LINK ISSUE NO.11 September/October 2006
Contents Chairman’s message CEO insights RSS Sunrise: A Brighter Future Impetus 2006 wrap up Cutting edge EPC/RFID pilots Acknowledging GS1 champions
Chairman, GS1 Australia, Russell Stucki
GS1: User led and governed
Economics expert warns Impetus delegates on commodity price risks RFID in action at Impetus Healthy start to National Product Catalogue New Single Number Membership Case Study: Supply chain change takes The Warehouse to world-class success Customer value drives Coles data synch project Coles Group Limited and GS1 celebrate 300 EANnet Ready™ suppliers being declared ‘Coles Live’ Coles Myer Liquor Group announces revitalised EANnet® Project GS1 Australia – representing your interests globally GS1net™ heralds new generation of data synchronisation Ansell Professional Healthcare NPC Ready for NSW and WA Health Member Support: Your key to supply chain success New Member Pack, instant success! Call to action for the Australian fresh produce industry GS1 CEO joins Starlight Foundation Advisory Board GS1 Australia Wins Business Excellence Award
As a global organisation, GS1 is governed by a management board of international business leaders and drivers such as DHL, Nestlé S.A, Unilever PLC, Johnson & Johnson, Procter & Gamble, Metro AG, and now GS1 Australia. Together, these organisations ensure GS1 is user led. At the GS1 2006 General Assembly, in May this year, our CEO Maria Palazzolo was appointed to the GS1 Management Board. This significant achievement acknowledges Maria’s considerable expertise and leadership and will provide GS1 Australia members with a stronger voice in the development of global, multi-industry standards. The other major announcement was the appoinment of a new Chairman of the GS1 Board. After a long and successful run, Tim Smucker, also Chairman and CoChief Executive Officer of the J.M. Smucker Company, has stepped aside to focus on other professional and personal interests.
Since his appointment as Chairman in 2003, Tim has focused the Board on strengthening GS1’s global position – uniting the GS1 organisations’ brand and providing leadership vision in innovating our core product offerings. Tim’s passion and commitment to the GS1 organisation are legendary and will continue to provide inspiration as an active member of the GS1 Management Board. The new chairman of the GS1 Board of Governors is Daniel R Wegman. Daniel is CEO of Wegmans Food Markets, Inc., a leading supermarket chain and one of the largest private companies in the US. GS1’s Board is heavily reliant on the quality and timeliness necessary for a dynamic GS1 community. A new chairman brings new ideas and different ways of seeing things. I look forward to future GS1 developments and the valuable visions and insights that I am sure Daniel will share with us.
2007 Academic Grant Program: Now Open GS1 System User Manual: Updated & Released on CD GS1 Australia and APICS join forces Come join our GS1 Road Show Country Road gets interactive Pharmaceutical industry project continues momentum Spotlight on GS1 people: Diem (Yim) Nguyen GS1 Event Diary
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 firstname.lastname@example.org
CEO Insights Global Interconnection CEO, GS1 Australia, Maria Palazzolo
The General Assembly is the annual gathering of more than 300 GS1 Member Organisation representatives and a special occasion for everyone. It is a time of formal plenary sessions and board meetings, a time of great sharing and learning from the experiences of other countries, and a time of leveraging the diversity of GS1â€™s makeup to generate new working relationships. GS1 is about global collaborative commerce. This was reinforced through the topics dominating proceedings: Electronic Product Code (EPC), global data synchronisation, traceability, new GS1 System standards, and business-to-business supply chain management trends. As the most plausible model for global supply chain interconnection around the world, the GS1 System of standards continues to evolve to support the increasing demand for supply chain visibility and control. The recent announcement of the Reduced Space Symbology (RSS) bar code being accepted as a global open (unrestricted) standard is testimony to addressing the supply chain challenges of industry. Among other advantages, this bar code will provide an option for trading partners looking to access more advanced data. See our special RSS report on pages 4 and 5 to see how you can benefit from this announcement. Back home, the topics discussed at Impetus 2006 mirrored many of those at the General Assembly, underscoring the strong understanding Australian businesses have of international trends. The conference and expo was a great success and I hope the jump in attendance this year is testament to a growing awareness of the direct correlation
between how supply chain processes are managed and business performance. I would personally like to thank all our speakers, many of whom travelled great distances to share their experiences and knowledge with us. Impetus 2006 was about discovering new ideas, learning how they work, and connecting them to our roles and businesses and where they sit in the supply chain. Along with updates of Australian and international supply chain activities, we also launched the worlds-first EPC Network Australian Demonstrator Project Report, which has received plenty of international and local interest. See pages 8 and 9 for further information about this. As well as celebrating the next generation of supply chain champions, four awards were given, two for the GS1 Academic Grant and two for Supply Chain Excellence. This is an oppotunity for GS1 Australia to recognise those rare individuals and companies who understand the importance of the GS1 System and globally accepted standards, volunteering countless hours in developing, implementing and promoting supply chain excellence. Congratulations to the two Academic Award winners, Luke Merlo, Rip Curl Australia and Angela Reid, Unique Micro Design as well as our Supply Chain Excellence Award winners, Australian Country Choice and Daniel Kochanowicz, Woolworths. Impetus will be back in 2008, so please secure April 10th and 11th in your diaries, it will be an event not to be missed.
LINK ISSUE NO.11 September/October 2006
RSS Sunrise: A Brighter Future
GS1 has announced a global sunrise date of January 2010 for all scanning systems to read Reduced Space Symbology (RSS) bar codes on any trade item.
In brief, there are three groupings and seven symbols in the RSS family: Group 1 RSS-14 and RSS-14 Stacked Omnidirectional: these are less than half the size of an EAN/UPC bar code. They work at retail point of sale and can carry 14 numeric characters and the GTIN, making them ideal for items such as loose produce. Group 2 RSS Expanded and RSS Expanded Stacked: these are roughly the same size of an EAN/UPC bar code. They can carry up to 74 numeric or 41 alphabetic characters, an SGTIN (GTIN + Serial Number) and work at retail point of sale, making them ideal for variable measure products. Group 3 RSS-14 Truncated, RSS-14 Stacked and RSS Limited: these are the smallest in the RSS family. They can carry 4 numeric characters and the GTIN but are not omnidirectional and won’t work at retail point of sale. They were designed for items too small for any other bar code, such as healthcare items.
This adoption date sets the goal for all trade item bar code scanning systems to be capable of reading RSS bar codes and handling GS1 Application Identifiers (AI) by 2010. While scanning systems must be able to understand AI’s, the choice to use the additional data is at the discretion of individual organisations.
“This represents a natural evolution for bar codes to support the increasing demand for supply chain visibility,” says Maria Palazzolo, CEO of GS1 Australia. “The RSS is the first bar code to be endorsed by GS1 for global, open (unrestricted) trade item identification since the EAN/UPC bar code was adopted globally in the mid-1970s.”
Despite their smaller size, the RSS symbologies are deceptively powerful and represent a breakthrough in theory and design. These new symbols print and scan well, carry more product information, and complement existing technologies and applications.
RSS was designed by GS1 Symbologists to answer the business needs of GS1 members in the fresh produce and healthcare sectors however, RSS can also help organisations comply with growing global concern over traceability, bioterrorism and increased international regulations for the establishment and maintenance of records.
It is expected that expanding the availability of RSS bar codes will open the door for identification solutions that support product authentication, traceability and quality. In addition, RSS can provide trading partners with access to more advanced data, making it an excellent migration path towards Electronic Product Coding (EPC) for retailers that may move to RFID in the future.
International RSS Pilots The North American RSS Pilot Team, launched in January 2006, includes more than 50 retailers, suppliers, industry associations, and technology firms. They are currently piloting RSS implementation in fresh produce and meat/poultry with the results expected at the end of the year. Criteria for success will include scan rates, shrink reduction, and faster, more accurate self-scanning. The size of the traditional EAN/UPC bar code makes it impractical for loose fruit and other produce, resulting in the use of Price Look Up (PLU) numbers which are hand-keyed by cashiers. This process is subject to human error and provides only generic and limited product information. With variable measure products like meat, poultry, deli, or seafood, the EAN/UPC bar code can only encode the commodity code (e.g. Rump Steak) and price on the bar code. Like produce, the information is limited and prevents supermarket operators from achieving full implementation of Category Management. The North American RSS Pilot Team expects RSS to achieve more accurate data, leading to out-of-stock anticipation, shrink control, product rotation knowledge, consumer confidence, Category Management, measurement of promotions, identification of country of origin, and linking RSS labelled items to data synchronisation.
Next Steps 1. GS1 Australia is closely watching the results from pilots in other countries and will be representing the needs of Australian businesses as part of the GS1 RSS Global Task Force to develop specific implementation guides for retailers and fast moving consumer good manufacturers. 2. The GS1 Australia Member & Industry Support team is working closely with several industry groups expected to be interested in RSS, including the healthcare and fresh produce groups.
