The Supply Chain Visibility Opportunity. Debbie Bower Dot Foods Ron Trauthwein-Coca-Cola Ryan Richard GS1 US

Transcription

1 The Supply Chain Visibility Opportunity Debbie Bower Dot Foods Ron Trauthwein-Coca-Cola Ryan Richard GS1 US 1

2 Antitrust Caution GS1 US is committed to complying fully with antitrust laws. We ask and expect everyone to refrain from discussing prices, margins, discounts, suppliers, the timing of price changes, marketing or product plans, or other competitively sensitive topics. If anyone has concerns about the propriety of a discussion, please inform a GS1 US representative as soon as possible. Please remember to make your own business decisions and that all GS1 standards are voluntary and not mandatory. Please review the complete GS1 US antitrust policy at: 2

3 Why Visibility? Benefits of an integrated traceability process could represent approximately $3 billion in savings to the fresh foods industry as a whole A shared view of the product can help increase sales and customer loyalty by decreasing out-ofstocks by enabling on-shelf availability The Food Safety Modernization Act 3

4 GS1 US The only way businesses big or small can move forward is to work together. They need to be able to understand each other, anywhere in the world.. Business requires a common language, and we make that possible. 4

5 GS1 US Solving Industry Needs Industry Problem / Opportunity Requirements Solutions Adoption & Usage GS1 helps industry identify a problem or opportunity and organize to solve it GS1 helps industry define their needs /goals and create adoption plans GS1 develops: Standards Guidelines Tools Readiness Programs Education & Training 5

6 GS1 Standards 6

7 GS1 US Retail Grocery Initiative: Supply Chain Visibility Workgroup Charter: The Supply Chain Visibility Workgroup is developing and deploying industry specific guidance and best practices for managing supply chain visibility and the key business processes, including inventory management, onshelf availability, recall readiness and others, that depend on enhanced visibility. Supply Chain Visibility Industry guidance on increasing supply chain visibility and key business processes Immediate Deliverables: Traceability Use Case analyzing business benefits, standards needed, and impacts expected 7

8 Supply Chain Role: Processor/Manufacturer GTIN Barcodes EDI GDSN GLN GTINs are created for each product and dispatch unit Batch/Lot or Serial Numbers are captured for each unit of product packed GTINs and production data (Batch/Lot or Serial Number, Product Dates, etc.) are printed on products (barcode and human readable) SSCCs are created for each dispatch/logistics unit created GDSN/Product data is defined, created and published Brand Owner GLNs are assigned and shared as source of product Transactional data is shared (EDI-PO, ASN, BOL, Invoice) Benefits The use of GTINs, SSCCs, barcodes and electronic data Reduce costs and time spent on manual processes Improves order accuracy Reduces delivery errors Increases accuracy for electronic commerce/website information Improves cash flow Unique product identification in barcodes (GTIN & Batch/Lot or Serial Numbers) enhances product visibility to support safe handling processes (dwell time, temperature consistency, source location, etc.) 8

9 GLN GTIN Supply Chain Role: Distributor/Wholesaler GDSN Barcodes Benefits GTINs, SSCCs, barcodes & Electronic Data Optimize receiving productivity Increase receiving accuracy Improve inventory management Expedited put-away Reduction in mis-picks & shorts GLNs identify warehouse locations and product source for traceability GTINs, SSCCs and barcodes are used for Receipt verification Product put away Product pick Shipment creation Physical Event data capture GTINs, Batch/Lot or Serial Numbers & Product Dating are used for Inventory rotation Quality control processes/recall Preparedness Order management GTINs, SSCCs and GLNS are used in electronic data exchange of (EDI) ASN, POs, BOLs, Invoices to customers WMS updates (inventory and delivery data) GDSN /product data is consumed & (can be) published with trading partners GLNs are created by facility and can identify source and recipients of product GDSN data (synchronized product data) aligns Product dimensions Product handling procedures Physical Event data capture enables Inventory availability Managing date coded product Better data thru GS1 Standards can enable labor planning and efficiencies 9

10 Supply Chain Role: Distribution Center (Private or 3PL) GLN GTIN GDSN Barcodes Benefits GTINs, SSCCs, barcodes & Electronic Data Optimize receiving productivity Increase receiving accuracy Improve inventory management Expedited put-away Reduction in mis-picks & shorts GLNs identify warehouse locations and product source for traceability GTINs, SSCCs and barcodes are used for Receipt verification Product put away Product pick and/or Voicepick Shipment creation Physical Event data capture GTINs and Batch/Lot or Serial Numbers and Product Dating are used for Inventory rotation Quality control processes/recall preparedness Order management GTINs, SSCCs and GLNS are used in electronic data exchange of (EDI) ASNs to customers WMS updates (inventory and delivery data) GDSN data is consumed GLNs are created by facility and can identify source and recipients of product GDSN data (synchronized product data) aligns Product dimensions Product handling procedures Physical Event data capture enables Inventory availability Managing date coded product Better data thru GS1 Standards can enable labor planning and efficiencies 10

