Enzo Blonk – GS1 Global Office

Digital Transformation of Technical Industries

Discover the promise of GS1 in Technical Industries

Kick-start meeting Identification of Mining Equipment, Johannesburg, January 31st, 2019

© GS1 2019

Table of contents

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1 GS…..what ?

1 Technical Industries @ GS1

2 GS1 Technical Industries in Action (Rail, CPG, Maritime, Automotive)

3 GPC – Global Product Classification

4 Q&A

© GS1 2019

But first…who is GS1?

• International, not-for-profit and neutral organisation

- developing and maintaining global standards

- enabling all industry stakeholders to identify, capture and share information smoothly

- with a presence in 112 and activities in more than 150 countries

- focussing on increased efficiency, productivity and safety through traceability and visibility

in:

• Supply Chain• Full Product Lifecycle

…and it all started in 1974 with a pack of chewing gum!

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© GS1 2019

• We create a common foundation for business by uniquely identifying, accurately

capturing and automatically sharing vital information about products, locations and

assets

• We enable visibility through the exchange of authentic data

• We empower business to grow and to improve efficiency, safety, security and

sustainability

We are:

GS1 believes in the power of standards to transform

the way we work and live.

GS1 purpose

Neutral and not-for-profit

User-driven and governed

Global and local

Inclusive and collaborative

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© GS1 2019

GS1 by the numbers

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1.5 million 112 MOs150 countries 5 billion

Developing standards for over 1.5 million companies worldwide

25 industries served across 150 countries

Barcodes scanned more

than 5 billion times per

day globally

112 Member

Organisations

around the world

© GS1 2019

The global language of business

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GS1 standards - segmentation

GS1 Identification NumbersIdentify Companies, Products, Locations,

Logistics, Assets and Services

Capture

GS1 Data ExchangeShare Master Data, Transactional Data

and Physical Event Data

GS1 Data CarriersBarcodes and EPC-enabled RFID

© GS1 2019

Source: IBM/Consumer Goods Forum Global Scorecard

Identify—Capture—Share

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1. Technical Industries: overview and challenges

© GS1 2019

GS1 Key Global Priorities 2017-2019

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1.SECTORS

• Retail/Omni-channel

• Healthcare

• Transport & Logistics

• Technical Industries

2.STANDARDS

• GS1 UniqueID

(dev&deploy)

• Traceability GTS2

(deploy)

• Global Model Number

(BUDI-DI) (deploy)

5. INNOVATION

• Consumer Internet of

Things (C-IoT)

• Blockchain

6. ORGANISATION

• Big Picture

Implementation

3. SOLUTIONS

• Traceability/Sustainability

• Illicit Trade/Anti-Counterfeit

4. SERVICES

• GS1 Global Data Services

- GS1 Cloud

- GDSN Simplification

• GS1 Global LEI Service

(GLEIF)

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GS1 in Technical Industries

Our focus 2017/19

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Emerging industry group within GS1 at the global level that will initially focus on the use

of GS1 identifiers in specific business processes to enable data sharing services

between and within targeted sectors :

Construction

CPG (manufacturing)

Defence

Railways

+ Engineering

Aerospace

Automotive

Energy

Maritime

Mining

© GS1 2019

Common need = Globally Unique Identifier

As the key to :

• Material Master Data (product description and attributes structured)

And as an enabler for:

• Part Authentication (counterfeit)

• Inventory / Warehouse visibility

→ predictive replenishment

• MRO (Maintenance, Repair & Overhaul) processes more efficient

→ Preventative maintenance, real-time performance monitoring

• Lean manufacturing (Industrial Internet of Things)

• Systems interoperability

• Warranty management / regulatory compliance

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What Technical Industries isFrom a Product Lifecycle point of view

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Value Proposition

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Asset Management

Quality data feeds to EAM systems

Supports ISO 55000 (AM standard)

