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ISSUE NO. 5 DECEMBER 2004 Now circulated to over 15,000 people!

> THE INAUGURAL EAN AUSTRALIA CONFERENCE, IMPETUS 2004, HIGHLIGHTS > NOMINATE NOW FOR 2005 EAN AUSTRALIA INDUSTRY AWARDS! > EPCGLOBAL AUSTRALIA OFFICIALLY LAUNCHED AT IMPETUS > SPECIAL FEATURE - BAR CODE QUALITY > GROCERS GEAR UP FOR UBF FADEOUT

CASE STUDIES > STOP PRESS - CHANGES TO THE EAN•UCC USER MANUAL > EAN AUSTRALIA WINS LAA AWARD

www.ean.com.au

25 years the past, the present and the future © EAN Australia Limited


LINK DECEMBER 2004

EAN AUSTRALIA FROM STRENGTH TO STRENGTH

Russell Stucki: Chairman, EAN Australia

CHAIRMAN’S MESSAGE

CONTENTS 02 Chairman’s message 03 CEO insights 04 25 years - the past, the present and the future 05 1978 to 2004: 25 years on 06 Bill Pratt: back to the beginning 07 EAN•UCC Champions awarded Nominate now for 2005 EAN Australia Industry Awards! 08 Impetus conference all about collaboration Moving from theory to practice at Impetus 09 The manufacturer, the retailer and RFID stripped bare: Gillette and Wal-Mart tell 10 EPCglobal Australia officially launched at Impetus Who’s already joined EPCglobal Australia Patties first end user to join EPCglobal Australia

11 Defence considers its next move

20 Grocers gear up for UBF fadeout

12 SPECIAL FEATURE: Maximising your knowledge

21 EAN Australia people: Spotlight on John Lane

When and where to get the EAN•UCC Essentials 13 EAN ‘encyclopaedia’ on CD Learning made easy online Cash in your free voucher and save 14 Paving the way for RFID and EPC in Australasia EAN International global re-brand: one organisation, one standard 15 CASE STUDY: Harvey Nichols 16 SPECIAL FEATURE: Bar code quality 18 STOP PRESS Changes to the EAN•UCC User Manual 19 Community Matters UCC company prefix not needed for exports to US or Canada

EAN Australia wins LAA Award 22 CASE STUDY: Oracle lays e-business foundation for Sunny Queen 24 Online access to Solution Providers 25 Alliance Partner Update 26 New overseas legislation affects Australian exporters Cobra assists local suppliers meet new legislation 27 EAN Christmas Trading Hours EAN event diary

In this edition of Supply Chain LINK, we're celebrating 25 years of service to the Australian business community. It's remarkable just how much things have changed in that time. We take the black and white stripes of the bar code for granted now, but take a look at Bill Pratt's story on page six and you'll see just how strange and frightening they appeared 25 years ago. In a way, that fear was understandable because bar codes really did change the face of retailing almost overnight. Supermarket checkouts were revolutionised. In fact, the changes at the checkouts were only the tip of the iceberg. As simple as they are, bar codes have become the very heart of Australian supply chains. Over the course of EAN Australia's history, they must have reaped business billions of dollars in savings. The humble bar code has gone far beyond the supermarket now and can be found on products as diverse as steel, liquor and even car parts. Just recently, the health sector embraced EAN•UCC and expects it will save lives. The bar code's success is testament to its effectiveness, the

progressive nature of Australian businesses and to the efforts of the team at EAN Australia. Your industry organisation has been proactively bringing together enterprises, industries and governments for decades now. On pages 12 and 13, you can also read about some of the many education offerings developed by EAN Australia to help spread the word. The latest of these is EAN Australia's inaugural conference, Impetus 2004, which drew more than 342 people to share ideas with their peers and experts from around the globe - find out more on pages eight and nine. The big news was all about RFID and EPC, of course, but the rise of data synchronisation in the form of the Global Data Synchronisation Network (GDSN) and EANnet® is essential to lay the foundation for such technology. And on page 24, you'll see that Australians are one step ahead and are flocking to EANnet. Yes, it is remarkable how much has changed in 25 years, but even more remarkable is how quickly we're adapting as the pace of change accelerates.

Tell us what you think We are interested in your feedback.The newsletter’s primary role is to keep EAN Australia members informed and updated on the latest developments in supply chain management and ecommerce. If you have any ideas, comments, points-of-view or criticisms, please forward to eanaust@ean.com.au


03

KEEPING OUR EYES ON THE BALL It's tempting to be swept off your feet by RFID but here at EAN Australia, we're keeping a cool head.

Maria Palazzolo: CEO, EAN Australia

CEO INSIGHTS

Hype is everywhere. The press is full of claims that RFID will be as much a revolution as bar codes were 25 years ago. At EAN Australia, we too are excited about this technology that promises so much. And yes, it is our job to cut through the hype and let you know what RFID really means to Australian business. You need to know how best to plan for RFID, what are the appropriate applications and how much you can benefit. To equip you with the answers, EAN Australia's Impetus 2004 conference presented the expertise of speakers from around the world and asked local businesses to share their experiences with delegates.

NOTIFICATION There is a change in terminology referring to paid users of the EAN•UCC system. Effective immediately, an EAN Australia member will now be referred to as a subscriber.

From here, EAN Australia will be with you all the way in your journey towards RFID. As the home of the newly launched EPCglobal Australia, we will manage the standards governing RFID in the supply chain just as we work as the custodians of EAN•UCC bar code standards. RFID and EPC is simply inevitable and EAN Australia is ready to help you make it happen.

Although we've spent a lot of time talking about the future of RFID in Australia, we have not forgotten our mission. EAN's number one priority is to serve you, its subscribers. That means staying focused on the here and now while preparing to take Australian companies on the journey of the next wave of supply chain technology. You can expect EAN Australia to continue improving its subscriber services, from bar code verification right through to EANnet and supply chain management consulting. Our feet are firmly planted on the ground and we are as committed as ever in our quest to help you become more profitable through the use of global standards.


04

LINK DECEMBER 2004

25 YEARS - THE PAST, THE PRESENT AND THE FUTURE By any measure, EAN Australia is a success story. Its 25 years to date are marked by a single-minded focus on the needs of its subscribers, rapid growth, continual innovation and excellent relationships with government, industry and international partner organisations.

EAN Australia has grown to represent around 14,000 Australian businesses from 18 industries, representing 52% of Australia's GDP and 55% of its companies, which employ 70% of the country's workforce. The impressive numbers hint at the high profile enjoyed by EAN Australia among its international counterparts. From early on, Australians have been leaders in supply chain management. Founding chairman of Australian Product Numbering Association (APNA), EAN Australia's predecessor, Bill Pratt, said that while we were a nation of sceptics initially, Australians were “well to the front” when it came to making bar codes an integral part of doing business. Just eight years after APNA's first meeting, 90% of Australia's grocery items carried EAN numbers and bar codes. Central to that success has been relationships. APNA was formed with the blessing of the Australian Retailers Association (ARA) and financed with a loan guaranteed by the Grocery Manufacturers of Australia (GMA). Today, EAN Australia enjoys partnerships with many industry associations, technology providers, governments at both state and federal levels and

universities. These relationships allow EAN Australia to remain relevant and connected to its subscribers and the organisations that support efficient supply chain practices, both now and in the future. EAN Australia pioneered the Alliance Partner programme to provide a link between subscribers and suppliers of the technology needed to implement EAN•UCC systems. Partnerships with government united diverse groups in progress towards better outcomes in vital community sectors like health. With an eye to the future, memorandum of understanding with Deakin and Swinburne Universities has seen supply chain management become one of the hottest new disciplines for the next generation of business leaders. Overshadowing all of these are the relationships EAN Australia shares with its subscribers and their trading partners. On an average day, 300 subscribers connect with EAN experts to make the promise of the EAN•UCC system a reality for their businesses. This is what makes EAN Australia great and the next 25 years are set to be every bit as exciting as the last.