3. The Australian Produce Identification Committee (Aus-PIC), formed in 2005 with the specific aim of enhancing GS1 standards to support the Australian fresh produce industry with adoption, will be discussing the impact of the RSS sunrise2010 announcement at their next meeting in October 2006. This group includes representatives from Horticulture Australia Limited (HAL), Woolworths, Metcash, Coles Grocery, Montague, Avocados Australia, and Panda Ranch as well as GS1 Australia. 4. Australian retailers are expected to start assessing their state of readiness and determining internal priorities for RSS deployment over the next three years. Retailers that have upgraded their Point-of-Sale (POS) equipment in the last three to four years should already be RSS compatible or able to easily upgrade existing equipment.
There are no plans to discontinue the EAN/UPC bar code. Brand owners will have the freedom to move to RSS, if they choose to, when redesigning packaging or designing new products for market. “Initial feedback from brand owners and packaging designers on RSS bar code symbology is encouraging and we anticipate this new symbol will have a major impact on future packaging trends,” said Maria Palazzolo. GS1 Australia’s bar code verification service is already capable of supporting members through the verification of RSS bar codes against international guidelines and specifications. For further information on RSS Bar Code Adoption see the GS1 Australia website www.gs1au.org or contact the Member & Industry Support Team on 1300 366 033.
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Latest technology excites delegates at Impetus 2006 More than 480 supply chain professionals gathered in Melbourne on 25th and 26th July at Impetus 2006 to learn about the latest research, trials and trends that are transforming supply chain management.
The theme for GS1 Australia’s Impetus 2006 conference was ‘Discover. Learn. Connect’ and keynote international and Australian speakers addressed a wide range of supply chain topics sharing global perspectives and local case studies with conference delegates. Between sessions, delegates took the opportunity to connect with like-minded colleagues, holding animated discussions and chatting to supply chain solution providers. At the start of the conference, GS1 Australia CEO Maria Palazzolo told delegates GS1 Australia was totally committed to global standards and service, including education and professional assistance for business. “The GS1 System is a very strong foundation to build your business on. Once you have this base you can reach for the stars, and GS1 will be there to support you,” she said. The conference was officially opened by the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, who addressed delegates via video link. Master of Ceremony, comedian Jean Kittson, then mused delegates with jovial Radio Frequency Identification (RFID) technology inferences, while on a more serious note, speakers such as Chris Adcock, President, EPCglobal, and Sally Herbert, President, GDSN discussed global RFID and data synchronisation activity.
Above: MC Jean Kittson
Leading economist Chris Richardson discussed the outlook for the economy and consumer spending, warning retailers to keep an eye on commodity prices and Ian Reinecke, CEO of the National eHealth Transition Authority, outlined the Government’s Healthcare reform agenda. Ms Palazzolo presented the GS1 2006 Supply Chain Excellence Awards and Steven Pereira, Chief Information Officer, GS1 Australia presented two Academic Scholarships. The first day finished on a high note with the launch of the Electronic Product Code (EPC) National Demonstrator Project Report. Jointly managed by GS1Australia and the Commonwealth Scientific and Industrial Research Organisation (CSIRO), the project
was a world-first trial of RFID technology along an entire supply chain in Australia’s fast-moving consumer goods sector. The report was officially presented to Lindsay Barton, General Manager - ICT Development, Department of Communications, Information Technology and the Arts (DCITA) at the exciting cocktail event where a highflying aerial artist and dancers entertained the crowd with spectacular acrobatics before Maria Palazzolo acknowledged and applauded the key players in the project. On the second day, delegates heard detailed case studies from Australian and New Zealand businesses that are implementing the GS1 System and trialling EPC/RFID systems. Sectors represented included retail, information technology, the automotive aftermarket, freight and logistics. The day finished with a challenging and lively panel session on traceability. The Impetus Expo, run in conjunction with the conference, showcased more than 30 GS1 Australia Alliance Partners and associates. A highlight of the Expo was the hands-on demonstration of RFID technology using RFID-tagged toy trucks and a range of prizes for conference delegates. The Impetus Expo Theatre, adjacent to the exhibition, proved popular with delegates looking for in-depth information from solution providers. A two-day program of targeted and technical seminars covered emerging technologies and supply chain solutions and gave delegates the opportunity to interact with senior executives from technology companies. Impetus 2008 will be held in Melbourne on April 10th & 11th 2008. Mark this important date in your diary!
Above: Traceability panel session
Below: Impetus 2006 Delegates
Above: Chris Adcock, President, EPCglobal
Impetus 2006 Platinum Sponsors
Above: Sally Herbert, President, GDSN
Impetus 2006 Gold Sponsors
Above: Spectacular entertainment at the conclusion of Impetus Day 1 proceedings
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GS1 Australia takes the lead with cutting-edge pilots It is expected to be referenced, not only by Australian small to medium enterprises and large businesses, but also internationally.
GS1 Australia has taken a lead role in trialling new technology in the supply chain with two cuttingedge pilot projects. EPC NetworkTM National Demonstrator Project (NDP) The high-profile National Demonstrator Project Pilot, led by a consortium including GS1 Australia, involved a trial of Radio Frequency Identification (RFID) and Electronic Product Code (EPC) technology across an entire supply chain. This world-first trial, with a syndicate of manufacturers and retailers in Australia’s fastmoving consumer goods sector, including, Chep, Australian Food and Grocery Council, Capilano, Gillette, Linfox, Metcash, Procter and Gamble, Nugan Estate, Verisign, Visy and Sun Microsystems, which involved tracking the exchange of ownership and the movement of products through the supply chain from manufacturer to retailer. A report on the pilot released at Impetus 2006, handed to Lindsay Barton, General Manger – ICT Development, representing the Department of Communications, Information Technology and the Arts (DCITA), that funded the year long $200,000 pilot. The report details in length the challenges, learnings and benefits of RFID technology and the use of the entire EPC Network between brand owners, packaging suppliers, retailers, third party logistics and returnable asset suppliers.
Fiona Wilson, General Manager, Standards Development, GS1 Australia, told Impetus delegates the learnings were applicable across all industry verticals. “A single set of global standards is key to reducing costs and providing benefits through greater efficiencies, visibility, information timeliness and accuracy,” Ms Wilson said. While much current information on RFID technology relates to retailers’ successful implementation of EPC/RFID systems, the project also was able to demonstrate benefits for manufacturers.
“Going forward, Procter & Gamble will continue to support industry learning in EPC/RFID and building on what we have learned through the National Demonstrator Project pilot,” he said. Dr John Mo from the CSIRO said the project demonstrated how electronic information could help Australian companies do business globally. “This was the first demonstration in the world involving multiple partners along a single supply chain and this, in itself, was a challenge.” In summing up his advice for companies wanting to commence RFID trials, Dr Mo said “Keep it simple. Make sure you understand every part of the chain of activities before you start. The cooperation and commitment of everybody involved really increased the benefits from EPC Network implementation.”
The report said the National Demonstrator Project Pilot successfully demonstrated that: • A single set of global standards reduces time and saves money • Cross-functional teams make implementation easier and give participants greater benefits • Internal knowledge is critical to success “Participating in the National Demonstrator pilot gave consortium companies real life experience with RFID meaning they are well prepared should RFID mandates become a reality,” Ms Wilson said.
Above: CEO GS1 Australia, Maria Palazzolo presents the EPC National Demonstrator report to DCITA,ICT Development General Manager, Lindsay Barton
Procter & Gamble’s, RFID Project Manager, Bruce Grant told Impetus 2006 delegates that because the EPC Network touched every part of a business, it was important to have support from the most senior executive level and to pull together a cross-functional team.
Above: Duracell batteries being read at production line EPC Network National Demonstrator Project Consortium Partners
Patties/Montagues EPC/RFID Pilot Case Study A second EPC/RFID pilot project, lead by the GS1 Professional Services team, was conducted between food manufacturer Patties Foods and Montague Cold Storage. Believed to be the first trial ever to take place in freezers, second generation EPC tags were used to track the movement of pallets from Patties’ production facilities into Montague’s warehouse. The trial was also one of the first to use all the elements of the EPC Network to enable sharing of data between all business partners using the EPCglobal standards. GS1 Alliance partners Matthews Australasia and Verisign also participated in the pilot.
“GS1 are the experts. Definitely contact them to find out what’s been done with other businesses, and plan a way forward with their Professional Services team and Alliance Partners.” Montague Cold Storage Director Peter Quinn said his company intended to be an early adopter of the technology. “Montague Cold Storage views the introduction and use of innovative technologies such as EPC/RFID to be one of the crucial competitive differentiators in our industry,” he said.
