GS1 System A forward-looking set of standardised solutions

Transcription

1 GS1 System A forward-looking set of standardised solutions

2 2 3 GS1 in Europe: leadership in implementation GS1 in Europe is a collaboration of 44 GS1 member organisations. We lead the creation and implementation of harmonised, user-driven solutions for improving the supply and demand chain of European companies. These solutions are always based on GS1 standards. GS1 in Europe really believes that European user companies will benefit from using global GS1 standards. GS1 in Europe plays a key role in enabling the implementation of GS1 standards in Europe. Companies using the GS1 standards will benefit from a harmonised approach by European GS1 organisations for creating and implementing solutions for supply and demand chain management. The role of GS1 in Europe Coordinate a single implementation of GS1 standards for the European Market. Work with users and MOs to ensure that European requirements are properly reflected in the development of GS1 standards. Work together to develop common solutions to accelerate the adoption of GS1 standards across Europe in a harmonized way. Seek to remove divergencies in the deployment of GS1 standards across Europe. Maximise the adoption of GS1 standards and solutions in existing industry sectors. Promote pan-european GS1 solutions to new industry and public sectors. Coordinate and lead egovernment activities. Promote the aims and objectives of GS1 to European institutions, organizations and industry bodies. Raise EU funding for developing cross European projects. Coordination of inputs in European industry bodies. Coordination of inputs in GS1, EPCglobal and GDSN governance bodies. Support GS1 activities related to Global Marketing. Work together to organise training on implementation of GS1 standards in Europe. Support of Member Organisations in European matters. GS1 Global Standards GS1 is a leading international organization specializing in the development and implementation of worldwide standards with a view to optimizing logistics and demand chains. More than 100 national GS1 organizations are affiliated with GS1, which is headquartered in Brussels.

3 Table of contents 1. The GS1 system: Flexible architecture for maximum efficiency 4 2. Different data carriers a unified overarching system solution Data content and data carriers: A crucial distinction GS1-protected application domains: When it says GS1, you are on the safe side The GS1 Application Identifier System: A bridge between data content and data carriers The GS1 data carrier portfolio EAN/UPC Symbology The GS1-128 barcode The GS1 DataBar The GS1 DataMatrix EPC/RFID Interplay of the various GS1 data carriers EAN-13: An indispensable point-of-sale tool When it comes to logistics, GS1-128 is the gold standard Non-PoS product identification: The GS1 DataMatrix has a major role to play! Other application domains: GS1 DataMatrix and EPC/RFID offer exciting new options GS1 data carriers: Paving the way for EPC/RFID solutions GS1 communication standards Electronic data interchange: The connecting link between product flows and machinereadable identification EANCOM : A well-established solution for standard processes GS1 XML: An advanced standard for new application domains The EPCglobal Network: Real-time supply chain information via Internet Specialized GS1 applications The GS1 portfolio at work Optimal serialization solutions, thanks to the GS1 system Serialized GS1 identification keys: The ideal anti-counterfeiting weapons Tracking & Tracing: The GS1 system in its entirety Conclusions 38 Appendix: The GS1 identification system GS1 identifiers at a glance Differing formats but identical content Differentiating between GS1 identification keys and additional information 41 Graphics 42 Acknowledgment 42 Publications 43