05 1978 TO 2004: 25 YEARS ON HOW THE HUMBLE BAR CODE HAS BECOME THE BACKBONE OF eCOMMERCE

1978 > Australian Product Numbering Association (APNA) was formed, with Mr Bill Pratt, Australian head of Safeway Supermarkets and representative of the Australian Retailers Association (ARA), as its Chair > Dr Robin Shaw appointed CEO of APNA > Grocery Manufacturers of Australia (GMA) guaranteed a loan to provide initial funding for APNA

> North America adapted to an EAN 13-digit code > Industry Information Service introduced > The pharmacy industry adopted APN bar coding

1991 > The wine industry was the most advanced in the adoption of bar coding among Australia's large liquor producers and distributors

1979

1993

> APNA officially launched and commences trading > Rowntree Hoadley became APNA's first subscriber > SIMS Supermarkets become the first scanning store in Australia

> APNA changed its name to EAN Australia > EAN Australia launched ICON, electronic communication for subscribers

1984 > 1,000 subscribers registered

1986 > 500 stores used scanning technology throughout Australia > 90% of grocery items sold in Australia carried EAN numbers and bar codes > Brian Smith was appointed APNA's Executive Director

1987 > APNA celebrates its tenth birthday > 2,000 APNA subscribers

1988 > Grace Brothers became the first scanning department store in NSW, while Kmart was the first in Victoria > 3,000 APNA subscribers

1990 > Franklins became the first supermarket chain to introduce scanning in all of its 191 stores around Australia > Retail scan code received federal endorsement

1994 > EAN's Sydney office opened and began operating a bar code testing service > The nursery industry endorsed standard EAN bar codes

1995 > EANWorks was launched > 5,860 EAN Australia subscribers

1996 > Mobile EANWorks was launched > Government IT head backed the EAN•UCC system > Product images became available to subscribers > Laurie Wilson was elected Chairman of EAN Australia

1997 > Australia's Deputy Prime Minister,Tim Fischer, officially launched EANnet > 400 subscribers joined EANnet within its first month of operation > EAN Australia moved into other industry sectors, including steel

1998 > 9,856 EAN Australia subscribers

2000 > EAN Australia celebrated its 21st birthday > 11,590 EAN Australia subscribers

2001 > Memorandum of understanding signed by EAN Australia and Deakin University > The Professional Services and Accreditation Programme was introduced > Laurie Wilson was re-elected as President of EAN International

2002 > The Alliance Partner Programme began with Symbol as its first partner > Maria Palazzolo appointed as EAN Australia's new CEO

2003 > EAN Australia appointed Russell Stucki as new Chairman > EAN Australia moved into new premises to better service growing subscriber base > EAN Australia offers a scholarship in Graduate Certificate in Supply Chain Management at Deakin University > The new EAN Supply Chain Knowledge Centre, both portable and fixed, officially launched > UCC joined EAN International > Department Health & Aged Care was selected by EANnet to host Australian catalogue of medicine > 12,815 EAN Australia subscribers

2004 > Memorandum of understanding signed by Swinburne University of Technology and EAN Australia > RosettaNet Australia launched > EAN celebrates 25 years of servicing Australian business > EPCglobal Australia launched > 14,000 EAN Australia subscribers


06

LINK DECEMBER 2004

BILL PRATT: BACK TO THE BEGINNING

Bill Pratt

Imagine being labelled as a criminal for using a bar code. While it might seem ridiculous today, the bar code was once almost outlawed as a real threat to health and commerce.

Department conducted months of testing in case they would turn cornflakes to poison. Manufacturers and wholesalers could not see any merit in the strange stripes either.

In an environment of fear, it took some evangelical visionaries to make Australia one of the leading lights in supply chain technology. One of them was Bill Pratt, who instigated and became the chairperson of EAN Australia's predecessor, the Australian Product Numbering Association (APNA). Recently, Bill told Supply Chain LINK how everything seemed stacked against the bar code.

“The manufacturers came up with every reason in the world as to why bar codes would destroy their labels and the distributors said they could find their stock already, so why bother?”

The idea of shooting a laser beam at the average packet of biscuits was not only unfathomable to most subscribers of the grocery industry but equally as unpalatable to unions, government and the bureaucracy. Unions were initially concerned that checkout operators would be blinded by the lasers, while the Victorian Health

“People could barely understand how bar codes worked and it was almost impossible for them to see how they could save time and money,” Bill said.

None of this dampened the spirit of Bill Pratt. The most senior Australian at Safeway Supermarkets at the time, Bill had been following the progress of bar codes in the United States for more than a decade. Having seen the scanners at work, spoken to supermarket staff and quizzed customers, he knew they meant big savings for Australian retailers, distributors and manufacturers alike. And then, a meeting with the then Victorian Minister for Consumer Affairs, Peter Spyker, nearly stopped bar codes in their tracks.

“The Minister announced he was making the price marking of all products essential and bar coding illegal,” Bill said. Bill was shocked by the minister's rationale for his proposed legislation. “The Minister said: 'The price will be the same in Darwin as in Melbourne because it will be printed on the packet'.” “I said:“Do you know what these stripes say?',” Bill recalled. “I told him all it said was K-E-L-L-O-G-G-SC-O-R-N-F-L-A-K-E-S, but he didn't seem to understand that the numbers simply told you what the product was, not its price.” “We only averted the legislation by prevailing on other members of parliament.” The ultimately successful struggle for the adoption of EAN codes in Australia still feels sweet 25 years later. Participating in the recent Impetus 2004 conference left Bill “blown away”. “I felt terribly proud to have been associated with it (bringing bar codes to Australia) and feel so grateful for how much Australians must have benefited from bar coding over the years.”

At Impetus 2004, Bill Pratt Founding Chairman of EAN Australia was presented an award in recognition of his contribution and vision for Australian Industry.


Des Bowler accepting his award from Bill Pratt

07

EAN•UCC CHAMPIONS AWARDED Super Cheap Auto and Mr Des Bowler of Management for Technology were rewarded for business excellence at EAN Australia's inaugural Impetus 2004 conference, winning the 2004 Award for Standards in Action - Company Award and 2004 Award for Leadership in Standards Individual Award respectively. Super Cheap is Australasia's leading automotive products retailer. Nick Binns, Super Cheap Auto's Business System(s) Manager, was on hand to accept the company's accolade. The award recognises the important contributions made by Super Cheap Auto in promoting and implementing best practice EAN•UCC global standards and promoting the value of EAN Australia among industry peers. Fittingly, one of the drivers behind Super Cheap Auto's success has been the

company's dedication to driving businessto-business eCommerce best practices, using EAN•UCC standards. Established in 1974, the company now boasts over 180 stores and attributes its success to a dedicated team of 3,000 staff members as well as an excellent product range. Mr Bowler, owner and Managing Director of Management for Technology, was recognised for his contribution in championing best practice using the EAN•UCC global standards within a company, sector or industry. Mr Bowler has embraced EAN•UCC standards by raising awareness of automatic data capture, traceability and eMessaging in the meat industry. Most significantly, he contributed to the uptake of EAN•UCC standards through the Australian Meat Industry's 'Food Safety Traceability - Beef Project', which led to its showcase at international forums including the United Nations. Mr Bowler has been involved with EAN for over five years, most recently playing a pivotal role in the development of the EAN Education and Training CD.