GS1 Australia’s John Hearn, General Manager – Business Development and Professional Services, said: “We saw this as a great opportunity to gain valuable implementation experience with these new and emerging standards. Based on the international momentum EPC/RFID was gaining, a key objective was to use this pilot as a foundational learning, which we would then build on and share with our GS1 members, customers and business partners.” Joe Rettino, Patties Foods General Manager (Purchasing and Supply) said the pilot had given Patties a valuable insight. ”Patties can see enormous benefit from EPC/ RFID technology, particularly the visibility of bringing new products to market,” he said. “This additional information available will allow us to identify and reduce bottlenecks in our extended supply chain, as well as the elimination of manual scanning will lead to an improvement in Occupational Health and Safety (OH&S) practices, which benefits everybody” said Mr Rettino. Patties / Montagues EPC/RFID Pilot Case Study Consortium Partners
Phillip Biggs, Matthews National Sales and Marketing Manager concluded, “The pilot was a great success. It proved that the current EPC Gen 2 standard is very robust for supply chain improvement projects. We were very pleased that our IDSnet software solution was well suited to this important application.” To download a copy of either of the case studies please visit the GS1 Australia website www.gs1au.org or to discuss opportunities to implement the EPC/RFID standards please contact John Hearn or Marcel Sieira at GS1 Australia on 1300 366 033.
LINK ISSUE NO.11 September/October 2006
Acknowledging GS1 Champions The annual GS1 Supply Chain Excellence Awards for 2006 are presented at Impetus 2006 – the recipients being one individual and one company who leave no doubt, through their commitment and actions, that they are champions of the GS1 System and positive change agents within their respective sectors. Maria Palazzolo, GS1 Australia’s CEO who presented the awards said “It is vital we celebrate and acknowledge these rare individuals for their ability to recognise something that needs to be understood, and then helping others to understand it”. The winners accepted the unique awards with great pride and emotion as the 480 strong delegate crowd applauded in recognition.
Winner - The 2006 Award for Standards in Action: Australian Country Choice (ACC) Criteria for the 2006 Award for Standards in Action included evidence of consistently promoting GS1 System awareness, comprehensively implementing and using the GS1 System, flow-on adoption of the GS1 System among their partners, and showing a wide understanding of the GS1 System among staff. “Australian Country Choice are one of the most innovative meat production and processing companies in the world,” said Maria. “They have driven the adoption of GS1 standards and have engaged the services of GS1 Australia to raise knowledge of the standards among staff and trading partners. “This award recognises the contribution of ACC as a catalyst for change and supply chain improvements within the fresh meat sector. They first piloted GS1 standards more than six years ago, trialling EDI using EANCOM for retail ordering, back to retail/shelf ready meat manufacturing, and cold chain distribution,” Maria Palazzolo continued.
Above: David Foote, CEO, ACC accepting award from Maria Palazzolo.
On accepting the award David Foote, Chief Executive Officer, ACC, said “Traceability across and along the supply chain is no longer just a feel good or target – it’s a business imperative. Incorporation and implementation of GS1 System bar codes and EPC/RFID standards, along side DNA capture technologies provide a solid platform for food safety outcomes and business management from logistics to production, to inventory management and, management of reporting.” Foote acknowledged Fred Vilonel, Information Technology Manager, and Paul Gibson, Manager - Research & Development and their significant contribution. ACC were involved in the EAN/National Livestock Information System (NLIS) project involving multiple EANCOM messages; and featured in a meat traceability process flow promotional CD, showing how the GS1 system and DNA markings provided track forward and trace back in the meat supply chain.
Above: The unique GS1 Supply Chain Excellence Awards
More recently, they commissioned Australia’s newest and Queensland’s first, “state of the art” Retail Ready or modified atmosphere fresh meat packing facility. Built at a cost of around $50million, the facility will have the capacity to produce 1.5 million tray packs of meat per week and create new employment opportunities for 300 staff. The facility has a high level of new technology integration including robotics and RFID.
Winner - 2006 Leadership in Standards Award: Daniel Kochanowicz, Woolworths “I was significantly impressed by Kochanowicz’s commitment when we were assessing the nominations for this award,” said Maria Palazzolo. “He has raised the bar in terms of contributions made in championing the benefits of GS1 standards, and we would be hard pressed to find anyone in Australia more involved in global standards development.” Judging criteria for Leadership in Standards Award included the promotion of GS1 Australia, engaging GS1 in the development of standards within their industry/sector/ organisation, influencing the adoption of the GS1 System in a company, and being involved in GSMP (Global Standard Management Process) work groups. Maria pointed out that Kochanowicz’s considerable work load in standards development was voluntary, his achievements including the development of standards for use-by dates and ‘out of case marking’. On presenting the award, Mrs Palazzolo read out a short message from Woolworths
Chief Operating Officer, and soon to be Chief Executive Officer, Michael Luscombe to congratulate Kochanowicz. “Congratulations for receiving the 2006 Leadership in Standards Award. From the times when we worked together in the Woolworths Supply Chain, I know how much personal effort you have put into this work and the results it has delivered in enabling our trading partners to support Woolworth’s supply chain initiatives. This award is well deserved and I am proud and delighted to hear that it has been awarded to you. On behalf of Woolworths, I want to thank you for your ongoing efforts in representing Woolworths and the Retail Industry to develop these important standards.” Kochanowicz is currently co-chair of the GSMP PTRG (Global Standards Management Process Physical Technical Requirements Group) and an active member of the Global Users Leadership Group. Activities for these groups include regular international meetings, usually held between the hours of 11pm of 3am. An emotional Kochanowicz accepted the award, thanking his wife for her support and making him coffee in the very early hours of the morning while he chaired and participated in international teleconferences and meetings.
Above: Daniel Kochanowicz, Business Development Manager eBusiness, Woolworths, accepts award from Maria Palazzolo.
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LINK ISSUE NO.11 September/October 2006
Economics expert warns Impetus delegates on commodity price risks Falling commodity prices could prove a key risk to retail spending in Australia, Director of Access Economics, Chris Richardson, warned delegates at Impetus 2006. Mr Richardson, a keynote speaker at the conference, is one of Australia’s best known economists, having worked at the Federal Treasury and the International Monetary Fund. Speaking on the Outlook for the Economy and Consumer Spending, Mr Richardson said there was a tug of war between the Federal Government, which had given Australians very generous tax cuts, and the Reserve Bank, which was raising interest rates.
“Thanks to an industrial revolution in China and India, which represent 37 per cent of the world’s population, the lift in commodity prices has been remarkable. Higher commodity prices have driven the value of the Australian dollar higher. The world gave us a pay rise with perfect timing. “Real growth has slowed since housing prices peaked, but the commodities boom means the world is pumping more than $40 billion of extra income into Australia each year. “The Federal Government is benefiting from that commodities boom – and recycling the resultant revenues into tax cuts. Its 1 July tax cuts delivered $9 billion annually into people’s pockets and so the average person is ahead despite the recent rise in petrol prices and interest rates. “Prior to this there had been a pretty solid slowdown in retail, but we expect the recovery to kick in fast on the back of the tax cuts. It is true that the Reserve Bank has raised interest rates
Below: Chris Richardson has a laugh at Impetus 2006 with MC Jean Kittson
twice – and that rate rises are a double whammy to retail prospects,” he said. “Even so, Australia has commenced retail recovery in 2006, and economists think there will be even better news in 2007,” he said. “Australia’s commodity producing states will dominate retail growth in the next five years.” However, Mr Richardson warned that if commodity prices fell, the Australian economy would slow. “Eventually, supply will catch up with demand and commodity prices will head back down, leading to a tougher business environment. We could be facing a similar slowdown to the one New Zealand has had,” he said. “My advice to retailers is to keep an eye on those commodity prices.”
RFID in action at Impetus
Delegates to Impetus 2006 enjoyed a handson introduction to radio frequency identification (RFID) with an innovative and fun demonstration that gave them a chance to win prizes. On registration, Impetus attendees were given a novelty toy truck with a class 1 Gen 2 EPC Radio Frequency Identification (RFID) tag on it. Inside the Impetus Expo, attendees were directed by a set of bright orange arrows to a “loading-dock” scanner at the Matthews Australasia stand. Matthews, a GS1 Australia Strategic Alliance Partner, has developed expertise in supply chain applications of EPC-compliant RFID technology and was involved in the cuttingedge RFID pilot with Patties Foods lead by the GS1 Australia Professional Services team.