4 The GS1 system: Flexible architecture for maximum efficiency The GS1 system comprises the following three elements: >> GS1 identification systems and the data integrated into it >> GS1 data carriers >> GS1 communication standards Oftentimes baseline system components are selected in accordance with product identification and barcoding needs, with a view to opening up further potential later on through electronic data interchange and/or EPC/RFID. Each such component comprises individual standards such as the GLN, GTIN, or SSCC in the case of identification systems. These various components can be combined to a more or less user-defined extent, depending on the requirements of the setting concerned. In other words, each enterprise can select the components that meet its individual needs. * serialized in the EPC Electronic Data Interchange GS1 communication standards Automatic data capture GS1 XML EANCOM WebEDI EPCglobal Network TM ONS EPCIS EPC Gen2 etc. GDSN GS1 data carriers GS1 data carriers Identification GS1 keys GTIN* ) SSCC GRAI GIAI GLN GS1 DataBar GS1 128 EPC tag GS1 DataMatrix EAN-13 GS1 keys GTIN* ) SSCC GRAI GIAI GLN GS1 DataBar GS1 128 EPC tag GS1 DataMatrix EAN-13 GS1 keys GTIN* ) SSCC GRAI GIAI GLN Fig. 1: The GS1 system a comprehensive solution thanks to the system s modular architecture. GS1 business solutions are supported by the following modules: >> GS1 process recommendations >> GS1 services These modules provide you with a comprehensive set of tools that allow you to solve your business process problems efficiently and successfully. These tools can be combined with each other in numerous ways, thus allowing for maximum versatility for the deployment of the GS1 system in accordance with your organization s specific needs and in a manner that will substantially optimize your productivity and efficiency. Experience has shown that the GS1 system works best when an enterprise selects at least one instrument from each portfolio, thus creating optimal synergy between the various modules and allowing for optimal leveraging of the efficiency enhancement potential of your organization. However, in many cases the baseline system components are selected in accordance with product identification and bar coding needs, with a view to opening up further potential later on through electronic data interchange or EPC/RFID.

5 The GS1 system is designed in such a way as to ensure that all of the tools in each module are compatible with each other, and that all modules are interoperable as well. This feature allows these tools/modules to be deployed in a manner that meets very specific customer needs and at the same time ensures that the system will be compatible with future process changes in the supply chain. Identification Automatic data capture Electronic data capture GLN GTIN* SSCC GIAI GRAI GS1 keys EAN-13 GS1-128 EAN Data Matrix GS1 DataBar GS1 DataMatrix EPC tag GS1 keys EANCOM EAN 128 GS1 XML EPCglobal Network TM EAN Data Matrix GS1 DataBar ONS EPCIS EPC Gen2 etc. WebEDI GS1 keys GS1 data carriers GS1 communication standards Efficient Consumer Response (ECR) GS1 keys GS1 communication standard EAN Data Matrix GS1 data carriers Number allocation EAN 128 ONS registration GEPIR SINFOS Customized solution based on global standards CPFR GS1 processes T&T GS1 services OSA CSA Recall etc. * serialized in the EPC Fig. 2: GS1 system components optimize value creation by leveraging your organization s efficiency enhancement potential. Although the application domains of the various identification systems are clearly indicated by their definitions, two areas of uncertainty have arisen in this regard owing to the introduction of new data carrier standards: the nature of the interplay between the various GS1 barcode symbologies; and whether the evolutions in the EPC/RFID 1 domain and the standards in the classic data capture and communication domains are compatible. The sections that follow describe the extent to which all of the various components are interoperable over time. 1 EPC = electronic product code, RFID = radio frequency identification

6 Different data carriers a unified overarching system solution The sections that follow provide a brief survey of the various GS1 data carrier and communication standards, together with more or less detailed descriptions of the identification systems needed for the various application environments. These descriptions center around the application domain of each of the various technologies, as well as their process values. We also provide recommendations concerning the use of various data carriers from a time-related perspective. These sections clearly demonstrate that GS1 system components successfully integrate all data carriers, i. e. barcodes and transponders, into a unified overarching solution. 2.1 Data content and data carriers: A crucial distinction In practice, the concepts data content and data carrier are often conflated, or not clearly differentiated from each other. For example, EAN-13 code (i. e. data), as it is called, is in fact a data carrier although in reality what is actually being referred to are the article numbers (GTINs) that are represented by the carrier. In discussing various GS1 data carriers, it is particularly important to differentiate between data content and data carriers since the same information (e. g. GTIN) can be encoded on various data carriers. It is crucial that data content and data carriers be regarded and treated as separate and distinct entities. The choice of data carrier is strictly determined by which GS1 identification key and supplementary information, if any, is to be encoded on a data carrier. This choice is reduced even further in many instances where the nature of the application also comes into play. 2.2 GS1-protected application domains: When it says GS1, you are on the safe side In order for GS1 identifiers to be compatible with any environment, both application protection and standardized application rules are essential. The resulting security allows bilateral arrangements between transaction partners to be kept to an absolute minimum and is one of the main differences to proprietary solutions, GS1 provides this application protection for all technologies worldwide by reserving technological characteristics, through specific symbologies such as EAN/UPC, or through reserved subsets and application modalities such as those used for GS1 128.