Predictive maintenance

Condition monitoring efficient “health checks”

Quality & Risk Management

Traceability

Item authentication for:

- anti-counterfeiting

- brand protection

Regulatory compliance

Proof of certification for safety

Test certificates

Efficient product recalls

Logistics

Inventory management / Lower stock holdings

Efficient stock takes

Automated inwards goods receipt

Goods issue (dispatch)

Less errors

More agile processes

Returns management/reverse logistics

Efficient warehouse management

End to end visibility of goods in transit

Efficient P2P processes

MRO Operations

Real time data capture of service/repair activities

Predictive maintenance

Increase safety (avoid incorrect use or unlawful substitutions)

Unambiguous identification of parts and software versions

Improved part/component availability

Maintenance history

Lifecycle tracking

GS1Global Data Standards

© GS1 2019

GS1 at the heart of……all Digital Industry and operations processes

• aka IIoT = Industrial Internet of Things

• Huge boost for more efficient use of robotics.

• Linking elements → valuable data → analytics & process

optimisation

• Predictive Replenishment, Preventative Maintenance, “Pay-per-Use”

• Security of data = essential for successful & efficient Smart

Industry.

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Use cases in Technical Industries – IIoT

• In IoT „Things“ talk to each other, but how are

they identified ?

• IIoT driven systems not just interconnected,

they are also smart.

- Product intelligence, data analytics and

cognitive capabilities

• Sensors (RFID-based or not) will play a

predominant role in this, in particular in the TI

Industries in focus.

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Use cases in Technical Industries – IIoT

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Emerging applications

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Sensors & other embedded technologies

Artificial Intelligence

Augmented Reality (AR) / Virtual Reality (VR)

Additive Manufacturing (3D Printing)

Robotics and automated engineering

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2. GS1 Technical

Industries in action

- Rail

- CPG (manufacturing)

- Defence

- Maritime

- Automotive

- Mining

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RAIL

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Project Objectives

In 1st half of 2015 the rail industry in Europe and in Australia (through ARA) began

collaborating on an industry initiative aimed at universally identifying objects within

Maintenance Repair & Overhaul (MRO) in rail.

Key objectives include:

• Identifying objects, whether existing or part of current purchasing

• Decide on key data elements

• Agree on a standard to adopt for component identification and marking

• Capture information automatically

• Ability to electronically exchange information with relevant parties

• Enable lifecycle tracking of an asset or component from procurement to disposal, including maintenance.2

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Project Objectives

• Reduce inventory write-offs and waste

• Improve maintenance and repair operations

• Reduce cost and errors through less manual

data entries

• Improve traceability and warranty management

• Provide more accurate, real time information to

improve business decision making

• Set the foundation for best practice

procurement cycle processes

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In summary : Lay the foundation for digitalisation and therefore the future existence of the rail industry

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NUMBER?

ID NUMBER?

MANUFACTURING NUMBER?

Photos of

actual rail

parts!

REG Nr.?

Operational Issues –Are we talking about the same single item?

JUST NUMBERS...?

Which one is the S/N ?

How is it constructed ?

Is it unique in my asset mgt. system ?

How do I need to type the data string in ?

What AIDC-technology can be requested to eliminate typing errors?

How do we assure interoperability in the solutions found?

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© GS1 2019

GS1 Rail standards deployment (status Oct.2018)

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GS1 MO engaged with Rail Industry

GS1 MO not engaged with Rail Industry, urgent

Industry requests handled by GO

GS1 MO not engaged with Rail Industry, but

requests handled by end-user (MO ready)

#Number of named suppliers to main national

railway operator (provided by operator

(#)Number of rail industry suppliers with manufacturing/distribution

sites as per “GS1 Rail sector analysis 2018”

© GS1 2019

Use cases in Technical Industries – Rail

• Identification parts and components (Appl. Standards 2016/2017)

- Implementation DataMatrix / EPC-RFID in full speed in Australia and Europe

• All state operators in Australia

• In Europe : SBB, DB, SNCF, ÖBB, SNCB, SJ, PKP

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Serialisation of newly manufactured bearings: sGTIN

[01]04053063013841 [21]241174FW

• Implementation of the GS1 data identifier concept

• Combination with GS1 DataMatrix

• Optional: Additional GS1 Application Identifiers

Direct part marking (DPM) by laser

HFG Article number HFG serial no.

