply toldyou what the product was, not its price.”

“We only averted the legislation by prevailing on other members of parliament.”

The ultimately successful struggle for theadoption of EAN codes in Australia stillfeels sweet 25 years later. Participating inthe recent Impetus 2004 conference leftBill “blown away”.

“I felt terribly proud to have beenassociated with it (bringing bar codes toAustralia) and feel so grateful for howmuch Australians must have benefitedfrom bar coding over the years.”

At Impetus 2004, Bill Pratt Founding Chairman of EANAustralia was presented an award in recognition of hiscontribution and vision for Australian Industry.

Bill Pratt

07

NOMINATE NOW FOR 2005 EANAUSTRALIA INDUSTRY AWARDS!Following the success of the

Impetus 2004 conference,

EAN Australia is calling for

nominations for the 2005

awards from companies and

individuals committed to best

practice implementation of

EAN•UCC global standards.

Two prestigious awards for a companyand an individual - ‘Award for Standardsin Action’ and ‘Leadership in StandardsAward’ respectively, will be presented.

If you think your company or someoneyou know deserves industry recognition,nominate today! Your submission mustinclude a one-page signed letter and anabstract (maximum 500 words)explaining why the nominee deserves to win along with company or individualname, address, phone number, email and contact person of both nominee and nominator.

Email submissions [email protected] and mail a hard copy to:

2005 EAN Awards Selection CommitteeEAN Australia LtdLocked Bag 10Oakleigh,VIC 3166

Award winners will be announced at the July 2005 Impetus Conference.For more information, contact Steven Pereira at [email protected] or on 1300 366 033.

EAN•UCC CHAMPIONSAWARDEDSuper Cheap Auto and MrDes Bowler of Managementfor Technology were rewardedfor business excellence at EAN Australia's inauguralImpetus 2004 conference,winning the 2004 Award forStandards in Action - CompanyAward and 2004 Award forLeadership in Standards -Individual Award respectively.

Super Cheap is Australasia's leadingautomotive products retailer. Nick Binns,Super Cheap Auto's Business System(s)Manager, was on hand to accept thecompany's accolade.

The award recognises the importantcontributions made by Super CheapAuto in promoting and implementingbest practice EAN•UCC global standardsand promoting the value of EANAustralia among industry peers.

Fittingly, one of the drivers behind SuperCheap Auto's success has been the

company's dedication to driving business-to-business eCommerce best practices,using EAN•UCC standards.

Established in 1974, the company nowboasts over 180 stores and attributes itssuccess to a dedicated team of 3,000staff members as well as an excellentproduct range.

Mr Bowler, owner and Managing Director of Management for Technology,was recognised for his contribution inchampioning best practice using theEAN•UCC global standards within acompany, sector or industry.

Mr Bowler has embraced EAN•UCCstandards by raising awareness ofautomatic data capture, traceability andeMessaging in the meat industry. Mostsignificantly, he contributed to the uptakeof EAN•UCC standards through theAustralian Meat Industry's 'Food SafetyTraceability - Beef Project', which led toits showcase at international forumsincluding the United Nations. Mr Bowlerhas been involved with EAN for over fiveyears, most recently playing a pivotal rolein the development of the EANEducation and Training CD.

Des Bowler accepting hisaward from Bill Pratt

Nick Binns accepting Super CheapAuto's award from Bill Pratt

Nominations close 25 February 2005.


The need for collaboration in the face ofRFID and EPCs imminent arrival was thecommon theme throughout EANAustralia's inaugural Impetus conference.

An audience of 342 delegates heardexpert local and international speakersaddress automated trading, a fielddominated by the emergence of RFID.

The first day provided a top-levelperspective on the technology, supplychain and eBusiness developments, whilethe second day focused on theoperational steps towards best practiceeCommerce. High profile speakersincluded Andrew Potter of Australia'slargest retailer, Coles Myer;Tony Taylor ofRFID pioneering retailer,Wal-Mart; and

Gillette's Dick Cantwell, the chair ofEPCglobal.

They were joined by speakers on thesecond day who focused on theimplementation of best practice supplychain management. Visy's Peter Hoodoutlined what the paper giant learnt fromits EPC pilot studies.

Others reported on the benefitsachieved using current EAN•UCCtechnology. Among them was JoeRettino of Patties Foods, who told howthe Bairnsdale pastry manufacturer hadimplemented the EAN•UCC system togenerate impressive stock control savings.The role of the EAN•UCC system intraceability came to the fore in the

Meat & Livestock Australia case studypresented by Christine Raward.

EAN Australia CEO Maria Palazzolo saidImpetus proved a great opportunity fordelegates to network with like-mindedprofessionals, learn about new supplychain management techniques,benchmark their businesses against casestudy examples and evaluate fresh ideas.

Next year's Impetus 2005 conference,supported by RFID Action Australia, willbe held in Melbourne from 12-13 July.For more information on Impetus 2005,contact Kate Rosengren: 03 9550 3478or via email [email protected]

IMPETUS CONFERENCE ALLABOUT COLLABORATION

Everything supply chain, from softwareto scanners, was on show at theImpetus 2004 exhibition.

Sixteen EAN Australia Alliance Partnersbrought an extra dimension to theconference proceedings with thetechnology needed to translate theoryinto practice. Among the exhibitorswere Impetus sponsors, SAP, Oracle,Global eXchange Services andMatthews Intelligent Identification.

EAN Australia COO, Mark Fuller,declared the exhibition a great success.

“Impetus proved to be an excellentopportunity for delegates andexhibitors to network and share theirexperiences,” he said.

“Feedback during the conference wasvery positive, with around 95% of theexhibitors already planning their returnfor Impetus 2005.”

Among the exhibitors was Matthews'National Sales and Marketing Manager,Phil Biggs, who said most of the 300attendees visiting his stand were seniorexecutives from the fast-movingconsumer goods (FMCG) sector.

“We had a lot of interest in our generalproduct identification capabilities,especially in our RFID-ready LPAtechnology,” Phil said.

The exhibition is set to grow next year,with EAN Australia anticipating anexpanded field of more than 40 exhibitors.