7 Although these protective mechanisms may vary owing to differences in technological approaches and institutional spheres of responsibility, they all have one thing in common: they protect GS1 applications for the user. Domains protected for GS1, assured by the following: Proprietary solutions Barcodes FNC1 character # A # B Transponders EPC toggle bit # A # B Collisions not excluded! EDI Defined UN/EDIFACT subset # A # B Internet EPCglobal Root ONS # A # B Fig. 3: GS1 application protection across all technologies 2.3 The GS1 Application Identifier System: A bridge between data content and data carrier Defining data elements in a precise manner allows a broad range of information to be incorporated in a structured and automatically recordable form into various GS1 barcodes or EPC tag standards. This generally applies to data whose purpose exceeds the scope of identification and that is of key importance along the supply chain, e.g. batch/lot numbers, sell-by date and so on. More than 60 data elements are now available for the identification, product tracking, date, unit of measurement, and addressee domains. The GS1 Application Identifier System is based on the following principles: >> Exact definitions of data elements (data content) >> Definition of the relevant data formats (field lengths, available characters) >> Allocation of qualifying application identifiers Each application identifier serves as an indicator of the information associated with it, i. e. the data element and its format, thus providing the basis for error-free information processing. The GS1 Application Identifier System provides an extremely high level of interpretation reliability and data quality thanks to the use of the ISO/IEC standard and the integration of protected GS1 barcode symbologies.

8 8 9 The standardized Application Identifier System referred to in the present document is used in all of today s GS1 barcodes and transponders (i. e. data carriers) for automatic differentiation between GS1 idenfication keys and supplementary information. This system also determines which data is to be encoded in the barcode or transponder, as well as the encoding method 2. All data content can be processed in the identical manner, irrespective of the data carrier technology used. In this process, the globally unique identification schemes GTIN, GLN, and SSCC and the EPC that is used to encode these numbers in transponders serve as a reference for electronically transmitted messages and data inquiries such as an electronic order or dispatch advice via EANCOM or event management via the EPCglobal network. The Application Identifier System interconnects the various information components of GS1 data carriers. Originally developed for logistics applications, the GS1 Application The GS1 Application Identifier System Identifier System is increasingly being used at item level, in settings where additional information needs to be incorporated into the product (15) GS1 coding. This capability enables the user to move ahead more efficiently in EPC tags DataBar domains where progress was heretofore impeded by the lack of capacity to integrate necessary information into barcodes particularly in cases (01) where the master data accessible through the identification key or in (10) (400) advance transferred information are not sufficient to solve the problem. GS1 The use of the Application Identifier System is of course encouraged by GS1-128 DataMatrix new technologies such as the GS1 DataBar, the GS1 DataMatrix and the (00) EPC transponder since they have far greater capabilities in this regard than a symbology such as the EAN-13 barcode, and thus expand the value and benefit of automatic data capturing. Fig. 4: The GS1 Application Identifier System interconnects all GS1 data carriers. The GS1 Application Identifier System opens up new application domains for automatic data capturing, using as a starting point the EAN-13 barcode whose sole data content comprises the GTIN. This in turn allows the user to leverage the advantages of GS1 numbering systems such as the SSCC, as well as the benefits of supplementary encoded information such as serial numbers 3 and sell-by date. Hence, the GS1 Application Identifier System ensures that the user s investments in basic automatic data capturing technology will continue to yield a robust return despite the inexorable trend toward ever newer, smaller and more powerful data carriers. 2 Owing to their specifications, certain data carriers, such as the EAN-13 barcode, are designed in such a way that they only encode the 13 digit GTIN and do not allow for the integration of additional information. Their encoding is realized via the GS1 Application Identifier System, using barcodes such as the GS1-128 and GS1 DataMatrix. With regard to second-generation EPC-conformant transponders (EPC Gen2) the term header is used. The header acts as an application identifier and indicates which GS1 identification key is integrated into the EPC memory field. Because application identifiers and headers represent essentially the same functionality, only the term application identifier will be used in the remainder of the present document. If desired, supplementary information can be integrated into the application memory of the EPC transponder by using the Application Identifier System. 3 The EPC is serialized as a basic principle, including the item level in the guise of the serialized GTIN, which is known as the Serialized Global Trade Item Number (SGTIN).

