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Australia

GS1 Australia - Supply Chain Week Pallet Labelling Seminar – Grocery & Liquor Andrew Steele – GS1 Australia Samantha Blake - ECRA


Seminar Objectives & Agenda Australia

• Information Seminar NOT a Pick on Supplier session • Provide an overview of Logistic Unit (pallet) Labelling in Australian Grocery & Liquor industry • • • •

Industry standard requirements (no new requirements) Status update ECRA working group Industry toolkit

• John Lane GS1 Australia – Provide an overview of the common pitfalls that companies encounter © 2008 GS1


Seminar Agenda cont Australia

• Hear from the major retailers • Patrick Duggan – Woolworths • Michael Haire – Metcash (IGA / ALM) • GS1 on behalf of Coles

• Opportunity to ask questions • Step you through their receival processes • Where the pallet label fits in • Common Pitfalls • Consequences of poor label quality

• Break – Opportunity to speak with solution providers © 2008 GS1


Seminar Objectives Australia

• Supplier Perspective • Where to get further information & assistance • Wrap-up and seminar takeaways

© 2008 GS1


Australia

GS1 Australia – An overview


Who is GS1? • GS1 is a global not-for-profit organisation • GS1 consists of 108 national member organisations driven by a membership of >1.3 million companies across 154 countries • GS1 assists more than 24 industry sectors globally • The GS1 System of supply chain standards is the most widely used in the world © 2008 GS1


Who is GS1 Australia? GS1 Australia Office - Botany, Sydney

• The Australian affiliate under Sole License to the International GS1 organisation HQ in Brussels • Not for profit subscription based Industry Association GS1 Australia Office - Mt Waverley, Melbourne

• Over 16,500 member companies across 18 industry verticals • Provide a range of value added services on a user pays cost recovery basis

© 2008 GS1


Our four key product areas

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

Global standards for electronic business messaging Rapid, efficient & accurate business data exchange

The network for global data synchronisation Standardised, reliable data for effective business transactions

Global standards for RFID-based identification More accurate, immediate and cost effective visibility of information

Š 2008 GS1


GS1 Supply Chain Best Practice Process Utilising open standard e-commerce technologies to achieve best practice supply chain management. The components include: ƒ Numbering and barcoding ƒ Electronic data exchange of information ƒ SSCC logistics labeling ƒ Data capture equipment ƒ Removal of non-value added activities.

© 2008 GS1


Logistic Unit (Pallet) Labelling Australia

The Final Frontier of Numbering & Bar coding…… © 2008 GS1


ITF-14 Logistic Label

GS1-128

EAN/UPC EAN/UPC

Logistic unit

Level 2 Grouping of retail items

Level 1 Retail item

Š 2008 GS1

Level 3


What is a Pallet Label?

A pallet label contains an SSCC (Serial Shipping Container Code) or licence plate which is unique to each individual pallet. The Australian food and grocery retail industry have adopted SSCC standards to drive pallets more efficiently through end to end supply chains.

Š 2008 GS1


SSCC through the Supply Chain

Supplier       

Applies original SSCC

© 2008 GS1

Transporter            

Uses SSCC for internal controls and tracing

Distributor                           Transporter     

Receives SSCC Uses for internal controls and for outbound shipments

Uses SSCC for internal controls and tracing

Customer

Receives original SSCC


A Brief History Australia

• In 1999 an ECRA working group developed the Australian & New Zealand Grocery Industry – Numbering & Bar Coding of Trade Items not sold at Retail Point-of-Sale • Industry standard for homogenous pallets was agreed upon • Australian Supermarkets have been progressively rolling out pallet labelling requirements across their DC networks since early 2000’s

© 2008 GS1


Pallet Labelling Today • GS1 in conjunction with retailers hosted ISO Bar code verification seminars in November 2009 • There was a consistent theme across the retailers presentations that: Poor Pallet Labelling is the biggest emerging issue in their respective supply chains • In 2010 GS1 discussed with ECRA about forming an industry working group to address the problem

© 2008 GS1


Australia

Efficient Consumer Response Australasia

Delivering Improved Pallet Label Compliance

Supported by the Australian Food and Grocery Council Š 2008 GS1


ECR Australasia Australia

ECR is about companies working together to integrate their operations, drive out unnecessary costs and eliminate barriers that impact their ability to satisfy consumers.

Core focus for 2010: • Supply Chain Initiatives and Issues Management • On-shelf Availability • Loss prevention guides • Building Best Practice and Industry Standards • Pallet Identification • Data integrity and synchronisation • Product recall portal • Education and Communication © 2008 GS1


Industry Benefits • Pallet is identified with a unique number • Provides a link with barcode information • Identify contents of pallets • Contributes to efficient management of stock • Faster receiving and quick turnaround • Improves data integrity • Stock rotation • Pallet tracking • Works in conjunction with despatch advice and advanced shipping notice (ASN)

© 2008 GS1


Global & Australian Standards Australia

Why Standards? Open, global standards •Allow system-to-system interaction •Speed processes by enabling end-to-end automation •Lower cost, reduce errors •Reduces the risk of system incompatibility •Protects technology investments •Enables the optimisation of supply chain •Eliminate supply chain roadblocks and bottlenecks.