MOVING FROM THEORY TOPRACTICE AT IMPETUS

Maria Palazzolo and Russell Stuckicutting 25 years anniversary cake

Dave Botherway, Coles Myer Derek Jones, Lion Nathan Harris Boulton, AFGC Henri Barthel, EPCglobal

Left to right: Mark Dingley Matthews, Phil Biggs Matthews, BruceWong Printronix

09

Manufacturer, Gillette's Dick Cantwell, and retailer,Wal-Mart's Tony Taylor,might stand on oppositesides of the counter buttheir messages to theImpetus 2004 conferencesounded remarkably similar:embrace EPC now.Tony Taylor, said Wal-Mart, embarkedon its RFID programme to overcomean implementation conundrum: tagcosts would only fall to viable levelswith enough volume, which wouldnever be achieved until they provedfinancially viable. With that lead, hesaid, many suppliers had volunteeredto join Wal-Mart's trial.

“More than anything, I urge you all tostart thinking about developing aroadmap for RFID deployment now,”Taylor told Impetus delegates.

“It's about making sure we're allspeaking the same language andhaving end-user driven standards.

“This needs to involve retailers,manufacturers and technologyproviders because there are so manybenefits that can be obtained by

everyone if we take a commonstandard approach.”

Gillette's Dick Cantwell backed Wal-Mart's belief in the system.Gillette believes EPC and RFIDtechnology will substantially reduceout-of-stocks, which it estimatescould cost the company as much as $1billion annually.

Pointing to research suggestingrepeated out-of-stocks cost brandowners and retailers sales, Dick saidboth had an interest in using RFIDand EPC to lift stock reliability.

“Collaboration benefits, particularlythe reduction of out-of-stocks,comprise the majority of savings forboth suppliers and retailers,” he saidin his presentation.

“Only by working in partnership can trading partners realise these benefits.”

While conceding that taggingindividual items was currently costly,Gillette's pilots with RFID technologyat carton level have provensuccessful both financially andtechnically. Dick urged companies to“learn by launch” rather than “waitand watch”.

THE MANUFACTURER,THE RETAILERAND RFID STRIPPED BARE: GILLETTEAND WAL-MART TELL

Tony Taylor,Wal-Mart Stores Dick Cantwell, Gillette


EPCGLOBAL AUSTRALIA OFFICIALLY LAUNCHED AT IMPETUS

Patties Foods, maker of the Four'n Twenty,Herbert Adams, Patties, Great AustralianPies,Wedgwood and Nanna's pastries, hasbecome the first end user to joinEPCglobal Australia.

The move is a logical extension to Patties'supply chain projects which have alreadyreaped the company remarkable savings.Presenting the Patties story at the recent

Impetus 2004 conference, Patties' JoeRettino said the Bairnsdale manufacturerhad reaped a one-off saving of $876,000and ongoing annual savings estimated at$340,000.

EPCglobal Australia's Fiona Wilson said itwas fitting that having experienced thebenefits of best practice supply chainmanagement, Patties has now formally

expressed a commitment to the nextgeneration of technology.

Proud parent, EAN Australia, officiallylaunched its new subsidiary, EPCglobalAustralia at the Impetus 2004conference in October.

Presented by EPCglobal Chair, DickCantwell, the launch came at the endof a day dominated by talk of RFID andthe electronic product code (EPC) thatgoverns its use in the supply chain.Charged with administering the EPClocally, EPCglobal Australia is, at firstblush, an organisation before its time.Aside from several pilots, EPC is yet tobe implemented here.

Despite this, EPCglobal Australia hasbeen flooded with expressions ofinterest from potential subscribers.EAN Australia CEO Maria Palazzolosaid EPCglobal Australia is already busyassisting companies in the planningphase with credible information aboutthe future of RFID in Australia.

“EPCglobal is a neutral, consensus-based, not-for-profit standardsorganisation that is already becomingindustry's trusted partner,” she said.

Maria said early subscribers could take an active role in shaping RFID'sfuture in Australia.

“As an EPCglobal Australia subscribers,you could be invited to participate insetting the policies that govern thestandards applicable to your particularindustry group and would have theopportunity to influence the direction ofresearch by the Auto-ID labs,” she said.

The big drawcard for most subscribers,however, is expected to be theoperational level support forimplementation. EPCglobal Australiawill offer support services and training

programmes to equip subscribers witha working knowledge of the system.Certification and complianceprogrammes for technology andservices suppliers are also planned.

The organisation will leverage theinnovative Supply Chain KnowledgeCentre, which will be expanded toincorporate an EPC/RFID trainingmodule. It is also consideringpartnerships to establish localimplementation case studies involving subscribers.

Maria encouraged EAN Australiasubscribers to begin preparing for RFIDby joining EPCglobal Australia now.

“RFID and EPC is not just hype, it'shere and it's unstoppable and whilst wedon't always like to be early adopters,inaction today might cost you bigtomorrow.”

PATTIES FIRST END USER TO JOIN EPCGLOBAL AUSTRALIA

Less than a month afterEPCglobal Australia waslaunched, its subscriber baseincluded 14 companies.Visy, as a sponsor of theAuto-Id Centre, obtainedautomatic subscription toEPCglobal Australia as afoundation subscriber.

Other subscribers as of early November included:

End users> Patties Foods

Solution providers

> Matthews Australasia> Mid-Comp International>Telstra eBusiness Services

Support members

> Bar Code Data Systems> Capgemini> IBM> Intermec> Oracle> SAP> SSA Global> Unisys> Verisign

WHO’S ALREADYJOINED EPCGLOBALAUSTRALIA

Dick Cantwell

11

DEFENCE CONSIDERS ITS NEXT MOVE As is the case in commerce,the business of war and peacerelies on getting the rightgoods to the right place atthe right time.

According to a draft policy for‘Automatic Identification Technology’(AIT), the Australian DefenceOrganisation (ADO) recognises the roleof bar codes and electronic identificationsystems for reliable and accurate logistics.

“AIT can improve the logistics businessprocess of the ADO and enhance itswar fighting capability by facilitating thecollection of initial source data, reducingprocessing times, improving dataaccuracy and enhancing asset, inventoryand personnel visibility,” the ADO draftpolicy report stated.

“Using logistics AIT effectively will also

increase total asset visibility (TAV) to thewar fighter and allow for a moreoptimised logistic footprint in support ofoperations.”

The ADO has asked EAN Australia tocomment on the policy based on itsexperience working with otherindustries implementing global standardsand new technology. While the ADO isalready highly “logistics AIT capable”, itplans to expand its capability across theorganisation.