9 Please note the following basic principle: The optimal paradigm for multi-party business processes and enterprisewide use has always been and remains today, the following: Data carriers should integrate as much information as necessary, but as little information as possible. In other words, an item s identification should be encoded via its barcode or a transponder, whereas, wherever possible, all other information should be exchanged via the master data, information in advance of the delivery, or through the use of data inquiries in real time. This is the only way maximum flexibility of application independent as well as efficient intercompany communication can be achieved. Data levels in conjunction with the GS1 application identifier standard Weight & sell-by date +... Expiration date + Lot no Serial number +... GTIN + SSCC + GRAI + GIAI + GSRN +... Item Package Serialization Additional data... Data carriers EAN-13 GS1-128 EPC Gen2 GS1 DataBar GS1 DataMatrix in conjunction with the GS1 application identifier standard Fig. 5: The GS1 application identifier standard allows the user to leverage high-performance data carrier technologies.

10 The GS1 data carrier portfolio The present section provides a brief overview of some currently available GS1 data carriers. For further information, please see the GS1 General Specifications and contact your local GS1 Member Organisation EAN/UPC Symbology The EAN-13 barcode 4 is part of the EAN/UPC Symbology family and is the most long-established of the GS1 data carriers and is an indispensable product marking method that is found on virtually every consumer product. This code integrates solely the 13 digit GTIN, i. e. it does not encode any other GS1 identification key or any supplementary information of any kind. The great advantage of the EAN-13 barcode, in addition to its ubiquity, is its omnidirectional scanning capability, thus rendering this barcode indispensable for products that are sold through traditional points of sale (PoS), including medical products available in pharmacies. The key advantages of the EAN-13 barcode are as follows: >> Widely used, hence indispensable for points of sale (PoS) >> Omnidirectional scanning capability, thus making it quick and efficient to scan >> Can be read using commercially available laser scanners >> Worldwide GS1 symbology protection (ISO/IEC 15420) >> Linear symbology

11 2.4.2 The GS1-128 barcode The GS1-128 barcode was launched in the 1990s primarily as a logistics process automation tool, for which the Application Identifier System was also originally developed. When used in combination with the Application Identifier System, the GS1-128 standard provides greatest flexibility to this day. Together they allow for the use of unique identification schemes such as the SSCC and the GTIN, as well as for adding other information in a standardized manner to the packaging or product barcode in some cases only for the phase until EDI has been implemented and the requisite data can be interchanged in advance. 5 In this context the GS1 logistics label, which is used to identify shipping units in accordance with the GS1-128 standard, should also be mentioned. The GS1-128 barcode has taken on considerably greater importance in recent years, particularly owing to the increasing requirements of more stringent product traceability. The main advantages of the GS1-128 barcode are as follows: >> It is widely used >> Flexibly configurable data content >> Encoded alphanumerically >> Worldwide symbology protection (ISO/IEC 15417) >> Symbology more compressed than other linear symbologies such as code 39 >> Linear symbology >> The use of a system internal check digit algorithm makes the standard extremely reliable >> Can be read with commercially available laser scanners 4 Since the EAN-8 barcode is essentially the same as the EAN-13 barcode, only the latter standard will be discussed in the remainder of the present document. 5 The identification number indicated on the item should always be used as a reference to the master data or the data transferred in advance through EDI (see note at the top of page 9).

