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THE SUPPLY CHAIN MAGAZINE

• ISS U E

27

• autumn 11

GS1 GoScan – Bringing trusted DATA to consumers

GS1 Recallnet set to go live mid-year


CONTENTS

NEWs 05… G  S1 Recallnet set to go live mid-year Work will begin next month on a second, whole-ofindustry pilot of GS1 Recallnet before a marketready version of the product recall and withdrawal portal is launched mid-year.

06… Work with us to deliver global food safety, says GS1 Australia CEO

GS1 Australia CEO Maria Palazzolo has called on manufacturers to work with the not-for-profit standards body to develop Extended Packaging applications that will deliver a global food safety culture.

07… GS1 GoScan – Bringing trusted information to consumers

Following extensive testing GS1 Australia’s SmartPhone application is now in its production phase. 08… Trusted data the key to B2C applications A survey conducted by GS1 Australia, with assistance from Anaphylaxis Australia and Nestlé Australia, has shown that accessing a trusted source of data on allergens contained in food products is of highest concern.

STARTERS 03… Welcome Chairman’s Message CEO Insights 04… Get Smart

Hotdates

Training gets hands-on THIS ISSUE

THE SUPPLY CHAIN MAGAZINE

• ISSUE

27

• AUTUMN 11

GS1 GOSCAN – BRINGING TRUSTED DATA TO CONSUMERS

GS1 RECALLNET SET TO GO LIVE MID-YEAR

GS1 Australia is the only organisation authorised by GS1 Global to allocate and administer GS1 Bar Code numbers in Australia. GS1 Australia adds value to its members’ businesses by promoting and developing the adoption of crosssector, global supply chain standards. GS1 Australia delivers supply chain solutions and services for bar coding, electronic business messaging, global data synchronisation and Radio Frequency Identification technology (RFID).

GS1 Australia LiNK | Issue 27 | autumn 11 | 2

CONTRIBUTORS

11…

Industry news

Officeworks calls on suppliers to join GS1net

12…

ALC head calls for national laws with ‘teeth’

GS1 Australia participates in Living Lab project

Editor Mary Riekert Design Vetro Design PrintING RA Printing

13… Supply chain errors cut by 95 per cent

GS1 Australia

16…

Head Office Axxess Corporate Park 100/45 Gilby Road Mount Waverley VIC 3149 Sydney Office

Lakes Business Park Building 4B, 2–4 Lord Street Botany NSW 2019 National Number: 1300 366 033 International Number: +61 3 9558 9559 Fax: +61 3 9558 9551 General Email: gs1aust@gs1au.org LiNK Email: editor@gs1au.org www.gs1au.org

NPC data proves successful for healthcare tenders

Alliance Partners 26… Matthews: Package Code Management solves pallet-labelling problems simply


WELCOME

Welcome to LiNK Autumn 2011 edition 01 Russell Stucki Chairman gs1 australia 02 maria palazzolo ceo gs1 australia

Chairman’s Message

01

Working to achieve positive outcomes In times of adversity Australians’ endurance and courage come to the fore and the start to 2011 has been no exception. As the nation was hit by floods, bushfire and cyclones, Australians responded with endurance, ingenuity, good humour and, above all, an extraordinary spirit of mateship. Thousands volunteered their time and efforts, working together to save lives and property and helping those who had lost everything. You may well wonder what this has to do with supply chain, but this national spirit of cooperation is something we need to harness in our business environment to transform the way we work. In business we are naturally competitive to protect our market share and bottom line and competition is essential in the interest of consumers. However, even if we have diverging business interests, there are many ways in which we can work collaboratively within our different industry sectors using the GS1 standards to achieve positive outcomes for the benefit of all. Similarly, working cooperatively with your trading partners can help your business succeed and achieve the best possible results. As a neutral, not-for-profit organisation, GS1 Australia can bring stakeholders together and enable business and industry to develop and implement global standards by providing the tools, trust and confidence needed. Together we need to have the courage to look for new solutions and to try new ways of doing business and the endurance to see challenges through to the end.

02

CEO Insights

Let’s make a difference together In February I had the opportunity to speak at the Global Food Safety Conference 2011 in London on a subject that we at GS1 Australia are passionate about – working with business to use the GS1 standards to build a global food safety culture. That same week the Consumer Goods Forum released the results of its 2011 Top of Mind Survey. This annual survey is based on a sample of 443 decision makers in the consumer goods industry around the world and reflects the priorities of consumer goods business leaders. It is no surprise that food and product safety was voted the second most important issue overall, just behind corporate responsibility. GS1 Australia has been working with industry, in collaboration with the Australian Food and Grocery Council (AFGC), to launch GS1 GoScan, the first industry-endorsed iPhone application that delivers detailed Extended Packaging product data to consumers,

accurately and in real time. This will enable consumers to access detailed product information such as allergen and dietary information (see page 7). At the same time we are preparing to launch GS1 Recallnet, an online, industry-based portal for product recall and withdrawal using the GS1 standards. This service will enable manufacturers and suppliers to share real-time product notifications with their retail trading partners in a secure and direct manner (see page 5). Both these applications have the potential to make a real contribution to building safety and traceability into the supply chain. The issue of food and product safety is real and should concern us all. We are all either a sufferer or know someone who is suffering or has died from eating something they didn’t know was in their food. We are calling on our members to support these projects for the protection of all of our children and families. By doing this together we really can make a difference.

GS1 Australia LiNK | Issue 27 | autumn 11 | 3


GET sMART

Hot Dates

April 2011 05 GS1 Australia Classroom training “Numbering and bar coding” Brisbane GS1 Webinar: “Introduction to GS1net” 06 Web interactive training 07 GS1 Australia Classroom training “Numbering and bar coding” Melbourne 12 GS1 Australia Classroom training “Numbering and bar coding” Sydney GS1 Webinar: “Getting the most out of the browser template” 13 Web interactive training 19 GS1 Webinar: “Publishing and reporting within GS1net” 20 Web interactive training May 2011 03 GS1 Webinar: “Introduction to GS1net”; GS1net User group, Sydney 04 GS1 Future Day, Melbourne GS1 Webinar: “Getting the most out of the browser template” Web interactive training 05 GS1net User group, Melbourne 11 GS1 Future Day, Sydney GS1 Webinar: “Publishing and reporting within GS1net” Web interactive training 18 Web interactive training 24 GS1 Australia Classroom training “Numbering and bar coding” Adelaide 26 GS1 Australia Classroom training “Numbering and bar coding” Perth

JUNE 2011 01 Web interactive training 07 GS1 Webinar: “Introduction to GS1net” 08 Web interactive training 14 GS1 Webinar: “Getting the most out of the browser template” 15 Web interactive training 16 GS1 Australia Classroom training “Numbering and bar coding” Melbourne 21 GS1 Australia Classroom training “Numbering and bar coding” Sydney GS1 Webinar: “Publishing and reporting within GS1net”

JULY 2011 05 GS1 Webinar: “Introduction to GS1net” 06 Web interactive training 12 GS1 Webinar: “Getting the most out of the browser template” 13 Web interactive training 19 GS1 Australia Classroom training “Numbering and bar coding” Sydney GS1 Webinar: “Publishing and reporting within GS1net” 20 Web interactive training 21 GS1 Australia Classroom training “Numbering and bar coding” Brisbane 26 GS1 Australia Classroom training “Numbering and bar coding” Melbourne To register for GS1 Australia training and for times and venue information please visit www.gs1au.org/events

GS1 Australia LiNK | Issue 27 | autumn 11 | 4

Training gets hands-on Interactivity is the key to GS1 Australia’s latest training offer for members, according to Terry Papadis, GS1 Australia Manager – Training Services.

