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GS1 Overview – Key Concept Training Hardware/DIY Sector 4 May 2011 New Zealand

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GS1 Overview – Key

Concept Training Hardware/DIY Sector 4 May 2011

New Zealand

© 2010 GS1

New Zealand

3 © 2008 GS1

Why are we needed?

9421000005313

9421000005313

© 2010 GS1

New Zealand

Background: What are standards?

Standards are agreements that structure any activity or any industry.

They may be rules or guidelines that everyone applies.

They may be a way of measuring, or describing, or classifying products or services.

© 2010 GS1

New Zealand

Standards play an important role

Standards are the foundation for clear, understandable exchanges between companies in an increasingly globalised economy.

!

Standards help keep costs down for everyone. !

© 2010 GS1

New Zealand

11

GS1 as a standards organisation: our

vision

A world where things and

information about them move

efficiently and securely for the

bene"t of businesses and the

improvement of peoples’ lives,

everyday, everywhere

© 2010 GS1

New Zealand

13

Global reach, local presence

108 Member Organisations.

150 countries served.

2,000 people helping us.

Countries with a GS1 Member Organisation

Countries served on a direct basis from GS1

Global Office (Brussels)

© 2010 GS1

New Zealand

GS1: A Broad Portfolio

GS1 has a full portfolio of products – “The GS1 System”

Global standards for electronic business messaging Rapid, efficient & accurate business data exchange

The environment for global data synchronisation Standardised, reliable data for effective business transactions

Global standards for automatic identification Rapid and accurate item, asset or location identification

Global standards for RFID-based identification More accurate, immediate and cost effective visibility of information

ITEM IDENTIFICATION

© 2010 GS1

New Zealand

Quiz: Item Identi!cation – what is the

difference?

© 2010 GS1

New Zealand

Quiz: Application of global identi!ers

© 2010 GS1

New Zealand

Physical Packaging Hierarchies

•! Products are represented by item records for each physical unit relating to the product:

•! Base Unit or Each – lowest hierarchy. In retail this is typically ‘point of sale’.

•! Inner Unit – multi-packs of base/each units items. Inner packaging items.

•! Case Unit – used for shipping between vendors and their trading partners. May contain a quantity of a single consumer unit, or a con"guration of inner or base/each units.

•! Others: DISPLAY_SHIPPER, PREPACK, MULTIPACK, SETPACK, PREPACK_ASSORTMENT, MIXED MODULE, PALLET,…

•! The physical relationship of these items constitutes a Product or Packaging Hierarchy.

© 2010 GS1

New Zealand

Base

Unit or EACH (GTIN)

Pallet

Inner

Unit (GTIN)

Case

Unit (GTIN) 11651165

12501166

84

55

1230

36

4343

Base

Unit or EACH (GTIN)

Pallet

Case

Unit (GTIN)

Physical Packaging Hierarchies

ENSURING YOUR PRODUCT

IS IDENTIFIED

© 2010 GS1

New Zealand

6 bar codes

•! Which to scan?

•! Do 6 go out for the price of 1?

© 2010 GS1

New Zealand

Right GTIN, wrong symbology (a Codabar -

only readable normally in blood banks &

libraries; never at the POS!)

© 2010 GS1

New Zealand

Not a retail bar code - will not scan

at POS

© 2010 GS1

New Zealand

No background - will not scan

© 2010 GS1

New Zealand

Unreadable, tiny bar code

© 2010 GS1

New Zealand

EAN-128 (logistics) bar code (cannot be scanned at

POS) & two bar codes visible (one on each can - which

to scan?)

© 2010 GS1

New Zealand

Reversed bar code (& very

truncated) - will never scan!

© 2010 GS1

New Zealand

Barcode Veri!cation (conformance

testing)

•! “The technical process by which a bar code symbol is

measured to determine its conformance with the

speci!cation for that symbol”

PLUS

•! Compliance with GS1 speci"cations regarding symbology

selection, colour, size, location, etc.

© 2010 GS1

New Zealand

Why your customers require GS1 Barcode

Veri!cations

•! To ensure your products scan right the "rst time

•! Bad scanning products leads to: •! Inefficiencies at ‘Point of Sale’ slowing down processes and creating cost

•! Negative customer experiences effecting revenue generation

•! Associating products against incorrect or default sales codes, which

leads to issues with category and inventory management, which in turn

impacts their/your revenue.

PARTY IDENTIFICATION

© 2010 GS1

New Zealand

Party ID – Global Location Numbers

•! As the name implies, the GLN is the GS1 Identi"cation Key

for Locations.

•! The GLN can be used to identify physical locations and

legal entities where is a need to retrieve pre-de"ned

information to improve the efficiency of communication

with the supply-chain.

•! Global Location Numbers are a prerequiste for

GS1 eCom message or to access information from the

Global Data Synchronisation Network.

