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THE SUPPLY CHAIN

ISSUE NO. 10 // JUNE/JULY 2006 Now circulated to over 25,000 people

Discover, Learn, Connect at Impetus 2006 RFID: The Facts amongst the Myths GS1 and NATO sign technical agreement New EANnet version 4 to be launched in July




LINK Issue No.10 June/July 2006

Contents 02 Chairman’s message 03 CEO insights 04 How bar codes can avoid tragedy in healthcare 05 Protecting the integrity of the GS1 System on your behalf Liquor retailers call for EANnet® to replace paper forms 06 New EANnet version to be launched in July 07 Providing a common language for category management 08 Transport and logistics industry engagement 09 Help at GS1 Australia has never been easier to find 10 GS1 Australia provides guidance for mine-hunters 11 GS1 and NATO Standardisation Agency (NSA) sign technical cooperation agreement 12 Are you taking advantage of your free bar code verification? Changes to verification procedures for wine blends 13 Discover everything GS1 can do for you in one easy read 14 RBT is here again 15 RFID: The facts amongst the myths 16 Impetus packed with information 18 Hudson uses Supply Chain Review to map its course 19 Myerton goes live and ditches paper-based buying forms 20 Virtual training facility opened in Sydney 21 Scholarship winner makes a real difference to Rip Curl 22 GS1 and University of Wollongong spread the word Monash survey helps GS1 Australia deliver on-target training 23 Matthews uses clean EANnet data for label printing GS1 Australia Online Services: Industry information 24 CeBIT 2006 Event Wrap-Up 26 Wine master says ‘cheers’ to traceability Want a quick reference to GS1 Australia Alliance Partners & EPC global Solution Providers? 27 GS1 Australia Invoice & General Membership changes GS1 Australia changes its mail box address 28 Givoni has the supply chain competitive advantage 29 Revolutionary low-cost data management system from Bizcaps 30 GS1 Australian Alliance Partners – how fluent are supply chain solutions in speaking the global language of business? 31 Spotlight on GS1 people: Andrew Steele GS1 Event Diary

Chairman’s Message Chairman, GS1 Australia, Russell Stucki

Beyond a bar code: change your business forever

There’s a lot to be excited about as GS1 Australia Chairman – new technology, new standards and new industry initiatives – but nothing is more motivating than the stories our members tell of how GS1 has changed their businesses forever. Getting the supply chain right has the power to transform almost every element of your operations, from the flow of goods through production to the flow of goodwill between your business and its customers. Harnessing that power for our members is what drives GS1 Australia. Long ago, GS1 Australia moved from simply administering the GS1 System and its numbering standards to becoming a much more dynamic organisation whose sole mission is to deliver effective education and implementation support services to members. In other words, offering you the supply chain help you need to profitably respond to the dynamics of market demand in a timely manner.

As we approach the new financial year, this resolve is reflected in a variety of new programs and services - conferences, publications, research, education and training – that will be rolled-out in the next two years with the support of our Alliance Partners and industry associations. It is all part of a massive global collaboration effort that underpins GS1’s progress. Of course, the value of GS1 Australia’s programs hinges on the involvement of our members. To help more Australian businesses take advantage of GS1 Australia’s support, we will publicise our services and member achievements more broadly and intensively over the next two years. But what about your business? Are you making the most of your membership by taking advantage of all the benefits available? If not, then practical assistance is just a phone call away. I look forward to hearing your GS1 business success story in the near future.

Tell us what you think We are interested in your feedback. The newsletter’s primary role is to keep GS1 Australia members informed and updated on the latest developments in supply chain management and eCommerce. If you have any ideas, comments, points-ofview or criticisms, please forward to gs1aust@gs1au.org


03

CEO Insights

CEO, GS1 Australia, Maria Palazzolo

Join us at the Impetus annual conference and expo

There’s a lot happening at GS1 Australia – just take a look at this edition of Supply Chain LINK.

GS1 Australia is committed and focussed on delivering practical support for members underpinned by:

Now is the time to register for Impetus 2006, GS1 Australia’s third annual conference and supply chain expo, which will run from July 25 to 26 in Melbourne. Most of the exhibition booths are already filled and GS1 Australia Alliance Partners IBM, Leadtec & Telstra, are our valued Impetus 2006 Platinum Sponsors.

• Effective service systems

This year’s conference is shaping up to be one of our best yet, with presenters from CHEP Asia Pacific, Coles Myer, Startrack Express, Patties Foods and GS1 Global Office. Read out more about the speakers, issues and special events at Impetus on page 16 and 17 of this edition. Amongst the hive of event activity is GS1 Australia’s first year as supporter of Australasia’s leading Information & Communications Technology (ICT) event, CeBIT, in May. GS1 Global Office is a long-term advocate of CeBIT in Europe. We have also finalised business plans for the next two years following a hugely successful 2004 - 2006.

• Assured service quality • Relevant standards • Effective education • Expert advisors • Education and training • New services Each of these elements is critical to making the GS1 System work reliably for members and their trading partners. Reliability is far from assured, with the use of unauthorised GS1 Company Prefixes in a bar code format. Unofficial company prefixes have emerged locally that were not issued by GS1 Australia and could conflict with existing codes, creating confusion in the supply chain. Find out more about the risks on page 5 of this edition. The good news is that help is always at hand. Simply call GS1 Australia to find out more about how our experts can work with you to streamline the supply chain or drop in to visit us at Impetus in July. Entry to the expo is free and GS1 System experts will be on hand to answer all your questions. I look forward to seeing you there!

Annual Membership Renewal Please see page 27 for more details.




LINK Issue No.10 June/July 2006

How bar codes can avoid tragedy in healthcare Health care is a complex system that can go wrong in many different ways, sometimes with tragic consequences. With patient safety paramount, healthcare professionals are turning to the use of the GS1 System of Standards for product identification and bar coding, to help ensure lives are saved. By using a bar code scanner to read the product identifier in the bar code, and then referencing this identifier to a database, healthcare professionals can ensure that the right drug is used at the right time, for the right patient, in the right dose, via the right route (the ‘five patient rights’). In addition, hospitals may use bar codes to improve processes for patient registration and admission, in clinical care delivery, patient tracking, and in product supply and materials management. Use of bar coding for automatic data capture can also streamline the supply chain and inventory control processes, enabling the effective traceability of products. This is especially important in healthcare where counterfeiting is a growing issue and fake products could enter the supply chain.

Currently, 40 countries worldwide have existing mandates for use of the GS1 System of automatic product identification of healthcare products. Others are in the process of developing policies for identification and bar coding of these products. As such, GS1 is clearly recognised as the leading supply chain standards organisation by the global healthcare sector. Last year, key companies from the pharmaceutical and medical device industries, healthcare providers, regulatory bodies, logistics organisations and other healthcare supply chain partners joined with GS1 to form the global GS1 Healthcare User Group (GS1 HUG). The group currently has over 40 members and is growing quickly. The GS1 HUG aims to improve the performance of the healthcare supply chain by enabling “the collaborative development and endorsement of recommended voluntary GS1 global standards and best practices” (1). Work groups are currently developing global guidelines for the identification and bar coding of pharmaceuticals and medical devices, vaccines, biological items, instruments and implants. The use of these global standards and guidelines will mean organisations will be able to more efficiently develop systems to improve patient safety and supply chain integrity – using the same identifiers and bar codes as their supply chain partners.

For healthcare companies operating in multiple countries, this means that one standard can be used worldwide. GS1 Australia is taking a keen interest in the activities of GS1 HUG and together with GS1 New Zealand, is looking to introduce a trans-Tasman HUG group, known as HUGLIT (Healthcare User Group Local Interest Team). Currently, GS1 Australia is engaging pharmaceutical and device manufacturers and wholesalers, state and federal governments, as well as end users in the healthcare supply chain, particularly hospitals. Members of the healthcare community who would like to be involved in the development of the trans-Tasman HUGLIT should contact Sue Schmid, General Manager Member and Industry Support, at GS1 Australia on 1300 366 033. GS1 Australia would like to thank GS1 Global Office and GS1 New Zealand for provision of the references used to develop this article: (1) Kresna, U., ‘Benefits of barcoding in the pharmaceutical industry’, Hospital Pharmacy Europe, March/April 2006 (2) Hartley, G., ‘Scannable technology – Bar coded pharmaceuticals save lives’. New Zealand Pharmacy, February 2006




Protecting the integrity of the GS1 System on your behalf Australian companies rely on GS1 Australia to vigorously protect and advance Australia’s interests in the GS1 System of identification. The GS1 System helps ensure that your product can reach its intended market without misidentification, by using the GS1 Standard.