For global standards for the content and technical specifications of the SCCC www.gs1.org/transportlogistics/standards © 2008 GS1


Label Size A6 105mm x 148mm or nearest equivalent

GS1 Logistics Label Technical Specification WIDGETS AUSTRALIA

SSCC: Mandatory Product Description: Mandatory

SSCC

393123450000000013

Human Translation of barcoded information should be 7mm or above in height All other fields and headings to be no less than 3mm in height

Baked Beans 12 x 410g CONTENT

COUNT

GTIN: Mandatory

09312345000005 20

No of Cartons on the unit: Mandatory

Best Before Date or Use By Date:

BEST BEFORE (ddmmyy)

BATCH

Batch No: Conditional

01.12.05

246813

If both dates available then Best Before Date has highest priority Leave as blank if not applicable

If available and required for product traceability

Concatenated Bar Code: AI02(GTIN) AI37(Quantity) AI15(Best Before date) or A17(Use By Date) AI10(Batch No)

Conditional

Mandatory Format: GS1-128 Height: 32 mm

SSCC

Magnification Factor: 25-100% (Impacts on Direction of print)

Mandatory Format: GS1-128 Height: 32 mm Width: Min 78 mm

Light Margin: Min 10.2 mm @ 100% 5.1 mm @ 50% 2.6 mm @ 25% Bar code text: Min 3 mm

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

Magnification Factor: 48.7 – 92.5% Light Margin: Min 9.4 mm @ 92.5% 4.95 mm @ 48.7% Bar code text: Min 3 mm © 2008 GS1

(00)393123450000000013


How wide spread is their use? Australia

A recent study conducted by Australian Food and Grocery Council revealed the use of SSCC is reaching a level of critical mass:

83% of suppliers use SSCC

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Use of GTINs at  consumer unit level 

Australian Food and Grocery Council: Supply Chain Survey 2010.

© 2008 GS1

Use of GTINs at  Traded unit level

Use of Serial Shipping  Container Codes (SSCC)  at pallet level

Use of Global Location  Network (GLN) codes at site level 


Realising the benefits Australia

In the same study benefits from the implementation of a broad range of e-commerce initiatives were examined. There remains a significant opportunity to deliver improvements for all parties along the supply chain. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% E‐commerce initiatives  E‐commerce initiatives  E‐commerce initiatives have improved supply have reduced finished have decreased total chain accuracy goods inventory throughout supply chain costs?  the supply chain? (eg Headcount) Not at all

To a small extent

To a moderate extent

E‐commerce initiatives have improved total  supply chain levels  of customer service?

To a large extent

E‐commerce initiatives have improved truck turnaround time at  customer DCs?

To a very great extent

SSCC application vs. truck turnaround times. Australian Food and Grocery Council: Supply Chain Survey 2010

© 2008 GS1


Compliance levels Australia

44% Pallet label discrepancies across industry.

Considerations: • Organisation size is not an indicator of compliance. • Use of third party warehousing increases risk of non-compliance. • Non compliance levels consistent across ALL retail trade partners. • Chilled products at greater risk of non-compliance. • High level of work arounds at distribution centre level masks the issue.

© 2008 GS1


What is needed to achieve compliance? Australia

• Good communication in the trading partner relationship • Collaboration between trading partners • Commitment to the necessary mindset and paradigm changes • People focused on the processes in the supply chain • A robust process and support tools for the management of quality © 2008 GS1


Industry Focus Australia

In 2010 a number of food and grocery manufacturers and retailers formed a work group in partnership with GS1 Australia, Australian Food and Grocery Council and Efficient Consumer Response Australasia to address the issue of pallet labelling compliance.

With a charter to develop practical tools for the local industry to drive improvements to pallet labelling and SSCC compliance.

© 2008 GS1


What is the Toolkit Australia

A comprehensive set of industry tools and best practice deigned to maximise SSCC use within the industry. The toolkit contents include: • Logistics Labels 2010 Status Report - presentation • Getting the Best Out of Logistics Labels – guide • Key Metrics and checklists • Information on GS1’s Onsite Label Quality Service

© 2008 GS1


Australia

Getting the Best out of Logistic Labels Guide

• Report will be emailed to all attendees • Toolkit will shortly be available to download from the GS1 Australia and ECRA websites

© 2008 GS1

GS1 ECRA Pallet Labelling Seminar Introduction  

Andrew Steele – GS1 Australia Samantha Blake - ECRA Pallet Labelling Seminar – Grocery & Liquor Australia • Provide an overview of Logis...

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