At the Matthews stand, an RFID scanner read the tag on the truck the unique EPC serial number stored in the tag was then recorded in the EPC Information Service (EPCIS). Attendees were then directed to the GS1 Australia stand which also represented a loading dock, where a RFID scanner read the truck’s tag to see if they were one of the lucky winners of a range of prizes. “The EPC/RFID demonstration at Impetus was a great success. It provoked a great deal of discussion and interest from attendees wanting to know more about the new EPC standards for RFID,” John Hearn, General Manager - Business Development & Professional Services, GS1 Australia, said. The aim of the demonstration, developed by GS1 Australia supported by Alliance Partner Matthews Australasia, was to promote EPCglobal, RFID and the concepts of scanning RFID tags and of serialised numbers. It also demonstrated the ability to ‘look up’ an EPCIS Database.
“The process demonstrates that exchange of ownership and the movement of products can be tracked and monitored and that a process can be enforced. The collection of a prize was recorded in the EPCIS, so we knew at which location and time the delegate claimed their prize,” Mr Hearn said. The demonstration concept was developed as a learning tool incorporating similar elements of the Patties / Montague EPC/RFID case study. A big thank you to Matthews Australasia for developing the software, Alien Technology for the RFID tags, Electrocom for the RFID readers and Patties and Montagues for donating prizes.
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Healthy start to National Product Catalogue Data entry for the National Product Catalogue (NPC) has commenced with the aim of having suppliers’ product information available from July 2007 said NEHTA Chief Executive Officer Dr Ian Reinecke at Impetus 2006. The National E-Health Transition Authority (NEHTA) is leading the effort to transform supply chain management within Australia’s public healthcare sector. The NPC is hosted by GS1 Australia on their data synchronisation solution, EANnet ®, and incorporates the Australian Catalogue of Medicines (ACOM). “Our goal is to ensure that individuals and healthcare providers have a single national source of item master data for healthcare product information,” Dr Reinecke said. At a time where the healthcare sector is under considerable pressure to decrease costs, the NPC is expected to save the sector up to $200 million per annum.
“Current paper-based processes can lead to ordering errors, cumbersome updating procedures, slow product recalls, poor tracking and inventory management and long lead times for the introduction of new products. All this poses a risk to patient safety. “The benefits of the NPC to suppliers include improved product visibility, improved inventory information and ensuring pricing information is secure and only available to supplier-nominated trading partners. “Patients will also benefit from the NPC by enabling swift product recalls, identification of medications, and precise medical device tracking, allowing outof-date or missing stock to be efficiently located and replaced before it becomes a patient safety issue” Dr Reinecke said. Australia’s leading suppliers have already registered for the NPC and have begun the process of completing their NPC projects. Mario Carniato, e-Business Supply Chain Manager, Kimberly-Clark Australia strongly endorsed the NPC as did Peter Kelly, CEO Clifford Hallam Healthcare (CH2). A range of seminars and training sessions have already been held in Melbourne and Sydney for healthcare suppliers. Many more sessions are also planned over the next 12 months to assist suppliers understand the NPC process.
GS1 Australia’s Manager, Business Development, Marcel Sieira said: “We are thrilled to start engaging healthcare suppliers for the NPC, and expect a busy 12 months ahead. We’re geared up to assist our member companies with their projects. ”It will typically take between three and six months to complete NPC implementation, companies are encouraged to start the process as soon as possible,” he said. For more information on the NPC, download your copy of the GS1 Australia and NEHTA brochure at www.gs1au.org or contact Marcel Sieira on 1300 366 033.
Testimonials “We strongly endorse the NPC. Without accurate data internally, and synchronised externally, purchasing, inventory management, billing, product tracking etc continually fail. There are errors and delays which need to be repetitively fixed and some can impact patient safety. The NPC will help our business processes to execute flawlessly – first time every time, and that is the definition of excellence. “ Mario Carniato eBusiness Supply Chain Manager, Kimberly-Clark Australia “Clifford Hallam Healthcare (CH2) strongly endorses the NPC as a central source of product, pricing and medicines information for the Healthcare Sector. As the leading provider of healthcare logistics solutions in Australia, CH2 believes that the ability of our industry to bring about efficiencies in supply chain management and embark on collaborative programs, relies on the timely exchange of up-to-date, complete and accurate item master data. The NPC provides a whole-of-industry approach to meet this challenge.” Peter Kelly Chief Executive Officer Clifford Hallam Healthcare
New Single Number Membership Based on feedback from smaller companies that need to apply a bar code to a single product, the GS1 Australia Board has approved the introduction of a new Single Number Membership from 1 July 2006.
The new Single Number Membership involves a $100 plus GST joining fee and a $100 plus GST annual subscription and replaces the previous offer involving a $250 joining fee and a once-off $250 payment per number for up to two numbers. As companies wishing to apply a bar code to their product need advice and assistance, the new GS1 single number membership comes with a range of benefits including: • Helpdesk support • Bar code verification report (required by many retailers) • Entry to a GS1 Australia education and training session within 12 months of joining GS1 Australia • Access to over 75 accredited GS1 alliance partners • Advice about the GS1 standards compliance requirements of many industry verticals For more information regarding single number membership call GS1 Australia on 1300 366 033.
It important to note the following in relation to the authenticity and integrity of bar codes: 1. To create a GS1 bar code number (also referred to as the Global Trade Item Number® or GTIN®) you need to use an GS1 Company Prefix. The only authorised organisation in Australia that can license an GS1 Company Prefix is GS1 Australia. 2. GS1 Australia cannot guarantee the authenticity or usability of numbers that are not issued by GS1 Australia 3. GS1 Australia cannot offer any advice or information about any company not authorised by GS1 Global Office to sell or distribute GS1 numbers. 4. If you purchase a bar code number from a company other than GS1 Australia or the GS1 Organisation in your country, you risk having to re-label your products when you are required to obtain an official GS1 Company Prefix.
LINK ISSUE NO.11 September/October 2006
Supply chain change takes The Warehouse to world-class success Leveraging the supply chain, from source to shelf, has paid off for one of New Zealand’s most iconic companies, The Warehouse.
Speaking at Impetus 2006 Andrew Buxton, General Manager Supply Chain, The Warehouse, said the company was finally starting to see the benefits of a three-year program of supply chain change. “We have a great supply chain structure – we just have to use it more effectively,” he said. From humble beginnings in 1982 housed in an old warehouse building on Auckland’s North Shore, The Warehouse has grown into one of New Zealand’s largest retailers. The company is known and loved by Kiwis for its wide range of products at bargain prices, including apparel, entertainment and technology, music, sporting, gardening, and now foodstuffs. The Warehouse Group had sales of $NZ2.203 billion and profit of $NZ39.0 million for the year ended 31st July 2005. In addition, the Warehouse has grown to 85 Warehouse NZ stores and 43 Warehouse Stationery stores, employing over 9,000 people and having 53.2 million customer transactions in 2004. “Our strengths are innovative product sourcing, world-class distribution centres and our ‘People First Culture’. We have one simple concept which is unchanged since Stephen Tindall started the company 24 years ago: To put the customer first and let everything else, every business activity and consideration, flow from that principle.” “We enjoy being successful and we aim to keep our customers satisfied. We regard employees as our greatest asset; they choose to stay with us because we care and we take time to recognise individual qualities,” Mr Buxton said. Through the company’s exponential growth strategic issues were revealed which needed to be addressed to build on market share.
Above: Andrew Buxton, General Manager, The Warehouse NZ at Impetus 2006.
“We had not consistently used scale to our advantage and our fixed costs were growing at a greater rate than our sales, our offer did not reflect consumer and market changes and with our venture into Australia we had invested ahead of the curve.” Mr Buxton said.
“In addition we had a world-class supply chain infrastructure and centralised replenishment systems which we were not leveraging enough, and we needed to invest in people and process to develop world-class retail practice,” he said. “We embarked on a three-year transformation of our supply chain practice which is starting to pay off after only a year.” Mr Buxton illustrated the changes with two case studies. The first was the venture in food retailing by The Warehouse. “The grocery market in New Zealand is a potential growth area for us and, by the end of 2006, we will have two Warehouse Extra stores. The Warehouse Extra has integrated a non-food and a food store with new grocery lines, fresh produce, frozen food and a bakery, wine and beer store and pharmacy. This is a new way of shopping for New Zealand and requires an absolute best-practice supply chain,” he said. The other area of major supply chain change was in strategic sourcing of product. “Sourcing is critical for any retail operation as 60 to 70 percent of the cost is in the cost of goods. About 50 per cent of the products we buy come from overseas and a huge proportion of this is from China. So 12 months ago we established an office in Shanghai to improve our strategic sourcing.” We have established better relationships with manufacturers and the office has become a key link in freight forwarding for The Warehouse,” Mr Buxton said. “The success of the Shanghai office had been in the developing the ability to interact with our supplier base, including our supplier accreditation programme, which has led to better prices and better products as well as enabling us to be quicker to market.