For this reason we are very concerned to learn that there are companies other than GS1 Australia selling GS1 Company prefixes in a bar code format in Australia. It is critical that we maintain the integrity of the GS1 System, both for customers and the millions of companies around the world who have agreed to use the GS1 System to identify their products and exchange information with their trading partners. We know that users of the GS1 System rely on GS1 Australia to operate with a high degree of integrity, as many users now entrust us with privileged knowledge of their trading activities, turnover data, pre-release products (when they require bar code verification) and even commercially sensitive pricing information.

Users also rely on us to set consensusbased standards and industry guidelines that balance the interests of Australian companies whether they are retailers, suppliers, multi-nationals or small and medium-sized enterprises. At GS1 Australia we, in turn, rely on our members and licensees of the GS1 Company Prefix allocated to their organisation, to wisely apply to their products only the numbers from their allocated number range. The integrity of the GS1 System relies on the uniqueness of identifiers and the ability these identifiers provide to be fully traced back to the company which has exclusivity over their use. For the full facts and statement, please go to the GS1 Australia website www.gs1au.org/about/_integrity.asp or call 1300 366 033.

Liquor retailers call for EANnet® to replace paper forms Australia’s biggest liquor retailers are strongly encouraging suppliers to implement EANnet and eliminate paper-based forms. Now, Coles Myer Liquor Group (CMLG) and Metcash have appealed once again to their liquor suppliers to synchronise product and pricing data via EANnet to reap the benefits proven in the grocery sector.

Major liquor distribution group Australia Liquor Marketers (ALM - a division of Metcash) has also embraced EANnet and has been consistently encouraging suppliers to implement it. As a major supplier to the grocery and liquor industries, Coca-Cola Amatil sees an opportunity to standardise business processes and technology across these customer groups. Anthony Clark, Coca-Cola Amatil’s National Supply Chain Development Manager, stated, “The use of EANnet across multiple customer groups will reduce the administrative burdens currently associated with numerous manual processes”.

GS1 Australia has been working with the Australian liquor industry to assist its implementation of EANnet but progress in this sector has been slow.

“In addition, Coca-Cola Amatil supplies NSW Health, which has also endorsed EANnet, so we will be able to standardise across this sector as well,” he said.

A recent supplier seminar held by CMLG reinforced its commitment to EANnet and called on the group’s supplier base to populate EANnet. The seminar also positioned the importance of EANnet to supply accurate data needed for the group’s business-tobusiness and supply chain initiatives.

GS1 Australia provides EANnet users with a range of services designed to facilitate the implementation of EANnet, including the EANnet Client Services technical support help desk. For more intensive assistance, the GS1 Australia Professional Services team offers a wide range of proven implementation

services covering all EANnet requirements, from business process analysis to data GAP analysis and technical requirements. For more information on EANnet or on GS1 Australia Professional Services please contact Marcel Sieira on (03) 9550 3474.




LINK Issue No.10 June/July 2006

New EANnet® version to be launched in July The six areas affected are: • Field formats

On July 10 this year, the EANnet community will take a major step towards joining the Global Data Synchronisation Network (GDSN) with the launch of EANnet Version 4.0 EANnet serves 950+ Australasian companies, there are 26 other data pools globally performing similar roles. GS1 GDSN will allow these data pools to share data and global GS1 Standards have been developed for information to be synchronised within the network. GS1 Australia’s Justin Middleton, Manager - EANnet Client Services, said the migration would be conducted in two phases to make it as simple as possible. “Implementing EANnet v4.0 will bring most EANnet item attributes into alignment with GS1 GDSN. Phase two will take the community to a fully GS1 GDSN-compliant platform for item and pricing,” he said. “We have worked with our retailer partners who fully endorse the migration. All vendors will be affected as some crucial changes are occurring to fields in common use today.”

• Type of expiration date on package • Item width and depth measurements • Code lists

Providing a common language for category management

• Introduction of Sub-Brand • Introduction of Global Product Classification (GPC)

See following article for more information.

What does this mean for EANnet users? • Participation in GDSN will allow your products to be listed on a global registry to be synchronised with retailers and other purchasing hubs creating access to a wide range of new markets • GPC – Better classification codes • GS1 Australia will adopt GS1 Standards for product measurements, enhancing capabilities for users Vendors who have not yet taken steps to accommodate the changes required for EANnet v4.0 should read the EANnet v4.0 release notes available under the ‘Release Notes’ link on the EANnet website www.gs1au.org/eannet Mr Middleton said GS1 Australia will assist vendors in planning to meet the fast approaching July 10 deadline. EANnet Client Services can be contacted on 1300 366 033.

A new Global Product Classification (GPC) will make it easier for companies to classify products into standardised groups. GS1 Australia’s Justin Middleton explains how the new classification system will work.




For many years, retailers and manufacturers have tried to establish a common way of classifying products but the systems they used were too rigid or too detailed: great for statistics or financial reporting, but not for trade. Manufacturers need to be able to profile products in multiple views for retailers to align with their internal classification systems. Meanwhile, retailers need to be able to align products with their own internal structures. A common standard for product classification gives both parties better management of information as well as the ability to map internal and third-party system views.

How GPC works GPC is a rules-based, four-tier classification system for grouping products. The fourtiers are Segment, Family, Class, and Brick (with attributes). See Diagram 1. Level Segment

Family

Class

What is Global Product Classification? Global Product Classification (GPC) is a set of common categories, used by sellers and buyers, to group products the same way globally to ensure effective data synchronisation in data pools. Developed, owned and used by the GS1 user community, GPC is mandatory for classifying products registered in the Global Data Synchronisation Network (GDSN) that links data pools, around the world.

Brick

Example An industry segmentation or vertical

• Provides a common language for category management thus speeding up the ability to react to consumer needs • Eliminates redundant activities and improves data integrity and accuracy of product set-up, maintenance and catalogues

Milk and Milk Substitutes

Categories of like products

Global Product Classification (GPC) is mandatory for participation in GDSN and will be introduced in EANnet v4.0 alongside the existing UNSPSC code. GS1 Australia is committed to helping the supply chain community extract maximum benefit from this classification system.

Milk and Milk Substitutes (Perishables)

Above: Diagram 1

The fundamental part of GPC is the Brick classification, as it identifies products which:

GPC training

• Serve a common purpose • Are of a similar form and material • Share the same set of category attributes

Brick Description: Milk and Milk Substitutes (Perishable)

Benefits of GPC? • Supports buying programs by allowing buyers to pre-select groups of applicable products

Milk, Butter, Cream, Yoghurts, Cheese, Eggs and Substitutes

A group of like categories

Brick Code=10000025

GTIN=123456789123C

How GPC impacts you The GPC code is a cornerstone of the Global Data Synchronisation Network (GDSN). GS1 Australia is assisting local manufacturers, retailers and suppliers to join GDSN in a two-phase migration that begins with the switchover to EANnet Version 4.0 on July 10 this year.

Food, Beverages and Tobacco

A broad division of a segment

GPC is already available for a wide range of product categories and is growing all the time to meet the needs of the growing GSDN community that has exploded in the last 12 months from 200 to over 5,000 trading partners.

GS1 Australia has introduced a GPC 101 Training Course for members covering GPC business rules, principles, hierarchy rules and Brick Attribute. The course is part of the Education & Training Road Show touring nationally throughout June 2006. To register visit www.gs1au.org

Bricks can be further characterised by more detailed Brick Attributes within GDSN. See Diagram 2. Example

Bricks

Bricks Attributes If Animal

Milk and Milk Substitutes (Perishable)

• Enables potential usage of Point Of Sale (POS) data consolidation

ü Animal Fat ü Unclassified üNon Animal Milk ü Unidentified ü Full Fat ü Half Fat ü Low Fat

ü Non Fat ü Reduced Fat ü Unidentified

Organic Claim

ü No ü Unidentified

üYes

Probiotic Claim

ü No ü Unidentified

üYes

Level of Fat Claim

• Can be cross-reference to exiting proprietary trading partner classification systems

Bricks Attribute Values

Refrigeration Claim

ü Can Be Refrigerated ü Must Be Refrigerated ü Unidentified ü Ass ü Camel ü Cow ü Fruit ü Goat ü Mare ü Nut

Above: Diagram 2

ü Rice ü Sheep ü Soya ü Unclassified ü Unidentified ü Vegetable üYak




LINK Issue No.10 June/July 2006

Transport and logistics industry engagement In early March a project was completed that clearly demonstrated the benefits of adopting the GS1 System by logistics service providers in the retail, grocery, and general merchandise supply chain.