A comprehensive range of technologiesis under consideration by the ADO,including bar codes, Radio FrequencyIdentification (RFID), Radio FrequencyData Communications (RFDC), satellitetracking systems, smart cards, OpticalMemory Cards (OMC), and ContactMemory Buttons (CMB).

Currently, while the ADO extensively

usesbarcodes, itfollowsstandardsunique to defenceforces around theworld. EANAustralia hopes thepolicy review willpromote theintegration of ADOsystems and theEAN•UCC system includingEPC standards for RFID,allowing the easy sharing ofdata between defence and itscivilian suppliers.


WHEN ANDWHERE TOGETTHE EAN•UCC ESSENTIALSReleasing the new training dates for 2005,EAN Australia training staff have madetwo sessions available for the price of one!

Until now, the free subscriber's vouchercould be redeemed for The Essentials

Session, a four-hour introduction to theEAN•UCC system or used as a credittowards the 'how to' technology sessionthat followed.

The popularity of the technology sessionencouraged EAN's trainers to merge thetwo, creating a new full-day session at theoriginal price of $99 for non-subscribers orfree access for EAN subscribers redeemingtheir Education & Training voucher.

Sydney

15 March 200517 May 200519 July 200513 September 200529 November 2005

Melbourne

1 March 20053 May 20056 September 200515 November 2005

Adelaide

22 March 200526 July 2005

Brisbane

24 May 200527 September 2005

Perth

14 June 200525 October 2005

Book online today to secure your place. Register online at www.ean.com.au/education or call Patricia Slattery on 1300 366 033.

In the supply chain, knowledgeis everything. Knowing whatyou have and don't have instock, is the secret of efficiencyand customer satisfaction.EAN•UCC makes it allpossible and even costeffective, but how?

Getting to know the system isstraightforward with EANAustralia's education andtraining programmes. Startwith the ‘EAN•UCC system -The Essentials Session’ orconsider the onlineeLearningeXchange version

and then progress to one ofthe specialised ‘101’ sessions foreverything you need to knowabout the EDI, XML, DataCapture, CPFR, RFID/EPC andEANnet.

Sessions run from 9:30am to 4:30pm and dates are:

EDUCATION & TRAINING PROGRESSION CHART

STEP1BIGPICTURE

STEP3NUTS &BOLTS OFTHEEAN•UCC SYSTEM

EAN SUPPLY CHAIN KNOWLEDGE CENTRE

‘The Chain Reaction’

OPTION 1CLASSROOM ATTENDANCE

‘EAN•UCC system - Essentials Sessions’

OPTION 2ONLINE TRAINING

‘eLearningeXchange’(Training course content similar to the ‘EAN•UCC system - Essentials Session’)

OPTION 1

EAN KNOWLEDGE 101 SERIES> EDI 101> XML 101> Data Capture 101> CPFR 101

OPTION 2EAN SUPPLY CHAINKNOWLEDGE CENTRE

> EPC/RFID (available 2005)> EANnet (available 2005)

STEP4SPECIFICAPPLICATION TRAINING

STEP2SUPPLYCHAINMANAGEMENTPROCESS DEFINITION

EAN SUPPLY CHAIN KNOWLEDGE CENTRE

‘Standards In Action’

> SPECIAL FEATURE MAXIMISING

13

LEARNINGMADEEASYONLINEAn online version of 'EAN•UCC system- The Essential Session' training sessionhas been released to cater for remote or time-poor subscribers.

The course, called ‘eLearningeXchange’,was developed in conjunction withDeakin Prime and covers an introductionto EAN•UCC, open standards fornumbering, data carriers (bar coding) and eMessaging.

Allow a total of about five hours tocomplete the self-paced course, which

can be taken over a 30-day period. EANEducation Support and DevelopmentManager Paul Hackett said the formatwas ideal for students, non-subscribersand subscribers who struggle to attendthe ‘EAN•UCC system - EssentialsSession’ run in capital cities.

“EAN's new eLearningeXchange course offers access to self-paced online EAN•UCC system training to all subscribers, regardless of theirgeographical location.

“Our online training modules delivertargeted supply chain managementknowledge to anyone, anywhere and atany time.”

eLearningeXchange includes onlineassessment as part of the course work.

Enrol for eLearningeXchange atwww.ean.com.au/education or call Paul Hackett on 1300 366 033.

If you find the EAN•UCC User Manual alittle overwhelming, a new CD-ROMunder development by EAN Australiamight be just the answer.

Users of the CD select their industry ofinterest, then click on a menu to revealbenefits, case studies, implementationinformation and explanations of theprocesses and standards that apply.Information can also be tailored to suit the needs of different groups,such as raw materials suppliers,manufacturers, distributors, logisticsproviders and retailers.

The three-dimensional menu makes itquick and easy to locate the relevantinformation. While the CD provides justa taste of the detailed information in theEAN•UCC User Manual, it allows a rapid

appreciation of what the EAN•UCCsystem has to offer.

The CD will also be sent to universitiesand TAFE colleges for eCommerce,logistics, manufacturing and even graphicdesign students. EAN CIO, Australia'sSteven Pereira envisages that as the CDevolves, a version will eventually beproduced for secondary schools.

“The CD is like an EAN•UCCencyclopaedia,” Steven said. “It's theperfect complement to EAN's classroom-style offerings and the new online coursewe've developed.”

“It's an easy access resource you can slipinto your PC whenever you need tolearn something more aboutEAN•UCC.”

YOUR KNOWLEDGE

CASH INYOUR FREE VOUCHER AND SAVE

With each EAN Australia subscriberrenewal, your business is rewarded with a FREE Education & Training Vouchervalued at $99.

The voucher can be redeemed forcomplimentary access to 'EAN•UCCsystem - The Essentials Session' ordiscount on ‘eLearningeXchange’ andEAN Knowledge Series 101.

Take advantage of your FREE voucher today and book online at www.ean.com.au/education

EAN‘ENCYCLOPAEDIA’ ONCD


PAVINGTHEWAYFORRFIDANDEPCINAUSTRALASIA

From July next year, EAN Australia will adopt a new name, GS1Australia.The freshly branded organisation will belaunched at the Impetus 2005 conference. Themove follows an announcement by EANInternational and the Uniform Code Councilthat the two organisations will merge under theGS1 brand.