Customer value drives Coles data synch project
Improved customer value is the ultimate goal for Coles Group Limited’s B2B data synchronisation project, according to Coles Group Limited’s General Manager eBusiness and Methodologies, Dougal McBurnie. Mr McBurnie told delegates at Impetus 2006 that Coles Group Limited was working towards sharing data with more than 500 suppliers by July 2007. He said the implementation of data synchronisation through the Global Data Synchronisation Network (GDSN) would ensure greater business efficiency, ultimately benefiting the consumer. Co-presenter Sally Herbert, the President of GDSN Inc, told the conference there had been an enormous growth in GDSN data pools over the last year. “We expect that in six months we will have 30 data pools in 42 countries. The reason for this growth is that 15 of the world’s top 30 retailers are getting ready for data synchronisation and there have been mandates from companies like Wal-Mart,” she said. “EANnet®, the Australian data pool managed by GS1 Australia, has worked tremendously to ensure most item attributes align with GS1 GDSN. The next six to twelve months will see further developments as the EANnet community migrates to GS1net™.
“The opportunity for improved sales and to realise benefits in logistics and store operations is very real. However, data quality and data accuracy programs must be implemented and must take place in tandem with data synchronisation.
to the customer via the Coles website.
Mr McBurnie said paper-based forms and manual data entry were error-prone and expensive. Data synchronisation through the GDSN would provide improved accuracy of product information and improved speed to market as well as being the foundation for supplier eCollaboration, he said. “Industry support for one standard is critical to data synchronisation and working with GS1 Australia has been a key enabler for the Coles Group Limited project,” he said. It was important to set realistic goals that could be achieved and which demonstrated benefit to the business, he said. While it was a challenge for Coles Group Limited to be first in the industry to implement data synchronisation, the passion from the business project team had made the project a success, he said. “Our key learning is that it is important to get the fundamentals right. Having clean data is only a starting point and it is important to have sustainable processes for maintaining data quality,” Mr McBurnie said. Looking forward, Coles Group Limited would continue to be active in the industry and to leverage the GDSN for increased functionality, he said. With the growth in certified data pools, rich product information would become available and this ultimately could be made accessible
Above: Dougal McBurnie, General Manager, eBusiness & Methodologies, Coles Group Limited at Impetus 2006.
LINK ISSUE NO.11 September/October 2006
Coles Group Limited and GS1 celebrate 300 EANnet Ready™ suppliers being declared ‘Coles Live’ Coles Group Limited and GS1 Australia had good reason to celebrate when the 300th supplier became EANnet Live on June 22, capping off a major project that began in 2003. Coles Group Limited and its community of suppliers, have reported the tangiable business benefits when master data flows electronically via EANnet, and paperbased item submission forms become redundant. Suppliers have confirmed decreases in the cost of administering invoice and claim queries, and reductions in delays in shipping and receipting stock.
Accurate master data is a fundamental pre-requisite to advance supply chain initiatives and Coles Group Limited Team Leader EANnet Project, Alisha Spargo, said Coles Group Limited was committed to ensuring its systems contained data of the highest integrity. Becoming EANnet Live opens the door for suppliers to trade in a fully electronic environment. During August this year, the first Coles Group Limited suppliers will trade fully electronically, utilising standardised B2B business rules. Working with GS1 Australia and Coles Group Limited’s EANnet team, suppliers follow a fourstep process to reach live status. This involves: 1. The supplier registering with EANnet, and uploading their entire product range 2. Validating the data against EANnet business validation rules. 3. When completed, the supplier is declared EANnet Ready and can then
be working to resolve any discrepancies between their catalogue data and the information that resides in Coles Group Limited’s central merchandise system. 4. Once all data is aligned, the supplier is declared EANnet Live and can start fully utilising EANnet to communicate changes to item and pricing information. Coles Group Limited’s central merchandise system has been successfully receiving data directly from EANnet since November last year. “This development has ensured that the manual handling of information is reduced significantly”, Ms Spargo said. The 300 Live suppliers are also now well placed to commence other supply chain initiatives with Coles Group Limited as the move to further simplify processes through B2B automation gathers pace. “CML will continue to engage trading partners to ensure that the full benefits of EANnet and its data quality are experienced by all suppliers”, Ms Spargo said.
Coles Myer Liquor Group announces revitalised EANnet Project Coles Myer Liquor Group (CMLG) is to fast track its EANnet implementation project with a renewed push for suppliers to register and become EANnet Ready.
GS1 Australia: representing your interests globally
GS1 Australia’s CEO Maria Palazzolo was appointed to the GS1 Management Board in May this year, at the GS1 General Assembly held in Malta. Nominated by GS1 Member Organisations in the Asia Pacific region to represent them at the highest level, this appointment cements GS1 Australia’s position internationally. It also recognises the considerable experience and success of Maria Palazzolo, and her unique appreciation of how GS1 can change the way an entire nation does business.
A dedicated implementation team at CMLG aims to have approximately 45 per cent of all CMLG volume on EANnet by July 2007. Lisa Caponio, CMLG’s Supplier Transformation Project Manager, said CMLG has already begun a pilot with two ‘EANnet Ready’ liquor suppliers and will have its first supplier EANnet Live during August 2006. “EANnet will reduce invoice queries due to data inaccuracy, improve the quality of data in our internal systems and deliver the integrity of information that is required for electronic transactions,” Ms Caponio said. “It’s the way of the future.” In 2002, Coles Myer Liquor Group and other leading Australian liquor retailers and wholesalers called on the Australian liquor industry to implement EANnet. Coles Supermarkets pushed ahead with EANnet implementation but CMLG put its EANnet plans on hold while the business
Maria now joins 23 other Board members, including the Executive Vice President and CIO of Wal-Mart Stores, the President and CEO of Carrefour Group, the Financial Director of Unilever, the President and CEO of Samsung Tesco, and the Vice-Chairman Global Operations of Procter & Gamble. Together the Board represents world regions and organisations that use the GS1 System. Maria’s role will be to provide members of the Asia Pacific region with a strong voice in the development and management of global, multi-industry standards. Maria also represents the interests of GS1 Australian members on the: • GS1 Advisory Council • GS1 Board Committee for Standards • GS1 Global Data Synchronisation Network Inc – Board of Directors • GS1 Global Data Synchronisation
was relocated to Melbourne. Now settled, the Liquor Group has been able to draw on Coles Supermarkets’ experience and learnings from implementing EANnet in other areas of the business. Ms Caponio said CMLG would embark on a full supplier engagement program and is committed to working with suppliers throughout the process.
For more information about EANnet or becoming EANnet Ready, please contact the EANnet Client Services team at GS1 Australia on 1300 366 033.
LINK ISSUE NO.11 September/October 2006
GS1net™ heralds new generation of data synchronisation
Australia’s EANnet community is entering an exciting new era of data synchronisation with the migration from EANnet® to GS1net. The new GS1net platform, which is also being used by at least another 15 GS1 organisations around the world, is a new and improved EANnet platform aligned with the Global Data Synchronisation Network (GDSN). The GDSN allows data pools similar to EANnet around the world to share data for the benefit of suppliers, wholesalers, retailers and other data recipients. The global GS1 Standards have been developed so that item information can be synchronised within the GDSN. Participation in GDSN means manufacturers’ products will be listed in a Global Registry and the product details will be synchronised with retailers and other purchasing hubs around the world, opening up access to global markets.
Since 1997, EANnet has become a global leader in data synchronisation and Australian industry has been synchronising data on item and price attributes since EANnet version 2.0 was launched in 2001. Over the last two years, global standards have been approved for the synchronisation of item information within the GDSN. While waiting for the finalisation of price synchronisation standards, GS1 Australia has been progressively aligning its EANnet data set with the GDSN item standards. Now, global price synchronisation standards have been approved and GS1 Australia has launched a project to fully adopt the GDSN standards and migrate all EANnet users to GS1net. The migration will start in July 2007 and will be completed by December 2007, when the EANnet platform will be decommissioned. A series of detailed information sessions for users commenced in September 2006 and will continue on a regular basis until the migration is complete. John Hearn, GS1 Australia General Manager Business Development & Professional Services, said the new system meant Australian products would be visible to global retailers and bring a range of additional new features. “GS1net also offers EANnet members an improved user interface into the system as well as support of XML and other improved data input methods. We will also be able to introduce full closedloop synchronisation, whereby suppliers receive confirmation notifications back from their trading partners,” he said. Mr Hearn said GS1net would also allow greater flexibility to add new fields to meet emerging or new industry requirements. For more information about GS1net, contact GS1 Australia on 1300 366 033.