GS1 Australia joined industry representatives from all sections of the supply chain to complete the project, funded by the Department of Communications, Information Technology and the Arts (DCITA), through their Information Technology Online (ITOL) program. The outcomes were then showcased during a roadshow in Melbourne and Sydney. Presentations included Star Track Express, Kmart, Moraitis Fresh Packaging and Collins Transport; Simplot Australia and Linsday Brothers Transport; Kimberly Clark Australia and Toll Logistics. Pilot participants saw a decrease in processing times and significant changes to accuracy. Results were clearly identified at a business level, with participants also acknowledging that the benefits would increase along with growing adoption of the GS1 System across the industry. These included:

Outcomes of the meeting were extremely positive, following in-depth discussion surrounding the relevant issues and the objectives for the working group. Short-term goals include finalising the draft ‘The Australian Transport and Logistics Numbering and Bar Coding Guidelines’, identifying and developing industry specific eMessaging guidelines, and looking at opportunities for other technology such as GS1 XML and RFID.

• Reduced volume and costs of credits

GS1 Global Office activities and pilots in the industry, including a GS1-led Traceability Project, were briefly discussed to ensure the Working Group participants were exposed to the latest news from around the globe in supply chain efficiency.

• Increased speed and reduced errors through process improvement and automation; real-time information

For further information contact GS1 Australia’s Member and Industry Support Team on 1300 366 033.

• Improved traceability • Reduced cost of accounts receivable

• Better use of existing information communication technology investments

tool

The roadshow was followed by the inaugural meeting for the GS1 Australia Transport & Logistics Working Group. This group will ensure continuity in the implementation of the GS1 System by gathering industry leaders from suppliers, retailers, transport operators and third-party logistics providers around the table to begin planning the way forward.

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Help at GS1 Australia has never been easier to find Finding the right GS1 Australia staff member to assist with your supply chain management challenges has never been easier. A newly implemented Automated Attendant means members calling GS1 Australia are directed to the department best able to handle their telephone inquiry in the most efficient way possible. Callers simply listen to a greeting and then follow the prompts to select where they would like their call directed to. According to Sue Schmid, General Manager Member and Industry Support, GS1 Australia has long been working to improve its customer service and the direction of calls within the business from customers and members. “The Automated Attendant guides the caller to the area in which they are making an initial enquiry without having to explain what they need to another person first,” Ms Schmid said. While the Automated Attendant does not cover every area of the organisation, it does cover all departments where customer service is a priority.

“The implementation and ongoing refinement of the Automated Attendant is a critical part of our customer service strategy and we believe it will make will make obtaining information more efficient for customers,” Ms Schmid said. “For example, if you’d like to obtain a verification report from the bar code testing service you can now press three. If you require the assistance of the EANnet Client Services Team, then press four and so on. “The Automated Attendant serves as the first step towards a centralised service centre to provide a first-base service for companies seeking information.” Sue welcomes feedback on the new Automated Attendant service – to have your say, simply call 1300 366 033.

Below is a quick, easy reference to the automated attendant

Membership enquiries including new and existing membership

How to allocate a bar code to products and shipments

Sizes and quality of bar codes including testing service

EANnet and Imaging

Accounts

To hear options again

To be transferred to reception


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LINK Issue No.10 June/July 2006

GS1 Australia provides guidance for mine-hunters The object of the first phase was to identify opportunities: • The processes themselves

The need for more efficient and effective defence operations has led nations around the world to reassess the way their defence departments deliver logistics support. Australia is no exception and our Department of Defence has engaged GS1 Australia’s Professional Services Team to generate supply chain efficiencies and improve visibility. Located in Sydney, HMAS Waterhen is the parent establishment for the Royal Australian Navy’s mine countermeasure forces and is home to six ‘Huon Class’ Mine-Hunter Coastal vessels: HMA Ships Diamantina, Huon, Hawkesbury, Norman, Gascoyne and Yarra. It also hosts a busy flotilla of support craft, including Diving Tender Vessel (DTV) Seal, Torpedo Recovery Vessel (TRV) Trevally, and Mine Sweeper Auxiliaries (MSA) Bandicoot and Wallaroo. The first of three phases of the GS1 Australia-led project entailed a business process review for inventory management activities at HMAS Waterhen, the ships themselves, and a supporting warehouse in Newcastle. The review looked at processes across ordering stock on suppliers, receiving and put-away, stock picking, packing and despatch, stocktaking; and also repairs and maintenance, including High Risk Maintenance Items (HRMI).

• Item identification • Bar coding and automatic data capture • Electronic messaging • Additional system functionality The second phase of the project, expected to start later this year, will focus on the development and evaluation of a cost/benefit analysis of these opportunities before moving into the third and final-phase: implementation. The Department of Defence’s Lieutenant Commander Robert Jude, Integrated Logistics Support Manager, said the project was progressing very well to date. “This will be an ongoing activity for the next few months and now we

are looking forward to developing a business case,” he said. GS1 Australia’s Professional Services Senior Advisor John Szabo said the team was delighted to have the opportunity to work with the Defence Materiel Organisation. “The mine-hunters face a special set of issues and it has been a challenge to work to overcome these in their supply chain. The implementation project provides a solution to address these challenges in an effective manner, leveraging the interoperability of the GS1 System with other NATO members through the GS1/NATO Technical Cooperation agreement,” he said. To find out how GS1 Australia can customise a Supply Chain Review for your business, contact contact Marcel Sieira or Jason Burnell on 1300 366 033.


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GS1 and NATO Standardisation Agency (NSA) sign technical cooperation agreement Earlier this year, the Director of the NATO Standardisation Agency (NSA), Brigadier General Julian Maj, and the President and Chief Executive Officer of GS1, Miguel A. Lopera, signed a Technical Cooperation Agreement (TCA) between their organisations at the NATO headquarters in Brussels, Belgium. This follows a number of GS1 Standards being included within NATO Standards Agreements (STANAG) and Ministries of Defence initiating a number of enhancements to GS1 Standards on NATO’s behalf. Miguel A. Lopera, President and Chief Executive Officer of GS1 Global Office said: “This agreement is of paramount importance because of its worldwide scope. Furthermore, the global NATO-GS1 partnership opens the door for all GS1

member organisations to engage their local Governments and Ministries of Defence to facilitate international cooperation. Based on global standards, the improved interoperability at international level between various military services and their civilian counterparts and contractors will make it easier to accomplish common missions and tasks at strategic, operational and tactical levels. We are very pleased to be able to contribute to this important mission.” The alignment will have an important influence on the smooth attribution and distribution of all functional goods and services a military unit requires in civil actions, from basic materials such as pens and paper, to food and beverage supplies, uniforms and blankets, technical material and tool kits, and all assets such as trucks, kegs and containers. Brigadier General Julian Maj, Director of the NATO Standardisation Agency, said that: “By not reinventing the wheel with regard to standardisation, we will obtain a significant costs saving for all NATO processes and procedures. Moreover, combining our know-how on military standards with GS1’s experience in civilian standards will lead to a better maintenance and development of global standardisation throughout various sectors and will ensure that the standards are constantly being updated and remain relevant.”

The cooperation between the NSA and GS1 is expected to substantially improve and facilitate supply chain processes and procedures, especially in crisis situations, including situations of civil emergency relief or natural disasters, where a smooth operational exchange of equipment and supplies between the military and civilian sides, engaged in close cooperation, is more crucial than ever. Maria Palazzolo, CEO of GS1 Australia, said “It is gratifying to have GS1’s experience and capability in simplifying complex supply chain management processes recognised by NATO. GS1 has collaborated with NATO for many years and this is a logical next step in aligning the global GS1 system with the NATO framework of defence standards”. This TCA will deliver a raft of benefits including: • Increased confidence to defence planning and operations • Reduced inventories and procurement costs for defence organisations • Greater supply chain efficiencies for suppliers (who currently use GS1 Standards at civilian level) • Optimisation of asset track and trace during operations • Enhanced security during the transportation of goods in an age of terrorism and tampering. “The GS1 Australia team is looking forward to working with our Australian Defence Force colleagues to help them realise the benefits of the GS1 system and more particularly the importance of the adoption of global standards, like EPC for RFID applications.”