Nick Binns accepting Super Cheap Auto's award from Bill Pratt

NOMINATE NOW FOR 2005 EAN AUSTRALIA INDUSTRY AWARDS! Following the success of the Impetus 2004 conference, EAN Australia is calling for nominations for the 2005 awards from companies and individuals committed to best practice implementation of EAN•UCC global standards.

Two prestigious awards for a company and an individual - ‘Award for Standards in Action’ and ‘Leadership in Standards Award’ respectively, will be presented. If you think your company or someone you know deserves industry recognition, nominate today! Your submission must include a one-page signed letter and an abstract (maximum 500 words) explaining why the nominee deserves to win along with company or individual name, address, phone number, email and contact person of both nominee and nominator.

Nominations close 25 February 2005.

Email submissions to EAN2005awards@ean.com.au and mail a hard copy to: 2005 EAN Awards Selection Committee EAN Australia Ltd Locked Bag 10 Oakleigh,VIC 3166 Award winners will be announced at the July 2005 Impetus Conference. For more information, contact Steven Pereira at spereira@ean.com.au or on 1300 366 033.


08

LINK DECEMBER 2004

IMPETUS CONFERENCE ALL ABOUT COLLABORATION Gillette's Dick Cantwell, the chair of EPCglobal.

Meat & Livestock Australia case study presented by Christine Raward.

An audience of 342 delegates heard expert local and international speakers address automated trading, a field dominated by the emergence of RFID.

They were joined by speakers on the second day who focused on the implementation of best practice supply chain management. Visy's Peter Hood outlined what the paper giant learnt from its EPC pilot studies.

The first day provided a top-level perspective on the technology, supply chain and eBusiness developments, while the second day focused on the operational steps towards best practice eCommerce. High profile speakers included Andrew Potter of Australia's largest retailer, Coles Myer;Tony Taylor of RFID pioneering retailer,Wal-Mart; and

Others reported on the benefits achieved using current EAN•UCC technology. Among them was Joe Rettino of Patties Foods, who told how the Bairnsdale pastry manufacturer had implemented the EAN•UCC system to generate impressive stock control savings. The role of the EAN•UCC system in traceability came to the fore in the

EAN Australia CEO Maria Palazzolo said Impetus proved a great opportunity for delegates to network with like-minded professionals, learn about new supply chain management techniques, benchmark their businesses against case study examples and evaluate fresh ideas.

The need for collaboration in the face of RFID and EPCs imminent arrival was the common theme throughout EAN Australia's inaugural Impetus conference.

Maria Palazzolo and Russell Stucki cutting 25 years anniversary cake

Dave Botherway, Coles Myer

Derek Jones, Lion Nathan

Next year's Impetus 2005 conference, supported by RFID Action Australia, will be held in Melbourne from 12-13 July. For more information on Impetus 2005, contact Kate Rosengren: 03 9550 3478 or via email krosengren@ean.com.au

Harris Boulton, AFGC

Henri Barthel, EPCglobal

MOVING FROM THEORY TO PRACTICE AT IMPETUS Everything supply chain, from software to scanners, was on show at the Impetus 2004 exhibition. Sixteen EAN Australia Alliance Partners brought an extra dimension to the conference proceedings with the technology needed to translate theory into practice. Among the exhibitors were Impetus sponsors, SAP, Oracle, Global eXchange Services and Matthews Intelligent Identification. EAN Australia COO, Mark Fuller, declared the exhibition a great success.

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

“Impetus proved to be an excellent opportunity for delegates and exhibitors to network and share their experiences,” he said.

“Feedback during the conference was very positive, with around 95% of the exhibitors already planning their return for Impetus 2005.” Among the exhibitors was Matthews' National Sales and Marketing Manager, Phil Biggs, who said most of the 300 attendees visiting his stand were senior executives from the fast-moving consumer goods (FMCG) sector. “We had a lot of interest in our general product identification capabilities, especially in our RFID-ready LPA technology,” Phil said. The exhibition is set to grow next year, with EAN Australia anticipating an expanded field of more than 40 exhibitors.


09

THE MANUFACTURER,THE RETAILER AND RFID STRIPPED BARE: GILLETTE AND WAL-MART TELL

Tony Taylor, Wal-Mart Stores

Dick Cantwell, Gillette

Manufacturer, Gillette's Dick Cantwell, and retailer, Wal-Mart's Tony Taylor, might stand on opposite sides of the counter but their messages to the Impetus 2004 conference sounded remarkably similar: embrace EPC now. Tony Taylor, said Wal-Mart, embarked on its RFID programme to overcome an implementation conundrum: tag costs would only fall to viable levels with enough volume, which would never be achieved until they proved financially viable. With that lead, he said, many suppliers had volunteered to join Wal-Mart's trial. “More than anything, I urge you all to start thinking about developing a roadmap for RFID deployment now,” Taylor told Impetus delegates. “It's about making sure we're all speaking the same language and having end-user driven standards. “This needs to involve retailers, manufacturers and technology providers because there are so many benefits that can be obtained by

everyone if we take a common standard approach.” Gillette's Dick Cantwell backed Wal-Mart's belief in the system. Gillette believes EPC and RFID technology will substantially reduce out-of-stocks, which it estimates could cost the company as much as $1 billion annually. Pointing to research suggesting repeated out-of-stocks cost brand owners and retailers sales, Dick said both had an interest in using RFID and EPC to lift stock reliability. “Collaboration benefits, particularly the reduction of out-of-stocks, comprise the majority of savings for both suppliers and retailers,” he said in his presentation. “Only by working in partnership can trading partners realise these benefits.” While conceding that tagging individual items was currently costly, Gillette's pilots with RFID technology at carton level have proven successful both financially and technically. Dick urged companies to “learn by launch” rather than “wait and watch”.


10

LINK DECEMBER 2004

EPCGLOBAL AUSTRALIA OFFICIALLY LAUNCHED AT IMPETUS Proud parent, EAN Australia, officially launched its new subsidiary, EPCglobal Australia at the Impetus 2004 conference in October. Presented by EPCglobal Chair, Dick Cantwell, the launch came at the end of a day dominated by talk of RFID and the electronic product code (EPC) that governs its use in the supply chain. Charged with administering the EPC locally, EPCglobal Australia is, at first blush, an organisation before its time. Aside from several pilots, EPC is yet to be implemented here. Dick Cantwell

Despite this, EPCglobal Australia has been flooded with expressions of interest from potential subscribers. EAN Australia CEO Maria Palazzolo said EPCglobal Australia is already busy assisting companies in the planning phase with credible information about the future of RFID in Australia.

programmes to equip subscribers with a working knowledge of the system. Certification and compliance programmes for technology and services suppliers are also planned. The organisation will leverage the innovative Supply Chain Knowledge Centre, which will be expanded to incorporate an EPC/RFID training module. It is also considering partnerships to establish local implementation case studies involving subscribers. Maria encouraged EAN Australia subscribers to begin preparing for RFID by joining EPCglobal Australia now. “RFID and EPC is not just hype, it's here and it's unstoppable and whilst we don't always like to be early adopters, inaction today might cost you big tomorrow.”