“Our training sessions emphasise active engagement, interactivity with the material presented and hands-on participation. We have many more question-and-answer activities so that members get to practise what they are learning as they go. We want our members to walk away from training with practical hands-on experience in the application of the GS1 standards,” he said. “While we want to create a fun environment in which learning is an experience, we are serious about our members having real learning outcomes,” he added. To make training easier to access, members no longer have to commit to a full day’s training. All introductory training will be a half-day Learn morning session where members are taught the basics of bar coding and numbering at the retail level, GS1net and eCom. Members then can opt to stay for an afternoon Knowledge session, which will explore their chosen subject in more depth, or they can return to complete the Knowledge session on another day. GS1 Australia will also run a series of two-hour Master Classes which will explore the business application of subjects such as bar code quality and achieving data accuracy in depth. Last year GS1 Australia trained more than 500 members across Australia. This year extra sessions are being offered in Melbourne, Sydney and Brisbane. GS1 Training is also on offer in Adelaide and Perth with the potential for more sessions in more locations as the need arises, according to Papadis. At present, Learn and Knowledge sessions are available in Numbering and Bar Coding as well as in Data Synchronisation (GS1net/NPC). Later this year a Learn-level training session on GS1 eCom will be scheduled and it is envisaged that further training on eCom as well as in EPC/RFID will be introduced in due course.

“ New GS1 Australia members are

entitled to FREE training in GS1 numbering and bar coding (Learn and Knowledge) for one person from their business within the first 12 months. Visit http://www.gs1au.org/ services/education_and_training/for more information.


INDUSTRY news

FACT FILE

GS1 Recallnet set to go live mid-year

Work will begin next month on a second, whole-of-industry pilot of GS1 Recallnet before a market-ready version of the product recall and withdrawal portal is launched mid-year. This second pilot is designed to test the enhancements that have been incorporated into the GS1 Recallnet service following the feedback and comments received from participants during the first pilot performed late last year. The pilot group includes representatives from Food Standards Australia and New Zealand, Australian Food and Grocery Council, Coles Supermarkets, Woolworths, Metcash and a number of leading Australian food manufacturers such as Nestlé, George Weston Foods, Mars, PepsiCo, Spring Gully Foods, Kraft, Fonterra, and Unilever. These industry participants, in collaboration with GS1 Australia, have developed GS1 Recallnet to increase the speed and accuracy of food recalls and withdrawals in Australia. The new service is designed to address the lack of standardisation in current recall processes while complementing what businesses have been using to date.

The online service will enable manufacturers and suppliers to share real-time product recall and withdrawal notifications with their retail trading partners in a secure and direct manner. GS1 Recallnet will offer businesses:  A single, automated, industry-based recall and withdrawal notification process supported by all major retailers and the FSANZ  Ability to target notifications to selected companies with tailored information  Two-way communication allows suppliers’ customers to report progress  A highly secure system that ensures only approved notifications are issued  Clear handling, disposal and reimbursement instructions to speed the recall process  Ability to extend recalls and withdrawals and navigated between related notifications  Support for multi-media files to the recall notification  Lower risks and costs in the execution of recalls and brand protection GS1 Australia and the Australian Food and Grocery Council have called on businesses in the food and grocery sector to register their contact details with GS1 Australia to be kept informed on the progress with the service now to enable them to use it once it is operational. GS1 Australia is also working with Healthcare sector stakeholders to develop a separate GS1 Recallnet portal with launch expected early 2012.

 A review of the Australian product safety recall system by the Australian Competition and Consumer Commission (ACCC) – Review of the Australian Product Safety Recalls System, Australian Competition and Consumer Commission, 27 May 2010 – revealed that in 2009 there were 779 recalls in Australia, some involving many thousands of products.  The report said that the average return rate across recalls for all Commonwealth regulators is 56.75 per cent.  The ACCC urged suppliers to implement tailored communications strategies in the event of a recall and said the days of relying just on newspaper advertisements as the major method of communication were past.  GS1 Australia has been working with the Australian Food and Grocery Council (AFGC), Efficient Consumer Response Australasia (ECRA), the Liquor Merchants’ Association (LMAA) and Food Standards Australia and New Zealand (FSANZ) to establish GS1 Recallnet for the Australian grocery and liquor sectors. • This service will then be made available to the healthcare sector based on requirements currently being developed by representatives from government health jurisdictions, Therapeutic Goods Administration (TGA) and global suppliers. • GS1 Recallnet is a standardised, industrydriven, web-based communication tool enabling businesses to share real-time product recall or withdrawal notifications with trading partners in a secure and direct manner.  GS1 Recallnet has been designed in consultation with industry and is available to any business that may need to issue a product recall or withdrawal notification to its trading partners.  GS1 Recallnet is not limited to manufacturerto-retailer notifications. For example, GS1 Recallnet enables: – Producers issuing recall notifications to distributors – Distributors issuing recall notifications to manufacturers – Manufacturers issuing recall notifications to retailers.

GS1 Australia LiNK | Issue 27 | autumn 11 | 5


MobileCom

Work with us

to deliver global food safety, says GS1 Australia CEO

GS1 Australia CEO Maria Palazzolo has called on manufacturers to work with the not-for-profit standards body to develop Extended Packaging applications that will deliver a global food safety culture. Addressing more than 600 food safety specialists and manufacturers at the Global Food Safety Conference 2011 in London in February, Ms Palazzolo said: “The time to act is now. We need your support to make Extended Packaging a success. This issue not only concerns the protection of consumers; it is the protection of our children and families”. GS1 Australia is working with industry, in collaboration with the Australian Food and Grocery Council (AFGC), to launch GS1 GoScan, the first industry-endorsed iPhone application that delivers detailed Extended Packaging product data to consumers, accurately and in real time (see pages 6 to 8). Ms Palazzolo said the 2011 Review of Food Labelling Law & Policy in Australia Report1, the report of an independent panel presented to federal, state and territory governments in January, identified an increasing demand for labels to contain more information. “Demand is increasing for government to take a more strategic approach to food labelling policy. Label space is highly contested with competing pressures from consumers and food suppliers. The battle for label space has intensified. “At the same time consumers crave true nutritional health information, especially as allergies have emerged as a major public health problem in developed countries during the 20th century. Australia and New Zealand have among the highest prevalence of allergic disorders in the developed world,” Ms Palazzolo said. A report by Access Economics released by the Australasian Society for Clinical Immunology and Allergy (ASCIA)2 in 2007 revealed that:  4.1 million Australians (19.6%) have at least one allergy  The highest prevalence is in the working population, with 78 per cent of those with allergy aged 15–64 years  If current time trends continue, there will be a 70 per cent increase in the number of Australians with allergies affected from 4.1 million now to 7.7 million by 2050, and an increased proportion affected from 19.6 per cent to 26.1 per cent GS1 Australia LiNK | Issue 27 | autumn 11 | 6

Access Economics estimated the financial cost of allergies in Australia to be $7.8 billion in 2007. “We are all either a sufferer or know someone who is suffering or has died from eating something they didn’t know was in their food. This issue not only concerns the protection of consumers; it is the protection of our children and families,” Ms Palazzolo said. The GS1 GoScan iPhone application enables a consumer to scan the bar code on a product and then receive detailed product composition data, including:  Ingredient lists  Nutritional content  Daily intake information  Dietary information such as kosher, halal, organic and others

 Preparation, usage and storage instructions  Allergen information  Net contents and serving information  Country of Origin  And product data such as descriptions and images GS1 GoScan leverages the Global Data Synchronisation Network datapool, GS1net, to enable brand owners to collect, validate and publish product information. “As a neutral, not-for profit organisation, GS1 Australia can be a trusted source of Extended Packaging data from all manufacturers and suppliers in Australia. Commit to your customers, work with us and together we can deliver a global food safety culture,” Ms Palazzolo said.