12 The GS1 DataBar EAN-13 and GS1-128 barcodes are unsuitable for certain applications, particularly in product labeling settings, owing to the fact that they take up a relatively large amount of space. This shortcoming led to development of the GS1 DataBar, which has also filled a gap in the consumer unit coding system for applications where information in addition to the GTIN number is needed for efficient process flows (e.g. for unambiguous identification of variable weight products such as meat). The GS1 DataBar comprises a family of GS1 DataBar symbols, all of which are extremely compact. GS1 DataBar Expanded allows for PoS compatible encoding of GTIM and additional information using the Application Identifier System. The properties of the various GS1 DataBar symbols differ, thus rendering them suitable for a range of applications. The most important symbols are those with omnidirectional scanning capability, which makes them suitable for classic PoS applications. The GS1 DataBar offers the following advantages: >> Fully compatible with currently installed scanner technology >> Linear symbology >> Omnidirectional scanning capability, except in conjunction with "stacked" or "limited" formats >> Space-saving symbology, therefore suitable for extremely small products >> Additional information can be encoded in GS1 DataBar Expanded using the Application Identifier System. >> Availability of a range of application-specific symbols provides optimal versatility >> Worldwide symbology protection (ISO/IEC 24724)

13 2.4.4 The GS1 DataMatrix The GS1 DataMatrix is the newest of the GS1 codes. Unlike the GS1 symbologies discussed above, the GS1 DataMatrix comprises a two dimensional symbology that allows a wealth of information to be encoded in a very compact space. However, since the DataMatrix is a two dimensional code, it is only compatible with applications whose reading systems support two dimensional scanning. Based on state-of-the-art image processing technologies, these systems are also referred to as image scanners. The advantage of two dimensional scanners is that they can read both linear and two dimensional codes, and thus are compatible with all applications. Moreover, the cost difference of image and linear scanners has fallen drastically, which means that price is no longer an obstacle to implementation of this technology. The GS1 DataMatrix is the gold standard for applications where compatibility with previously purchased systems at PoS is not required. A particularly noteworthy feature of the GS1 DataMatrix is that it can be used to apply markings directly to products, components, or individual parts. In such cases, the code is applied to the surface by means of etching, lasing, or the like, thus creating a code that remains indelible, even under harsh operating conditions. For example, the code can be used in the presence of oil soiling in industrial applications or for long term applications that are exposed to the elements. In other words, the GS1 DataMatrix is suitable for applications whose conditions do not allow for the use of conventional barcodes. The main advantages of the GS1 DataMatrix are as follows: >> Extremely compact and space-saving symbology >> High data capacity (up to 3116 characters can be encoded) >> Holds up well when exposed to printing and reading processes >> Integrates the Reed Solomon auto correction mechanism >> Resists harsh operating environments >> Suitable for direct part marking >> Worldwide GS1 symbology protection (ISO/IEC 16022)

14 EPC/RFID The RFID data carrier is not a barcode but rather a transponder (a microchip connected to an antenna), which stores the relevant data and transmits it to the reader by means of electromagnetic waves. Since radio frequency waves can pass through solid materials, the transponders may be shielded in adhesive film or integrated directly into the packaging or product. The reader and transponder need not be in each other s line of sight. The electronic product code (EPC) is a standardized serialized marking that is applied to or references products, packages, locations and the like, and that is based on the GS1 identification keys GLN, GTIN and SSCC. EPC/RFID is an amalgamation of currently available GS1 identification systems and future-oriented transponder technologies. EPC/RFID is also a GS1 offer to the economy that will allow for successful realisation of the Internet of Things based on latest-generation data carrier technologies. Toward this end, the EPC Information Service (EPCIS) is being developed concurrently with the EPC transponder. RFID technologies and the EPC offer the following advantages: >> Ultra-rapid and time-saving reading process >> No line-of-sight connection with the reader is needed >> A highly reliable solution, even on exposure to extreme environmental conditions such as cold weather or direct sunlight >> Virtually unlimited memory capacity is achievable (albeit at the expense of reading times) >> Continuous product data entry capabilities allow for continuous inventorying >> Transparent and real-time data interchange through EPCIS >> Bulk data capture capabilities allow for speed and high level of detail >> Exact product localization and optimized timing for product delivery processes >> Readily expandable identification functions allow for additional functionalities such as electronic article surveillance or sensor applications