“EPCglobal is a neutral, consensusbased, not-for-profit standards organisation that is already becoming industry's trusted partner,” she said.

WHO’S ALREADY JOINED EPCGLOBAL AUSTRALIA Less than a month after EPCglobal Australia was launched, its subscriber base included 14 companies. Visy, as a sponsor of the Auto-Id Centre, obtained automatic subscription to EPCglobal Australia as a foundation subscriber. Other subscribers as of early November included: End users > Patties Foods Solution providers > Matthews Australasia > Mid-Comp International > Telstra eBusiness Services

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

Support members

“As an EPCglobal Australia subscribers, you could be invited to participate in setting the policies that govern the standards applicable to your particular industry group and would have the opportunity to influence the direction of research by the Auto-ID labs,” she said.

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

The big drawcard for most subscribers, however, is expected to be the operational level support for implementation. EPCglobal Australia will offer support services and training

PATTIES FIRST END USER TO JOIN EPCGLOBAL AUSTRALIA Patties Foods, maker of the Four'n Twenty, Herbert Adams, Patties, Great Australian Pies,Wedgwood and Nanna's pastries, has become the first end user to join EPCglobal Australia.

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

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

EPCglobal Australia's Fiona Wilson said it was fitting that having experienced the benefits of best practice supply chain management, Patties has now formally

expressed a commitment to the next generation of technology.


11 DEFENCE CONSIDERS ITS NEXT MOVE As is the case in commerce, the business of war and peace relies on getting the right goods to the right place at the right time.

increase total asset visibility (TAV) to the war fighter and allow for a more optimised logistic footprint in support of operations.”

According to a draft policy for ‘Automatic Identification Technology’ (AIT), the Australian Defence Organisation (ADO) recognises the role of bar codes and electronic identification systems for reliable and accurate logistics.

The ADO has asked EAN Australia to comment on the policy based on its experience working with other industries implementing global standards and new technology. While the ADO is already highly “logistics AIT capable”, it plans to expand its capability across the organisation.

“AIT can improve the logistics business process of the ADO and enhance its war fighting capability by facilitating the collection of initial source data, reducing processing times, improving data accuracy and enhancing asset, inventory and personnel visibility,” the ADO draft policy report stated.

A comprehensive range of technologies is under consideration by the ADO, including bar codes, Radio Frequency Identification (RFID), Radio Frequency Data Communications (RFDC), satellite tracking systems, smart cards, Optical Memory Cards (OMC), and Contact Memory Buttons (CMB).

“Using logistics AIT effectively will also

Currently, while the ADO extensively

uses bar codes, it follows standards unique to defence forces around the world. EAN Australia hopes the policy review will promote the integration of ADO systems and the EAN•UCC system including EPC standards for RFID, allowing the easy sharing of data between defence and its civilian suppliers.


12

LINK DECEMBER 2004

MAXIMISING

> SPECIAL FEATURE In the supply chain, knowledge is everything. Knowing what you have and don't have in stock, is the secret of efficiency and customer satisfaction. EAN•UCC makes it all possible and even cost effective, but how?

Getting to know the system is straightforward with EAN Australia's education and training programmes. Start with the ‘EAN•UCC system The Essentials Session’ or consider the online eLearningeXchange version

and then progress to one of the specialised ‘101’ sessions for everything you need to know about the EDI, XML, Data Capture, CPFR, RFID/EPC and EANnet.

EDUCATION & TRAINING PROGRESSION CHART STEP 1

STEP 2

STEP 3

STEP 4

EAN SUPPLY CHAIN KNOWLEDGE CENTRE

EAN SUPPLY CHAIN KNOWLEDGE CENTRE

OPTION 1 CLASSROOM ATTENDANCE

OPTION 1

‘The Chain Reaction’

‘Standards In Action’

‘EAN•UCC system Essentials Sessions’

> EDI 101 > XML 101 > Data Capture 101 > CPFR 101

BIG PICTURE

SUPPLY CHAIN MANAGEMENT PROCESS DEFINITION

NUTS & BOLTS OF THE EAN•UCC SYSTEM

SPECIFIC APPLICATION TRAINING

EAN KNOWLEDGE 101 SERIES

OPTION 2 ONLINE TRAINING

OPTION 2 EAN SUPPLY CHAIN KNOWLEDGE CENTRE

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

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

WHEN AND WHERE TO GET THE EAN•UCC ESSENTIALS Releasing the new training dates for 2005, EAN Australia training staff have made two sessions available for the price of one! Until now, the free subscriber's voucher could be redeemed for The Essentials

Session, a four-hour introduction to the EAN•UCC system or used as a credit towards the 'how to' technology session that followed.

The popularity of the technology session encouraged EAN's trainers to merge the two, creating a new full-day session at the original price of $99 for non-subscribers or free access for EAN subscribers redeeming their Education & Training voucher.

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

Melbourne

Adelaide

Perth

15 March 2005 17 May 2005 19 July 2005 13 September 2005 29 November 2005

1 March 2005 3 May 2005 6 September 2005 15 November 2005

22 March 2005 26 July 2005

14 June 2005 25 October 2005

Brisbane 24 May 2005 27 September 2005

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


13

YOUR KNOWLEDGE EAN ‘ENCYCLOPAEDIA’ ON CD If you find the EAN•UCC User Manual a little overwhelming, a new CD-ROM under development by EAN Australia might be just the answer. Users of the CD select their industry of interest, then click on a menu to reveal benefits, case studies, implementation information and explanations of the processes and standards that apply. Information can also be tailored to suit the needs of different groups, such as raw materials suppliers, manufacturers, distributors, logistics providers and retailers. The three-dimensional menu makes it quick and easy to locate the relevant information. While the CD provides just a taste of the detailed information in the EAN•UCC User Manual, it allows a rapid

appreciation of what the EAN•UCC system has to offer. The CD will also be sent to universities and TAFE colleges for eCommerce, logistics, manufacturing and even graphic design students. EAN CIO, Australia's Steven Pereira envisages that as the CD evolves, a version will eventually be produced for secondary schools. “The CD is like an EAN•UCC encyclopaedia,” Steven said. “It's the perfect complement to EAN's classroomstyle offerings and the new online course we've developed.” “It's an easy access resource you can slip into your PC whenever you need to learn something more about EAN•UCC.”

LEARNING MADE EASY ONLINE An online version of 'EAN•UCC system - The Essential Session' training session has been released to cater for remote or time-poor subscribers. The course, called ‘eLearningeXchange’, was developed in conjunction with Deakin Prime and covers an introduction to EAN•UCC, open standards for numbering, data carriers (bar coding) and eMessaging. Allow a total of about five hours to complete the self-paced course, which

CASH IN YOUR FREE VOUCHER AND SAVE

can be taken over a 30-day period. EAN Education Support and Development Manager Paul Hackett said the format was ideal for students, non-subscribers and subscribers who struggle to attend the ‘EAN•UCC system - Essentials Session’ run in capital cities. “EAN's new eLearningeXchange course offers access to self-paced online EAN•UCC system training to all subscribers, regardless of their geographical location.