1 L  abelling Logic – Review of Food Labelling Law and Policy, 2011, Commonwealth of Australia 2011 2 The economic impact of allergic disease in Australia: not to be sneezed at, Report by Access Economics Pty Limited for the Australasian Society of Clinical Immunology and Allergy (ASCIA), 2007


MobileCom

How does GS1 GoScan work? GS1 Australia’s Network

Product with Bar Code

Consumer with Mobile Device

GS1 Content Warehouse

GS1net

Brand Owner

PACKAGING

CONSUMER EXPERIENCE

INFORMATION EXCHANGE

INFORMATION SOURCE

INFORMATION SOURCE

Products are marked with GS1 Bar Codes containing GS1

Consumer uses a device, such as a mobile phone, a personal computer or an in-store kiosk to scan and decode the GS1 Bar Code and access product information

Information is sent and received from a single, trusted source which contains the extended product information and can make this data available based on access controls

A single repository of validated data, based on global standards is used to aggregate data from multiple data owners and consolidated into a single trusted source

The owner of the data is manufacturer or brand owner. Integrity of extended labelling data is ensured by ownership and responsibility of data always rests with the brand owner

GS1 GoScan-

Bringing trusted DATA to consumers Following extensive testing GS1 Australia’s SmartPhone application is now in its production phase. GS1 Australia is working with industry, in collaboration with the Australian Food and Grocery Council, to launch GS1 GoScan, the first whole-of-industry endorsed Smart Phone application that will deliver trusted item data to consumers and support their growing need for detailed product information. GS1 Australia’s General Manager – Business Development, Marcel Sieira, said GS1 GoScan is an industry-sponsored solution based on product data provided and approved by manufacturers. “There are now more than 4 billion mobile phones worldwide being used by consumers to access product data, compare products and prices, create shopping lists, obtain and redeem coupons and much more. “Consumers are demanding detailed, trusted product information and they expect this information to be provided accurately and in real time. At the same time governments are legislating for additional information on product labels and brand owners want to build direct dialogue with shoppers and build their brands. “All these factors and more are competing for label space and there is just not enough of it,” Sieira said. “GS1 GoScan will deliver trusted item data to consumers and support their growing need for detailed product information,” he said. Available initially for the iPhone platform, GS1 GoScan leverages the Global Data Synchronisation Network (GDSN) standards to enable brand

owners to collect, validate and publish product compositional information, including:  Ingredient lists  Allergen information and other mandatory warnings  Nutritional content and daily intake information  Preparation, usage and storage instructions  Country of origin  Dietary information such as kosher, halal, organic and others  Net contents and serving information  And basis product data such as descriptions and images The systems and standards relied upon by GS1 GoScan have been used by Australian industry for almost 15 years. GS1net is GS1 Australia and GS1 New Zealand’s data synchronisation service and is used by food, grocery, liquor and healthcare manufacturers and suppliers to communicate master product data to retailers, government agencies, research organisations and third-party solution providers. More than 800,000 product records from almost 1400 suppliers are available on GS1net today. “GS1 GoScan relies on this manufacturerapproved and validated product data. This means consumers can rest assured that the information provided by GS1 GoScan is accurate, up to date and from the only trusted source of product compositional information – the companies that make and market these products. Because it can be adjusted in real time GS1 GoScan can be more up to date than a product label,” Sieira said.

With GS1 GoScan, the consumer scans the bar code on a product to obtain the product’s Global Trade Item Number (GTIN), or bar code number. Using this globally unique ID, GS1 GoScan accesses the manufacturer-provided and validated data and displays the information to the consumer, consistently and regardless of the available space on a product’s label. In the food service industry GS1 GoScan enables manufacturers to provide restaurants and caterers with extended product information with the minimal packaging labels on catering packs. Future releases of GoScan are already being considered to include sustainability information such as packaging materials and recyclable contents, returnable containers, and even embedded emissions. Product variant-specific extensions are also possible. Sieira said a project with the Wine makers Federation of Australia will look to develop a wine-specific extension for GS1 GoScan to enable consumers to access information such as vintage, tasting notes, awards and accolades, cellaring potential and other winemaker information.

GS1 Australia LiNK | Issue 27 | autumn 11 | 7


MobileCom

Trusted data

the key to B2C applications

A survey conducted by GS1 Australia, with assistance from Anaphylaxis Australia and NestlĂŠ Australia, has shown that accessing a trusted source of data on allergens contained in food products is of highest concern. This preliminary survey highlighted the need for comprehensive research into the issue of trusted data for consumers. A small group of allergy sufferers was given access to the GS1 Australia GoScan iPhone application to assist them in identifying food products with allergens which concerned them. The survey showed that the participants had a great reliance on, and trust for allergen information provided by manufacturers, both via the product label and through customer support centres. It also showed that there was a much lower level of trust about data provided from other sources perceived not to originate from the manufacturer.

GS1 Australia LiNK | Issue 27 | autumn 11 | 8


The results from the survey on the functionality of the GoScan iPhone application were very positive. Many participants said that the application assisted with their purchasing decision, with some even altering their purchase choice. Further research on the issue of trusted data – what consumers trust and from whom the data comes – needs to be undertaken to ascertain what constitutes a trusted data source for Extended Labelling applications. Anaphylaxis Anaphylaxis is the most severe form of allergic reaction and is potentially life threatening. It must be treated as a medical emergency, requiring immediate treatment and urgent medical attention. Triggers of anaphylaxis include foods and insect stings and bites. Foods such as milk, eggs, peanuts, tree nuts, sesame, wheat, fish, crustaceans and soy are the most common food triggers, causing 90 per cent of allergic reactions. However, any food can trigger anaphylaxis. Anaphylaxis is almost always a preventable and treatable event. Knowing the triggers and avoiding them is the first step in prevention. To this end labelling of food products is critical for carers and allergy sufferers. A report by Access Economics released by the Australasian Society for Clinical Immunology and Allergy (ASCIA) in 2007 revealed that:  4.1 million Australians (19.6 per cent) have at least one allergy  The highest prevalence is in the working population, with 78 per cent of those with allergy aged 15–64 years  The average allergic person has 1.74 allergies. i.e. most people suffer from more than one condition at the same time. E.g. hay fever and asthma, or food allergy and eczema  If current time trends continue, there will be a 70 per cent increase in the number of Australians with allergies affected from 4.1 million now to 7.7 million by 2050, and an increased proportion affected from 19.6 per cent to 26.1 per cent  The cost of allergies to the Australian economy is more than $7 billion per year iPhone application GS1 Australia has developed an iPhone application, GS1 GoScan (see page 6), to help support the needs for consumers for trusted and detailed product information, amongst them, allergic consumers’ quest for allergen information on their favorite food products. For the initial prototype, product data for food products from Nestlé Australia was uploaded into the GS1 Australia content database, which is accessed by the GoScan application via the internet. This product data was sourced from GS1net, GS1 Australia’s data synchronisation service. GS1net data was further complemented with the content from Nutribank – the product labelling information database for all Nestlé food products in Australia. Consumers can access this data by scanning the bar code on a product using the GoScan application. GoScan decodes the bar codes and