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LINK Issue No.10 June/July 2006

Are you taking advantage of your free bar code verification? GS1 Australia’s bar code verification service not only checks for compliance with retailer requirements but can save manufacturers time and money too. GS1 Australia’s Richard Jones, General Manager Service Delivery, said verification was increasingly important as major retailers demanded proof of a bar code’s performance before stocking new lines. “Products that cause scanning errors are a real source of cost, delays and frustration for retailers, and their customers,” he said. “As a result, it’s not surprising that many now make it mandatory for all products to be submitted to the GS1 Australia bar code verification service before they will carry them.

“The verification service also has payoffs for manufacturers. We can tell early in the design process how the bar codes will perform, saving time and money by avoiding packaging re-design and rejected product, not to mention protecting their relationships with wholesalers and retailers,“ Richard said. Phillip Morris Ltd has recently undertaken a major project involving changes to packaging and bar codes. Therefore, this has resulted in a great deal of product that has had to be bar code tested and verified. Shane Bourke, Supervisor - Space Management for Phillip Morris, said, “In my extensive dealings with the GS1 Australia Bar Code Verification Help Desk team, I found them always highly professional, knowledgeable and always prepared to assist me in whichever way possible.”

for compliance with the GS1 Standards through a verification process based on the ISO 15416 verification method. A Bar Code Verification Report is issued at the completion of testing, indicating the compliance of a bar code and any changes that need to be made. GS1 Australia members are entitled to ten free verification reports per financial year from July 1. These reports are valid for 12 months. An email reminder will be sent out one month prior to inform members about renewal. For more information, contact GS1 Australia’s bar code verification technical help desk on 1300 366 033.

GS1 Australia’s bar code verification service reports on the likely scanning performance of bar codes and how closely they conform to specifications. Products submitted for testing should be presented in their ‘final retail form’ together with loose labels or unformed packaging. GS1 Australia tests the bar code

Changes to verification procedures for wine blends Bar code verification procedures for the testing of wine blends have changed for the better following consultation with the liquor industry. Variations in the description of wine blends had disrupted bar code verification results. Until now, if a wine blend was previously tested as a Shiraz-Cabernet-Merlot and then a subsequent vintage was tested as a Shiraz-Cabernet only, it would fail the verification based on the validity of the Global Trade Item Number (GTIN).

Feedback from the liquor industry to GS1 Australia suggested, however, that in many cases, the description change did not represent a fundamental change in the wine.

For Hardy Wine Company, the changes have had not only a cost benefit but have maintained the integrity of its product, according to Ms Wright.

Hardy Wine Company Quality Assurance Manager, Bronwyn Wright, explained: “A minor blend change would result in a verification report failure but it was still the same wine.”

“In the past, if we had a verification report failure our customers would not take our stock – so they have very much appreciated the flow-on effect of these changes,” she said.

GS1 Australia’s Industry Services contacted the major retailers and wholesalers, including Woolworths, Liquorland, ILG and ALM, who confirmed they would consider it to be the same wine despite the description change.

Ms Wright concluded by stating that “these changes by GS1 will also mean more efficient approvals resulting in improved speed to market for products, something both Hardy Wine Company and our customers are seeking.”

As a result, GS1 Australia has amended verification procedures. Wine blends that have been previously tested with a different description will now include a ‘Business Critical’ comment rather than automatically fail on GTIN validity.

For more information, please contact Andrew Steele at GS1 Australia on 1300 366 033.


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Discover everything GS1 Australia can do for you in one easy read GS1 Australia Services brochure. Among the many utility areas outlined in the new comprehensive Services brochure are:

From bar code verification to EANnet accreditation, online training courses and supply chain reviews, GS1 Australia offers a seemingly endless array of services for members. To help members understand everything on offer a new brochure is under development. “Whether you’re a new member just coming to grips with the basics of the GS1 System or a much more experienced user keen to explore the possibilities of leading-edge technology, or anywhere in between, there’s a GS1 Australia product or service to help you get there,” Ms Perry said. “There are literally dozens of brochures and flyers explaining those services, which is great but we’re finding that a lot of our members aren’t aware of what’s on offer as part of their membership.” The evolution of EAN Australia into GS1 Australia last year triggered a rethink of the organisation’s communication tools and now, the extensive library of brochures will be refined to just four, including the

• The Industry Engagement Program • Education & Training course offerings • GS1 Australia Supply Chain Knowledge Centre • Data synchronisation (EANnet) • GS1 System Implementation Services • Verification Services and Accreditation Program “We realised that we had several pieces of collateral promoting each department and business unit, which may or may not have been picked up and read by members,” Ms Perry explained. “Instead, this one brochure makes it easier for members to survey the variety of services and products we offer so they can assess which ones can benefit their operations right now. The brochure is also ideal to keep on hand as a reference tool when planning future projects.” As side benefits, Ms Perry said the consolidation would streamline GS1 Australia’s communications, both internally and with members. “This brochure will bring a clearer understanding of exactly how members can make the most of their membership with GS1 Australia.”

The new comprehensive GS1 Australia Services brochure is due for release in the next few months and will be widely distributed to the GS1 Australia community as part of member kits and at industry events. Keep your eye out on the GS1 Australia website in the next few months for the Services brochure.


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LINK Issue No.10 June/July 2006

RBT is here again Australia’s largest event for retail technology, services and equipment is on again. This year the Retail Business Technology (RBT) Expo will be held at the Melbourne Exhibition Centre from September 20 to 22. This is the fourth year GS1 Australia has exhibited at RBT. As always, we are easy to spot, centrally located opposite the Café/ Meeting Point in the Supply Chain Zone – and this year with our new vibrant stand. More than 6,000 qualified industry professionals are expected to visit RBT in just three days. This is an important event for retail IT professionals, POS specialists,

financial controllers, CIOs, chain store managers, retail technology specialists and business owners. GS1 Australia will be showcasing how global, open standards benefit all users, especially in the retail sector and promoting practical GS1 Bar Code Symbols compliant outcomes based on ‘solution-based’ supply chain management. We will also be promoting the value of GS1 Australia’s Member Services and profiling GS1 Australia’s Alliance Partners. Be sure to visit us at stand E24. For more information please visit www.retailexpo.com.au


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Radio Frequency Identification (RFID): The facts amongst the myths Well documented business trials using RFID technology in the supply chain provide distinct advantages for: Customers • RFID can provide faster product recalls • RFID tags may be able to be removed from disposable packaging or ‘killed’ at purchase which removes any concern that I can be track and traced • RFID use can reduce out-of-stock situations which are inconvenient for consumers and which directly affect the bottom line for retailers and manufacturers

Users (Manufacturers, Retailers, etc) • RFID will improve the management of tracked objects and ultimately customer satisfaction

This article helps to expose some of the myths surrounding the facts of RFID and EPC. Myth: RFID is a super-duper, high-tech, life-changing invention. Fact: RFID technology dates back to World War II and was used to identify friendly aircraft but its potential in the supply chain is just now being realised as new production methods make the technology more affordable. RFID tags share the same basic principle as bar codes – both uniquely identify products in the supply chain. The benefits of RFID over printed codes are: • Information can be added or updated • Identification of items down to an individual instance level for example, every 375ml can of Coke will have a unique identifier rather than every can of similar packing and volume having the same identifier • Tags can be read from a greater distance • Multiple items can be read at once

• Using RFID technology will lower operational costs through automation of business processes

Myth: The radio signal capability of the chip will allow anything, including the carrier, to be tracked anywhere, any time, by whoever has a reading device. Fact: At present all EPC/RFID tags are passive, meaning they have no battery and completely rely on the power of a RFID reader to power them up and allow them to transmit the information on the tag. This means the system is limited to a read range in the region of a few metres. Therefore, if a company desired to track a consumer they will need to have a reader in place every three metres along, which is highly unfeasible in today’s cut-throat business environment. Myth: There is potentially high risk that customer data retention will be misused. Fact: EPC/RFID technology is subject to the existing Privacy Legislation that is currently in place. In reality, with loyalty cards, credit cards and bar codes technology, the linking of customers to their purchases is already technically possible. This is, however, covered under the existing privacy legislation. The retail community, led by the Australian Retail Association, has also created a ‘Code of Practice’. This privacy code of practice clearly sets out what retailers can, cannot and must do with the use of RFID. These points include:

• RFID enables authentication of products thus potentially protecting brand names and know-how, plus improves security systems to prevent theft

• Signage clearly indicating the use of RFID for retail purposes • Providing consumers with the choice to ‘kill’ the tags at purchase

EPC: the standards behind RFID The heart of the standard behind RFID, the Electronic Product Code (EPC), mirrors the proven Global Trade Items Number (GTIN) – the foundation of the world’s most popular product identifiers, GS1

Standards commonly represented as bar codes. EPCglobal is the peak body for the EPC Network standards to support RFID technology and is managed by GS1. For more information about RFID technology from GS1 Australia, call 1300 366 033 or visit www.gs1au.org


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LINK Issue No.10 June/July 2006

Impetus Conference and Expo packed with Information

Impetus 2006, GS1 Australia’s premier supply chain conference and exhibition, returns for a third year with a program packed with experts, a trade show and a glittering cocktail party to celebrate the launch of the RFID National Demonstrator Report.