With each EAN Australia subscriber renewal, your business is rewarded with a FREE Education & Training Voucher valued at $99. The voucher can be redeemed for complimentary access to 'EAN•UCC system - The Essentials Session' or discount on ‘eLearningeXchange’ and EAN Knowledge Series 101. Take advantage of your FREE voucher today and book online at www.ean.com.au/education

“Our online training modules deliver targeted supply chain management knowledge to anyone, anywhere and at any time.” eLearningeXchange includes online assessment as part of the course work. Enrol for eLearningeXchange at www.ean.com.au/education or call Paul Hackett on 1300 366 033.


14

LINK DECEMBER 2004

PAVING THE WAY FOR RFID AND EPC IN AUSTRALASIA A report released by ECR Australia assessing the Australasian market's readiness for Radio Frequency Identification (RFID) and Electronic Product Code (EPC) has found that companies are becoming more confident about implementing the technology, and in some cases, have already conducted their own trials. Titled ‘From Barcode to Electronic Code’, the report compared local data with the global state of play detailed in the Global Commerce Initiative (GCI) Roadmap published in 2003. The report found that: > Two thirds of respondents said they expected inventory management would benefit most from EPC technology; > Over half of respondents said the cost of tags was a barrier to implementing RFID/EPC;

The research findings also suggest that companies in the northern hemisphere are much closer to implementing RFID-enabled EPC, mainly due to mandates from large retailers. Without mandates, companies in our region are taking the opportunity to learn from overseas developments, to assess the value in the EPC network and are looking to utilise the technology for their benefit rather than purely for compliance reasons. The research was made possible by the contributions of a project team representing 22 companies, led by Accenture. To order a copy of the report, visit www.ecraustralasia.org.au/public/index.htm Copies are $33 plus postage and handling.

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

EAN INTERNATIONAL GLOBAL RE-BRAND: ONE ORGANISATION, ONE STANDARD From July next year, EAN Australia will adopt a new name, GS1 Australia. The freshly branded organisation will be launched at the Impetus 2005 conference. The move follows an announcement by EAN International and the Uniform Code Council that the two organisations will merge under the GS1 brand. CEO of EAN International and the Uniform Code Council, Miguel Lopera, said he believed the global re-brand would help the organisation reach its business mission. The formation of one business entity will also help EAN International provide one open, business-led, integrated system of identification and information transfer standards - enabling effective supply chain management across companies and industries worldwide. EAN International has earmarked four areas as priorities - the EAN•UCC standards for bar codes and messaging, RFID and Global Data Synchronisation.

A Global Name Change Task Force has been established to coordinate the global launch of GS1, which includes a new corporate logo, rules governing the use of the brand and recommendations for the launch of GS1 at local levels. EAN Australia's Marketing Manager, Sharyn Perry, represents Asia Pacific Member Organisations on the GS1 Name Change Task Force and describes the global re-brand as an exciting project. “We are thrilled to be assisting with this initiative,” Sharyn said,“because our new name is much more than just a title.” “It tells the world that we are proud of our joint history and that we are ready to come together under one brand as one global community speaking one universal language of trade.” “Aligning the EAN International community will bring many benefits to our subscribers, as we strengthen our global reach, maximise efficiency and work towards the same vision.”


15 > CASE STUDY

HARVEY NICHOLS Sitting in the middle of Knightsbridge in London, Harvey Nichols has always been a place to shop for the fashion conscious. This is upmarket retailing, with such famous brands as Gucci, Dolce and Gabbana and Prada among a string to be found throughout the store. Now, however, you can also find “Harvey Nicks” in other places around the UK, such as Leeds, Birmingham, Edinburgh, Manchester, and even Riyadh. And that has had implications for the use of bar codes within the company. Harvey Nichols may not be a fast throughput, need items scanned as quickly as possible sort of company. In fact, it is the complete opposite. But it still needs its supply chain to work as effectively, to service its stores up and down the country. The company which operates at the top end of the retail spectrum, puts a high premium on customer service, and that, according to Head of IT, Martin Schofield, is where bar coding -introduced when

Harvey Nichols was part of the Debenhams group - comes in. “When we're selling designer clothing that can be costing around £1000, it isn't good enough to say to a customer, 'Hang on, I'll see if it's in the stock room.' We have to be able to say, 'Yes, madam, we have it in stock.' “ It is the cost of its goods that may well send Harvey Nichols on an earlier path than others to the adoption of radio frequency identification (RFID), though not at the pallet or case level, but at the item level. Unlike its other retail competitors, whose low value, high throughput business models require RFID tag costs to be below the “20 cent” equivalent, Schofield recognises that a few pence here and there on the cost of the tag carries little weight compared to the need to be able to track high-priced, topof-the-range goods. That is why the company plans to consider RFID pilots in around a year's time. It is the same rationale affecting the company's use of bar codes. Currently it bar codes all goods at the warehouse when they arrive from suppliers, using

EAN 13 and EAN 8 labels. The need to be able to track the items effectively means Harvey Nichols would rather bar code itself, than rely on an outside supplier to do it. Perhaps surprisingly, it does not currently have scanners at the warehouse, though that is a project now in play, with a planned implementation date of next April. With the increase in its stores, the company is in the process of turning its warehouse, which previously serviced the Knightsbridge store, into a distribution centre for the rest of the country. Plans for the warehouse already include allowing compliance with contractors for RFID within a two to three year timeframe. Schofield is adamant that a move towards RFID will work in Harvey Nichols' high end of the retail space. “Offering the equivalent of another tin of own label beans just won't work. We must have an efficient supply chain. Accuracy - driven by bar codes and in future, RFID - is a prerequisite for customer service.”


16

LINK DECEMBER 2004

> SPECIAL FEATURE

BAR CODE QUALITY

Top four quality issues for consumer units:

This special feature highlights the important issue of bar code quality, how to maintain it, and avoid the problems.

1. 2. 3. 4.

FACT: Bad quality bar codes are rejected and cannot be scanned.

Top four quality issues for traded units:

Good bar code quality is essential. If the quality falls after initial acceptance of a new product, your customers will not be able to scan your products, and will have to handle them manually. Re-labelling might be considered, but some retailers will consider de-listing the problem products, and in some cases, they will fine their suppliers.

Inadequate light margins left and right. Bar codes not tall enough Excessive ink spread (incorrect width of bars and spaces) Poor print quality used

1. Bar codes not tall enough 2. Printing against the bar direction with a thermal printer 3. Inadequate light margins left and right. 4. Bar codes too small.

Getting it right first time and maintaining high quality with procedural checks can avoid extra costs. How much have poor quality bar codes cost you? > Staff time in resolving the issue > Artwork house or other solution provider consultancy fees > Costs of test materials > Customer visits etc How much would you save in carrying out random checks during and after the print run? Poor bar code quality can be easily avoided by using ISO compliant bar code verifiers (not scanners) and checking the bar code height at every stage: > Initial packaging/artwork creation > Final test packaging > Final combined packaging (including any materials such as shrink wrap or film that is overlaid or used to group items together) > Regular bar code quality testing during all print runs Customers will work with you to help overcome problems but the onus is on the supplier to get it right.

Other common bar code problems: > Symbol contrast - the background is too dark and the scanner is unable to decode the symbol > Distortion of label or board - the label or board is either ridged, folded or damaged > Obscured bar code - opaque tape or shrink wrap seams cover the symbol > General poor quality - grey bars rather than black bars, distorted bar edge > Symbol show through - the consumer unit bar codes show through the packaging of the outer case so a single item could be scanned by mistake. If you have any recurring quality problems that you would like help with, please contact the EAN Australia Technical Helpdesk, telephone 1300 366 033 or email technical@ean.com.au


17 PROBLEM

SOLUTION

MISSING PRINT HEADS OR BLOCKED JETS

Horizontal or vertical white lines appearing due to print head burning out or print jets becoming blocked. Scanners treat white lines as an error or as a different and incomplete bar code.