CEO of EAN International and the UniformCode Council, Miguel Lopera, said he believedthe global re-brand would help the organisationreach its business mission.

The formation of one business entity will alsohelp EAN International provide one open,business-led, integrated system of identificationand information transfer standards - enablingeffective supply chain management acrosscompanies and industries worldwide. EANInternational has earmarked four areas aspriorities - the EAN•UCC standards for barcodes and messaging, RFID and Global Data Synchronisation.

A Global Name Change Task Force has beenestablished to coordinate the global launch ofGS1, which includes a new corporate logo, rulesgoverning the use of the brand andrecommendations for the launch of GS1 at local levels.

EAN Australia's Marketing Manager, SharynPerry, represents Asia Pacific MemberOrganisations on the GS1 Name Change TaskForce and describes the global re-brand as anexciting project.

“We are thrilled to be assisting with thisinitiative,” Sharyn said,“because our new name ismuch more than just a title.”

“It tells the world that we are proud of our jointhistory and that we are ready to come togetherunder one brand as one global communityspeaking one universal language of trade.”

“Aligning the EAN International community willbring many benefits to our subscribers, as westrengthen our global reach, maximise efficiencyand work towards the same vision.”

EAN INTERNATIONAL GLOBALRE-BRAND:ONE ORGANISATION,ONE STANDARD

A report released by ECR Australia assessingthe Australasian market's readiness for RadioFrequency Identification (RFID) and ElectronicProduct Code (EPC) has found that companiesare becoming more confident aboutimplementing the technology, and in some cases,have already conducted their own trials.

Titled ‘From Barcode to Electronic Code’, thereport compared local data with the globalstate of play detailed in the Global CommerceInitiative (GCI) Roadmap published in 2003.

The report found that:

>Two thirds of respondents said they expectedinventory management would benefit mostfrom EPC technology;

> Over half of respondents said the cost of tagswas a barrier to implementing RFID/EPC;

> Value would be derived from an industryaction plan to drive RFID/EPC in Australasia.

The research findings also suggest thatcompanies in the northern hemisphere aremuch closer to implementing RFID-enabledEPC, mainly due to mandates from largeretailers. Without mandates, companies in ourregion are taking the opportunity to learn fromoverseas developments, to assess the value inthe EPC network and are looking to utilise thetechnology for their benefit rather than purelyfor compliance reasons.

The research was made possible by thecontributions of a project team representing 22 companies, led by Accenture.

To order a copy of the report, visitwww.ecraustralasia.org.au/public/index.htm

Copies are $33 plus postage and handling.

HARVEY NICHOLS> CASE STUDY

15

Sitting in the middle ofKnightsbridge in London,Harvey Nichols has alwaysbeen a place to shop for thefashion conscious.This is upmarket retailing, with suchfamous brands as Gucci, Dolce andGabbana and Prada among a string to befound throughout the store. Now,however, you can also find “HarveyNicks” in other places around the UK,such as Leeds, Birmingham, Edinburgh,Manchester, and even Riyadh.

And that has had implications for the useof bar codes within the company. HarveyNichols may not be a fast throughput,need items scanned as quickly as possiblesort of company. In fact, it is thecomplete opposite. But it still needs itssupply chain to work as effectively, toservice its stores up and down thecountry.

The company which operates at the topend of the retail spectrum, puts a highpremium on customer service, and that,according to Head of IT, Martin Schofield,is where bar coding -introduced when

Harvey Nichols was part of theDebenhams group - comes in.

“When we're selling designer clothingthat can be costing around £1000, it isn'tgood enough to say to a customer, 'Hangon, I'll see if it's in the stock room.' Wehave to be able to say, 'Yes, madam, wehave it in stock.' “

It is the cost of its goods that may wellsend Harvey Nichols on an earlier paththan others to the adoption of radiofrequency identification (RFID), thoughnot at the pallet or case level, but at theitem level. Unlike its other retailcompetitors, whose low value, highthroughput business models require RFIDtag costs to be below the “20 cent”equivalent, Schofield recognises that a fewpence here and there on the cost of thetag carries little weight compared to theneed to be able to track high-priced, top-of-the-range goods. That is why thecompany plans to consider RFID pilots inaround a year's time.

It is the same rationale affecting thecompany's use of bar codes. Currently itbar codes all goods at the warehousewhen they arrive from suppliers, using

EAN 13 and EAN 8 labels. The need tobe able to track the items effectivelymeans Harvey Nichols would rather barcode itself, than rely on an outsidesupplier to do it.

Perhaps surprisingly, it does not currentlyhave scanners at the warehouse, thoughthat is a project now in play, with aplanned implementation date of nextApril. With the increase in its stores, thecompany is in the process of turning itswarehouse, which previously serviced theKnightsbridge store, into a distributioncentre for the rest of the country. Plansfor the warehouse already includeallowing compliance with contractors forRFID within a two to three yeartimeframe.

Schofield is adamant that a move towardsRFID will work in Harvey Nichols' highend of the retail space.

“Offering the equivalent of another tin ofown label beans just won't work. Wemust have an efficient supply chain.Accuracy - driven by bar codes and infuture, RFID - is a prerequisite forcustomer service.”


This special featurehighlights the importantissue of bar code quality,how to maintain it, andavoid the problems.

FACT: Bad quality bar codes arerejected and cannot be scanned.Good bar code quality is essential. If the qualityfalls after initial acceptance of a new product,your customers will not be able to scan yourproducts, and will have to handle themmanually. Re-labelling might be considered, butsome retailers will consider de-listing theproblem products, and in some cases, they willfine their suppliers.

Getting it right first time and maintaining highquality with procedural checks can avoid extracosts. How much have poor quality bar codescost you?

> Staff time in resolving the issue

> Artwork house or other solution providerconsultancy fees

> Costs of test materials

> Customer visits etc

How much would you save in carrying outrandom checks during and after the print run?

Poor bar code quality can be easily avoided byusing ISO compliant bar code verifiers (notscanners) and checking the bar code height atevery stage:

> Initial packaging/artwork creation

> Final test packaging

> Final combined packaging (including anymaterials such as shrink wrap or film that isoverlaid or used to group items together)

> Regular bar code quality testing during allprint runs

Customers will work with you to helpovercome problems but the onus is on thesupplier to get it right.