uses the Global Trade Item Number (GTIN), or bar code number, to access the available product information, including allergens, and displays it on the iPhone. Research Project Working with Nestlé Australia and Anaphylaxis Australia, a non-profit organisation that supports and assists those affected by food allergy and anaphylaxis, GS1 Australia invited 20 volunteers from Melbourne and Sydney to trial and evaluate the GoScan application. Volunteers had to be aged over 18 years and own an iPhone that supported internet access and an existing internet data plan with a service provider. A total of 17 volunteered to substantiate if the application provided the information needed to help support product purchasing decisions in the supermarket. Volunteers either had food allergies or had family members with food allergies. As part of the survey they were asked to identify additional functions or information that potential users would consider valuable and to indicate their level of trust of the data provided. Key Findings  71 per cent found GoScan easy or very easy to use  86 per cent said they trusted the product label as a source of allergen information  42 per cent said they trusted the manufacturers' customer hotline as a source of allergen information  28 per cent said they trusted GoScan as a source of allergen information  86 per cent found that the data displayed on GoScan reflected what was on the product label, with a similar number finding reading the allergen information displayed as easy to understand  71 per cent reported that the GoScan information assisted with their purchasing decision While this research was conducted with a limited number of people, the outcomes reaffirmed the assumption that the source of the product data is a major concern to consumers with food allergies. GS1 Australia’s Chief Information Officer, Steven Pereira, said that the research showed that even if a mobile phone application were easy to use, provided the functionality needed to aid the consumer in the purchasing process and provided clear and consistent ingredient and allergen information that is easily understood, consumers needed to trust the information being provided in order to derive value. “Another finding from the research was the need to clearly convey the message that the data displayed by GoScan was unadulterated and straight from the manufacturers’ database as this link was not evident during the trial,” he said.

“This exercise also highlighted there is much to be learned on how consumers would use applications like GoScan in their daily shopping activities. During this trial, participants tended to scanevery product they purchased in order to test the GoScan application and provide their feedback. As a result, some reported that this process increased their shopping times.” Pereira said that further to this preliminary survey, GS1 Australia would undertake comprehensive research into the issue of trusted data. “The aim will be to establish the level of trust placed by consumers on data for food products across different media and identify which sources of data consumers trust and what information they value to assist their purchase,” he said.

“ 86 per cent found that the data

displayed on GoScan reflected what was on the product label, with a similar number finding reading the allergen information displayed as easy to understand.

GS1 Australia LiNK | Issue 27 | autumn 11 | 9


INDUSTRY NEWS

New PIF Online Service

to set a new industry standard GS1 Australia and the Australian Food and Grocery Council (AFGC) are set to launch a new service that will provide another building block in creating traceability and a complete food safety culture in Australia.

In collaboration with the AFGC and the food and grocery sector, GS1 Australia has set up an online portal to manage Product Information Forms (PIF) in a standardised, whole-of-industry way. The original PIF was launched in February 2008 under the auspices of the AFGC to develop

standardisation and alignment in the way in which raw material suppliers provide information on the ingredients they supply to their customers. The PIF is an excel spreadsheet designed to enable all ingredient suppliers and food manufacturers to use a single form to meet their legal obligations under Food Standards and Consumer protection requirements. The current version of the form (PIF 4.3) can be downloaded from the AFGC website (http://www.afgc.org.au/tools-guides-/product-infoform.html). Kim Leighton, Director Food Policy and Regulation, AFGC, said some companies may have only a few dozen PIFs needing to be updated, while others have literally thousands. The AFGC recognised the need for the current PIF form to be in a format that enables ingredient data to be exchanged electronically and approached GS1 Australia to develop an online solution that allowed PIF data to be mapped and integrated from back office applications in an XML format. Marcel Sieira, GS1 Australia’s General Manager – Business Development, said the online version of PIF has the capacity to automate many tasks for both ingredient suppliers and food manufacturers: “An ingredient supplier managing a PIF for a food ingredient sold to 100 customers would need to manually create 100 new PIFs in the event any of the product data was to changed. This process can be completed by the simple click of a mouse with the new online application, saving companies countless hours of manual activity, potential manual transcription errors and related fixes”. GS1 Australia had worked with a number of food manufacturers and raw ingredient suppliers on an industry pilot that was completed last month, he said. “We gathered a lot of feedback during the pilot to improve the service. Now that the industry group has endorsed the PIF online, GS1 Australia has started to develop a market-ready version of the portal and plans to launch the service in the second half of 2011”.

GS1 Locatenet v2

PLANNED FOR ALL SECTORS GS1 Australia and the National E-Health Transition Authority (NEHTA) have agreed to co-fund the second iteration of GS1 Locatenet based on feedback from industry over the past year. GS1 Locatenet is a central directory of GS1 standard, unique Global Location Numbers (GLNs) which identify physical, operational and legal locations. GLNs may be assigned to pricing locations, ship-from locations, ship-to destinations, eMessaging addresses and more. The directory facilitates the dissemination of quality location data from a central, validated, electronic source, supported and administered by GS1 Australia. GS1 Locatenet, which was launched in March 2010, has been available free of charge and GS1 Australia has been actively collecting feedback from the healthcare sector to ensure future enhancements deliver value to users. GS1 Australia LiNK | Issue 27 | autumn 11 | 10

“The new version of GS1 Locatenet is designed to deliver additional value-add to the healthcare supplier community and highlights the commitment from NEHTA and state and territory health departments to this initiative” said Ken Nobbs, Manager Supply Chain at NEHTA. “A streamlined user interface, additional GLN reports, more functional email alerts, greater levels of data validations, easier downloading of GLN data and a more powerful search engine will all be delivered in this new version based on the feedback gathered in the last 18 months,” he said. While GS1 Locatenet was originally developed for the healthcare sector, the new version will have added functionality that will also enable related

industry sectors to leverage this important piece of national infrastructure, according to Marcel Sieira, GS1 Australia’s General Manager – Business Development. “We are on the verge of GS1 Locatenet becoming the first true multisector GLN registry in the world,” he said. John Szabo, GS1 Australia Industry Manager, said that as the agribusiness sector needed to manage location data it could use GS1 Locatenet to do so. “Many pharmaceutical companies that are using GS1 Locatenet already for healthcare would be able to leverage the directory for their agribusiness customers for veterinary pharmaceuticals,” he said.


industry NEWS

Officeworks calls on suppliers to join GS1net Australia’s largest office product retailer, Officeworks, has announced that it will adopt the GS1net data synchronisation service and has urged suppliers who trade with them to join the service also. GS1net is a repository of standardised and authenticated product, price and dimension data for many products sold in Australia. Hosted by GS1 Australia, GS1net supports a large and growing community of supplier catalogues in Australia. Officeworks has written a letter to suppliers (see on the right) outlining the steps it requires suppliers to take to begin data synchronisation. The project commenced in March this year and aims to implement GS1net as the standard process for exchanging master data by the end of the year. For more information about this project contact Bonnie Ryan or Catherine Koetz at GS1 Australia on 1300 366 033.

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GS1 Australia LiNK | Issue 27 | autumn 11 | 11


INDUSTRY NEWS

ALC head calls for national laws with

Michael Kilgariff

‘teeth’

The Australian Logistics Council (ALC) has released a Policy on Safety in the Australian Transport and Logistics Industry supporting the development of one national law to regulate safety in the Australian transport and logistics industry. “Over 2011 the national rail/ marine safety regulations and the national heavy vehicle laws consolidation will be developed, with a targeted commencement date of 1 January 2013,” said ALC CEO and GS1 Australia Council member Michael Kilgariff. “These regulators will not be deemed a success if we just create a new layer of regulation, rather than national laws with real ‘teeth’. The purpose of the ALC Policy

on Safety in the Australian Transport and Logistics Industry is to state the case for truly national laws to regulate safety in the industry. “The development of the national rail/marine safety regulators and the current National Heavy Vehicle Laws Consolidation is the best way to develop such a national law. The current heavy vehicles model legislation and the model Rail