This year’s conference focuses on the foundations necessary for supply chain management success: data synchronisation, eMessaging, RFID and importantly bar codes and globally recognised standards. The Impetus 2006 program offers a comprehensive array of sessions appropriate for all industry sectors with plenty of Australian case studies, industry expert presentations and updates. It is an exciting opportunity for supply chain professionals to learn about the GS1System and standards implementation as well as the latest developments locally and globally. One of Australia’s best known and most popular comedians, Jean Kittson, is looking forward to returning to Impetus for her second year as Master of Ceremonies. Multi-talented performer and writer, Jean said: “I was so fascinated by such an interesting and essential global identification system that I simply had to return for the next exciting instalment. My trips to the supermarket have never been the same since Impetus 2005.”

Keynote speakers include: • Chris Adcock, President, EPCglobal Inc. • Sally Herbert, President, GDSN Inc. • Dougal McBurnie, General Manager, Information Systems, Coles Myer Ltd. • Ian Reinecke, CEO, National eHealth Transition Authority • Chris Richardson, Director of Access Economics and BRW columnist


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MELBOURNE JULY 25-26 SOFITEL HOTEL

Ahead of her address, Sally Herbert said Australians were in an ideal position to build on GS1 Australia’s data synchronisation expertise.

“I really liked the futurists’ topics of the supply chain presented at Impetus 05– they gave me some really good insights into future trends. Impetus was definitely a learning experience & I’ll be sure to register for this year’s conference.”

“GS1 Australia’s Impetus 2006 offers Asia Pacific companies a tremendous opportunity to learn about the GS1 Global Data Synchronisation Network (GDSN) and to share their data synchronisation experiences and best practices,” Ms Herbert said. “The GS1 GDSN momentum is rapidly increasing with 5,000 companies worldwide now in the GS1 Global Registry and many more getting ready to participate.” Many Australian case studies will be presented including the implementation of the GS1 System at Bush’s Pet Food in Sydney. Bush’s National Logistics Manager Bob Taylor will talk about a major project implementing radio frequency technology and a warehouse management system at the company’s warehouse in NSW. “It has been an extremely exciting project to work on,” he said. “I will discuss what influenced our decision to go down the path we did, what benefits and learnings we have had and how we plan to expand the technology to our four other sites.” GS1 Australia will present the muchanticipated results of the National Demonstrator Project at the conference. This federally-funded project, thought to be the first of its type in the world, was established to measure the value of RFID RFID (Radio Frequency Identification) and the Electronic Product Code (EPC) standards that govern its use. Jointly managed by CSIRO and GS1 Australia, with a consortium representing all segments of the fast-moving consumer goods supply chain, the pilot has trialled the EPC network in operation across six sites, tracking movement and the exchange of pallets, cartons and unit loads. The first day of the conference will conclude with a cocktail launch to

FMCG Supplier

Above: MC Jean Kittson opening Impetus 2005

celebrate and formally present limited copies of the RFID National Demonstrator Project report to Impetus delegates.

Impetus Expo – Free Entry Following an overwhelming response from more than 330 delegates last year, the Impetus trade show has doubled in size since its inception with more than 30 GS1 Australia-accredited solution providers. The exhibition will include product and service offerings such as data synchronisation, EPC/RFID, warehouse, transport and logistics, software and hardware, systems integration, telecommunications and eCommerce enablement. A theatrette inside the expo will run free 20-minute sessions for attendees not attending the full Impetus program where solution providers will present case studies.

For registrations or further information Please visit the Impetus 2006 website at www.impetus.gs1au.org or contact GS1 Australia on 1300 366 033.

“The number of high calibre international speakers at Impetus was really impressive and certainly provided me with additional knowledge and expertise. Impetus will be an event we attend in the future.” Retailer

Intel® keeping delegates connected To keep business people connected while they attend the conference, Intel is sponsoring an internet café located in the expo with six terminals and a wireless hot spot.

Above: GS1 Australia staff on hand at Impetus to answer your questions

Impetus 2006 Platinum Sponsors

Impetus 2006 Gold Sponsors


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LINK Issue No.10 June/July 2006

Hudson uses Supply Chain Review to map its course A GS1 Australia Supply Chain Review has helped Hudson Pacific, a member of the Countrywide Foodservices Group, to reassess its operations and processes.

The aim of the Supply Chain Review was to assess current ‘as is’ processes within Hudson Pacific’s supply chain and propose future processes implementing the GS1 System and Standards. The Professional Services team had discussions with key warehouse and office personnel involved in the buying and selling of goods within the foodservice area. GS1 Australia provided Hudson Pacific with detailed recommendations and a road map detailing:

The review carried out by GS1 Australia Professional Services Team identified and mapped the company’s current processes, made recommendations and presented a manageable plan for Hudson Pacific to evaluate.

• Product identification and bar coding

Hudson Pacific’s IT and Quality Assurance Manager, Joanne Grogan, said the review had gone very well and the company was now evaluating GS1 Australia’s recommendations.

A GS1 Australia Professional Services Team member was on site for the majority of the review and the project was completed in less than two weeks.

GS1 Australia’s Professional Services Team was engaged by Countrywide to complete an eCommerce strategy assessment, as part of the national Foodservice Initiative.

Right: GS1 Australia Professional Services Team

• Process improvements • Warehouse layout and equipment • Technology; and • Strategic initiatives

Hudson Pacific was provided with a clear set of both long and short-term recommendations on how implementing the GS1 Standards could reap supply chain efficiencies.

The company was also given an easy-toread Supply Chain Review report detailing opportunities and recommendations in language that makes sense to all employees whether or not they have experience in warehouse management. The recommendations by GS1 Australia Professional Services also broke down the perceived complexity of implementing bar coding systems into manageable sections that could be managed within the company. According to John Szabo of GS1 Australia Professional Services, Hudson Pacific is now weighing up the recommendations for maximum business benefit. “GS1 Australia has provided both short-term and long-term goals and these must be evaluated before our client can proceed to the next phase of the project,” he said. For more information about the GS1 Australia Supply Chain Review Marcel Sieira or Jason Burnell from GS1 Australia on 1300 366 033.


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Myerton goes EANnet® live and ditches paper based buying forms Freeman Cosmetics, Inverness, Warner Bros, Disney, Krazy Glue, American International, Hawaiian Tropic and VersaPro.

Myerton Australia has reached a new milestone, having been declared EANnet Ready™ by EANnet Client Services in February. Now, Myerton no longer has to use paperbased forms to communicate item or price changes for its products with major trading partner Coles Supermarkets. “We are now ‘Live’ and things are running very smoothly. We are really extremely happy with the whole process,” Myerton Australia Office Manager, Helen Barlow said. “The GS1 Australia staff have been very helpful to us throughout the implementation. All up, the project has delivered what we hoped for.” Myerton Australia became the 500th company to register for the Australasian data synchronisation community (as featured in issue 6 of Supply Chain LINK). Myerton is an agency for a wide range of goods, particularly in the health and beauty industries, grocery and general merchandise. The product range of approximately 400 stock-keeping units (SKUs) is mostly its own brands but around 40 per cent of its product is comprised of agency lines. Among Myerton’s principals are Akta-Vite,

EANnet allows suppliers, such as Myerton, to upload product information just once to a central point rather than reproducing that information many times to individual trading partners. Endorsed by the Australian Food and Grocery Council (AFGC) and with the support of the major supermarket chains in Australia and New Zealand, the EANnet data synchronisation catalogue today holds about 100,000 GTIN records in 950+ supplier catalogues. Suppliers can use several methods to enter their data on EANnet, including middleware, loading templates and keying online. Whichever method is used, the GTINs that are loaded by suppliers are verified by EANnet Client Services before a supplier becomes EANnet Ready. “Each supplier’s product range is different, and that means each client I work

with has individual needs,” says Client Services Advisor Ramesh Rayer. “Becoming EANnet Ready sometimes presents challenges for individual companies, however with the help and guidance from the GS1 Australia EANnet Client Services team, the challenges are more often than not, overcome.” In addition to replacing the traditional paper-based item submission forms, EANnet also provides an important foundation for eCommerce projects planned by the major supermarket chains, such as eMessaging, collaborative planning and the introduction of Radio Frequency Identification (RFID). Recognising this, the large supermarket chains in Australia and New Zealand have encouraged suppliers to work towards achieving EANnet Ready status as a priority. For more information on EANnet log onto www.gs1au.org/eannet. To discuss EANnet support through GS1 Professional Services, please contact Marcel Sieira or Jason Burnell at GS1 Australia on 1300 366 033.