BAR CODEQUALITY

> SPECIAL FEATURE

Top four quality issuesfor traded units:1. Bar codes not tall enough

2. Printing against the bar direction with a thermal printer

3. Inadequate light margins left and right.4. Bar codes too small.

Top four quality issuesfor consumer units:1. Inadequate light margins left and right.2. Bar codes not tall enough3. Excessive ink spread (incorrect width of bars and spaces)

4. Poor print quality used

> Symbol contrast - the background is too dark and the scanner is unable to decode the symbol

> Distortion of label or board - the label or board is either ridged, folded or damaged

> Obscured bar code - opaque tape or shrink wrap seams cover the symbol

> General poor quality - grey bars rather than black bars, distorted bar edge

> Symbol show through - the consumer unit bar codes show through the packaging of the outer case so a single item could be scanned by mistake.

If you have any recurring quality problems that youwould like help with, please contact the EAN AustraliaTechnical Helpdesk, telephone 1300 366 033 or email [email protected]

Other common bar code problems:

17PROBLEM SOLUTION

MISSING PRINTHEADS ORBLOCKED JETS

SHRINK WRAPDISTORTION

HIGHREFLECTANCE OFBACKGROUND

INCORRECTWIDTHS OFBARS ANDSPACES

CODE 128 BARCODES USEDINSTEAD OFUCC/EAN-128BAR CODES

Horizontal or vertical white linesappearing due to print headburning out or print jets becomingblocked. Scanners treat white linesas an error or as a different andincomplete bar code.

Printing bar codes onto film whichis distorted as it is used asshrinkwrap around individual itemsor on outer cases. The film colouraffects distortion as does thepackaging shapes eg. bottles.

Metallic backgrounds, shrinkwrapfilms and other substrates arehighly reflective. Verifiers andscanners will have problemsreading the bar codes.

The width of the bars mayexpand or shrink too much,depending on the combination ofinks, labels or other substrates,and the printing process

UCC/EAN-128 bar codes mustbe used in open distribution andglobal supply chains. Code 128bar codes are not part of theEAN•UCC system.

All printing equipment should beregularly maintained with increasedvigilance in dusty environments.

Test different substrates prior to fullproduction. Following test shrinkageverify bar codes on substrates (film)and ensure the symbol backgroundremains opaque. Also ensure that thegloss surface of the film will not causereflectance problems.

A global project is underway to testreflectance issues. Until then theonly guidance available is to testsubstrates and choose less reflectantmaterials or ensure that the symbolbackground is a solid colour.

Verifiers will tell you how much widerthe bars are than ideal. Printing andlabelling equipment should be correctlyused to prevent excessive bar gain.Master artwork can also be canadjusted if necessary. Test for changewhen changing ink or substrate.

Select EAN-128, UCC-128 orUCC/EAN-128 as the bar code type.If you are unsure, please contact theTechnical Helpdesk or send a copy ofyour bar code into EAN Australia forbar code verification.

Mobile: 0408 431 023 Tel: 61 3 5943 1022 Fax: 61 3 5943 [email protected]

CALLAPPLIED ELECTRONIC COMMERCE

The Vital LinkTO GET YOUR SUPPLY CHAIN

WORKING FOR YOU

STOP PRESS – CHANGES TOTHE EAN•UCC USER MANUAL


The latest update to the EAN•UCCUser Manual includes changes to the waybar codes are positioned and includes anew section on ISO Verification.

While it is important to be aware of thenew guidelines, EAN Australia's AngelaMears said subscribers would be given aperiod of time, to implement the freshlyreleased changes.

“Bar codes submitted for verification willcontinue to be tested to the oldspecifications, but comments will be includedrecommending a migration to the updatedguidelines on new art work”, she said.

“While most of the changes won't affectsubscribers too much, we recommendyou look at them carefully and contact thehelpdesk if you need assistance.” she said.

The following offers a summary of thechanges and the EAN Australia TechnicalHelpdesk can be reached on 1300 366033 for more extensive information.

The latest version of the EAN AustraliaUser Manual is available from EANAustralia on CD or downloadable fromthe web site at www.ean.com.au

Changes To Bar Code Dimensions:

>The X-dimension (module width) forUCC/EAN-128 bar codes is now1.016mm, making the recommendedmagnification range for scanning ingeneral distribution environments now48.7% to 100%.

> Left and right light margins for a 100%size UCC/EAN-128 bar code are now10.2mm.

>The minimum required height for other UCC/EAN-128 bar codes(besides the SSCC) on logistics labels isnow 32mm. For a migration period,27mm will remain acceptable.

> Whilst EAN/UPC bar codes on retailitems should still be printed with amagnification between 80%-200%,magnifications as low as 75% are nowacceptable for on demand (thermal,laser) printing only.

Changes To Bar Code Location:

>The edge rule for location of bar codes on retail trade items is now thatthe bar code must not be closer than8mm or further than 100mm fromthe nearest edge.

>The number of bar codes required fornon-retail trade items, is now anabsolute minimum of one, but it is strongly advisable to have two(or more) bar codes on the sides ofthe item (32mm from the base and a minimum of 19mm from any edgeremains the same).

Recommendations for non-retailshallow trays where the full bar heightcan not be printed are now:

1) Place the human readable text tothe left of the bar code

2) When height of unit is less than32mm, place bar code on top

> Location for pallets:1) For all pallets, the bottom of the

bars of bar code should bebetween 400mm and 800mm from the base

2) For pallets less than 400mm high, place the bar code as high as possible

Other changes:

UCC are now allocating the previouslyreserved prefix of one.

UCC COMPANY PREFIXNOT NEEDED FOR EXPORTSTO US OR CANADAFrom January 2005,Australian companieswill no longer be required to apply for aUCC company prefix for productsexported to North America and Canada.

Anticipating the change, most NorthAmerican and Canadian retailers areprepared and will accept the EAN-13number and bar code. This meansproducts exported to these countries willnow not need to carry a UPC bar code.

Historically, while retailers around theworld could scan UPC bar codes,retailers in the US and Canada could notread EAN-13 numbers and bar codes.This created a one-way compatibilityissue for businesses worldwide wishing toexport to the US and Canada.

The Uniform Code Council (UCC)established a programme called ‘Sunrise2005’ in 1997 to deal with the problem.

Sunrise set a target date of 1 January2005 for retailers to ensure their point ofsale systems and scanners could read andaccept the EAN-13 number and barcodes. EAN Australia's Sue Schmidwelcomed the milestone.