Safety Bill have been introduced inconsistently throughout Australia – not all jurisdictions adopted all of the provisions of the respective model legislation,” he said. “Different laws in different states and territories have led to confusion and added compliance costs to industry, without a clearly identifiable benefit to safety outcomes. Safety in the Australian T&L industry should therefore be covered by one national law given effect by a single ‘applied or template law’ – a law passed in one Australian state or territory and adopted in all the others. “As a first step, the draft Regulatory Impact Statement on the National Heavy Vehicle Laws Consolidation is due to be released on 28 January, which should outline how it is proposed to bring together all of the elements of operating a heavy vehicle. This should impose for the first time a national law on ‘chain of responsibility’. “ALC encourages the development of this

GS1 Australia participates in Living Lab project

Australia’s first Future Logistics Living Lab to aid development in the transport and logistics sector was opened in Sydney in February this year. GS1 Australia has been an active participant in this project that will benefit the transport and logistics industry. The Living Lab concept is designed to boost innovation by involving all relevant stakeholders, including end users, in the IT research and development process. Under the living labs model, businesses can take problems directly to the lab for a solution. The centre is the result of a partnership between National ICT Australia (NICTA), Australia’s information and communications technology (ICT) Centre of Excellence, supply chain software company SAP and Europe's biggest applied research outfit, Germany's Fraunhofer Institute for Experimental Software Engineering. NICTA CEO, Hugh Durrant-Whyte, said: “The Living Lab is an example of research institutions, industry and government working together on important challenges for the logistics industry. NICTA is excited to be part of this initiative in Australia and will continue to drive innovation through industry engagement”. GS1 Australia LiNK | Issue 27 | autumn 11 | 12

The project has more than a dozen participants including GS1 Australia, Casella Wines, Ericsson, Gamma Solutions, Google, Hamburg Süd, Linfox, Tradegate, XAct Solutions, Victoria University, and the University of New South Wales. These companies and organisations will work together to exchange experience, discuss trends, innovate and research to shape the future of logistics. Launched on February 23, the lab features an exhibition, event and work space of some 200 m2 located at NICTA’s Australian Technology Park offices in Sydney. It will showcase and validate next-generation technologies to benefit the transport and logistics industry and provide a platform for visitors to explore, interact and gain understanding of how trial innovations will work in practice. Participating companies will collaborate with leading research teams to develop, test and demonstrate prototypes of new products and services.

consolidation, and believes the law should be identical throughout Australia. ALC also believes that safety outcomes would be enhanced if there are incentives to comply with safety schemes recognised by relevant legislation. “ALC has decided to review the ALC National Logistics Safety Code so it can be considered for registration under the National Heavy Vehicle Laws Consolidation as a recognised industry code of practice. If registered, it would mean compliance with the code can be taken as prima facie evidence that all reasonable steps were taken to ensure against a breach of safety legislation created under the new laws. “ALC will advocate that ALC codes of practice satisfying relevant guidelines should be recognised under the National Heavy Vehicle Law Consolidation and the national Workplace Health and Safety Law (to commence in 2012) as codes of practice under the relevant legislation. The Future Logistics Living Lab will:  Co-create and evaluate new technologies for logistics by bringing together logistics industry, technology industry, and research  Showcase technology benefiting the logistics industry today, as well as the innovations that will shape the future  Target emerging challenges in logistics, e.g. through the orchestration and optimisation of logistics services across multiple providers and modes of transport  Address different roles within the industry including transport, warehousing and handling, as well as emerging roles of logistics service management, such as logistics orchestrators or fourth-party logistics  Focus on efficiency, visibility, traceability, and sustainability of goods along the multimodal endto-end supply chain  Engage Living Lab partners in joint projects leading to new products and services


INDUSTRY NEWS

Supply chain errors

cut by 95 per cent Electronic enablement of the supply chain has resulted in a 95 per cent reduction in errors for SCA Hygiene Australasia, a leading manufacturer of tissue and personal care hygiene products. SCA’s brands are household names across Australia, New Zealand and Fiji and include Sorbent toilet and facial tissue, Libra feminine hygiene products, Handee Ultra paper towel, Deeko tableware. The company also supplies a range of other hygiene products for the B2B wholesale market, including Tork washroom and Tena incontinence products. According to Anthony Feneley, General Manager Logistics and Sourcing, SCA Hygiene Australasia, they move approximately 35 million cases of product through their supply chain each year. The company has extensive manufacturing facilities across Australia, New Zealand and Fiji, including in Box Hill, Victoria, where GS1 Bar Codes play an integral role from the minute bar coded products roll down the production line. “The electronic enablement in our business is inherent from our packaging design and new product origination right through our manufacturing processes, the bar coding of our shipper or trade packs, the material flow of our products from our manufacturing machines through to our palletising,” Feneley said.

“The SCA supply chain has been bar codeenabled for more than a decade and, while to us it may feel like yesterday’s technology, there is no doubt that for a high-volume manufacturer there is no other way to efficiently manage our supply chain,” he said. In SCA’s Box Hill factory products packaged for retail move along high-speed conveyor belts and are scanned as they reach the palletising area. They are sorted according to their GS1 Bar Code and sent down separate conveyors to robot pickers that stack them on pallets. When a pallet is full it is automatically sent down the line to a machine that shrink-wraps the pallet and then applies a Serial Shipping Container Code (SSCC), or logistics label. The pallet is then scanned and moved into a waiting truck based on the information in the SSCC. On arrival at SCA’s distribution centres, the pallets are scanned and the information is read into their systems for inventory management. “While electronic enablement through bar coding and pallet labelling has been a feature of our physical supply chain for a decade, more recently we have embraced electronic enablement with our customer base through data synchronisation,” Feneley said. “We have more than 600 active SKUs on GS1net with data on product dimensions, pricing and availability. This elimination of manual processes has resulted in a 95 per cent

reduction in errors, which means orders are fulfilled without error and on time and there is a flow of benefits to accounts receivable, including improved management of debtors. When we get our data right there is a halo effect for all our customers and a flow-on benefit upstream in our supply chain through improved data accuracy,” he said. For Feneley and SCA the move to GS1net to exchange data with trading partners is another brick in the wall of electronic enablement of their supply chain. “The whole aim is to drive service outcomes for our customers. By synchronising validated data, errors are eliminated and DIFOT becomes a reality,” he said.

“ We have more than 600 active SKUs on GS1net with data on product dimensions, pricing and availability.

GS1 Australia LiNK | Issue 27 | autumn 11 | 13


INDUSTRY NEWS

Saint-Gob

GS1 Australia LiNK | Issue 27 | autumn 11 | 14


bain

reaps productivity gains

High-volume Industrial and DIY hardware manufacturer Saint-Gobain Abrasives is reaping supply chain productivity gains just seven months after consolidating their east-coast manufacturing and warehousing operations. Saint-Gobain, the world leader in the housing and construction markets, designs, manufactures and distributes building materials and packaging products in 64 countries with annual global revenues of €39Bn. In Australia, with brands such as Norton and Flexovit, the group manufactures and distributes abrasives, cutting wheels, safety products, performance plastics, auto glass and industrial ceramics and, until late last year, had manufacturing facilities in both Sydney and Melbourne.