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LINK Issue No.10 June 2006

Virtual training facility opened in Sydney business from the smallest SME to the largest multinational and is transferable across industries.

On Thursday April 27 GS1 Australia launched a new Supply Chain Knowledge Centre (SCKC) in Sydney. This award-winning training facility will provide the 5,000 GS1 Australia members located in the greater Sydney area with access to knowledge that will help them improve their information flows and trading efficiencies. The SCKC concept was first concept was first launched in 2003 with a fixed site in Melbourne. This has proved a great success with 56 organisations (2,200 people) utilising the facility in 2005. The value of this facility is that it can be tailored to mimic the supply chain of any

The concept is to demonstrate how the two supply chains – the information supply chain and the physical supply chain – can be linked and supported by GS1 Standards, working together to create integration between trading partners. Mastering supply chains can save significant wasted time and money and is vital to the success of any business. All programs can be customised to meet the operating environments of different industries or individual companies. The simulator can be configured to demonstrate supply chain process on a ‘what if’ basis, or from a ‘what is’ perspective. In this way the SCKC allows businesses to test alternative strategies, optimise operational performance, and train personnel all without the risks and costs associated with trying to experiment in the real world.

Organisations can select sessions to train managers and staff on specific supply chain issues. Current programs include ‘the Chain Reaction Program’ and ‘Standards in Action’, with programs demonstrating EPC/RFID and Traceability currently being finalised and due for release in the near future. The development of the GS1 SCKC has been an industry affair, with significant support from industry associations, government, corporations, and large and small service providers. For further information contact Patricia Slattery at GS1 Australia on 1300 366 033 or go to www.gs1au.org


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Scholarship winner makes a real difference to Rip Curl GS1 Australia scholarship winner Luke Merlo has his sights set firmly on a career in supply chain management. Luke won one of two $4,000 GS1 Australia half scholarships to study the Graduate Certificate of Information Systems at Deakin University in 2006.

These scholarships are part of an extensive education suite offered by GS1 Australia as part of its ongoing commitment to educating members about supply chain management and best practice information systems. This semester, Luke studied security management and information systems governance and global issues; next semester he will take courses in supply chain management and eBusiness processes and strategies. Luke started out working in information technology at Rip Curl Australia, until a newly appointed general manager saw the company needed to refine its supply chain management. Luke’s appointment as Rip Curl’s Supply Chain Planner came just as the company began a period of rapid growth and the development of a new 4000m2 warehouse at the company’s headquarters in Torquay.

“All this has enabled us to stay in Torquay, which is important to the company.” It has also given Luke the opportunity to develop some best practice supply chain processes and to apply some of the knowledge gained through his studies to his work situation. “It has been exciting to apply some of my work in tutorials directly to live projects,” he said. Luke’s long-term goal is a Masters in Information Systems and definitely to keep working in supply chain management. “Supply chain management is so interesting and challenging as it encompasses numerous disciplines,” he said. In July 2006 GS1 Australia will release Academic Offerings for study in 2007 and members are encouraged to apply. For more information, contact GS1 Australia on 1300 366 033.

“In the warehouse, Rip Curl has invested in radio frequency scanning, automated racking and replenishment systems, automated receiving as well as implementing direct shipping, freight forwarding to key accounts and using SSCC logistics labels,” Luke said.

Above: Under development, Rip Curl’s new warehouse in Torquay, Victoria.

Above: Luke Merlo - Winner of the 2006 GS1 Australia half scholarship


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LINK Issue No.10 June/July 2006

GS1 and University of Wollongong spread the word A partnership between the University of Wollongong in New South Wales and GS1 Australia will open up the possibility of students seeing how to use the GS1 System for an efficient and effective supply chain in real-life case scenarios. A memorandum of Understanding (MoU) was signed between the University’s Decision System Laboratory (DSL) and GS1 Australia two years ago. DSL is a leader in research in supply chain management, optimisation and methodologies. GS1 Australia’s Chief Information Officer Steven Pereira said the MoU

was part of GS1 Australia’s long-term strategy to grow awareness of the value of supply chain management.

System, including the GS1 Standards for bar coding and numbering, as well as the common identifiers,” he said.

“By signing the MoU with the University of Wollongong we have the opportunity to introduce further training and education to their students by utilising the new Sydney Supply Chain Knowledge Centre (SCKC). It is hoped in the future, with the approval of both GS1 and the University of Wollongong, to create an academic grant that will allow GS1 Australia members to study via a Graduate Certificate Course,” said Mr Pereira.

“We are continually building the relationship with the University of Wollongong and identifying new ways to work together, particularly collaborating on research projects to enhance our understanding of the standards and supply chain management environment,” Mr Pereira said.

“There may also be the opportunity to have industry placements so that students can work in real-life situations with organisations gaining more knowledge of the supply chain in action. This would benefit both the student and the organisation. This MoU is an opportunity to present future supply chain professionals with information relating to GS1 Australia and the GS1

Monash survey helps GS1 Australia deliver on-target training Australian supply chain managers have access to relevant, up-to-date training thanks to a joint study between GS1 Australia and Monash University. The findings of this study have boosted GS1 Australia’s ongoing commitment to train supply chain professionals in Australia.

Last year, GS1 Australia and Monash University undertook a study to examine the training needs of supply chain managers across Australia. It found that Australian businesses have considerable activity with foreign customers, suppliers and operations – a trend likely to accelerate with growing globalisation.

GS1 Australia offers:

This changing environment meant supply chain professionals need to broaden their experience, particularly in design and research and development. The study also found that less than one third of respondents had received appropriate training in supply chain management.

• Simulations of the supply chain in action at the state-of-the-art Supply Chain Knowledge Centre

As a result of this survey, the Education & Training team at GS1 Australia has refined its training for supply chain managers as well as constantly developing new education and training offerings.

See the report highlighting the results of the survey on the GS1 Australia website www.gs1au.org under the ‘Information Library’, then ‘Case Studies’ section of the website.

• Online training through LEARN • Face-to-face training through LEARN (in a classroom situation), formerly the GS1 Essentials • Specific training through its Knowledge 101 Series; and

A handy guide to the training on offer from GS1 Australia is available, charting the ideal progression of supply chain education for members.


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Matthews uses clean EANnet® data for label printing EANnet’s clean, reliable data for trading partners has found another use – for the printing of bar codes, use-by dates and labels.

A system devised by GS1 Alliance Partner, Matthews Intelligent Identification downloads data from EANnet fields into networking software, IDSnet, which in turn is fed directly to production line coders and labelling systems for product traceability. The benefits, says Matthews’ Mark Dingley, are very similar to those of EANnet for trading partners. “Traditionally, each in-line printer or coder is a stand-alone unit and production workers need to enter the data manually, which can lead to errors and possibly, product recalls,” he said. “We’ve extended EANnet’s capabilities so that manual entry is no longer needed and those errors are eliminated.” “Imagine you’ve got a chocolate bar production line. The production worker simply picks up the first chocolate and scans its bar code. IDSnet responds with a

description of the product and the worker confirms that it’s correct. From there, the system checks for the ‘day’s advance’ to generate a use-by or best-before date, which is then confirmed by the operator, and printing begins.” A similar process produces a print and apply label for cartons and because EANnet also contains information about pallet capacities, the same system can produce a Serial Shipping Container Code (SSCC) label. GS1’s John Hearn commented, “It’s great to see the value of EANnet being extended by this clever development. It demonstrates one of the many uses of clean, accurate and validated data throughout the supply chain”.

GS1 Australia Online Services: Industry information GS1 Australia’s Industry Engagement Program is geared towards helping Australian industries successfully adopt the GS1 System and globally recognised supply chain management strategies. Currently GS1 Australia is working with over 18 industry sectors; focusing on the day-to-day realities of each industry to ensure GS1 System adoption provides the support needed for each business and entire industry sectors to optimise their supply chain operations and improve business performance. Three of these industries, Automotive Aftermarket, Fresh Produce, and Liquor, now

have a centralised point on the GS1 Australia website for interested parties to access the considerable information available. Each Industry Sector page includes background information such as ‘industry status’, and who GS1 Australia is working with (such as the key associations, pilot programs, working groups and steering committees). There are also frequently asked questions and information about industry

events, and training sessions. Additional industry-specific information is provided such as Price Look Up (PLU) codes for Fresh Produce, or International Traceability Guidelines for Liquor. From the GS1 Australia homepage, go to Products & Services, then Member & Industry Support, then Industry Sectors.