“EAN Australia subscribers exporting to the US and Canada no longer have to deal with the confusing process ofassigning country-specific bar codes toavoid the risk of costly re-labelling,”she said.

“Next year, it will be as simple as ABC - the way it should be.”

Sunrise also means that, as of 1 January2005, the US-based Uniform CodeCouncil (UCC) will begin phasing out the issuing of UCC company prefixes to businesses outside North America and Canada.

Sue explained that Australian companiesalready issued with a UCC companyprefix could continue to use it on theirexisting products.

“There is no need to changeover anyexisting packaging but consider issuingGlobal Trade Item Numbers (GTINs)using your assigned EAN•UCC companyprefix in the EAN-13 format on newproducts rather than continuing with yourUCC company prefix,” she said.

“Now that even the US and theCanadians accept the EAN-13 format,the EAN•UCC system can truly beconsidered a passport to world trade.”

EAN Australia strongly believes that givingback to the communities in which weoperate is a fundamental aspect of goodcorporate citizenship. Being involved inlocal communities does make a difference- and we're proud that our subscribersare part of these initiatives.

The goods that subscribers send to EANfor bar code verification can always bereturned, but if you don't want themback, EAN ensures that they are put touse in the best possible way.

Suitable products are sent to the charitiesand not-for-profit organisations that EANsupports. They are always thrilled toreceive goods that boost their food bank

and ultimately provide much needed helpto disadvantaged families.

In October, EAN Australia had thepleasure of helping the City of Kingston'sYouth Services Department by respondingto the increasing demand for food parcels.EAN's support enabled the City ofKingston to expand its service delivery at a time when it was most needed.

In the last financial year alone, the YouthServices Department had contact withover 8,500 people through variouscommunity programmes.

In a letter of appreciation to EANAustralia, Leanne Tilley, the City of

Kingston's Youth Services Co-ordinator,wrote:“With an increased need over thepast three months for food vouchers andfood parcels, the support from EANAustralia is incredibly valuable in assistingKingston's Youth Services to meet thisdemand.”

“We really appreciate the generoussupport that EAN Australia has providedour service and the young people in ourcommunity.”

COMMUNITY MATTERS

19

Richard Euston(right), City ofKingston acceptinggoods from EAN'sRichard Jones


GROCERS GEAR UP FORUBF FADEOUTAs Australasia's major groceryretailers and their suppliersmove towards EANnet, itseems the days of the paper-based universal buying form(UBF) are numbered.In the five months since June, the numberof EANnet subscribers has jumped bymore than 35%.At time of articleprinting, the 456 strong EANnetsubscriber community boasted 96 ofAustralia's top 100-grocery suppliers±.Growth is also impressive across theTasman with the recent launch ofEANnet in New Zealand prompting aninitial 22 suppliers to join their localcommunity.

To date, 55,000 trade items have beenloaded into EANnet and 105 suppliershave achieved EANnet Ready™ status.Already, 61 suppliers to Coles/BiLo haveeliminated paper-based UBF's.

Coles' well-publicised approach toEANnet requires all packaged goodssuppliers to its Coles and Bi-Losupermarkets to be EANnet Ready byMarch 2005, while the timeframe forfresh produce suppliers is marginally laterat May 2005.

Metcash, which comprises IGA,Campbells Cash & Carry and ALM,has been fully integrated with EANnet for two years and is poised to beginphasing out UBF's according to MichaelHaire, Metcash National DataAdministration Manager.

"Metcash would like to be in a position by31st March 2005 where paper UBF's arebeing progressively phased out and allproduct related information from vendorsto Metcash is electronically exchanged viaEANnet."

Woolworths' Senior Business Manager eCommerce B2B Peter Roebers saidWoolworths' suppliers would be able to use either EANnet or the company'sown electronic Core Record Integrationsystem (eCRI), which is currentlyundergoing trials with a number of suppliers.

“Our aim is to improve data accuracyand efficiency for suppliers,' Peter said.

“Woolworths is actively working withEAN to establish integration betweeneCRI and EANnet.”

Franklins General Manager Information,Bill Morgan, confirmed its adoption ofEANnet as the company's eCommercedata synchronisation standard and isworking with EAN Professional Services to engage with more than 1,000 suppliers.

“Franklins supports EANnet in itsendeavours to help vendors becomeEANnet compliant as this would facilitatecost effective product informationexchanges between suppliers andFranklins,” Bill said.

The Franklins and Metcash experiencehas been carefully watched by NewZealand's largest grocery distributor,Foodstuffs. The company is to pilotEANnet with six key suppliers and hastargeted third-quarter 2005 to go live.

In response to the unprecedentedinterest in EANnet, EAN ProfessionalServices recently increased its resourcesand is well-equipped to assist membersbecome EANnet Ready with a range oftraining courses, implementationprogrammes and project managedassistance. To discuss how EANProfessional Services can accelerate yourbusiness to EANnet Ready status, contactMarcel Sieira on 0423 566 843.

± Source - AC Nielson Top 100 GrocerySuppliers Report

21

EAN AUSTRALIA WINS LAA AWARDEAN Australia's innovative training facility, the Supply ChainKnowledge Centre, has been recognised with an awardfrom the Logistics Association of Australia (LAA).

In a lavish ceremony on 18 November at the Grand HyattHotel, LAA National President Mal Walker presented the2004 National Logistics & Supply Chain Training Education& Development Award to proud EAN Australia CEO,Maria Palazzolo.

“Earlier this year the LAA scheduled a group of local andinternational delegates from Singapore to visit our SupplyChain Knowledge Centre,” Maria said.

“They were so impressed they wanted to build their own!”

The LAA award acknowledged EAN's significantcontribution to education, training and further careerdevelopment in logistics and supply chain management.The EAN Australia Supply Chain Knowledge Centre wasalso recognised internationally when in April at its Chicagoconference, the Supply Chain Council named the centrethe winner of the 2004 Award for Supply Chain Academic Excellence.

EAN AUSTRALIA PEOPLE:SPOTLIGHT ON JOHN LANE

Meeting John Lane is a mixed pleasure.Easy going, friendly and helpful as he is, ameeting with John signals that your barcode verification has not gone accordingto plan.