In August 2010, Saint-Gobain closed their small state distribution centre and built a purpose-built Abrasives National Distribution Centre in Somerton, Victoria (10,500m2). It’s the largest in the Southern Hemisphere for its industry. They then closed their Brisbane and Sydney warehouses, consolidating those also into Somerton. At the same time, Saint-Gobain closed their Sydney abrasives manufacturing facility and consolidated all its manufacturing to Campbellfield, Victoria, creating a single, best-in-class Abrasives manufacturing site for the Pacific region. For Graham Loosley, Saint-Gobain Abrasives Australia’s General Manager Marketing – Pacific Region, the transformation of the company’s supply chain began three years ago with an invitation to join the newly formed Hardware GS1 Action Group (HGAG). “When we joined the HGAG, we were bar coding all our retail products for point-of-sale scanning, but our inners and outers were not bar coded,” Loosley explained. “We then began the process of reviewing all our packaging and began applying bar codes to all levels of packaging. Initially this was to meet industry requirements led by Danks, Mitre 10 and Bunnings; however, we realised that internally Saint-Gobain could also benefit from having all these bar codes on products.” Saint-Gobain initially invested $100,000 in label printers and spent over two months cleansing data. This laid the foundation for their new warehouse management system implementation. Following this, the company implemented High Jump logistics software which then enabled RF scanning of products during order picking, as well as into and out of the distribution centre. “A 20-foot container used to be emptied and receipted in about half a day, but now it takes just 20 minutes,” said Loosley. Incoming materials are scanned on arrival and put away into storage locations in the system. To cope with increased demand, Saint-Gobain’s DC runs two shifts a day and processes between 500 and 600 customer orders per day.

Pickers pick and scan orders using handheld scanners and as a result, picking accuracy has improved dramatically. “Productivity has immediately gone up, something we are very proud of,” Loosley commented. The only point at which an error can occur is if the pack size is not specified. However, Loosley explained that they were gradually working through their total product range, including industrial and DIY products, to ensure that data in the system was correct. The design of the warehouse has also been a factor in boosting productivity and improving the bottom line. “It enabled us to move away from side loaders which have saved us around $50,000 a year in costs and increased warehouse safety. It also has given us the space to have a dedicated area for our export operation. We currently export to New Zealand, South-East Asia and China to key customers and our own affiliate companies,” he said. “We are still not where we need to be. While we have the majority of our retail product range fully bar coded, we are behind in bar coding our industrial product range. With an update of our ERP system in 2012 to SAP, we are looking forward to further gains in efficiency in our supply chain and CRM. Without bar codes on our products though, we would struggle to get the full benefits that we can now expect. “We need to work with our suppliers as some are a little way off; however, as we have come from a similar background to some of our suppliers, we will be in a strong position to help,” he said.

GS1 Australia LiNK | Issue 27 | autumn 11 | 15


GS1net/NPC

NPC data proves successful for healthcare tenders

More than 330 companies are now using the National Product Catalogue (NPC), the single source of item master data for public health institutions seeking to purchase medicines, medical devices and other necessary healthcare items. Endorsed by all state, territory and federal health departments, the NPC has been developed by the National E-Health Transition Authority (NEHTA), in association with GS1 Australia and is hosted by GS1 Australia on the GS1net data synchronisation service NPC data is now being used successfully by companies to tender to supply healthcare products to Australian healthcare jurisdictions. In 2009 Health Purchasing Victoria (HPV) requested suppliers who wished to tender to supply pharmaceutical products, to provide data in the format of the NPC Browser Template. For HPV this resulted in a 60 per cent improvement in data matching with items in the current contract, significantly increasing the confidence in the financial impact statements for the Victorian Hospitals’ pharmaceutical costs. Since then NSW Health has required suppliers to use

the NPC Browser Template to tender for pharmaceuticals and is moving forward with other health-specific tenders. So far this year Health Purchasing Victoria has committed to use the NPC Browser Template in two medical device tenders and intends to continue to use this method in future HPV tenders. WA Health will also require suppliers to use the NPC Browser Template to tender in the future. GS1 Australia COO and Deputy CEO Mark Fuller said: “The successful use of the NPC data in tenders has been a long-term goal for NEHTA, some of the Australian health jurisdictions and GS1 Australia. The NPC is also providing suppliers and health jurisdictions with additional benefits including rapid, standardised items and price synchronisation and improved data accuracy as all data is validated against a set of industry business rules”.

GS1 Australia LiNK | Issue 27 | autumn 11 | 16

What does using NPC data for tenders mean for suppliers?  If you are an NPC user who has already loaded your data you can download it in a data-delimited format and load this into the Browser Template. You can then select the products and amend prices for tender and create a Health Submission file* from the Browser Template.  If you are an NPC user using a GS1net certified middleware solution you may be able to create a data-delimited file that can be loaded into the Browser Template from your software package. At least two GS1net certified middleware solution providers have recently developed this functionality.  If you are an NPC user using the Browser Template to load data, then the existing Browser Template version that you have contains the necessary functionality to create the Health Submission file.  If you are not yet an NPC user you can download the Browser Template from the GS1 Australia website and key in your data and then create the Health Submission file. * A Health Submission file is used to submit the tendered items in NPC data format to the jurisdictions. It is generated from the GS1net Browser Template using specific functionality created for healthcare tender submission. For more information read Appendix B of the GS1net Browser Template User Guide available at http://www.gs1au. org/assets/documents/services/ gs1net/cookbook/browser_ template_ug.pdf

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INDUSTRY NEWS

Healthcare events calendar The GS1 Australia healthcare events calendar 2011 is now on the GS1 Australia website with venue details. Bookings/registrations can be made at www.gs1au.org/industry/healthcare. For your convenience here are the dates of healthcare events for the next four months. Please refer to the online Healthcare events calendar for updates and new events.

April 2011 12 9.15am to 12.15pm GS1 Healthcare Seminar – Melbourne 13 1pm to 4pm GS1 Healthcare Seminar – Sydney 14 9am to 12.15pm NPC Training – Learn Session – Melbourne and Sydney 1pm to 4.15pm NPC Training – Knowledge Session – Melbourne and Sydney 28 3.30pm to 4pm Understanding GS1 & Healthcare (Webinar)

MAY 2011 03 8.50am to 1pm GS1net / NPC User Group – Sydney 04 9am to 1pm GS1 Future Day – Melbourne 05 8.50am to 1pm GS1net / NPC User Group – Melbourne 09 1pm to 4.30pm HUG Australasia Solution Provider Session – Melbourne 10 9am to 12.30pm HUG Australasia Solution Provider Session – Sydney 11 9am to 1pm GS1 Future Day – Sydney 26 3.30pm to 4pm Understanding GS1 & Healthcare (Webinar)

JUNE 2011 02 10am to 4pm Healthcare User Group Australasia Meeting – Sydney 23 3.30pm to 4pm Understanding GS1 & Healthcare (Webinar)

JULY 2011 28 9am to 12.15pm NPC Training – Learn Session – Melbourne and Sydney 28 1pm to 4.15pm NPC Training – Knowledge Session –Melbourne and Sydney 28 3.30pm to 4pm Understanding GS1 & Healthcare (Webinar)

Healthcare seminars These sessions provide an introduction to GS1, the GS1 standards and Australian initiatives involving the GS1 standards in Healthcare. Speakers are from the National eHealth Transition Authority (NETHA), the local health jurisdiction or private sector data recipients and GS1 Australia. Content focuses mainly on the National Product Catalogue (NPC) and eProcurement. Understanding GS1 & Healthcare webinars A half-hour webinar for new GS1 Australia members operating in the healthcare sector. The objective of this webinar is to help organisations understand where to get support, assistance and training on areas such as the National Product Catalogue, eProcurement, GTIN assignment and bar coding. NPC training

Learn session This entry level session will provide a solid foundation on Data Synchronisation, the key concepts and tools, suggested milestones for implementation, exploration of available support and online resources. Knowledge session This interactive session will cover the implementation steps to NPC Ready status in detail, the Healthcare data set and specific mandatory attributes and the role of certified middleware products by GS1 Australia's Alliance Partner community. An overview of the GS1net Browser Template will also be demonstrated in the session. GS1net / NPC Learn is a pre-requisite for this session.