All printing equipment should be regularly maintained with increased vigilance in dusty environments.

SHRINK WRAP DISTORTION

Printing bar codes onto film which is distorted as it is used as shrinkwrap around individual items or on outer cases. The film colour affects distortion as does the packaging shapes eg. bottles.

Test different substrates prior to full production. Following test shrinkage verify bar codes on substrates (film) and ensure the symbol background remains opaque. Also ensure that the gloss surface of the film will not cause reflectance problems.

HIGH REFLECTANCE OF BACKGROUND

Metallic backgrounds, shrinkwrap films and other substrates are highly reflective. Verifiers and scanners will have problems reading the bar codes.

A global project is underway to test reflectance issues. Until then the only guidance available is to test substrates and choose less reflectant materials or ensure that the symbol background is a solid colour.

INCORRECT WIDTHS OF BARS AND SPACES

The width of the bars may expand or shrink too much, depending on the combination of inks, labels or other substrates, and the printing process

Verifiers will tell you how much wider the bars are than ideal. Printing and labelling equipment should be correctly used to prevent excessive bar gain. Master artwork can also be can adjusted if necessary. Test for change when changing ink or substrate.

CODE 128 BAR CODES USED INSTEAD OF UCC/EAN-128 BAR CODES

UCC/EAN-128 bar codes must be used in open distribution and global supply chains. Code 128 bar codes are not part of the EAN•UCC system.

Select EAN-128, UCC-128 or UCC/EAN-128 as the bar code type. If you are unsure, please contact the Technical Helpdesk or send a copy of your bar code into EAN Australia for bar code verification.

CALL APPLIED ELECTRONIC COMMERCE

The Vital Link TO GET YOUR SUPPLY CHAIN WORKING FOR YOU

Mobile: 0408 431 023 Tel: 61 3 5943 1022 Fax: 61 3 5943 1023 aec@aecommerce.com.au www.aecommerce.com.au


18

LINK DECEMBER 2004

STOP PRESS – CHANGES TO THE EAN•UCC USER MANUAL The latest update to the EAN•UCC User Manual includes changes to the way bar codes are positioned and includes a new section on ISO Verification. While it is important to be aware of the new guidelines, EAN Australia's Angela Mears said subscribers would be given a period of time, to implement the freshly released changes. “Bar codes submitted for verification will continue to be tested to the old specifications, but comments will be included recommending a migration to the updated guidelines on new art work”, she said. “While most of the changes won't affect subscribers too much, we recommend you look at them carefully and contact the helpdesk if you need assistance.” she said. The following offers a summary of the changes and the EAN Australia Technical Helpdesk can be reached on 1300 366 033 for more extensive information. The latest version of the EAN Australia User Manual is available from EAN Australia on CD or downloadable from the web site at www.ean.com.au

Changes To Bar Code Dimensions: > The X-dimension (module width) for UCC/EAN-128 bar codes is now 1.016mm, making the recommended magnification range for scanning in general distribution environments now 48.7% to 100%. > Left and right light margins for a 100% size UCC/EAN-128 bar code are now 10.2mm. > The minimum required height for other UCC/EAN-128 bar codes (besides the SSCC) on logistics labels is now 32mm. For a migration period, 27mm will remain acceptable. > Whilst EAN/UPC bar codes on retail items should still be printed with a magnification between 80%-200%, magnifications as low as 75% are now acceptable for on demand (thermal, laser) printing only. Changes To Bar Code Location: > The edge rule for location of bar codes on retail trade items is now that the bar code must not be closer than 8mm or further than 100mm from the nearest edge.

> The number of bar codes required for non-retail trade items, is now an absolute minimum of one, but it is strongly advisable to have two (or more) bar codes on the sides of the item (32mm from the base and a minimum of 19mm from any edge remains the same). Recommendations for non-retail shallow trays where the full bar height can not be printed are now: 1) Place the human readable text to

the left of the bar code 2) When height of unit is less than 32mm, place bar code on top > Location for pallets: 1) For all pallets, the bottom of the bars of bar code should be between 400mm and 800mm from the base 2) For pallets less than 400mm high, place the bar code as high as possible Other changes: UCC are now allocating the previously reserved prefix of one.


19 COMMUNITY MATTERS EAN Australia strongly believes that giving back to the communities in which we operate is a fundamental aspect of good corporate citizenship. Being involved in local communities does make a difference - and we're proud that our subscribers are part of these initiatives. The goods that subscribers send to EAN for bar code verification can always be returned, but if you don't want them back, EAN ensures that they are put to use in the best possible way. Suitable products are sent to the charities and not-for-profit organisations that EAN supports. They are always thrilled to receive goods that boost their food bank

and ultimately provide much needed help to disadvantaged families. In October, EAN Australia had the pleasure of helping the City of Kingston's Youth Services Department by responding to the increasing demand for food parcels. EAN's support enabled the City of Kingston to expand its service delivery at a time when it was most needed. In the last financial year alone, the Youth Services Department had contact with over 8,500 people through various community programmes. In a letter of appreciation to EAN Australia, Leanne Tilley, the City of

Kingston's Youth Services Co-ordinator, wrote:“With an increased need over the past three months for food vouchers and food parcels, the support from EAN Australia is incredibly valuable in assisting Kingston's Youth Services to meet this demand.” “We really appreciate the generous support that EAN Australia has provided our service and the young people in our community.”

UCC COMPANY PREFIX NOT NEEDED FOR EXPORTS TO US OR CANADA From January 2005, Australian companies will no longer be required to apply for a UCC company prefix for products exported to North America and Canada. Anticipating the change, most North American and Canadian retailers are prepared and will accept the EAN-13 number and bar code. This means products exported to these countries will now not need to carry a UPC bar code. Historically, while retailers around the world could scan UPC bar codes, retailers in the US and Canada could not read EAN-13 numbers and bar codes. This created a one-way compatibility issue for businesses worldwide wishing to export to the US and Canada. The Uniform Code Council (UCC) established a programme called ‘Sunrise 2005’ in 1997 to deal with the problem.

Sunrise set a target date of 1 January 2005 for retailers to ensure their point of sale systems and scanners could read and accept the EAN-13 number and bar codes. EAN Australia's Sue Schmid welcomed the milestone. “EAN Australia subscribers exporting to the US and Canada no longer have to deal with the confusing process of assigning country-specific bar codes to avoid the risk of costly re-labelling,” she said. “Next year, it will be as simple as ABC - the way it should be.” Sunrise also means that, as of 1 January 2005, the US-based Uniform Code Council (UCC) will begin phasing out the issuing of UCC company prefixes to businesses outside North America and Canada.

Sue explained that Australian companies already issued with a UCC company prefix could continue to use it on their existing products. “There is no need to changeover any existing packaging but consider issuing Global Trade Item Numbers (GTINs) using your assigned EAN•UCC company prefix in the EAN-13 format on new products rather than continuing with your UCC company prefix,” she said. “Now that even the US and the Canadians accept the EAN-13 format, the EAN•UCC system can truly be considered a passport to world trade.”