Serialisation of installed base (=in use) bearings as a “bypass” operation during the regular wheelset maintenance: GIAI

[8004]405822640000000901458951

Asset identifier given by owner / operator

Example : Serialisation of wheelset bearings

© GS1 2019

Lots of different applications

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The adoption of GS1 global data standards for the unique identification (codification) and physical marking of all assets, parts and components in the rail industry

Project iTRACE

© GS1 Australia 2017

The rail industry is working together

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© GS1 Australia 2017

Supporting effective Asset Management

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Procurement

Inventory Management

Configuration Management

Repair/Issue Management

Operational Data Sharing

High performing operational processes

© GS1 Australia 2017

What is Project i-TRACE?

• Project i-TRACE is the name of the industry initiative about the agreed industry standard for codification and barcoding and/or tagging of all assets and materials in the rail industry;

• Laying the requirements for how to digitally identify objects and automatically capture data about those objects.

• Critical foundation for rail’s digitalisation agenda

• The i-TRACE industry working group was established in January 2015

© GS1 2019

Video on Youtube : https://youtu.be/pcj7Pso0sNs

GS1 Standards Keep Rail Companies on Track

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CPG Manufacturing

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• 418 factories in 86 countries

• Factory inventory (machine engineering) : on average 3000 spare parts from 300 suppliers

Impact identification

• 300 suppliers = 300 different proprietary identification systems !!

• Manual input into ERP to assign a “material/article number”

• Material Master Data = non-existing, incomplete or erroneous

• Each factory has its own ERP → no “cross-factory” visibility

• Additional complexity : Frequently changed (proprietary) part numbers

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Case for CPG : Item visibility & Data Quality

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Physical flow

Information flow ERP ERPMaster Data34

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DEFENCE

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Defence - summarised

Industry needs

• Complementary identification to “outdated” NCS (NATO Codification System)

• Efficient procurement and inventory processes

• Quality Master Data

• Life Cycle Traceability for MRO processes

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GS1 Focus

• (s)GTIN

• SSCC

• GS1-128

• DataMatrix

• EPC/RFID

• GS1 Cloud

• GDSN

Standardisation needs

TBC

Possible requirements from :

GDSN project in Australia

• pre-pilot on Healthcare products

• Decision by end 2018 to start 4-year pilot

© GS1 2019

Application Identifier for

Marine Safety Equipment Certificate Numbers

MARITIME

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As a supplier, which solutions would you prefer ?

Separate solutionsGS1 Solution

(“one size fits all”)

© GS1 2019

Business Purpose & Requirements

• EU Regulation (Directive 2014/90/EU) in force on marine equipment

- support international regulatory framework (IMO) for marine safety,

- each piece of equipment needs certificate, called MED ID’s, Marine Equipm. Directive.

• Each item requires a printed symbol (“wheelmark”) along with the certificate

number.

- New EU regulation (2018/608 of 19 April 2018) holds criteria to supplement/replace

the printed version by an “e-tag” (DataMatrix and/or RFID tag).

• GS1 formally requested by EU Commission and EMSA (European Marine Safety

Agency) to provide an AI, to be used in combination with a GTIN/GIAI.

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NOTE : Marine Safety Equipment (as targeted by the EU Directive) includes : Life saving appliances,

Marine Pollution Prevention, Fire Protection, Navigation Equipment and Radio Communication Equipment

© GS1 2019

Example of a safety flare

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B-0098-8630109HH

Wheelmark symbol +Notified Body (0098) +Year wheelmark was affixed (13)

Before Future

Type of certificate (module B)

Certificate Nr.