Each year, thousands of bar codes aretested or 'verified' by EAN Australia staffto ensure scans are accurate and reliable.As Sydney's Technical SupportCoordinator and with nine years ofverification experience under his belt, Johnis one of EAN's most knowledgeabletechnical specialists and deals with thetoughest cases.

“My biggest challenge is explaining theintricacies of the EAN•UCC system tosubscribers in simple terms,” John said.

“It takes time to come to grips with -applying a bar code to an item at retaillevel is one thing, but when you start usingthem on non-retail items, that brings anew level of complexity and their use inlogistics takes it to another level again.”

The other side of John's role isdedicated to prevention rather than cure.

“Most of my time is spent educatingpackaging people about bar codes so wecan save subscribers heartache,” he said.

“The brand owner doesn't want to haveto deal with problem bar codes,particularly at the point when theprinting's already been done. To avoid that,

we're liaising with the people at the source- the graphics people and the printers.”

John is also responsible for Sydney's five-member technical support team and isparticularly proud of their achievements,their enthusiasm and commitment to theirjob and their level of technical expertise.

“We understand these reports are timecritical and we are issuing them morequickly now than ever before,” he said.


“By implementing the Oracle E-Business Suite, we were ableto increase our sales volume40% while keeping staffemployee numbers constant.At the same time, customersare also receiving better service,with Sunny Queen's order tofulfilment rate having risen from around 80% to 99%.”Murray Clark,Financial Controller,Sunny Queen

Supporting Growth

Sunny Queen Limited is Queensland'slargest supplier of eggs and egg products,and has recently expanded into NewSouth Wales and Victoria. In mid 2001, itcommenced a rollout of the Oracle E-Business Suite applications to support thisexpansion without increasing staffnumbers, while adding EDI capability, andimproving financial and operationalreporting. “We wanted to replace ourold, heavily customised software withsomething that could be used off theshelf and adapted to changingrequirements without turning to thedeveloper for new programming,” saidMurray Clark, Financial Controller. “Wewere also looking for a new millenniumplatform that would be more reliable,would scale easily, and, most importantly,handle electronic communications withour customers and our logistics partner.”

High-Level Project Goals

> Create a robust and integratedoperating environment

> Reduce overheads and improvereporting capabilities

> Provide e-business capabilities for linkswith partners and customers

Why Oracle?

Sunny Queen needed a customerrelationship management (CRM) systemto support its plan to deal directly with allcustomers instead of handling salesthrough agents in regional centres. Thecompany started looking for systemsfrom second-tier vendors because itthought the market leaders would be outof its price range. “We thought therewas no way we could afford top of theline software,” said Clark. Oracle'ssolutions were initially considered only asa point of comparison between tiers oneand two, but Sunny Queen went aheadafter Oracle offered more flexibility andincreased value at a competitive price tothe other vendors. It was important toSunny Queen that the chosen solutioncould fit the requirements of its small tomedium enterprise while providingscalability in the future with thecompany's planned growth.

ORACLE LAYS E-BUSINESSFOUNDATION FOR SUNNY QUEEN

> CASE STUDY

23

Rapid Implementation

Sunny Queen chose Oracle Consultingbased on their extensive experienceimplementing the Oracle E-Business Suite11i. The project began in July 2001 andincluded the implementation of OracleCRM-Telesales/Scripting,AdvancedInbound and Advanced Outbound-as wellas Financials, Order Management, andSales Analyzer. The sales and inventorysystems went live in mid-November andthe financial system was up and runningthe following month. This rapidimplementation was possible due to theknowledge of the consultants andbecause of Oracle Consulting's seamlessintegration with Oracle Support andDevelopment. The CRM implementationwas completed in late March 2002, withSunny Queen linking its customermanagement system to a PABX tosupport inbound Caller ID and outbounddialling. Selecting software that could beused without customisation also deliveredoperational benefits, and the Oracleapplications helped Sunny Queen tightenits business processes, making operationsmore effective and efficient.

Improved Margins and Service Delivery

The Oracle applications have allowedSunny Queen to handle all orders fromcustomers in Queensland, New SouthWales and Victoria with a telesales teamof just five people, replacing a costlynetwork of agents in regional centres. “Byimplementing the Oracle E-BusinessSuite, we were able to increase our salesvolume 40% while keeping staff employeenumbers constant. At the same time,customers are also receiving betterservice, with Sunny Queen's order tofulfilment rate having risen from around80% to 99%. We also have an EDIcapability, which will become essential fordoing business with the majorsupermarket chains,” Clark said. Thiscapability will enable Sunny Queen tomeet the latest EDI requirements ofmajor chain customers. The Oracleimplementation has made this possiblewhereas the redundant system did notprovide the capabilities to facilitate EDI.

Advanced Reporting

“We're only just starting to scratch thesurface of the financial reporting features,but using Sales Analyzer over Financials,we have reduced the time taken toprepare management reports from 15 toeight working days, and we're aiming forfive days by the end of the financial year,”

said Clark. “I believe that is easilyachievable - but we could never havedone it before. What's more, each day'ssales reports are ready for us when wearrive at work each morning. You can'tdo better than that for great dailybusiness intelligence.” Purchasing andsales analysis has also improved. SunnyQueen can now easily track sales trendsdown to individual stores. On the supplyside, the mix of egg sizes varies accordingto the weather. The company can noweasily see when special prices are neededto balance the supply and demand ofparticular sizes. “We believe we have theleading software in the Australian eggindustry. We're years ahead of the otherplayers,” said Clark.

Future Plans

Sunny Queen plans to start using OracleManufacturing in conjunction with itsmanufacture of egg products such as eggpulp, frozen egg whites and scrambledegg mix. The company will also use theforecasting facilities of Sales Analyzer aspart of management's goal of optimisingits business performance reportingsystems.


ONLINE ACCESS TOSOLUTION PROVIDERSThe Solution ProvidersDirectory helps you finddescriptions and contact detailsof companies offering relevantgoods and services to assistyou with implementation ofthe EAN•UCC system.

Simply search via the pull-down menu, or type in akeyword and preferred statelocation, and then click on the'submit' button. It's that easy!