15 2.5 Interplay of the various GS1 data carriers GS1 data carriers are endowed with various characteristics and are optimized for different applications and within specific time horizons. Their core applications and their interplay as a powerful set of solutions will now be described. 2.6 EAN-13: An indispensable point-of-sale tool The EAN-13 barcode is a point-of-sale (PoS) product marking system that has become an indispensable standard application for optimal cash register process flows. Although virtually all of today s PoS checkout systems only support the EAN-13 barcode, this standard fails the requirements of some special applications, including the marking products with variable measures (since in such cases product information apart from the GTIN number needs to be integrated into the barcode); or other products whose bar codes need to contain additional information. The GS1-128 barcode cannot be used for such applications since it lacks omnidirectional reading capability and cannot be decoded by current PoS checkout systems. Against this backdrop, in the near future GS1 DataBar will be slated to upgrade incrementally the scanning capabilities of cash register systems and other applications involving consumer product scanning. Hence trade and manufacturing businesses should upgrade their systems accordingly. In view of the already widespread use of scanners that support the GS1 DataBar, it is definitely worthwhile to eliminate any PoS inefficiency and leverage the efficiency enhancement options that will be opened up by the GS1 DataBar starting from Irrespective of industrial sector organizations are more and more looking into the possibilities of implementing EPC/RFID. Although these investigations currently center around logistics processes, presumably product marking will also take on increasing importance in the long term. The following application scenarios will come into play in this regard: >> Cash registers with integrated tag processing capabilities that allow all items in a shopping cart to be registered in bulk >> Continuous inventorying: bulk capture of all items on a shelf ensuring that sufficient quantities of products are available, filling and ordering processes are activated on time, and customers can find the products they are looking for more easily. >> E-pedigree and provision of additional product information: supplying information terminals with data, via the EPCglobal network, regarding a product s path through the supply chain. This solution would allow for the provision of additional sensor-based information such as temperature records to prove that the cold chain has remained intact throughout the supply chain. >> Smart shopping assistant: target group specific product advertising and optimization of purchasing pathways through interactive communication between shopping carts and shelf/product transponders. >> Intelligent home applications: intelligent refrigerators, stoves, washing machines, TVs and other home appliances that communicate with product transponders in such a way as to ensure customized programming or the optimization of inventory management processes. >> After-sales service: product warranties without cash register receipts; streamlined repair and spare parts procurement processes.

16 It should be borne in mind that transponder technology is still in its infancy and will need to be stabilized by this time as follows: >> A reading rate on a par with that of barcode readers (i.e. ~ % ) must be achieved for all types of products. >> The technology must be compatible with a larger number of applications so that manufacturing companies do not need to maintain one set of products and distribution processes for barcodes and a second for transponders. >> The technology must be rolled out internationally in a standardized fashion so that vendors do not have to maintain differing technologies and processes for domestically produced and imported goods (scenarios such as imported products are marked with barcodes and domestic products with tags). >> The technology must provide a favourable cost/benefit ratio. In light of the aforementioned considerations in respect to transponder technology, implementation of the GS1 DataBar should be regarded not only as a short-term efficiency optimization measure but also as a trailblazing innovation for RFID. A determining factor for this is also that the major challenge of EPC implementation is not only the process of migrating to transponder technology: it also entails customizing inventory control and PoS checkout systems to (a) make them compatible with serialized data and the Application Identifier System; and (b) enable access to the EPCglobal network. Implementation of the GS1 DataBar therefore allows enterprises not only >> to carry out new scanning functionalities in accordance with the consequent benefit assessments, >> but also to upgrade their systems to accommodate GS1 Application Identifier technology by migrating ERP and inventory control systems to these applications. >> This in turn means that later on, the enterprise need only migrate from GS1 DataBar to EPC transponder technology, in which case the following will apply: 1. The GS1 DataBar will serve as a backup solution during the migration process, since presumably not all vendors will migrate to transponder technology in one fell swoop. 2. The GS1 DataBar can also serve as a machine-readable backup for data that is encoded in transponders in the event this data cannot be read out.