Ansell Professional Healthcare NPC Ready for NSW and WA Health Being National Product Code (NPC) Ready for NSW Health has delivered real benefits for Ansell Professional Healthcare Asia Pacific, according to Marketing Manager Paul Brennan. “Thanks to this project we have reviewed and improved our internal processes,” he said. Ansell began its NPC/EANnet journey when NSW Health selected EANnet as the primary source of catalogue data and content aggregator for items purchased. Last year, the National E-Health Transition Authority (NEHTA) approved the development and implementation of a National Product Catalogue (NPC) on EANnet. Hosted by GS1 Australia and built on GS1 numbering standards the NPC will primarily classify products according to the UNSPSC standard. Ansell Professional Healthcare engaged GS1 Australia Professional Services to assist the company to become NPC Ready for NSW Health. The project scope included building
the required data set for NSW Health and a review of the business processes that would support the new data set. GS1 Australia Professional Services were on site for most of the project and led both process discussions and data collection activities. Throughout the project lifecycle, the project team was regularly updated via status reports that tracked project progress and highlighted outstanding issues. “We decided it was most efficient to use GS1 Australia for the project as we did not have the resources in-house. That way it would be done once correctly. Also, it gave us the opportunity to re-evaluate our internal procedures and processes and to improve them,” Mr Brennan said. GS1 Australia Professional Services provided project management expertise and developed a detailed project plan. The NPC/EANnet project involved many departments at Ansell – marketing, finance, IT, logistics and sales - and the support of these departments ensured the project’s goals and deadlines were met. “We were the first company to be NPC Ready in NSW and WA. We have notified Queensland and Victoria that we are ready to load their specific masterdata as soon as they have their structures in place,” Mr Brennan said.
He said there were now wholesalers wanting access to the system. “What we would like to see eventually is an increase in eProcurement and eFunds transfer via accurate, realiable and up to date product and pricing data enabled by EANnet, which will result in greater efficiency for everybody,” he said. Also, Ansell Professional Healthcare recently received a request for product information from a sister company overseas and were able to send the product file with all relevant information. For further information about becoming NPC Ready, please contact the EANnet Client Services team on 1300 366 033.
LINK ISSUE NO.11 September/October 2006
Member Support: Your key to supply chain success Becoming a member of the GS1 community entitles you to much more than a GS1 company prefix. GS1 Australia also provides considerable member support services delivered by specialist teams – so you can resolve old and new supply chain management issues that could be limiting your business opportunities. Sue Schmid, General Manager – Member & Industry Support said “The initial reason for many organisations to join GS1 Australia is to put a bar code on their product. Once this is completed, many members think the journey stops there. The truth is applying a bar code is just the beginning and GS1 Australia offers a wide range of services to support members, including their industry associations and trading partners to fully utilise the GS1 System. Below: Member & Industry Support team
“Membership entitles benefits such as onsite visits, bar code verification, classroom-based, or online training, technical helpdesk, involvement in industry working groups, and professional services options, all of which are available to support and develop member knowledge of world class supply chain standards and management processes,” said Sue. To increase the awareness of these benefits amongst new members, Sue’s dedicated Member & Industry Support team contacts every new member within two weeks of joining GS1 Australia. The aim of this first contact is to: • Ensure they have received their New Member Pack and GS1 company prefix • Answer any immediate questions about how to allocate Global Trade Item Numbers (GTINs) • Advise the member about their 12 month option for free training and event dates • Briefly explain the options available on the 1300 366 033 automatic attendant to ensure their next call is directed to the right GS1 department
“Quite often questions asked by members can’t be answered over the phone or via email so we encourage members to invite us to visit their premises to provide onsite support and answer their questions. Meeting members face-to-face is extremely helpful, we sit down with them, listen to their supply chain problems, go through which GS1 standards can help them resolve their challenges, and then discuss a step by step approach going forward and all the support that is available to help them.” While the location of some companies can, at times, prevent the team from personally meeting face-to-face, other methods are constantly being reviewed, such as conference calls and in the future webinars and video conferencing. “Joining the GS1 community should be considered a journey and not a once off engagement said Sue Schmid. “We aim to build a long standing relationship that enables companies to implement the GS1 System for maximum benefit to the organisation, at a pace that suits them.” “GS1 Australia is always seeking to improve our support offering to the membership and I would welcome any feedback any of our members may have,” said Sue. To contact Sue Schmid and the Member & Industry Support team call 1300 366 033.
Testimonials “We joined GS1 Australia about two months ago [June 2006]. I was told I needed bar codes for my sculptures as they are Collectibles and we’re distributing them world wide. I did some research on the web, as well as talked to people at trade fairs and to my distributor - who all said to approach GS1,” said Harrison Neki of Neki Designs “I phoned and spoke to Marcia from the Member & Industry Support team. She looked at my website and talked me through the process of bar coding. Because I’m an artist it can be difficult to get my head around the marketing side of things while I’m also sculpting.” “Marcia told me if we had any problems to contact her anytime. And she really did help me one step at a time - which was great. The first commission from Australia now carries a bar code and the next series ‘Underground Downunder’, which should be released at the Sydney Gift Fair in February next year, all have their own bar codes. It’s all working a treat!” Harrison Neki and Tanya Obreza Neki Designs “My director, Frank, joined GS1 Australia on the 9th June 2006 for our new product NOISELEZZ which is an anti-snoring device.” “I rang GS1 Australia to assist me with how I go about joining. My dealings were dealt with great professionalism and I felt I had all the answers to my questions. Then I received a GS1 package by post and thought that this would be my last dealing with GS1 as most organisations treat you like a number. To my disbelief I then received a personal telephone call by a pleasant and friendly lady by the name of Melanie. Melanie not only rang to ensure I had received my package but also to highlight the services and benefits the GS1 System can provide as well as to help to implement the bar code numbers and bar codes. The ‘services with a personal touch’ is something that makes GS1 Australia unique.” Mrs Celeste D’Agostino KVG Australia
New Member Pack, instant success! These areas include:
GS1 Australia has produced a new Official Member Pack aimed at helping all new members quickly incorporate the GS1 System into their business operations to build new customer / trading relationships as quickly and efficiently as possible. With a vision of simplifying information to improve new member understanding of the GS1 System, the new Member Pack contains multi-tiered flyers highlighting key areas of information so it can be quickly found.
• GS1 Products & Services • Frequently Asked Subscriber Member Questions • Calculating the GTIN-13 Check Digit • GS1 Australia Subscriber Member Events • GS1 System Quick Reference Guide • GS1 System User Manual • Exclusive Education & Training Joining Offer The positive feedback already received from new members is fantastic – with flyers titled Calculating the GTIN-13 Check Digit and Frequently Asked Subscriber Member Questions being instant favourites. GS1 Australia sincerely hopes that the new Member Pack removes the sometimes awkward feeling of being overwhelmed by the amount of information and technical terminology that comes with the GS1 System. If you have any further suggestions for the Member Pack, or wish to obtain your copy please call 1300 366 033.
LINK ISSUE NO.11 September/October 2006
Call to action for the Australian fresh produce industry Since reporting on the Fresh Produce industry in the March/April 2005 Supply Chain LINK newsletter, a call to action has gone out to Australia’s fresh produce industry as GS1 Australia, retailers, suppliers and grower associations band together to improve levels of traceability in the industry. The call to action is part of an awareness campaign by the Australian Produce Identification Committee (Aus-PIC). This industry-based body was formed last year following a GS1 Australia industry forum where it was agreed that collaborative participation would benefit the fresh produce industry in many ways.
Aus-PIC is made up of a steering committee, with a strategic focus on education, marketing and networking, and three working groups focused on produce identification, bar coding and eMessaging and data synchronisation. Committee members include representatives from Woolworths, Coles Myer, Metcash, growers’ bodies and Horticulture Australia.
efficient. That we are working with the global GS1 System is especially important for those members of our industry involved in export.”
Aus-PIC endorsed the use of the GS1 System and an open letter was published urging growers, vendors, importers, distributors, wholesalers, resellers and retailers to become members of GS1 Australia and join the initiative.
The benefits of the system to the fresh produce industry include:
Richard Bennett, Portfolio Manager, Quality Assurance and Food Safety, Horticulture Australia and a member of Aus-PIC, said: “We saw the whole issue of traceability as critical to the development of our industry. GS1 Australia was the only organisation capable of managing the process. This is an important start of a transition for the industry. It is part of a global move and that puts us in a good position. What we do here will have benefits for all making the fresh produce supply chain more robust and
With industry-wide adoption of the GS1 System, the Australian fresh produce industry’s systems would be comparable to the best supply chain management systems worldwide, according to Mr Bennett.
