GS1 Standards. As relevant now as they ever were. CGCSA Summit October Glyn Fogell (Consultant Food Labelling and Bar Coding) 2017

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1 South Africa GS1 Standards As relevant now as they ever were CGCSA Summit October 2017 Glyn Fogell (Consultant Food Labelling and Bar Coding) 2017

2 Where has GS1 come from? Original bodies (UCC and EAN) concerned mainly with bar coding and AIDC - Developed standards around this Electronic data exchange provided another opportunity for standardisation - EANCOM - GS1 standard XML - Common, standard message formats between trading partners no translation needed! GS1 South Africa

3 Expanding range of standards Additional supply chain and retail bar codes - Additional useable data stored for logistical units as well as consumer units GS1-128 and GS1-DataBar QR Codes - A free-for-all until GS1 added these to their standards - Standard message format makes things easier for end users and applications developers Data Matrix codes - Health sector - Direct parts marking GS1 South Africa

4 What else? Traceability - Direct bearing on consumer safety Many countries now insist on these records SA legislation heading that way too - Uses AIDC standards for supply chain visibility RFID - Standards for tag types and communication - Standards for format of stored data Uses the Application Identifiers that were originally developed for GS1-128 bar codes (originally called EAN128) GS1 South Africa

5 RFID? GS1 South Africa

6 But Carton/pallet level tagging still being tried in various locations around the world Benefit to retailer potentially high but US FMCG suppliers say little benefit to them other than continued trade Item level tagging still too expensive and privacy issues caused poor consumer acceptance Tag readers for checkouts still too expensive for widespread deployment GS1 South Africa

7 Let s take a step back ±40 years retail experience covering many facets Got bitten by the bar code bug in 1999 when designing a scanned receiving system for the Shoprite Group - Project died because of unscanable outer bar codes Convinced Shoprite of the value locked up in poor bar codes at point of sale in >R14 Million lost in poor bar codes annually through reduced productivity and the rest, as they say, is history! GS1 South Africa

8 Where have we come from? Focus on bar coding issues started >4.2% of all sold items keyed (unscanable) - Equated to around 5 million items each week! Dry Groceries approx 2% Perishables approx 3% Service departments 5% to 10% Non-Foods approx 3% (adjusted for large/heavy items) Global Best Practice target is <0.6% GS1 South Africa

9 What did we do? Pressure on suppliers to meet GS1 bar coding standards - Pressure and focus on service department scale maintenance - Education and assistance with improving packaging designs and print quality - Support of GS1-SA Alliance Partner Programme - Formation of Retail Bar Code Champions group GS1 South Africa, SA retailers, FMCG suppliers GS1 South Africa

10 Did it work? Keyed bar codes end % overall Dry Groceries 0.57% Perishables 0.75% - Includes difficult products frozen, chilled Service Departments 1% to 2.3% - Internal store discipline issues Toiletries 0.21% Non-Foods approx 1.9% - Includes large items that can t be scanned GS1 South Africa

11 So, what s changed? Greater acceptance of need for scanable bar codes - Modern retail systems are all bar code based and automated to a high degree Better understanding of how to achieve the target by applying GS1 standards - Alliance Partner Program for printers and repro houses made a difference Collaboration and cooperation - Data, knowledge, experience - Retailer/Retailer as well as Retailer/Supplier! GS1 South Africa

12 The Circle of Life? Local Order Sell Bulk Order Data moves with the unit Store Receive Ship Break Bulk & Distribute Bulk Receive GS1 South Africa

13 A recent initiative GS1 South Africa

14 GS1 System principles USE : GS1 Standards for business processes (Despatch Advice, Recall notification ) GTS Global Traceability Standard GTC control points and compliance criteria Product Recall in Multiple Recall Jurisdiction Traceability for Fresh fruits Traceability for fish guidelines Traceability for Meat & Poultry guidelines GS1 South Africa 2015 and Vegetables guidelines 14

15 Key points Standards must evolve to remain relevant and effective Using a global set of interdependent standards provides a consistent base for communication and visibility within the supply chain, both internally and between trading partners Make sure that everyone understands and follows the standards GS1 South Africa

16 Why GS1 Standards? Globally accepted across six continents Evolving to meet the needs of the user community as a result of user input (GSMP) Adapting to embrace developing technology Non-competitive GS1 South Africa

17 Thanks! GS1 South Africa