GS1 Australia LiNK | Issue 27 | autumn 11 | 17


INDUSTRY NEWS

Raising the bar on

patient safety & supply chain efficiency More than 80 people gathered in Wellington in March for the 15th meeting of GS1’s Healthcare User Group Australasia (HUG Australasia). This was the first time in the group’s five-year history that the conference was held in New Zealand. It was an opportunity for the healthcare sector to catch up on how the use of global standards for products, locations and product information is benefiting healthcare systems locally and globally. Key presentations included: GS1 standards being implemented in many countries Ulrike Kreysa – Director GS1 Healthcare, GS1 Global Office Ms Kreysa stressed the importance for patient safety and supply chain efficiency of adherence to global standards for identification and traceability of medicines and other healthcare supplies. “Healthcare is local but it is also global because healthcare supply chains cross national borders,” she said. “Country-by-country solutions are not sufficient or effective.” Ms Kreysa listed key GS1 standards now in place for use by all parties in the healthcare sector of any nation. At present there are more than 7 guidelines issued by the GS1 Healthcare group relating to application of the GS1 standards in Healthcare. These are accessable from the GS1 Healthcare web site at www.gs1.org/healthcare She said the GS1 standards were being embraced by authorities and regulators for unique GS1 Australia LiNK | Issue 27 | autumn 11 | 18

identification of products, for tracking and tracing their supply and use, and/or for improvement in procurement and tendering processes. The GS1 vision for Healthcare is “a future where the Healthcare sector utilises GS1 global standards for all items, locations, people and processes to drive patient safety and supply chain efficiency improvements--starting with the manufacturer and ending with procedures or treatments for a specific patient.” Australia benefits from standardised product catalogue Ken Nobbs, Programme Manager, Medical Products, NEHTA Australia is making substantial progress with a globally-standardised National Product Catalogue (NPC) of medicines, and medical devices and consumables – and Mr Nobbs said all the data could be available to be accessed by New Zealand healthcare providers, government agencies and companies. The NPC is a “pool” of synchronised item and price data using GS1net™ technology:

All 174,000 items now included are identified by GTINs, along with standardised data to describe attributes of critical significance in healthcare supply chains. The NPC – established since 2006 by a cross-sector agency, the National E-Health Transition Authority or NEHTA – enables the right information to be matched with the right medical items and treatments at any stage in the healthcare supply chain (ultimately to the point-ofpatient-care). The benefits are less duplication of effort along the chain, reduced error and cost at every stage, and ultimately better healthcare outcomes. Like all GS1net applications, the principle is “populate data once and publish to many”. The NPC has special application for eProcurement: It includes standardised product and price data that can be used in electronic messages exchanged for purchasing, delivery and invoicing. SA Health: Data standards enable supply chain solution Paul Broadbridge, Deputy Director, Procurement and Supply Chain Management, South Australia Health


“The goals include best practice

The goals include best practice inventory and imprest management, and greater efficiency in every stage of procurement and contracting. Mr Broadbridge stressed the importance of accurate GS1 standards-based data and of being able to apply this in different decision making processes. The new state-wide service will use the NPC as a core tool for supply chain management. Mr Broadbridge said standardisation needs to enable multiple perspectives to be taken on the same pieces of data. The service is implementing a new ERP system so that standardised item data, including data from the NPC, can be integrated into its own supply chain solution. Business-tobusiness messaging, based on GS1 standards, will be the next step. FDA uses global standards for medical device ID Jay Crowley, Senior Adviser for Patient Safety, US Food and Drug Administration Mr Crowley outlined the approach of the US Food and Drug Administration and the Global

inventory and imprest management, and greater efficiency in every stage of procurement and contracting.

Mr Broadbridge outlined major reforms in supply chain management for the public health system in South Australia, with standardised data and use of the National Product Catalogue recognised as critical elements of this reform. SA Health is establishing a single, statewide service for procurement, contracting and supply chain management. All suppliers will deliver to a centralised distribution centre, or satellite sites of this centre: From these, items will be trucked to hospitals and other health providers twice daily.

Harmonisation Task Force (GHTF) are using to develop a system of Unique Device Identification (UDI) for the medical device sector. The system will likely allow for the use of GS1 Global Trade Item Numbers (GTINs) to identify the medical devices. In addition to device identifiers, some devices require production identifiers that show expiry dates, lot and serial numbers. This information must be placed on the device or its label (or both) in a form that is ‘readable’ by automatic capture (e.g., bar code scanning) technologies and/or in human readable form. Other standardised data about the device is to be held in a UDI database: These data include units of measure, storage requirements, pre-market authorisation details, etc. Mr Crowley said from the outset, UDI needed to provide standardised and consistent identifiers and to allow clear differentiation between different devices. The specifications had to be global standards aligned to facilitate the storage and exchange of devices (and the integration of data about them). In close consultation with manufacturers and other stakeholders, the system has been in development since 2006 and it should soon becomes mandatory under law passed by the US Congress, with a phase-in period likely starting in 2012.

GS1 Australia LiNK | Issue 27 | autumn 11 | 19


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industry NEWS

Essential guide to

GS1 DataBar GS1 Australia has launched the definitive guide to GS1 DataBar, a new bar code family that has been introduced into the GS1 System. A comprehensive website with information about GS1 DataBar and a list of compatible scanners can be found on the GS1 Australia website along with a readiness checklist and implementation toolkits for retailers and manufacturers.

Sue Schmid, GS1 Australia General Manager – Standards Development, said anyone working in the supply chain, no matter what size their business is, needed to understand what GS1 DataBar meant to them. “While GS1 DataBar is already in limited use, from 2014 it will be an open, global standard – just like existing EAN/UPC Bar Codes. This means manufacturers will be able to use it on any product intended for Point-of-Sale, with the expectation that it will be scanned successfully by retailers everywhere. “This means you need to ensure all your scanners are ready for GS1 DataBar. Retailers will need to act now – and not wait until 2014,” she said. The GS1 DataBar website can be viewed at www.gs1au.org/ products/gs1_system/data_carriers/databar/

“This means you need to ensure all your scanners are ready for GS1 DataBar. ”

GS1 Australia LiNK | Issue 27 | autumn 11 | 21


SERVICES

GS1 Australia appoints new Professional Services manager

Richard O’Brien has been appointed as GS1 Australia’s Professional Services manager responsible for the delivery of Professional Services Projects.

and content development. He will also work closely with GS1 Australia’s Business Development team to develop Professional Richard has a background in IT and eBusiness Services offerings as well with many years experience in eCommerce as supporting the Industry messaging and implementation and project Engagement team. management using the GS1 standards. He “I think GS1 Australia’s has worked in this area at GXS and Goodman Professional Services role is Fielder as well as having run his own eBusiness very much one of facilitating consultancy. the implementation of At GS1 Australia he will manage the the GS1 standards and to Professional Services team in both Melbourne mentor businesses so they and Sydney and have overall responsibility for can achieve the maximum the delivery of GS1net training courses delivery possible value from using the standards. I am looking forward to working with our members,” Richard said. Richard is currently living in Sydney but will relocate to Melbourne in June. However, he will divide his time equally pulse-ad-artwork-CMYK-3mm-bleed.pdf 1 7/05/10 10:26 AM between the two cities.

“I think GS1 Australia’s Professional

Services role is very much one of facilitating the implementation of the GS1 standards and to mentor businesses so they can achieve the maximum possible value from using the standards.