17 Apart from the retail grocery industry, there may be sectors such as the textile industry where the benefits of using EPC/RFID at the product level can be implemented across the board in the medium term, particularly in cases where other costly technologies such as electronic article surveillance systems can be dispensed with through the use of transponder solutions. PoS EPC-Pilot GS1 DataBar* EPC EAN Fig. 6: EAN-13: the gold standard for points of sale * The GS1 DataBar is the backup solution from the standpoint of EPC/RFID At a glance: The EAN-13 barcode is the standard solution for automatic PoS data capture since it is the only system that is supported by today s cash register systems. The options opened up in the short term by the GS1 DataBar will enable vendors to begin complementing the EAN-13 barcode as from 2010 for variable measure products, small products, coupons, multiple coding, and products whose barcodes need additional information. Given that, according to industry observers, the article-level EPC will not be implemented in the retail grocery industry until 2020 at the earliest, the use of the GS1 DataBar and the associated Application Identifier System will also lay the groundwork for industry-wide handling of serialized GTIN numbers as they are encoded within the EPC. But in certain sectors such as the textile industry or cash-and-carry, the EPC will come into widespread use long before However, since presumably RFID technology will not be rolled out universally on any specific date, the EAN-13 barcode and GS1 DataBar will be needed for EPC applications as a migration and backup solution.

18 When it comes to logistics, GS1-128 is the gold standard The GS1-128 standard plays a pivotal role in today s product logistics. The Application Identifier System allows information to be added to the SSCC (which serves as a unique package identifier) on the GS1-128 transport label, which forms the centerpiece of any tracking & tracing system and at the same time allows for efficient product recall processes. Pursuant to EC Regulation No. 178/2002, the GS1-128 barcode was adopted as a universal standard at an early stage, particularly in the food industry. The EPC is currently being piloted in a number of industries, and initial roll-out planning is underway. Although currently only pallets are identified by means of a transponder, at some point in the future it will be possible to capture all carton data (and ultimately the data for the products inside these cartons) in a single reading process. This will have the following advantages: >> More rapid product receiving processes by reading the pallet transponder while it is in motion >> Detailed incoming goods inspections can be replaced by identification processes at other hierarchical levels via EPC/RFID >> Warehouse optimization and reduced shrinking rates due to continuous transponder-supported inventorying capabilities As with PoS applications, transponder technology must be stable enough to allow logistics applications to function properly. Therefore, this technology must meet the following requirements: >> The reading rates must be comparable to those achieved with barcodes. >> The technology must be compatible with all system environments (including those of logistics providers) in order to ensure that distribution processes can be managed efficiently in all domains. >> The technology must be rolled out in a standardized form so that enterprises and logistics providers do not have to use different technologies and processes for domestic and imported products over the long term. >> Transponder solutions must be available at a reasonable cost, which will presumably be achieved considerably before 2020 in light of the higher value of pallet and carton content. Use of the GS1-128 standard in conjunction with the SSCC currently provides the optimal framework for future rollout of the EPC. The warehousing and product management systems of manufacturers, logistics service providers and retailers are geared to GS1-128 and the SSCC, and the requisite scanning technology is available. Hence this standard is an indispensable baseline condition for current EPC piloting projects. Concurrent use of the two technologies during the migration phase is inevitable.