Printe

d v

ers

ion

E-T

ag(d

igital)

vers

ionand/or

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Various suppliers have started to implement

AUTOMOTIVE

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© GS1 2019

Automotive

Who:

• End-users: Car manufacturers/assemblers, Federations, Public Authorities/Regulatory,..

• Suppliers: Parts and component manufacturers (OES/OEM),

Challenges:

• Increasing supplier base, ever changing (proprietary) part numbers

• Low quality copies of safety-relevant spare parts and finished products

• Increased use embedded electronics with frequent software upgrades

• Low inventory visibility due to lack of global identification, multiple identification and /or master data

• Separate production OES and after-market parts

Specific benefits:

• Authentication of original spare parts

• Efficient data analytics, performance/condition monitoring and preventative maintenance

• Visibility of entire product lifecycle

• Scalability of solutions, efficient sharing of product (master) data

Overlap with other sectors:

• Defence, Energy, Engineering, Mining and CPG/Retail (after-market)

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Real-life examplesMaking products traceable and tamper-proof with GS1 standards

Schaeffler

- To meet growing customer demands, the Schaeffler Group, one of

the world’s leading manufacturers of precision components and

systems for engines, transmissions and chassis, needed a solution

to uniquely identify each of its individual bearings. The goal was to

protect against counterfeiting and efficiently provide maintenance

services for installed bearings around the world.

- Schaeffler decided to use a serialised Global Trade Item Number®

(GTIN®) encoded in a GS1 DataMatrix barcode that is directly

engraved on each bearing. The choice was based on GS1 standards’

global interoperability, robust data availability and the ease of

integrating standards into business processes.

(Mechanical)

Engineering

Benefits:• Verifies authenticity to combat counterfeits, protect the brand and customers’ safety • Enables traceability of each bearing for proactive planning & efficient maintenance services• Provides additional useful information such as country and batch/lot data • So far Schaeffler generated 150 million randomly generated, serialised GTINs encoded in a DataMatrix

and will continue to generate 400,000 GTINs in DataMatrix barcodes each day

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© GS1 2019

Real-life examplesUsing GS1 DataMatrix to protect brand and customers

ATE Continental

- ATE, a supplier of aftermarket brake systems, implemented

globally unambiguous, individual item identification for its spare

parts with the Global Trade Item Number® (GTIN®) and a

randomised serial number.

- Each identification number is allocated via a secure verification

database and encoded in a machine-readable GS1 DataMatrix

barcode that is printed on the part’s label or laser-engraved

directly on the product.

- With ATE’s smartphone app, customers can scan and read the

DataMatrix barcode to verify the authenticity of the spare part.

Automotive

Benefits:Protects customers from counterfeiting and its potential harm

• Assures auto repair shops and retailers that they are using and selling ATE original spare parts• Safeguards brands and curbs economic losses for all supply chain participants • Provides customers with access to information at any time, with no extra costs

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© GS1 2019

Real-life examplesTurning complexity into simplified traceability with GS1 standards

ContiTech

- ContiTech, a supplier of customised suspension systems, needed to

efficiently manufacture these individualised systems while ensuring

each system was built and delivered to the right customer.

- The company assigns and applies a serialised GS1 Global Trade

Item Number® (GTIN®) encoded in a durable GS1 DataMatrix

barcode on each system. It also contains the serialised GS1 Global

Trade Item Numbers (SGTINs) of the components that comprise

the system.

Railways

Benefits:Significantly simplified manufacturing process for reduced costs• Higher operator productivity with fewer errors for high-quality systems • Fewer re-works associated with errors for cost avoidance• Ability to track systems and components from initial order to final delivery • Ensure the right customers receive the right systems• Protects customers from counterfeiting and its potential harm

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© GS1 2019

Real-life examplesDriving efficiencies for outbound shipments with GS1 standards

Lenze

- Lenze, a leading specialist in mechanical engineering drive solutions and

complete automation systems, needed to gain visibility of outbound

shipments travelling from its 10 logistics centres to customers worldwide.