11 Supply Chain Role: Point of Consumption: Retail Store EDI GDSN GLN GTIN Barcodes Benefits GTINs, SSCCs, barcodes & Electronic Data Optimize receiving productivity Increase receiving accuracy Improve inventory management Expedited put-away Reduce shrink GTINs and barcodes enable Quick and accurate POS Loyalty & membership cards linked to Consumer purchases GTINs, SSCCs and barcodes are used for Receipt verification Product put away Inventory replenishment Backroom, On shelf, Efficient POS process (UPC-A/GS1 Databar) Physical Event data capture GTINs and Batch/Lot or Serial Numbers and Product Dating are used for Inventory rotation Sales recording Quality control processes Recall preparedness GDSN data is consumed GLNs are created by facility and verified as source & recipient of product GTINs, SSCCs and GLNS are used in electronic data processes: ASNs, POs, BOL, Invoices (EDI) On-shelf availability ERP systems updates Trigger for auto alerts of recalled products GLNs identify store locations of receipt and product source for traceability GDSN data (synchronized product data) provides Planogram for shelf fit Creation of shelf tags Increases accuracy for electronic commerce/website information Nutrient & allergen information for consumers Physical Event data capture enables Inventory availability Managing date coded product 11 Country of Origin

12 Coca-Cola at a glance 12

13 Coca-Cola production environment PRODUCT SUPPY SYSTEM North America 336 PRODUCTION LINES 98 PLANTS 1,500+ SKU s 1.9B cases annually 13

14 Products span across 5 platforms 14

15 Coca-Cola Customer Distribution Retail - DSD 389 DIST. FACILITIES 10,000 HEAVY DUTY 4,000 LIGHT DUTY 22MM DELIVERIES/YR 1MM LOCATIONS 400 Distributors Foodservice - Distributors 1,700 Chain Customers 1,600+ DC s 474,000 Outlets 15

16 Our Packaging identification journey Product Identification is a vital component for Traceability Coca-Cola has evolved as the industry landscape has changed. GTIN UPC SSCC ITF-14 16

17 ITF-14 Case identification ITF-14 enabled supply chain efficiencies across Coca-Cola and our customers supply chain but lacks fully integrated track & trace Print & Apply Labels Warehouse Juice & Still products Direct Inkjet Print High speed lines Expanded # products Reassess Strategy Prioritize products Focus GS & beyond Pilot GS1-128 on Syrup & Hotfill lines Gain Capital Funding Approval Multi $MM investment & Multi-year implementation 17

18 From ITF-14 to GS1-128 Implementing GS1-128 case labeling is a significant investment to protect our company brands 1 2 GS1-128 provides: System and customer integrated identification Warehouse Inventory Management Traceability 3 Delivery Efficiencies 18

19 Multi-year GS1-128 Strategy Integrated with Master Data & Industry Topics Aligned to platform and customer utilization Foodservice products high priority Schedule subject to change and annual capital funding approval 19

20 Dot Foods

21 Who Is Dot Foods? Founded in 1960 Privately Owned $6 Billion in Sales 5,200 Employees

22 Dot Channel Expansion FOOD MANUFACTURERS FOODSERVICE VENDING GROCERY CONVENIENCE DRUG CHAINS & DRUG WHOLESALERS MASS DOLLAR

23 Dot Foods Numbers Customers: 4,200 Manufacturers: 800 Products: 112,000 40,000 STOCKED

24 Dot s Fleet 1,100 Tractors 1,700 Multi- Temp Trailers 94% On-time Customer Delivery Within 15 minutes of scheduled time

25 Dot Foods Coverage Burley, ID 120,000 sq. ft. Modesto, CA 150,000 sq. ft. Mt. Sterling, IL (Headquarters) 1,508,000 sq. ft. 3 MILLION SQUARE FEET Cambridge City, IN 132,000 sq. ft. Liverpool, NY 306,000 sq. ft. Williamsport, MD 285,000 sq. ft. Vidalia, GA 221,000 sq. ft. Ardmore, OK 167,000 sq. ft. Dyersburg, TN 129,000 sq. ft.

26 Audits for Accuracy Barcode Audits Proactive Scan/Cubiscan Top Suppliers - Data Accuracy Scorecard New Suppliers During Receiving Receivers select reason not able to use bar code Reason Code Reason ID Description ASN Audits Compare ASN data to the actual load for the following: GTIN Quantities Production and Expiration Dates (if applicable) SSCC 1 No Barcode No barcode on product 2 No Scan Barcode did not scan 3 No Item Scan did not return an item 4 Wrong Item Scan returned wrong item 26

27 Data Accuracy Scorecard 27

28 Pallet SSCC vs. Case Receiving 28

29 Barcode Receiving Demo 29

30 Lot Code Examples Without ASN With ASN 30

31 Common Issues With ASN Method Late ASN s 2015 had 10% of ASN s arrive late. No ASN Sent In 2015 we had NO ASN for 18.17% of our PO s. Barcode does not Match what is Published via GDSN Receivers have to take time to do a manual search. 31

32 ASN Receiving Stats ASN s Received in ,318 % of Cases on Palletized ASN (pd 13) 65.7% 100% of DC s utilizing Q

33 Speaker Questions? 33