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LINK Issue No.10 June/July 2006

CeBIT 2006 Event Wrap-Up

GS1 Australia celebrated its first year supporting CeBIT 2006 with the unveiling of an exciting new stand design which featured a massive three-dimensional seven-metre high bar code.

The stand ensured GS1 Australia’s presence stood out in the Supply Chain area where the focus concentrated on technologies involving Supply Chain Management: RFID; bar code systems, data capture; asset management systems, and point-of-sale systems. To create a one-stop shop of products and services for business technology and supply chain optimisation, GS1 Australia was joined by Alliance Partners: BCDS, Cedar Creek Company, Denso International Australia, GXS, IBM, Intel, Intermec, insignia, Matthews Australasia, Telstra, and Unisys. The result


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was a high volume of visitors attracted to the stand which formed a ‘mini-trade show’ within CeBIT. In addition to the stand, GS1 Australia and Alliance Partners caught the imagination and interest of visitors in the CeBIT theatrette: Fiona Wilson, GM Standards Development, presented on RFID/EPC, Marcel Sieira, Business Development Manager discussed data synchronisation amongst trading partners. A comment from a visitor attending the Theatrette summed it up perfectly, “the two sessions I attended

allowed me to understand in simple terms how to take my current supply chain management processes to the next level - improving my production efficiency and, most importantly, my profit margins”. CeBit Australia took place last month in May at the Sydney Convention and Exhibition Centre, Darling Harbour.


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LINK Issue No.10 June/July 2006

Wine Master says ‘cheers’ to traceability than 60 countries. It’s a truly global business operation. Mr Goodband is Consultant Master of Wine with Constellation Brands Inc and Chair of the International Committee on Wine Traceability Guidelines. Constellation Brands is the largest wine company in the world, with annual sales exceeding US$5 billion. It is a leading wine producer in the United States and in Australasia, and Britain’s biggest wine importer and distributor. Constellation Brands knows that it must be good at supply chain management, in fact very good. This is a company with 40 production facilities worldwide, ownership of famous wine labels (including Hardys in Australia and Nobilo in New Zealand), and a sales network in more

Supply chain systems have long had a high priority. Constellation Brands has been meticulous at continuously aligning product, location, order and invoicing information with the movement of goods, and with the needs of trading partners. In recent times, the company has begun putting greater emphasis on risk management in its supply chain processes and on product traceability.

Risk Management Recent food safety scares – BSE, the red dye Sudan 1 and illegal additives to name a few – have alarmed consumers worldwide and fuelled their questions: “What am I actually consuming?”, “Where has it come from?” and so on. Suppliers, retailers and regulators have responded, by tightening up on food labeling and traceability systems and by coming to the realisation that food safety is not a competitive issue. In 2002, the European Parliament responded to a shocking event of dioxin contamination in the human food chain by passing European Law 178:2002, often known as the EU Food Law. In response to this landmark legislation, the international wine and liquor industry set up a committee of experts to

establish a code of practice for traceability in the wine sector. Members of this working group included representatives from AFED (France), Allied Domecq, Distell (South Africa), E&J Gallo (Europe / USA), Henkell Sohnlein (Germany), Les Grands Chais (France), Waverley Group (UK) and WSA (UK), and also several representatives from GS1. One of the group’s biggest challenges was agreeing on a model for the industry that would adequately encompass all combinations of global supply chain “touch points”. Once these were modelled, a process for gathering information via automatic data capture (GS1 bar codes or EPC/RFID as appropriate)

Want a quick reference to the GS1 Australia Alliance Partners & EPCglobal Australian Solution Providers? Source everything you need to implement the GS1 System from our Alliance Partner Community. All Alliance Partners are accredited by GS1 Australia so members can be confident that their solutions are GS Standard compliant, proven & effective. GS1 Australia also has an EPCglobal Solution Provider Community who are helping to lead the development

of industry-driven standards for the Electronic Product Code™ (EPC) to support the use of Radio Frequency Identification (RFID) in today’s fast-moving, information rich trading networks. If you would like to know more about either of these partner communities a copy of the latest Alliance Partner or EPCglobal Solution Providers flyer, please contact Melissa Andrews on 1300 366 033.


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was outlined. This had to match the detailed record keeping often required for compliance with international best practices and/or local wine regulations.

Wine is a low-risk product in food safety terms compared to meat or seafood products. Nonetheless traceability requirements driven by consumers and regulators are all pervasive. Getting “ahead of the game” is not only good practice for companies like Constellation Brands but also good “butt protection”.

The Wine Traceability Guidelines have now been rolled out and for Constellation Brands, these provide:

To download a copy of the Wine Traceability Guideline, go to http://www.gs1au.org/services/ member/industry/_liquor.asp#traceability

• Enhanced inter-group communication

This article was kindly provided to GS1 Australia by GS1 New Zealand

• Enhanced speed of operation • Enhanced customer service • Consistency for global logistics • Greater accuracy for local distribution

• Greater efficiency, waste reduction • Wine authenticity

Above: Wine Supply Chain Process

New technologies such as EPC/RFID and global data synchronisation are expected to bring further visibility to the wine supply chain. Constellation Brands sees the Wine Traceability Guidelines as the catalyst for moving all industry participants towards a more efficient common trading platform based on global standards.

GS1 Australia Invoice and General Membership Changes System bar codes and numbering while accessing a multitude of member services. GS1 Australia will be issuing annual membership renewal invoices on July 1 2006. Membership fees for FY 2007 will take into account a 2% CPI increase, which is 1% lower than the market increase. Payment of this invoice will renew your GS1 Australia membership, allowing you to continue using the allocated range of GS1

Traditionally, the renewal tax invoice had two separate line items that detailed the cost for membership renewal type and administration renewal fee. As per the request of our members, we have consolidated the two line items and supporting costs for simplicity. An early settlement discount of 5% on the total invoice will continue to be honoured when payment is received within 30 days of invoice date.

GS1 Australia changes its mail box address Please be advised that GS1 Australia has now moved its mailbox from Oakleigh to Mt Waverley. We are currently in the process of updating our stationery and collateral. Don’t forget to update your records. Our mail box address will now be: Locked Bag 2, Mt. Waverley 3149


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LINK Issue No.10 June/July 2006

ALLIANCEPARTNERCASE STUDY

Givoni has the Supply Chain competitive advantage How it all works Using the IPT Data Management System, Pacific Network global logistics and freight forwarding, and GS1 Standards to underpin their supply chain processes, Givoni is in control and has full visibility of a supply line that spans several countries. Givoni is one of Australia’s largest producers of quality sleepwear and leisurewear – with 15 of their own stores as well as supplying Myer, David Jones, Harris Scarfe and more than 300 independent retailers throughout Australia and New Zealand. Much has changed in the Australian apparel industry since Givoni started in 1947 with a widening of international trading borders and reduction of tariff protection to local industry. It is vital for Givoni to remove unnecessary costs from their supply chain processes while meeting customer demands so they can maintain a competitive edge in the marketplace. The first step was moving their manufacturing and distribution offshore. Givoni then worked closely with IPT and Pacific Network to integrate the flow of information with the flow of physical goods to provide real visibility of their entire supply line. They can now view and manage their supply line from Australia, ensuring each step of the process happens on schedule and deliveries are on time.

1. A customer sends an order to Givoni either manually or via EDI (Electronic Data Interchange) using EANCOM® standards. . Givoni completes internal order allocations and the allocated pick slips are sent electronically to Pacific Network in South East Asia. 3. Pacific Network uses the electronic allocated pick file, which contains all the information needed including product data, to scan pick (using GS1 Bar Code Symbols) and pack the order. 4. Pacific Network then sends the Advance Shipment Notification (ASN) electronically to Givoni and on to the customer if required. Since streamlining their offshore supply line with IPT, Givoni has confirmed they have achieved a significant reduction in the supply line lead time with a one-week reduction into a five-to-six week cycle. “The process of offshore distribution has the potential to remove costs from our business as well as providing flexibility. With IPT providing a closed loop system we have comfort and the ability to roll out this solution,” said Mateja Rautner, Product Import Manager, Givoni.