• Ability to fully track and trace produce from farm to final customer through automated data capture • More efficient stocktake and inventory control to know exactly how many cases of produce you have and where it is • Reduction in paper based transactions • Minimising of manual data entry • Providing industry with a solid foundation to enhance other eCommerce initiatives and applications • Improved business efficiency through improved data integrity between trading partners
GS1 CEO joins Starlight Foundation Advisory Board Maria Palazzolo, CEO, GS1 Australia, has been appointed to the Starlight Children’s Foundation Victorian Advisory Board where she hopes to use her business and leadership skills to further the fund raising efforts and promotion of the Starlight Foundation. Over the next twelve months over 600,000 children will be hospitalised across Australia. The Starlight Children’s Foundation works to brighten the lives of every single seriously
ill and hospitalised child and their families, at the moment their program reaches one third of these children but they hope to increase this to all children by 2010. In June, Maria Palazzolo and guests attended the Starlight Five Chefs Dinner at the Savoy Ballroom at Grand Hyatt Melbourne. This is Victoria’s leading annual food and wine fundraising dinner and was attended by 470 generous representatives of the state’s business community. The evening exceeded all expectations, raising an outstanding $375,000 on the night. These funds will be used to support Starlight’s distractive therapies including placing more Fun Centres in Victorian hospitals, granting many more wishes and supporting Captain Starlight and the Starlight Express Van visits across regional Victoria.
GS1 Australia continues to support the Starlight Children’s Foundation throughout the year with fundraising events and staff volunteering For more information or to make a donation, please contact www.starlight.org.au or call 1300 727 827.
Above: GS1 Australia CEO, Maria Palazzolo & the Captain Starlights at the Five Chefs Dinner.
GS1 Australia Wins Business Excellence Award Special guests included State Member for Mount Waverley Maxine Morand MP, Federal Member for Chisholm Anna Burke MP, Monash Mayor Cr. Joy Banerji, Cr. Ryan Brown, Cr. Dane Manzie, Cr. Tom Morrissey and Cr. Craig Shiell. City of Monash Mayor Cr. Joy Banerji said the awards provided a way to recognise the achievements of local businesses.
More than 220 business and Monash Council representatives attended the twelfth Annual Monash Business Awards Gala Dinner and Presentation Night, held on Friday July 28, 2006.
“Because Monash is home to more than 12,000 diverse businesses, including nearly 2,500 creative home-based business ventures, the awards provide a platform for businesses to showcase their successes,” she said. Although competition was tough, GS1 Australia won the Award for Business Excellence for the Supply Chain Knowledge Centre training facility to support local businesses that require training in supply chain management and enabling technologies.
On accepting the award, Steven Pereira, Chief Information Officer, GS1 Australia noted that there are over 400 GS1 Australia members within the Monash Business Community. “We invite you all to come and utilise this award winning Supply Chain Knowledge Centre that we have built for you,” he said. The Monash Business Awards, recognising Innovation and Excellence in the City of Monash are sponsored by Telstra, Melbourne Development Board, RACV - Business Insurance, Australia Post, Leader Community Newspapers & the ANZ Bank. Finalists were selected by a Committee based on business success and excellence through the recognition of significant achievements and innovations within the City of Monash. For further information about visiting the Supply Chain Knowledge Centre call Patricia Slattery on 03 9550 3470.
LINK ISSUE NO.11 September/October 2006
2007 Academic Grant Program: Now Open To make post-graduate supply chain education more affordable to more members, GS1 Australia has expanded its Academic Grant Program for 2007. Two Academic Grants apply to the Deakin University Graduate Certificate in Information Systems (on campus or off campus), and one new Academic Grant has been introduced for Swinburne University of Technology’s Graduate Certificate in Supply Chain Management (on campus only). Each is a 12-month part-time course, offering graduates a well-rounded understanding of business information systems, supply chain management theory and the skills needed to manage a wide range of procurement and supply functions.
The 2006 GS1 Academic Grants were awarded to Luke Merlo, Supply Chain Planner at Rip Curl Australia, and Angela Reid, Technical Account Manager, Technology Integration Division at Unique Micro Design. Angela says the first half of the course has consolidated her knowledge of inter-organisational information systems and how they work – particularly in relation to standards for data capture and document interchange.
market presence and profitability,” she continued. Closing date for 2007 Academic Grant Program applications is Friday 3rd November 2006, 5pm. For further information about courses available at these universities and the GS1 Academic Grant application requirements please find enclosed in this edition of the Supply Chain LINK, the 2007 Academic Grant brochure or visit: www.gs1au.org/education
“A formal qualification in technology is very advantageous for individuals who work in highly competitive business sectors – such as supply chain,” says Angela. “These sectors are normally where the implementation of information systems can make a striking difference to a company’s bottom line and performance. Employees with the ability to understand, procure and oversee the implementation of new technology will be critical to an organisation’s ability to perpetuate and extend its Above: Angela Reid and Luke Merlo, 2006 Scholarship winners.
GS1 System User Manual: Updated & Released on CD Containing both the GS1 System Numbering & Bar Coding manual and Symbology & Printing manual, the CD provides members and their business partners with over 400 pages of interactive information and helpful diagrams.
Using Adobe Acrobat Reader, the User Manual CD contains search functions and interactive bookmarks and page layouts. This makes it not only much quicker to navigate than the old A4 dual volume pack user manual, but also infinitely more portable so members can share information with relevant parties such as packaging designers and printers. Numbering & Bar Coding Manual has been significantly updated to reflect new terminology and ensure members can find the information they need quickly. It covers all the basics and principles of the GS1 System, including GS1 Identifier Keys and how to number trade items (including those destined for export), logistics units, locations, and assets. It also covers packaging and print ing considerations to ensure bar codes comply with global standards and retail regulations.
Symbology & Printing Manual provides more technical detail as required by packaging designers and printers. It talks about Symbology Operational Bands, details different bar code symbology specifications including EAN-8, EAN-13, ITF-14, GS1-128, the new RSS (Reduced Space Symbology) and GS1 Composite Symbology. It also includes printing and production advice to help ensure the perfect bar code of the highest quality. For your copy of the new GS1 Australia User Manual CD, call 1300 366 033.
GS1 Australia and APICS join forces GS1 Australia and the Australasian Production and Inventory Society Limited (APICS) have partnered to offer two comprehensive training courses in a single day. Running from 9am to 4pm, the day is informative, interactive, and highly practical, teaching you how to turn RFID into a tool for collaborative commerce and seamless supply chain management. Over the two courses, you will learn how RFID technology works and how it compares and fits with existing systems such as bar codes. EPCglobal Standards which support RFID technology for supply chain applications is also explained, along with the EPCglobal Network, Gen 2, privacy, and the standards development process. Specifically tailored, you will be provided with the knowledge to make an informed
decision regarding the merit, benefits and opportunities of EPC/RFID. You will learn the key considerations for your own RFID business case, the pros and cons of RFID, how to evaluate RFID technology vendors, how to establish and launch a pilot project, and plan for successful deployment. With two highly qualified and subject expert speakers including, Mr Hans J Grisch, educated in Germany, who has set-up and manages a company that specialises in software and hardware development for RFID systems, he will take you through the ins and outs of RFID throughout the 3.5 hour RFID short course. Gabriel Phillips, your EPCglobal short course speaker, currently responsible for the monitoring and development of EPCglobal Standards and initiatives in Australia will guide you through the EPCglobal Network principals, how the components of the Network fit together and where EPCglobal will be going in the future. All covered in 2.5hours. Also, FREE to Melbourne and Sydney course registrants, you can experience a 20 minute interactive supply chain knowledge centre tour that showcases the EPC/RFID technology at work.
Course dates for November 2006: Thurs 09 Heathwood Brisbane Thurs 16 Mt Waverley Melbourne Thurs 23 Botany Sydney Cost: RFID APICS Course: • APICS members: • APICS non-members:
$349 (incl GST) $399 (incl GST)
GS1 EPC Course: • GS1 Australia members: $159 (incl GST) • GS1 Australia non-members: $199 (incl GST) For more information, visit www.gs1au.org/events, www.apics.org.au or contact your local APICS office: QLD - 07 3282 8393 VIC - 03 9328 4477 NSW - 02 9891 1411 NOTE: It is a prerequisite to complete the APICS RFID Short Course before completing the GS1 Australia EPCglobal Short Course.
LINK ISSUE NO.11 September/October 2006
Come Join Our GS1 Road Show Canberra has been added to the tour dates for the third and final GS1 Education & Training national road show for 2006. Dates for the final tour are: • 17 October - Sydney • 19 October - Canberra • 24 October - Melbourne The road show provides members with the opportunity to attend face-to-face training on the fundamental basics of the GS1 System, the standards it support and show how those standards are implemented to improve business performance. “It’s also an ideal way to discover the full potential of your GS1 Australia membership,” says Steven Pereira, Chief Information Officer for GS1 Australia.