- It also wanted to connect new logistics service providers to its system in a

much more efficient and cost-effective way.

- Lenze decided to standardise its outbound distribution process by using

the GS1 Serial Shipping Container Code (SSCC) encoded in the GS1-128

barcode, which is printed on a GS1 transport label.

- By integrating the SSCC with the SAP system’s Handling Unit (HU) number,

Lenze can now directly link the customer with the new system order and

delivery method.

(Mechanical)

Engineering

Benefits:• Increases overall performance of Lenze’s outbound shipping process• Significantly reduces errors• Provides complete flexibility when connecting with new logistics service providers• Provides Lenze with data that keeps customers informed about the upcoming delivery of items

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© GS1 2019

MINING

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© GS1 2019

Maximise operating costs and asset productivity

GS1 standards deliver business solutions to maximise operating costs and asset

productivity – contributing to profits, shareholder value and overall business performance.

The implementation of GS1 standards can deliver business benefits:

• Improved inventory management (MRO & Base Operations) through standardised AIDC.

• Identification of products quickly and accurately to minimise stock holdings and

obsolescence.

• Increased product accuracy and sales returns with product identification.

• Reduced risk of counterfeits by means of globally unique identification and serialisation.

• Unique asset identification allowing suppliers and service providers to improve record asset

maintenance procedures → better warranty management and claims.

• Reduced cost of human capital and time in stock management through greater automation

of supply chain and MRO activities.

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© GS1 2019

The Digital Mining Ecosystem

Process

Collaboration Stakeholders

Directory/Registry Services

(Google-like)

Data (GS1 GDS) and Communications Standards (4G/5G/WiFi/B’Tooth)

Supply & DemandDecision SupportOptimisationReconciliationAnalysis

(Data Exchange Standards)

Insi

tuC

har

acte

risa

tio

n

Min

e P

lan

nin

g

Dri

llin

g

Bla

stin

g

Exca

vati

on

Hau

lage

Ro

ckB

reak

ing

Pro

cess

ing

Trai

n

Ship

Lo

adin

g

Vendors

Surveying Analysis Infrastructure Maintenance LogisticsSupport

© GS1 2019

Rio Tinto proprietary

solution

Zerosupplier

compliance

GS1standards solution

Approx 215 RTIO suppliers already

compliant

External markets/industries that are already GS1 compliant with industry requirements broadly stipulated

Office

Consumer Goods

Food

Hardware

Defence

Construction

Rail

Transport

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3. GPC

Global Product Classification

© GS1 2019

GPC Foundation Principles

• Item unique placement

• Mutual exclusivity of the bricks

• GPC hierarchy is optional

• GPC is a pivotal classification system

• Product grouping based on what they physically

are (function) and not their intended use

• Clear and non ambiguous definitions

• GPC is made to be Adaptable, Flexible,

International,

• Managed by a neutral body

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How it Works

• GPC is a rules-based, four-tier classification system for grouping products.

• The four tiers are Segment, Family, Class, and Brick (with attributes and

attribute values).

• A Brick identifies a category incorporating products (Global Trade Item

Numbers (GTINs)) that serve a common purpose, are of a similar form and

material, and share the same set of category attributes.

