Role of GS1 EPCglobal in Thailand
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1 Role of GS1 EPCglobal in Thailand Pitchya Vajarodaya CEO, GS1Thailand Organization Overview The Federation of Thai Industries (FTI), a non-profit organization, was appointed by GS1 Global Office to administer GS1 System utilization and take on a leading role in Thailand. Therefore, GS1Thailand Institute (formerly known as EAN Thailand), was established on February 26, 1993 under the supervision of FTI to take responsibilities as following : 1. Act as an intermediary for manufacturers, wholesalers, retailers, and consumer to support and promote GS1 System and electronic data communication in Thailand. 2. Act as a registry to issue GS1 identity numbers to members. 3. Act as a registry to issue Electronic Product Code (EPC) identity numbers for RFID to members. Slide 2
2 Organization Overview 4. Encourage and support the members on system improvement of data capture and manage product information effectively. 5. Study, research, and disseminate new inventions on equipment, technology, information, news or message pertaining to the use and printing of GS1 System. 6. Promote and develop the applications of GS1 System and EDI for Supply Chain & Logistics. 7. Function as Secretariat to ECR Thailand (Efficient Consumer Response). Slide 3 - Overview of GS1 System The Global Language of Business OVERALL BENEFITS: Improving efficiency & visibility in supply and demand chains Global standards for automatic identification Global standards for electronic business Messaging The environment for global data Synchronisation Global Standards for RFID-based Identification RAPID AND ACCURATE ITEM, ASSET OR LOCATION IDENTIFICATION RAPID, EFFICIENT & ACCURATE BUSINESS DATA EXCHANGE STANDARDISED, RELIABLE DATA FOR EFFECTIVE BUSINESS TRANSACTIONS MORE ACCURATE, IMMEDIATE AND COST EFFICIENT VISIBLITY OF INFORMATION GS1 Common Identifiers (e.g. GTIN, GLN, SSCC, GRAI, GIAI, etc ) Slide 4
3 Barcodes Revolutionalise Check Out In June of 1974, the first U.P.C. scanner was installed at a Marsh's supermarket in Troy, Ohio. On June 26, 1974 the first product scanned at the check-out with a bar code was Wrigley's gum. Modern bar code began in Bernard Silver, a graduate student at Drexel Institute of Technology in Philadelphia, overheard the president of a local food chain asking one of the deans to undertake research to develop a system to automatically read product information during checkout. Silver told his friend Norman Joseph Woodland about the food chain president's request. Woodland was a twenty seven year old graduate student and teacher at Drexel. The problem fascinated Woodland and he began to work on the problem. Slide 5 GS1 Identification Numbers are: Unique: every variant of an item is allocated a separate unique number Non-significant: they identify an item but contain no information about it International: GS1 identification numbers are unique across all countries and all sectors Secure: GS1 numbers are fixed length, numeric and include a standard check digit Slide 6
4 Global Trade Item Numbers (GTIN) GTIN-13 data structure EAN.UCC Company Prefix Item reference Check Digit N 1 N 2 N 3 N 4 N 5 N 6 N 7 N 8 N 9 N 10 N 11 N 12 N 13 Slide 7 GS1 identification numbers map into EPC An Example of How GTIN Integration Works With the EPC Illustrative Example (GTIN-13): EAN Company Prefix Item Reference Check Digit ) > Remove Check Digit EPC: Header EPC Manager Number Object Class Number Serial Number GTIN Slide 8
5 EPC/RFID GS1 EPCglobal technology EPC is the business application of RFID technology to the supply chain A number. In a radio tag which together, uniquely identifies an object Slide 9 Impinj Chris Diorio Slide 10
6 The EPCglobal Network Information stored on EPC IS Accessed through ONS Middleware between readers and information systems Inexpensive tags Minimum data on the tag EPC Information Service (PML) ONS Middleware Readers Integration Layer RFID Enterprise Applications ERP Warehouse Management Systems Inventory Management Data Warehouse Merchandise Management Store Systems Etc. Tag Tag Tag Slide 11 The EPCglobal Network Information stored on EPC IS Accessed through ONS Middleware between readers and information systems Inexpensive tags Minimum data on the tag EPC Information Service (PML) ONS Middleware Readers Tag Tag Tag Integration Layer EPC Network Enterprise Applications ERP Warehouse Management Systems Inventory Management Data Warehouse Merchandise Management Store Systems Etc. Slide 12