CATALOGUES (PRODUCT

MASTER DATA)

© 2010 GS1

New Zealand

GS1 GDSN

The environment for global data synchronisation Standardised, reliable data for effective business transactions

•! Improved pro"tability for suppliers and their customers •! Increased productivity behind more efficient transactions

•! Savings in administrative & personnel costs behind elimination of unnecessary costs due to invoice errors or poor quality

orders •! Improved speed to market, product and promotions

availability

•! Reduced out of stocks •! Automated distribution of supplier trading partner data to

multiple customers •! Enables collaborative supply chain/commerce initiatives

•! Improved relationship with trading partners

© 2010 GS1

New Zealand

1. Populates

GS1net

Supplier / Broker Buyer

2. Auto Updates

3. Purchase Order – Accurate & error free

4. Despatch Advice / ASN – SSCC link to PO & GTINs

5. Physical Goods Flow – Marked with SSCC

6. Remittance Advice & Settlement

With Data Synchronisation!

© 2010 GS1

New Zealand

Status is Australasian Hardware Sector

•! Mitre 10 NZ

•! All suppliers must use GS1net to trade with M10 NZ

•! 61 Suppliers actively synchronising with M10 using GS1net

•! Further 110 companies registered and in progress

•! 40,000 Hardware GTINs on GS1net

•! ITM

•! Also rolling out GS1net supplier base.

•! Integration work is in progress

•! Targeting all GS1net Live suppliers and top suppliers per category

•! HGAG members

•! Some are now piloting GS1net e.g. Mitre 10 Aus, John Danks and BOC

ORDER TO CASH

© 2010 GS1

New Zealand

Buying, Moving & Selling …

Product

Information (& $$?)

Reverse Logistics (stuff coming back!)

© 2010 GS1

New Zealand

‘Order-to-Cash’ using GS1 eCom

Global standards for electronic business messaging Rapid, efficient & accurate business data exchange

•! Global standards for electronic business messaging

•! Rapid, efficient and accurate automatic electronic

transmission of agreed business data between

trading partners all along the supply chain

•! Improved efficiency and visibility in the supply

chain

© 2010 GS1

New Zealand

Swift and smooth global

communication … with less paper!

GS1 eCom

Business is global now: You need to be able to communicate with clients and partners around the world.

GS1 eCom standards provide clear guidelines for creating electronic versions of many business documents, enabling trading partners to smoothly exchange

information electronically.

This means faster, better work / with less wasted paper!

Current Trends & Initiatives

Hardware: Call To Action

“Barcodes on All

Packaging Hierarchies”

© 2010 GS1

New Zealand

Industry Call to Action

•! HGAG Call To Action •! “For Aus Market, GTINs and Barcodes on All Packaging

Hierarchies”

•! Primary Retail/Rural Trader Sector •! “Supplier to barcode all new products, for both retail

and trade, in accordance to GS1 barcode and quality

standards”

© 2010 GS1

New Zealand

What is required from suppliers?

1.! To assign Global Trade Item Numbers (GTINs) to all levels of packaging for a product

2.! All new products introduced to the market must be physically bar coded on all levels of packaging with GS1 compliant bar codes

3.! Hardware 1.! All existing products in the market must be physically bar coded on all

levels of packaging by December 31, 2010

© 2010 GS1

New Zealand

Next Steps

•! Although at this stage Aus speci"c it should be

implemented in NZ as best practice (Hardware). •! Review your product information and determine which products need

GTINs

–! Do you put Bar Codes on all levels of packaging?

–! If unsure, contact your trading partners to discuss

•! Need help with GTINs & Barcoding, contact GS1 NZ

•! Allocate GTINs to all levels of packaging

•! Communicate new product information with your trading partners

•! When introducing new products, include bar coding on all levels of

packaging

© 2010 GS1

New Zealand

GS1: A Broad Portfolio

GS1 has a full portfolio of products – “The GS1 System”

Global standards for electronic business messaging Rapid, efficient & accurate business data exchange

The environment for global data synchronisation Standardised, reliable data for effective business transactions

Global standards for automatic identification Rapid and accurate item, asset or location identification

Global standards for RFID-based identification More accurate, immediate and cost effective visibility of information

© 2010 GS1

New Zealand

RFID Tags

© 2010 GS1

New Zealand

More transistors than the

processor in a 1985 IBM PC-AT

Lower power consumption than

a honeybee’s brain

Fun Facts about ECP RFID Gen2

© 2010 GS1

New Zealand

Global Status

•! Wal-Mart – Full rollout on all packaging hierarchies to

entire supplier base by end of 2011. All cases tagging to

complete by end of 2010

•! Most major global FMCG retailers have a pilot programs

in place

•! Number of airport baggage projects completed and in

progress

•! No current rollout initiatives by NZ retailers.

•! GS1 NZ working up the supply chain to implement GS1

EPC RFID. e.g. Kiwifruit

© 2010 GS1

New Zealand

Further Training & Education

Contact Details

GS1 New Zealand

T 0800 10 23 56

E [email protected]

Web: www.gs1nz.org