Facilitated by subject matter experts, the afternoon session includes demonstrations of hardware and software solutions by GS1 Australia Alliance Partners – who are experienced and well respected practitioners. An Adelaide member attending our road show in June this year stated “We’re really busy at work but my CEO pushed me to attend but I’m glad I did. It was a really useful day and gave me time to see how we can improve our supply chain management processes to cut the bottlenecks and problems in future. It’s been very informative.” In response to attendee feedback, we are keeping the Sydney, Canberra & Melbourne program to a one-stream format, as attendees were disappointed to miss out on topics of interested that previously clashed with other streams. We have no doubt that the new fullday program will provide relevant and practical insights into how you can help your business succeed and prosper with the GS1 System. For more information visit www.gs1au.org/education or call GS1 Australia on 1300 366 033.
The day’s sessions incorporate different subject matter training and guest speakers, to demystify some of the supply chain’s most daunting acronyms: EDI, XML, CPFR, RFID, plus EPC.
SPECIAL FEATURE FOR OCTOBER ROAD SHOW will include an industry roadmap update on the Health, Transport & Logistics, Grocery, Fresh Product, Liquor, Meat, Seafood and FoodServices sector.
GOLF BALL PROMO Register for the upcoming education and training roadshow and receive a FREE GS1 Australia Golf Ball. Use the gold ball on the day in our ‘Putt & Win’ competition for your chance to win great prizes.
GS1 Australia Education & Training Progression Chart BIG PICTURE
SCM PROCESS DEFINITION
NUTS & BOLTS OF THE GS1 SYSTEM
SPECIFIC APPLICATION TRAINING
Classroom Learning POS Training GS1 Knowledge 101 Series • EDI 101 • XML 101 • Data Capture 101 • CPFR 101 • GPS 101 Supply Chain Knowledge Centre (SCKC) • EPC/RFID • Traceability
Classroom Learning Standards in Action – Supply Chain Knowledge Centre (SCKC)
Classroom Learning The Chain Reaction – Supply Chain Knowledge Centre (SCKC)
Classroom Learning • LEARN • Specific topical sessions (Road Show)
Online Learning LEARN Modules 1,2 & 3
Online Learning LEARN Modules 4, 5 & 6
Online Learning LEARN Module 7
Levels Legend: Awareness Provides information on standards development and industry initiatives
Basic Offers general information on fundamental business processes
Intermediate Provides information and practical examples on technical issues related to business processes
Advanced Provides in-depth exploration of strategic issues related to supply chain business processes
Country Road gets interactive Country Road employees recently visited GS1 Australia’s Supply Chain Knowledge Centre (SCKC) in Melbourne to gain a better understanding of the collaboration of eCommerce. Attendees were bought together from information technology, finance, supply chain, and logistics teams. The full day training session was designed around the VET Accredited ‘The Chain Reaction’ program, tailored to the specific needs of Country Road and reflecting current supply chain management challenges being faced by the Australian manufacturing and retail industries in general.
It was Country Road’s General Manager – Information Technology, Stephen Binns, who originally identified the benefit of using the Supply Chain Knowledge Centre. “Country Road is on the path to a more standardised approach across our business,” Binns said. “We want to better access the supply chain efficiencies and process improvements available through global standards. “The Supply Chain Knowledge Centre provided a great way to simulate real life supply chain management experiences for our staff as we go through this time of redesigning our method of sourcing product through to how we supply company owned stores and wholesale customers”. Mr Binns continued to say that the training need was driven from an influx of solution provider proposals which generated an opportunity to extend the knowledge of employees across various departments, enabling a more educated decision making process, and ensuring that the chosen solution providers also have the necessary understanding of globally accepted standards and methodology.
Above: Country Road team
Supply Chain Knowledge Centre Manager and training day facilitator, Paul Hackett, said this really brought home the effect, and impact, each area of the business has on effective and efficient supply chain management. “The day was extremely successful,” said Hackett. “The different teams came together and started to collaborate during the supply chain simulations and that is really the key learning to unlocking the full value of world class supply chain management – collaboration.” Country Road has been a member of GS1 Australia since 1989.
LINK ISSUE NO.11 September/October 2006
Pharmaceutical industry project continues momentum A pilot implementation of an eCommerce supply chain based on the GS1 System in the hospital pharmaceutical sector has been so successful that its participants are moving ahead with a self-funding model. Last year, the Monash Project, led by the Pharmacy Department of Monash Medical Centre (a hospital within Southern Health in Victoria), chaired by Health Purchasing Victoria and project managed by GS1 Australia, demonstrated the implementation of eCommerce within the hospital pharmaceutical supply chain using the GS1 System. Following the benefits delivered from Phase 1 of the project, Southern Health is applying improved supply chain processes to all hospitals across its network. As reported in the December 2005 edition of Supply Chain LINK, Phase 1 demonstrated faster and more accurate receipt of deliveries from two pharmaceutical wholesalers, Clifford Hallam Pharmaceuticals and Hospital Supplies of Australia (HSA) by the pharmacy department at Monash Medical Centre. A small pharmaceutical manufacturer, Orion Laboratories, also demonstrated the process to be undertaken to ensure their products were labelled with GS1 System bar codes at all levels of packaging.
Monash Project Consortium Partners
Above: Monash Project team
“Given the efficiencies gained in Phase 1, it only makes good sense to roll-out the project methodology to include all Southern Health hospital pharmacies”, said Southern Health’s Director of Pharmacy, Ian Larmour. The second phase sees the addition of pharmaceutical manufacturers and distributors to the original Phase 1 project consortium. These include: • Abbott Australasia • Baxter Healthcare • Bristol Myers Squibb • CH2 (Clifford Hallam Healthcare) • Mayne Pharma • Novartis • Pfizer • Symbion Hospital Supplies (formerly Mayne Hospital Supplies) Continuing on with the first phase demonstration, Phase 2 will incorporate the use of EANCOM format electronic purchase orders, purchase order acknowledgements and dispatch advice messages by participating
companies. The electronic invoice, will be added to the eMessaging suite. For some participants, data synchronisation will be facilitated via EANnet® (that is population of the National Product Catalogue for Health). In addition, other companies will be replicating the project undertaken by Orion in Phase 1 and applying GS1 bar codes to shipper and inner level packs. Monash University through its Australian Supply Chain Management Research Unit (ASCMRU) within the Department of Management is supporting the project from an academic perspective and together with representatives from the project team has been invited to publish a paper on the Monash Pharmacy Project in a special issue of the International Journal of Healthcare Technology and Management. For more information, please contact Tania Snioch, GS1 Australia on 1300 366 033.
Spotlight on GS1 people: Diem (Yim) Nguyen
Event Diary Diem Nguyen was recently awarded the highly prized GS1 Australia Customer Service Award for her outstanding work in Quality Systems and natural ability to help members with very technical questions. “I’m from a scientific background where you have to be pretty precise and accurate when conducting experiments,” Diem said. “I guess that’s helped when talking to members in helping them understand an often complicated process. It’s really wonderful when I know I’ve helped someone understand something very technical in simple terminology,” she said. Most GS1 Australia members will come into contact with the Quality Systems area, especially when they need a verification report so they can present their products to their trading partners. Diem started in the area in January 2004. “Before joining GS1 Australia, I finally had been able to go to Vietnam for a few months, for the first time, to see where my family was originally from” she said. “I’d also just finished my honours in Applied Science (Applied Chemistry) at RMIT and needed a change from working in a laboratory. I wanted more interaction with people, rather than instrumentation in the lab, so I came to GS1 Australia.” Richard Jones, General Manager – Quality Systems, said that Diem receives an unprecedented number of emails and letters from customers she has helped, commending her on her friendly and efficient manner, quick and effective work, and ability to clearly explain the source of the problems when errors occur in bar code reports. “I really enjoy working with friendly and supportive people who are flexible and understanding,” says Diem. Outside of work Diem enjoys making fashion jewellery, especially earrings, travelling, and has just started quilting and learning yoga.
The following list outlines the events leading up to December 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 • October 17 • October 19 • October 24
Sydney Canberra Melbourne
For further information visit www.gs1au.org/education/road_show or call Patricia Slattery on 03 9550 3470
EANnet® User Group • November 2
APICS / GS1 Australia Short Courses • November 9 • November 16 • November 23
Brisbane Melbourne Sydney
For further information visit www.rfidinternational.com.au/files/apics_2006.pdf or contact your local APICS office.
EANnet® Seminars • November 15 • November 16
For more information visit www.gs1au.org or call GS1 Australia on 1300 366 033
Food Solutions Expo • November 16
This is the latest information available at Supply Chain LINK’s publication deadline.
Above: Diem (Yim) Nguyen
Our global Supply Chain System tracks 25 billion products a day. GS1 is everywhere.
GS1 Australia: your local link to the largest Supply Chain Industry Organisation in the World. Our solutions reduce high inventory costs, increase profits and grow business. We provide leading, unbiased supply chain advice We employ experts to improve your supply chain practice effectiveness We help unlock your eCommerce opportunities using one global standard We keep you updated on evolving supply chain technologies We offer access to other experts within the supply chain industry
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Published on Oct 1, 2006