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GPC structure

• The foundation of GPC is called a "Brick;" GPC bricks define categories of

similar products

• Using the GPC brick as part of GDSN ensures the correct recognition of the

product category across the extended supply chain, from seller to buyer

• Bricks can be further characterised by Brick Attributes and attribute

values

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GPC Foundation and Hierarchy

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Segment

Family

Class

Brick

Attribute Value 1

Attribute Value 1

Brick Attribute 1

Brick Attribute 2

An industry Segmentation or Vertical

A broad division of a segment

A group of like categories

Categories of like products

Segment

Family

Class

Milk and Milk Substitutes(Perishable)

An industry Segmentati

on or Vertical

A group of like

categories

Categories of like

products

Food, Beverages, & Tobacco

Milk, Butter, Cream, Yoghurts, Cheese, Eggs, &

Substitutes

Milk and Milk Substitutes

Brick

Level Example

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GTIN and GPC brick code

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Brick:Milk and Milk Substitutes(Perishable)

GTIN = 123456789123C

Brick Code = 10000025

A GTIN can be assigned only to one brickA brick can group several GTINs

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Brick Attribute Values

Brick Attributes

BricksExample

Milk and Milk Substitutes(Perishable)

If Animal

Level of Fat Claim

Organic Claim

ProbioticClaim

RefrigerationClaim

Source

NoUnidentifiedYes

NoUnidentifiedYes

Can be Refrigerated Must be Refrigerated Unidentified

Full FatHalf FatLow FatNon FatReduced FatUnidentified

Animal MilkNon Animal MilkUnclassifiedUnidentified

Ass SheepCamel SoyaFruit UnclassifiedGoat UnidentifiedNut VegetableMare YakRice

Milk and Milk Substitutes(Perishable)

If Animal

Level of Fat Claim

Organic Claim

ProbioticClaim

RefrigerationClaim

Source

NoUnidentifiedYes

Animal MilkNon Animal MilkUnclassifiedUnidentified

© GS1 2019

General principles

• Logical grouping of bricks

• Categorised information must be universally

applicable,should not be culturaly biaised

• Schema published in Oxford English

• Schema should facilitate the collection of relevant

classification information and presented in an

acceptable way for the industry

• Schema cover all products in the supply chain

• Any change to the classification system is

communicated in delta report

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Generic Business rules

• Clear and consistent structuring

• Non culturally biased terms and spellings

• Standardised naming convention

• Unique product placement in GPC

• A brick must be as far as is practical, contains products that can be

characterised by the same set of attribute types relevant to the product.*

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GTIN GPCITEM SKU Reference Code Product GROUP Code

WHICH product is it? WHAT product is it?

____________

Each GTIN is electronically linked to a unique GPC brick code

The GPC brick code is a mandatory data in GDSN

00910023712823 10005788

© GS1 2019

Levels of Product IdentificationGTIN and NSN Relationship

Classification

Category of like products

Production / Logistic entity

Company

Single Branded Product

Branded Product @ instance level

NATO Supply Group

NATO Stock Number

?

Global Product Classification (GPC)

“segment”

GPC “Brick” & “Brick

Attribute”

Serialised Shipping Container Code (SSCC) Application Identifiers

Global Trade Item Number GTIN (~SKU)

Serialised Global Trade Item Number

(sGTIN)

United Nations Standard Product and Services (UNSPSC) “segment”

UNSPSC “Commodity”

?

Food, Beverage & Tobacco

Milk and Milk Substitutes (perishable)

Batch/Lot #, Production Date, Expiry Date

Brand “Galaxy”Milk skimmed 1 L

Brand “Galaxy” Milk skimmed 1 L +

serialisation nr.

Example Other

Supplier Proprietary serialisation

Supplier Proprietary Identification

NCAGE + Ref. Nr

UID(for mgt, not codification)

More granularity = increased traceability10

NCAGEGlobal Company

Prefix (GCP)?Galactic & Co.

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4. Q&A ?

© GS1 2019

Increase in productivitywith higher cost-savings starts with a globally-unique identification key

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© GS1 2019

Enzo Blonk

Director Industry Engagement – Technical Industries

7. Who to contact

+32 2 788 78 00

enzo.blonk@gs1.org

+32 2 788 78 60

+32 473 89 89 87