7 The EPCglobal Network Slide 13 The EPCglobal Network ORGANIZATION A ORGANIZATION B Tagged Units Moving Through the Supply Chain Slide 14
8 The EPCglobal Network ORGANIZATION A Internal Systems (ERP, WMS) EPC Reader Mgmt EPCIS EPC Middleware Readers ORGANIZATION B Slide 15 Tagged Units Moving Through the Supply Chain The EPCglobal Network ORGANIZATION A Internal Systems (ERP, WMS) EPCIS EPC Middleware EPCIS EPC Middleware ORGANIZATION B Internal Systems (ERP, WMS) EPC Reader Mgmt Readers Readers EPC Reader Mgmt Tagged Units Moving Through the Supply Chain Slide 16
9 The EPCglobal Network Supply Chain Visibility Event Related Information ORGANIZATION A Internal Systems (ERP, WMS) EPC Reader Mgmt EPCIS EPC Middleware Readers Security Authentication Authorization Discovery Services (Search, ONS, Event Registry) EPCIS EPC Middleware Readers ORGANIZATION B Internal Systems (ERP, WMS) EPC Reader Mgmt Tagged Units Moving Through the Supply Chain Slide 17 EPC Information Services & ONS Slide 18
10 Event Registry Network standards (Overseen by ARC) Event Registries Security Specifications Search and Discovery ALE F&C Application Program Interface (API) Tag Data Translation Reader Management Reader Protocols GEN 2 AIP Tag Data Standards EPCIS protocols Slide 19 Why Standard? Slide 20
11 Our World Has Become Global NAFTA EU Exports: $8.82 trillion f.o.b. (2003 est.) OAU ASEAN Imports: $8.75 trillion f.o.b. (2003 est.) WTO Slide 21 Who Needs Global Standards? Anyone who is trading with other nations which is just about everyone Global trading partners in the same industry Global trading partners in linked industries Companies who trade and operate across multiple countries I am all for global standards, but adopt my country s standards Country specific standards are just fine provided that you don t import or export anything.. Slide 22
12 What If You Don t Have them? Three competing standards in the U.S. Led by CDMA Non-interoperable systems GSM 90% of world outside of North America Not fun if you travel globally! Slide 23 The Benefits of Global Standards Potential to transform business process Pallet aggregation The power of event related information Improved customer availability Demand driven supply chain Reduced inventory Reduced counterfeit Improved ability to track and trace Shrinkage Returnable Assets Transformation of commercial relationships Electronic POD ( Proof Of Delivery ) Slide 24
13 The standards process Relevant EPC standard components are submitted to the ISO process EPCglobal develops technology standards and interacts with established standard groups such as EAN.UCC Slide 25 RFID across industry sectors Industrial Healthcare Retail/FMCG Logistics Field Service Slide 26
14 RFID applications across industries Retail / consumer products Lower labour costs Out-of-stock triggers Reducing shrinkage Reducing inventories Locating products Real-time supply/demand data Smart shelves Self check-out Reverse logistics Customer convenience Counterfeit - diversions Healthcare/ Pharma Tracking hospital equipment Patient ID and tracking Preventing medication errors Tracking samples/ vials etc Environmental monitoring (e.g. blood samples) Counterfeit - diversions Product recalls Manufacturing - Quality control - Lot Tracking - Recalls - Government regulations - Inventory accuracy and visibility - Labour & material costs - Asset utilization - Contract manufacturing - Supplier Management - Customer relations - Supply chain management - WMS - Inventory - Gray markets/ theft - Shrinkage - Shop floor execution Government - Homeland security - Military/ defence asset tracking Transportation & Logistics - Asset utilization and tracking - Volume planning - Automated sorting - Automated data capture - Shipment route tracing - Delivery reliability/ efficiency - Contract pricing verification - Reduced claim costs Construction - Asset utilisation and tracking - Automated data capture - Yard control - Safety equipment tracking Other - Farm animal tracking - Contactless payment systems - Sensor/ sensing applications - Theme park applications - Airport tracking of baggage/ passengers Slide 27 Sample RFID applications Security access and control Public library system Laundry sorting Assembly line automation People tracking Highway toll system Slide 28