Givoni now have a supply chain that: • Gives them a true cost saving • Can support compliance with major retailers • Has full visibility of stock position in the supply line • Gives confidence in knowing deliveries are on time • Is a true closed loop with integration physically and electronically a ‘one-stop’ logistics service

Pacific Network was a huge help with the project, as were GS1 members themselves and with several clients already using the GS1 System, they understood the benefits of taking the system beyond compliance and into competitive advantage by maximising supply chain efficiencies every step of the way. Pacific Network clients are saving approximately one-week in time as well as generating savings in supply chain costs of over 30%. Bruce Dowling, GM Supply Chain, Pacific Network said: “The Givoni supply chain is unique and, we believe, one of the first where Pacific Network as the Logistics partner has successfully integrated the physical logistics process with the information process flows to form a totally integrated supply chain.” IPT’s CEO, Tony Shuttleworth, added that: “The Givoni success story has been a result of a number of initiatives, with a key initiative being the ability of IPT’s supply chain management software to integrate with both the Givoni and Pacific Network information systems to form a powerful seamless information network.” IPT is a Strategic Alliance Partner of GS1 Australia providing supply chain management consultancy services and technology solutions.


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ALLIANCEPARTNEREditorial

Revolutionary low-cost data management system from Bizcaps of this system gives a company instant control over their data processes, significantly reducing errors and improving time-management.

Until now, an effective low-cost solution to data management for manufacturers and suppliers has been an evasive promise on the horizon. Bizcaps has addressed this obvious absence in the market by introducing the Eziform® system into their suite of products. Eziform is a simple to use and a low-cost alternative for data management. By using a familiar interface within an internet browser window, companies can quickly and easily set up their catalogue in the system and then publish to pre-configured recipients. In an industry where time is money, the intuitiveness

The benefits of Eziform are immediately obvious: • Low-cost • Simple to understand and use • Publishes to retailer forms • Familiar user interface As an entry to improved data management, Eziform is the ideal solution for many companies. And, companies using Eziform can quickly and easily upgrade to the Bizcaps Trilogy® system, which provides superior functionality for integrated data and process management, including the latest enhancement to the system, a Formulations Module for manufacturers.

This module allows companies to manage all of their formulations to easily meet with the requirements of Australian and US markets for packaging information. Learn more about the beneficial time-management capabilities of Bizcaps Eziform and the Bizcaps Trilogy system by contacting Bizcaps on 02 9571 9722 or email sales@bizcaps.com


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LINK Issue No.10 June/July 2006

GS1 Australian Alliance Partners – how fluent are supply chain solutions in speaking the global language of business? The new GS1 Australia Product Assessment Program will assist Alliance Partners and ultimately members to evaluate solutions for their compatibility with the GS1 System. Since the program’s introduction, two assessments have been carried out by GS1 Australia’s Professional Services team. “We have assessed Leadtec’s scan pack solution, ABS, as well as Pronto Software’s warehousing module,” said Georgia Blomberg, Senior Advisor of GS1 Australia Professional Services. Leadtec is a major provider of supply chain solutions, including EDI and GS1 XML integration services, scan pack solutions and EANnet data synchronisation middleware. Pronto Software is an international provider of fully integrated enterprise management systems. Both Leadtec and Pronto Software are certified for EANnet v3.6.

Through the Alliance Partner program, GS1 Australia fosters closer working relationships and collaboration on supply chain projects. The new Product Assessment Program will complement those already strong connections, according to Ms Blomberg. “We’re now drilling down to the next level - a deeper understanding of how partners’ products utilise the standards, process and business implications,” she said. “The GS1 Product Assessment Program aims to achieve a good understanding of partners’ products, particularly with respect to their usage of the GS1 Standards and to provide supplementary information about the supply chain processes they support. “At the same time, partners will become aware of how their products may limit or restrict full utilisation of the standards and this information will boost product research and development. The business benefit to partners will be that GS1 Australia-assessed products will be made more visible to potential customers.” Leadtec’s Business Development Manager Kel Needham said the program worked well for Leadtec.

“We felt if GS1 Australia reviewed how we implemented the GS1 Standards for EDI and bar coding, our product would have greater value in the marketplace,” he said. “Also, the feedback we got indicated we needed to make some changes that could only improve our product. In fact – we made some minor changes and ended up with a better product. It is a very good process.” The program is a complementary service offered to GS1 Australia Alliance Partners. Product assessment reports may only be provided to a GS1 Australia member who has specifically enquired about a product of that type. Product assessments will not be made public, but would be made available in agreement with partners on a case-bycase basis. For more information please contact GS1 Australia on 1300 366 033.


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Spotlight on GS1 people: Andrew Steele

Event Diary Andrew Steele joined GS1 Australia in September 2001, working his way up from Account Executive to Manager – Industry Services, within the Member & Industry Support Team. His favourite part of the job is getting out and speaking face-toface with members, rather than sitting behind a desk all day. This is just as well as Andrew has travelled to every capital city across Australia, working directly with members through education and training seminars, on-site visits, industry work groups and steering committees, and industry conferences. Andrew is particularly proud of the work he has done in the Meat Industry where he was involved with the Paddock to Plate traceability project and guidelines. “The most exciting thing is seeing a member use the GS1 System beyond trading partner compliance and start to get some real benefits within their own business supply chain processes,” he said. “The biggest challenge”, he says, “is in trying to meet both the member service needs and that of all 18 industry verticals that the Member & Industry Support Team looks after. There never seems to be enough hours in the day.” With much of his time spent out of the office, Andrew is quick to point out how family-orientated GS1 Australia is: “It’s a great company to work for.” This is also appreciated by Andrew’s wife and two young daughters. Outside of working hours Andrew relaxes by spending as much time as possible with his family, playing cricket and watching “any kind of football code”.

The following list outlines the events leading up to October 2006. Keep an eye out for further event listings in the next edition of the Supply Chain LINK newsletter or visit the GS1 Australia Events website www.gs1au.org/events for current details on seminar dates, times and locations. Education & Training Road Shows • June 20, October 24

Melbourne

• June 22

Adelaide

• June 27

Perth

• October 17 Sydney • October 19

Canberra

For further information please visit www.gs1au.org/education/ road_show or call GS1 Australia on 1300 366 033. GS1 Australia Conference, Impetus 2006 • July 25 & 26

Hotel Sofitel, Melbourne

For further information please visit www.impetus.gs1au.org or call GS1 Australia on 1300 366 033. EANnet® Seminars • August 14

Brisbane

• August 15 Sydney • August 16

Melbourne

• August 17

Adelaide

• August 18

Perth

For further info please visit www.gs1au.org Retail Business Technology (RBT) • September 20, 21 & 22

Melbourne Exhibition Centre

For further information, please visit www.retailexpo.com.au

This is the latest information available at Supply Chain LINK’s publication deadline. Above: Andrew Steele


MELBOURNE JULY 25-26 SOFITEL HOTEL

DISCOVER LEARN CONNECT DISCOVER HOW TO IMPROVE YOUR SUPPLY CHAIN PRACTICES. GS1 WILL HELP YOU LEARN AND IMPLEMENT SAVINGS. CONNECT WITH GS1 AT IMPETUS 2006 FOR A SMARTER SUPPLY CHAIN. At Impetus 2006 you will hear from experts from around the globe, hear local case studies, and see live demonstrations when you visit the Expo. You will walk away armed with the best supply chain tools of the trade.

Imagine that! Impetus 2006 offers your business: • Assistance to achieve an efficient, compliant, cost effective supply chain • The latest developments in supply chain technology including RFID & Data Synchronisation • Real case studies: SME’s in the supply chain - small companies doing big things • Panel experts discuss the most pressing supply chain issues • An expo featuring supply chain enabling solutions from over 25 GS1 Alliance Partners

To pre-register, visit www.impetus.gs1au.org or call Rebecca Owen on 03 9550 3415.

Platinum Sponsor:

(Formerly EAN Australia)

Head Office Axxess Corporate Park Unit 100/45 Gilby Rd Mt Waverley VIC 3149 Locked Bag 2 Mt Waverley VIC 3149 T +61 3 9558 9559 F +61 3 9558 9551

Gold Sponsors:

Sydney Office Lakes Business Park Building 4B, 2-4 Lord St Botany NSW 2019 Locked Bag 7002 Botany DC NSW 2019 T +61 2 9700 0933 F +61 2 9700 0820

National Number: 1300 366 033 ABN: 67 005 529 920 www.gs1au.org


GS1 Australia LiNK magazine - Issue 10