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GS1 Australia LiNK | Issue 27 | autumn 11 | 22

Get GS1net help in a flash GS1net users now have access to a series of animated online training tutorials to help them use the data synchronisation service. Each short presentation steps users through the key functions of the GS1net service, with easyto-follow animation and audio. Subjects covered include How to Upload Your Data, How to Populate Your Retailer Supplier ID and Updating Your Company Details on GS1net. There are currently eight tutorials available and, according to GS1 Australia’s Services Support Manager, Sunita Kewada, more are in the pipeline. “Online help is quick and easy to access as well as being available 24 hours a day, seven days a week. The tutorials have been especially designed for GS1net Users to help with common GS1nets task including managing their data and GS1net administrative tasks,” she said. To view the training tutorials viewers will need to have downloaded the free Adobe Flash player. The tutorials can be viewed at http://www.gs1au.org/services/gs1net/tutorials.asp


Need a hand implementing the GS1 standards? GS1 Australia Professional Services can help you with your internal projects to implementing the GS1 standards and solutions throughout your supply chain:

• • • •

GS1net Data Synchronisation Implementations EDI / eMessaging Implementations Track and Trace Solutions Inventory Management Solutions

1300 366 033

www.gs1au.org


INDUSTRY NEWS

Pallet Label Quality Checklist

Maintaining consistent pallet label quality requires an integrated quality process incorporating people, processes, procedures and equipment. GS1 Australia recently launched a new assessment service to advise suppliers and manufacturers on the correct way to label pallets. According to GS1 Australia’s Industry Manager – FMCG, Andrew Steele, a letter to their trade partners Woolworths recently highlighted the importance of correctly applying logistics labels on pallets being delivered to their distribution centres. Poor pallet labelling disciplines are an ongoing supply chain headache for the major supermarket retailers. To assist suppliers with pallet labelling GS1 Australia has compiled this checklist for inclusion in quality inspection and assurance practices for successful pallet labelling. Typically there are two options for the application of the pallet label:  At the point of manufacture or  At the point of dispatch “We encourage businesses to introduce a robust quality system to ensure ongoing compliance and acceptance of product into retail distribution centres. Companies should consider a range of options that will best suit their business and processes,” Steele said. These include:  GS1 Australia testing of all new pallet labels, a one-off test session at the commencement of the product line.  An annual audit by GS1 Australia via the Logistic Unit Onsite Labelling Assessment Service  Training of staff to understand industry requirements  Introduction of quality inspection and assurance practices within the operation Technical considerations There are two key opportunities for checking:  A physical check of the key data attributes using standard checklists and operating procedures and  Scanning of the label to ensure readability  Label is attached correctly and includes: – Supplier details – SSCC – GTIN of the product – Product description – Carton quantity on pallet

– Code date information (if applicable) – Batch number (if applicable)  Label technical specifications: – SSCC is unique for each pallet – Both SSCC and Product Information bar codes printed in the GS1-128 Symbology – Quiet Zones (light margins) must not be infringed – SSCC Bar code magnification between 48.7 per cent and 92.5 per cent – Product Information bar code(s) magnification between 25 per cent and 100 per cent – All bar codes are minimum 32mm in height – Human readable no less than 3mm height, clear, legible, located below bar code symbology  Dimensions: – Standard A6 format (105mm x 148mm) is sufficient for most requirements. Width should remain constant 105mm – Larger label sizes are also permissible – Label orientation can be either portrait or landscape  The SSCC has not already been issued in the last 12 months Physical positioning considerations The physical positioning of pallet labels requires operators to examine the location and positioning of the label. This can be done by developing a series of operating templates, measuring devises, and visual checks based on your businesses requirements.  Label position: – Two identical labels per pallet, on opposing fork entry sides – Vertical position, NOT crooked, creased or angled greater than 5 degrees. – 400mm and 800mm from the base of the pallet and no closer than 50mm and no further than 100mm from the right-hand vertical edge as per the grocery & liquor industry requirements  For full pallets – label must be placed on the outside of stretch-wrap

 When multiple pallets are stacked and stretchwrapped on the same footprint, the pallet labels should be applied underneath the stretch-wrap as the stretch-wrap will be cut away upon delivery into the DC  When multiple pallets are stacked and stretch-wrapped individually, the pallet label should be applied over the stretch-wrap  For full pallets, label must be placed on the outside of stretch-wrap  When multiple pallets are stacked and stretch-wrapped on the same footprint, the pallet labels should be applied underneath the stretch-wrap as the stretch-wrap will be cut away upon delivery into the DC  When multiple pallets are stacked and stretch-wrapped individually, the pallet label should be applied over the stretch-wrap  Check the pallet labels are identical per pallet Equipment considerations Service agreements and internal work procedures for the checking of print applicators is integral to the success of pallet label application. Ensure the labelling equipment is serviced and cleaned on a regular basis Staff should be trained to visually check labels for split bars, label creasing and other print-quality issues that might cause the label not to scan More information about GS1 Australia’s logistics labelling assessment service and to view an online pallet-labelling tutorial visit http://www.gs1au.org/ services/logistics_labelling/

GS1 Australia LiNK | Issue 27 | autumn 11 | 25


alliance partner advertorial

Package Code Management

SOLVES PALLET-LABELLING PROBLEMS SIMPLY

SSCC labels are like vehicle number plates: they uniquely identify every single pallet, globally, but incorrect SSCC labelling is causing the biggest headache in supply chains. Phil Biggs* looks at why it’s important to get SSCC labelling right, and how to solve the problem, simply. GS1’s non-proprietary standard Serial Shipping Container Code (SSCC) format helps products move through a supply chain quickly and efficiently. In conjunction with an Advanced Shipping Notice (ASN), the unique serial container identification of the SSCC label helps all parties in the chain — the manufacturer, carrier, distributor and retailer — by enabling:  individual containers (typically pallets) to be tracked and traced (this can quickly help with product recalls)  carriers to route shipments efficiently  accurate inventory receipt information  faster goods receival and quicker turnaround  efficient stock-rotation management

 improved data integrity, say of best-before dates and quantity fields  an efficient receiving and distribution process through automation SSCCs also save handling costs (only doing it once), and avoid multiple label types. They can be used for any number of both intra-company and inter-company transactions, so any company in that pallet’s supply chain can use that pallet’s unique SSCC identifier. Trading partners can also add information to the electronically stored SSCC, updating information as that pallet moves through the supply chain. Importance for retailers With warehouses and distribution centres increasingly relying on automated “scan receiving” stock into their systems, all pallets need machinereadable SSCC labels. Pallets missing SSCCs, or those with incorrect labels, not only cause the system to fail, they delay the process while manual intervention is needed. The direct and indirect costs of this are exacerbated in centres handling high volumes. Another problem with DC staff rekeying details manually to apply a generic SSCC label is the loss of traceability; in the case of a product recall, this loss can have a severe impact.

GS1 Australia LiNK | Issue 27 | autumn 11 | 26

Incorrect SSCCs can cost a manufacturer (and/or carrier) in time, with loads taking longer to process. This means their trucks take longer to turn around or get to the next job (this, in turn, can have its own follow-on costs with expense in extra time or days away). Some retailers also penalise non-complying suppliers financially. Many just won’t do business with suppliers who don’t comply as it costs them so much more. How to fix SSCC failures simply Printing and applying a good quality, industry-standard, scannable SSCC label, in the right place, costs no more than one that doesn’t meet those criteria. The key causes of incorrect pallet labelling, as reported by major retail chains to GS1, are:  label position incorrect  no label in use  duplicated/mismatched SSCC  damaged label  won’t scan  under stretch-wrap  pallet label on one side only  incorrect product label  duplicated (SSCC number already used in last 12 months) The simplest way to correct many of these SSCC pallet-labelling problems is with a robust print-and-apply system that has an evolved Package Code Management (PCM) software solution networked to a central database. This saves manufacturers time and money and will improve overall business information flow, by easily integrating into ERP and WMS systems, and giving real-time reports on production and in-depth shop floor visibility of all the lines. To access white papers on both PCM and SSCC pallet labelling, visit Matthews’ new website: www.matthews.com.au * Phil Biggs is National Sales and Marketing Manager for Matthews Intelligent Identification



GS1 LiNK Magazine Autumn 2011