Richard Euston (right), City of Kingston accepting goods from EAN's Richard Jones


20

LINK DECEMBER 2004

GROCERS GEAR UP FOR UBF FADEOUT As Australasia's major grocery retailers and their suppliers move towards EANnet, it seems the days of the paperbased universal buying form (UBF) are numbered. In the five months since June, the number of EANnet subscribers has jumped by more than 35%. At time of article printing, the 456 strong EANnet subscriber community boasted 96 of Australia's top 100-grocery suppliers±. Growth is also impressive across the Tasman with the recent launch of EANnet in New Zealand prompting an initial 22 suppliers to join their local community. To date, 55,000 trade items have been loaded into EANnet and 105 suppliers have achieved EANnet Ready™ status. Already, 61 suppliers to Coles/BiLo have eliminated paper-based UBF's.

Coles' well-publicised approach to EANnet requires all packaged goods suppliers to its Coles and Bi-Lo supermarkets to be EANnet Ready by March 2005, while the timeframe for fresh produce suppliers is marginally later at May 2005. Metcash, which comprises IGA, Campbells Cash & Carry and ALM, has been fully integrated with EANnet for two years and is poised to begin phasing out UBF's according to Michael Haire, Metcash National Data Administration Manager. "Metcash would like to be in a position by 31st March 2005 where paper UBF's are being progressively phased out and all product related information from vendors to Metcash is electronically exchanged via EANnet."

Woolworths' Senior Business Manager eCommerce B2B Peter Roebers said Woolworths' suppliers would be able to use either EANnet or the company's own electronic Core Record Integration system (eCRI), which is currently undergoing trials with a number of suppliers. “Our aim is to improve data accuracy and efficiency for suppliers,' Peter said. “Woolworths is actively working with EAN to establish integration between eCRI and EANnet.” Franklins General Manager Information, Bill Morgan, confirmed its adoption of EANnet as the company's eCommerce data synchronisation standard and is working with EAN Professional Services to engage with more than 1,000 suppliers. “Franklins supports EANnet in its endeavours to help vendors become EANnet compliant as this would facilitate cost effective product information exchanges between suppliers and Franklins,” Bill said. The Franklins and Metcash experience has been carefully watched by New Zealand's largest grocery distributor, Foodstuffs. The company is to pilot EANnet with six key suppliers and has targeted third-quarter 2005 to go live. In response to the unprecedented interest in EANnet, EAN Professional Services recently increased its resources and is well-equipped to assist members become EANnet Ready with a range of training courses, implementation programmes and project managed assistance. To discuss how EAN Professional Services can accelerate your business to EANnet Ready status, contact Marcel Sieira on 0423 566 843. ± Source - AC Nielson Top 100 Grocery Suppliers Report


21 EAN AUSTRALIA PEOPLE: SPOTLIGHT ON JOHN LANE Meeting John Lane is a mixed pleasure. Easy going, friendly and helpful as he is, a meeting with John signals that your bar code verification has not gone according to plan. Each year, thousands of bar codes are tested or 'verified' by EAN Australia staff to ensure scans are accurate and reliable. As Sydney's Technical Support Coordinator and with nine years of verification experience under his belt, John is one of EAN's most knowledgeable technical specialists and deals with the toughest cases. “My biggest challenge is explaining the intricacies of the EAN•UCC system to subscribers in simple terms,” John said.

“It takes time to come to grips with applying a bar code to an item at retail level is one thing, but when you start using them on non-retail items, that brings a new level of complexity and their use in logistics takes it to another level again.” The other side of John's role is dedicated to prevention rather than cure. “Most of my time is spent educating packaging people about bar codes so we can save subscribers heartache,” he said. “The brand owner doesn't want to have to deal with problem bar codes, particularly at the point when the printing's already been done. To avoid that,

EAN AUSTRALIA WINS LAA AWARD EAN Australia's innovative training facility, the Supply Chain Knowledge Centre, has been recognised with an award from the Logistics Association of Australia (LAA). In a lavish ceremony on 18 November at the Grand Hyatt Hotel, LAA National President Mal Walker presented the 2004 National Logistics & Supply Chain Training Education & Development Award to proud EAN Australia CEO, Maria Palazzolo. “Earlier this year the LAA scheduled a group of local and international delegates from Singapore to visit our Supply Chain Knowledge Centre,” Maria said. “They were so impressed they wanted to build their own!” The LAA award acknowledged EAN's significant contribution to education, training and further career development in logistics and supply chain management. The EAN Australia Supply Chain Knowledge Centre was also recognised internationally when in April at its Chicago conference, the Supply Chain Council named the centre the winner of the 2004 Award for Supply Chain Academic Excellence.

we're liaising with the people at the source - the graphics people and the printers.” John is also responsible for Sydney's fivemember technical support team and is particularly proud of their achievements, their enthusiasm and commitment to their job and their level of technical expertise. “We understand these reports are time critical and we are issuing them more quickly now than ever before,” he said.


22

LINK DECEMBER 2004

> CASE STUDY

ORACLE LAYS E-BUSINESS FOUNDATION FOR SUNNY QUEEN “By implementing the Oracle E-Business Suite, we were able to increase our sales volume 40% while keeping staff employee numbers constant. At the same time, customers are also receiving better service, with Sunny Queen's order to fulfilment rate having risen from around 80% to 99%.” Murray Clark, Financial Controller, Sunny Queen

Supporting Growth

Why Oracle?

Sunny Queen Limited is Queensland's largest supplier of eggs and egg products, and has recently expanded into New South Wales and Victoria. In mid 2001, it commenced a rollout of the Oracle EBusiness Suite applications to support this expansion without increasing staff numbers, while adding EDI capability, and improving financial and operational reporting. “We wanted to replace our old, heavily customised software with something that could be used off the shelf and adapted to changing requirements without turning to the developer for new programming,” said Murray Clark, Financial Controller. “We were also looking for a new millennium platform that would be more reliable, would scale easily, and, most importantly, handle electronic communications with our customers and our logistics partner.”

Sunny Queen needed a customer relationship management (CRM) system to support its plan to deal directly with all customers instead of handling sales through agents in regional centres. The company started looking for systems from second-tier vendors because it thought the market leaders would be out of its price range. “We thought there was no way we could afford top of the line software,” said Clark. Oracle's solutions were initially considered only as a point of comparison between tiers one and two, but Sunny Queen went ahead after Oracle offered more flexibility and increased value at a competitive price to the other vendors. It was important to Sunny Queen that the chosen solution could fit the requirements of its small to medium enterprise while providing scalability in the future with the company's planned growth.

High-Level Project Goals > Create a robust and integrated operating environment > Reduce overheads and improve reporting capabilities > Provide e-business capabilities for links with partners and customers


23

Rapid Implementation Sunny Queen chose Oracle Consulting based on their extensive experience implementing the Oracle E-Business Suite 11i. The project began in July 2001 and included the implementation of Oracle CRM-Telesales/Scripting, Advanced Inbound and Advanced Outbound-as well as Financials, Order Management, and Sales Analyzer. The sales and inventory systems went live in mid-November and the financial system was up and running the following month. This rapid implementation was possible due to the knowledge of the consultants and because of Oracle Consulting's seamless integration with Oracle Support and Development. The CRM implementation was completed in late March 2002, with Sunny Queen linking its customer management system to a PABX to support inbound Caller ID and outbound dialling. Selecting software that could be used without customisation also delivered operational benefits, and the Oracle applications helped Sunny Queen tighten its business processes, making operations more effective and efficient.