Pull-down search categories include:

Consulting

> EAN Implementation> Electronic Commerce> Systems Integration

Hardware

> Inkjet Printers> Label Printers> Label Applicators> Radio Frequency> Scanners

Services

> Storage & Distribution>Transport

Software

> Data Warehousing> Distribution> EDI> Point of Sale> Printing> Space Management> Supply Chain Planning> Warehousing

Supplies

> Film Masters> Label Stock> Pre-printed labels

Visit today atwww.ean.com.au/partners

25

Great News. Our Alliance Partner community is growing. There are an array of new AlliancePartners that bring knowledge and epertise to the EAN subscriber.

If you would like to more about the EAN Alliance Programme visit www.ean.com.au

ALLIANCE PARTNER UPDATE

STRATEGICALLIANCEPARTNERS> Australia Post> Bearing Point> Capgemini> CSC> Datanet> Global eXchange Services> IBM> Innovation Exchange

Network> Intermec> IPT> Leadtec> Matthews> Oracle> SAP> Telstra eBusiness Services> Unisys> VeriSign

BUSINESSALLIANCEPARTNERS> AEC> AAPT> Axway> BCDS> Cedar Creek Company> Cobra Systems> Dy-Mark> FUEL Marketing> Imaje> insignia> Mid-Comp> Paxar> Pronto Software> Riordan & Partners Lawyers> SSA Global > Supply-LINQ> Symbol

ASSOCIATE ALLIANCEPARTNERS> Beyond Commerce > Consulting Principals> DENSO> Dexion Integrated Systems> Diezel> Exago> GAMMA Solutions> iCrystal> Innovit> LXE Australia> Moveit> Pacific Commerce> Parcelhouse International> Phil Heenan Consulting> Realtech> Right On Line> RT Management > SMS Management Technology> Supply Chain Solutions> Supply Chain Consulting> Unique Micro Design> WalkerDataVision


NEW OVERSEAS LEGISLATIONAFFECTS AUSTRALIAN EXPORTERS

COBRA ASSISTS LOCAL SUPPLIERSMEET NEW LEGISLATIONCobra Systems, in partnershipwith Axicon, have always beenat the forefront of bar codeverification technology,constantly developing additionalfunctionality, many specificallycreated for traceability.

Examples include:

> UCC/EAN-128 Data Content Checker> Product Lookup Facility> Spreadsheet Creation> Multi-line Job Referencing> Scan File Storage and Replay> Automatic File Saving> Calibration Logging> Password Protection> Network User Logging> RSS verification

Beyond verifying the quality of yourprinted bar code,The Axicon VerificationSystem provides essential validation onmany aspects of the bar code. Why? Itis all very well if a bar code is printed toan acceptable quality, but what good isthis if the data is encoded incorrectly,the 'best before' date has alreadypassed, the quantity is incorrect or if thenumber encoded does not match thegoods inside?

Cobra Systems is the Australian distributor of Axicon Barcode Verification Solutions.www.cobrasystems.com Ph: (07) 3824 8800

> ALLIANCE PARTNER EDITORIAL

Traceability Food Laws

Traceability has always been animportant issue but becomes evenmore so with the introduction of thenew EU regulation 178/2002. When itcomes into effect on 1 January 2005,the regulation will lay down the generalprinciples and requirements of food lawwithin the European Community.

This regulation will be best known forestablishing the European Food SafetyAuthority (EFSA) but also introducesspecifications outlining the basicconditions for food safety.

The two most relevant are:

1. It should be possible to trace foodand feed at all times.

2. Unsafe products should be withdrawn from the market.

Heath Product Identification Laws

The US Food and Drug Administrationissued a ruling in February 2004 for thebar coding of drugs in the USA thatbecame effective from 26 April. All newdrugs will have to comply within 60 days,while older products have two years.To summarise the ruling, most drugs andbiological products must be bar codelabelled down to unit dose with a linearbar code carrying the NDC (NationalDrug Code product identifier), withadditional data at the manufacturer'sdiscretion.

The EAN•UCC system allows the NDC number to be encoded within the bar code.

The release of the new EAN•UCC barcode, known as the Reduced SpaceSymbology (RSS), is significant as therewill be many unit dose products forwhich the RSS code is the only option(incidentally, the RSS-14 stacked isconsidered to be a linear code).

27

MERRYCHRISTMASBoth the Melbourne and Sydney offices will close briefly toprovide staff with a short but well-earned break. During thistime, EAN Australia's trading hours will be:

Thursday 23 December:8.30am to 12.30pm

Friday 24 Decemberto Tuesday 28 December:Closed

Wednesday 29 December:8.30am to 5.30pm

Thursday 30 December:8.30am to 5.30pm

Friday 31 December:8.30am to 4pm

Monday 3 January:Closed

Tuesday 4 January: NormalNormal trading resumes

Everyone at EAN Australia would like to wish you ahappy and safe Christmas and New Year holiday.

EAN EVENTDIARY

NEW

2005DATESRELEASED

EAN Australia Education & Training Series Road Show > 1st March 2005 Melbourne

> 15th March 2005 Sydney

> 22st March 2005 Adelaide

Further info: www.ean.com.au/education

RosettaNet Australia Road Show> 16th March 2005 Sydney

> 17th March 2005 Brisbane

> 23rd March 2005 Adelaide

Portable Supply Chain KnowledgeCentre Sessions> 16th March 2005 Sydney

> 22nd March 2005 Adelaide

Further info:www.ean.com.au/knowledgecentre

EAN Knowledge Series 101™Melbourne, EAN Head Office

> EDI 101 6th April 2005

> XML 101 13th April 2005

> Data Capture 101 20th April 2005

> CPFR 101 27th April 2005

Further info: www.ean.com.au/education

SMART Conference> 1st & 2nd June 2005 Sydney

Further info: www.smartconference.com.au

EAN Annual ConferenceRetail Business Technology> 12th & 13th July 2005 Crown Towers

> 20th - 22nd July 2005 Hotel Sydney

Further info: www.impetus2005.com.au

This is the latest information available at Supply Chain LINK’s publication deadline:please visit the EAN Australia websitewww.ean.com.au for current details on seminar dates, times & locations.

2005DATESRELEASED

2005DATESRELEASED

NEW

LINKT H E S U P P L Y C H A I N

Head Office:Axxess Corporate ParkUnit 100/45 Gilby RoadMt Waverley VIC 3149

Sydney Office:Lakes Business ParkBuilding 4B, 2-4 Lord StreetBotany NSW 2019

National Number: 1300 366 033 Email: [email protected] Website: www.ean.com.au

gs1 australia link magazine - issue 5

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