15 Food & pharmaceuticals traceability Pressure to assure to ensure food integrity & safety, driven by Global food safety initiative (GFSI) EU directive 178/2002 Article 18, Jan 2005 US Bio-terrorism act EU common agricultural policy Ability to identify and record exact, instance level Source Processing Storage Transportation Ownership Variety of tracking applications Medical equipment Drugs Patient records Continuity of care Physicians Product recalls Can associate specific batches with specific patients Anti-counterfeiting Audit trail on drugs and equipment Prevent bogus drugs from entering the legitimate supply chain Automated dispensation Approx. 11% of patients suffer from dispensation mistakes (BMJ) Approx deaths/year due to medical errors Slide 29 EPCglobal Started In FMCG Fast Moving Consumer Goods also referred to as Consumer Packaged Goods Formed in 1999 by a consortium of retailers and suppliers Slide 30
16 Health & Life Sciences Many of the benefits of FMCG plus some special needs Counterfeit drugs pop up in all parts of the world It s important to know that what you are taking is real And that means keeping tracks of an item forward at every stage of processing And being able to track back the pedigree of an item to it s source Better controls for product expiry recalls Slide 31 Transportation & Logistics Services Shipping & Reciving Country Specific Pick & Verify Inventory Management Slide 32
17 Discussion Group: gather real business needs Evaluates Business Improvement Opportunities Can leverage business cases from industry leaders e.g Out of Stock reduction, promotion and new item tracking, Electronic Proof of delivery Assesses benefits of implementing EPC Global standards Retailers, suppliers and industry trade associations where appropriate engage Membership of EPC Global not required to participate Facilitated by EPC Global staff May meet more than once Does not constitute a Business Action Group Slide 33 Apparel, Fashion & Footwear EPC Global was approached by the German apparel industry for assistance in developing global RFID standards Initial meeting in London in December 2005 Followed by a global Discussion Group in Barcelona in February Work groups now assessing benefits for industry processes Next meeting in Chicago 18 th /19 th May 2006 May decide to launch a full Business Action Group Slide 34
18 Automotive Industry EPC Global initially approached by German auto industry members Initial European meetings held in November / December 2005 Global Discussion Group held in London February 2006 Regional meetings March June 2006 Industry has been using RFID for decades But mostly closed loop proprietary systems Aftermarket and material tracking offer significant benefits Slide 35 Aerospace Boeing ready to launch RFID program based upon global standards developed through EPC Global Airbus also a key player they are consolidating their internal RFID programs These companies share a large, global and technically competent supplier base Lockheed on board literally as they are an on EPC Global Board Of Governors! Expect Discussion Group to start up in 2 3 months Slide 36
19 Future Industries Food and Beverage Livestock Fruits/vegetables subject to disease/infestation High-Tech Computer & Consumer electronics Industrial electronics Chemical Petrochemicals Industrial chemicals Defence War materiel Equipment maintenance Oil & Gas Exploration Slide 37 Item tagged at source EPC/RFID in a Supply Chain Tag read on truck loading Correct country kit thanks to tag Item known to have arrived at Dist. Center Item known to have arrived at store We always knew where things were and when they got there Item tag read during PI Slide 38 Item tracked on to aircraft Item tracked on to truck Item has been sold
20 Official Launch: EPCglobal in Thailand 22 nd March, 2006 Official frequency range from 920 MHz to 925 MHz Prospect members on the first launch are 20 Solution Provider and 2 End users However, still need more support from buyer/supplier in Thailand to boost more adoption. Slide 39 EPCglobal subscription Benefits Appropriate access to the regional/global EPC data network and royalty-free EPC system license components Manager(s) and object class numbers on an as-needed basis, to assign EPC numbers for pallets, cases, and items Participation in the on-going development of the EPC Network standards Links with other subscribers to create pilots and test cases Slide 40
21 RFID Center: Educational Center First, it was a Supply Chain center with bar code & EDI efficiency Now, Upgrade to RFID enable Supply Chain A one-stop study tour for the utilization of EPC/RFID in a supply chain to boost and expedite learning with limited time Perfect for education, training for both End User and Solution Provider staff Slide 41 Questions? GS1 Thailand 60 New Rachadapisek Rd., Klongtoey Bangkok Thailand Tel. +66 (2) Fax. +66 (2) info@gs1thailand.org Slide 42
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