Improved Margins and Service Delivery The Oracle applications have allowed Sunny Queen to handle all orders from customers in Queensland, New South Wales and Victoria with a telesales team of just five people, replacing a costly network of agents in regional centres. “By implementing the Oracle E-Business Suite, we were able to increase our sales volume 40% while keeping staff employee numbers constant. At the same time, customers are also receiving better service, with Sunny Queen's order to fulfilment rate having risen from around 80% to 99%. We also have an EDI capability, which will become essential for doing business with the major supermarket chains,” Clark said. This capability will enable Sunny Queen to meet the latest EDI requirements of major chain customers. The Oracle implementation has made this possible whereas the redundant system did not provide the capabilities to facilitate EDI. Advanced Reporting “We're only just starting to scratch the surface of the financial reporting features, but using Sales Analyzer over Financials, we have reduced the time taken to prepare management reports from 15 to eight working days, and we're aiming for five days by the end of the financial year,”

said Clark. “I believe that is easily achievable - but we could never have done it before. What's more, each day's sales reports are ready for us when we arrive at work each morning. You can't do better than that for great daily business intelligence.” Purchasing and sales analysis has also improved. Sunny Queen can now easily track sales trends down to individual stores. On the supply side, the mix of egg sizes varies according to the weather. The company can now easily see when special prices are needed to balance the supply and demand of particular sizes. “We believe we have the leading software in the Australian egg industry. We're years ahead of the other players,” said Clark. Future Plans Sunny Queen plans to start using Oracle Manufacturing in conjunction with its manufacture of egg products such as egg pulp, frozen egg whites and scrambled egg mix. The company will also use the forecasting facilities of Sales Analyzer as part of management's goal of optimising its business performance reporting systems.


24

LINK DECEMBER 2004

ONLINE ACCESS TO SOLUTION PROVIDERS The Solution Providers Directory helps you find descriptions and contact details of companies offering relevant goods and services to assist you with implementation of the EAN•UCC system. Simply search via the pulldown menu, or type in a keyword and preferred state location, and then click on the 'submit' button. It's that easy! Pull-down search categories include: Consulting > EAN Implementation > Electronic Commerce > Systems Integration Hardware > Inkjet Printers > Label Printers > Label Applicators > Radio Frequency > Scanners Services > Storage & Distribution > Transport Software > Data Warehousing > Distribution > EDI > Point of Sale > Printing > Space Management > Supply Chain Planning > Warehousing Supplies > Film Masters > Label Stock > Pre-printed labels Visit today at www.ean.com.au/partners


25 ALLIANCE PARTNER UPDATE Great News. Our Alliance Partner community is growing. There are an array of new Alliance Partners that bring knowledge and epertise to the EAN subscriber. If you would like to more about the EAN Alliance Programme visit www.ean.com.au

STRATEGIC ALLIANCE PARTNERS

BUSINESS ALLIANCE PARTNERS

ASSOCIATE ALLIANCE PARTNERS

> Australia Post > Bearing Point > Capgemini > CSC > Datanet > Global eXchange Services > IBM > Innovation Exchange Network > Intermec > IPT > Leadtec > Matthews > Oracle > SAP > Telstra eBusiness Services > Unisys > VeriSign

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

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


26

LINK DECEMBER 2004

NEW OVERSEAS LEGISLATION AFFECTS AUSTRALIAN EXPORTERS Traceability Food Laws

Heath Product Identification Laws

Traceability has always been an important issue but becomes even more so with the introduction of the new EU regulation 178/2002. When it comes into effect on 1 January 2005, the regulation will lay down the general principles and requirements of food law within the European Community.

The US Food and Drug Administration issued a ruling in February 2004 for the bar coding of drugs in the USA that became effective from 26 April. All new drugs will have to comply within 60 days, while older products have two years. To summarise the ruling, most drugs and biological products must be bar code labelled down to unit dose with a linear bar code carrying the NDC (National Drug Code product identifier), with additional data at the manufacturer's discretion.

This regulation will be best known for establishing the European Food Safety Authority (EFSA) but also introduces specifications outlining the basic conditions for food safety. The two most relevant are: 1. It should be possible to trace food

and feed at all times. 2. Unsafe products should be withdrawn from the market.

The EAN•UCC system allows the NDC number to be encoded within the bar code. The release of the new EAN•UCC bar code, known as the Reduced Space Symbology (RSS), is significant as there will be many unit dose products for which the RSS code is the only option (incidentally, the RSS-14 stacked is considered to be a linear code).

> ALLIANCE PARTNER EDITORIAL

COBRA ASSISTS LOCAL SUPPLIERS MEET NEW LEGISLATION Cobra Systems, in partnership with Axicon, have always been at the forefront of bar code verification technology, constantly developing additional functionality, many specifically created for traceability.

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

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

Beyond verifying the quality of your printed bar code,The Axicon Verification System provides essential validation on many aspects of the bar code. Why? It is all very well if a bar code is printed to an acceptable quality, but what good is this if the data is encoded incorrectly, the 'best before' date has already passed, the quantity is incorrect or if the number encoded does not match the goods inside?


27

MERRY CHRISTMAS Everyone at EAN Australia would like to wish you a happy and safe Christmas and New Year holiday. Both the Melbourne and Sydney offices will close briefly to provide staff with a short but well-earned break. During this time, EAN Australia's trading hours will be: Thursday 23 December: 8.30am to 12.30pm Friday 24 December to Tuesday 28 December: Closed Wednesday 29 December: 8.30am to 5.30pm Thursday 30 December: 8.30am to 5.30pm Friday 31 December: 8.30am to 4pm Monday 3 January: Closed Tuesday 4 January: Normal trading resumes

Normal

EAN EVENT DIARY EAN Australia Education & Training Series Road Show > 1st March 2005 Melbourne Sydney > 15th March 2005 > 22st March 2005 Adelaide Further info: www.ean.com.au/education

2005 DATES RELEASED

RosettaNet Australia Road Show > 16th March 2005 Sydney > 17th March 2005 Brisbane > 23rd March 2005 Adelaide

NEW

Portable Supply Chain Knowledge Centre Sessions > 16th March 2005 Sydney > 22nd March 2005 Adelaide Further info: www.ean.com.au/knowledgecentre

2005 DATES RELEASED

EAN Knowledge Series 101™ Melbourne, EAN Head Office 6th April 2005 > EDI 101 > XML 101 13th April 2005 > Data Capture 101 20th April 2005 > CPFR 101 27th April 2005 Further info: www.ean.com.au/education

2005 DATES RELEASED

SMART Conference > 1st & 2nd June 2005 Sydney Further info: www.smartconference.com.au EAN Annual Conference Retail Business Technology > 12th & 13th July 2005 Crown Towers > 20th - 22nd July 2005 Hotel Sydney Further info: www.impetus2005.com.au

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

NEW


LINK T H E

S U P P L Y

C H A I N

Head Office: Axxess Corporate Park Unit 100/45 Gilby Road Mt Waverley VIC 3149

Sydney Office: Lakes Business Park Building 4B, 2-4 Lord Street Botany NSW 2019

National Number: 1300 366 033 Email: eanaust@ean.com.au Website: www.ean.com.au

GS1 Australia LiNK magazine - Issue 5  

Stay informed with LiNK - The supply chain magazine

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