19 The GS1-128 standard will: >> pave the way for implementation of the EPC, since the SSCC is used as the unique identification key in both carriers; >> allow in-house systems to be harmonized with the Application Identifier System; >> ensure that users will be able to migrate from the GS1-128 barcode to an EPC transponder solution by simply switching data carriers. The GS1-128 standard is being used as a backup solution for pilot projects and will be used for the same purpose during migrations; it will also be used as backup for non-readable transponders during the post-implementation period. It may also be possible for the GS1 DataMatrix to be used for backup purposes in the long term. The decisive factor in this regard will be the volume of data that needs to be marked in a machine-readable fashion on the products concerned. However, the core requirement here is that the identification number must be marked on the product, while all other information should be available in the EPC information system ("pull"), or should be transferred electronically prior to product delivery ("push"). Logistics processes EPC-Pilot GS1-128 EPC** GS1 Data Matrix*** Fig. 7: GS1-128 the logistics gold standard paving the way for EPC/RFID ** Concurrent operation of the two technologies will be necessary for a number of years *** The GS1 DataMatrix is the backup solution from the standpoint of EPC/RFID At a glance: GS1-128 counts as the gold standard for automatic data capture in logistics applications. This standard covers the entire gamut of product management system applications for the manufacturing, trade and logistics sectors, thanks in large measure to its widespread use in the consumer and logistics sectors. When the Application Identifier System and GS1-128 transport label are used concurrently, the GS1-128 standard provides the versatility needed for logistics process automation. The GS1-128 standard is already being integrated into EPC/RFID domains where the requisite technological groundwork has been laid. EPC pilot projects and roll-outs are increasingly being implemented. In order for EPC/RFID to be implemented universally, it will be necessary to use GS1-128 transport labels and electronic dispatch advices via EDI. In situations where EPC/RFID has not been implemented across the board, the parties concerned will need to reach an agreement in this regard. The GS1-128 standard will also play an important medium-term role in connection with EPC/RFID development and achieving the technical stability needed for these technologies. In addition, GS1-128 and EPC/RFID will have to be operated concurrently for a number of years.

20 Non-PoS product identification: The GS1 DataMatrix has a major role to play! Many products are not sold through conventional points of sale, a prime example being pharmaceutical and medical products, as well as consumer products and other items that are only distributed through pharmacies or hospitals. Strictly speaking, pharmacies are not retail outlets since they employ a different scanning and product management system. 6 The omnidirectional reading capacities that are needed in conventional retail settings are not relevant for most pharmacy processes. Nonetheless, most of the software used in today s pharmacies can only read EAN-13 barcodes. In order to add information such as batch numbers, serial numbers or expiration dates to EAN-13 barcodes, it is necessary to combine EAN-13 and GS1-128 on the packaging. The Application Identifier System allows the user to incorporate additional data into the GS1-128 barcode in a manner that complies with the GS1-128 standard. In view of current international developments (see next page), it is safe to assume that pharmacies will be upgrading their scanning systems in the foreseeable future to make them compatible with the GS1 DataMatrix. This will allow pharmacies to capture expiration dates and batch numbers automatically from a very compact space. The GS1-128 standard has already made a name for itself owing to the advantages it offers for medical products which in many cases are supplied to hospitals. However, here too the GS1 DataMatrix is taking on greater importance since it also employs the Application Identifier System, thus allowing all key information such as the GTIN, batch/serial number and expiration date to be encoded on the product. Moreover, due to its compact size, the GS1 DataMatrix can fit onto just about any medical product. This opens up new automatic data capture options, since for example individual patient units of use can be clearly identified, and can also be tracked and allocated to individual patients automatically. This greatly enhances patient safety. In the past, surgical instruments could not be labeled automatically. However the fact that the GS1 DataMatrix can be marked directly on instruments, thus simplifying their tracking & tracing, makes this technology advantageous for hospitals. 6 Pharmacies also sell a broad range of OTC (over the counter) products such as vitamins that are also available at conventional retail outlets. Thus these products are subject to the requirements of such outlets and are labeled accordingly.

21 The GS1 DataMatrix has already earned a name for itself in the international healthcare sector: >> The International Federation for Animal Health (IFAH) has required its members to implement the GS1 DataMatrix with a view to optimizing tracing and tracking processes. >> A Council of Europe working group recently came out in favor of using the GS1 DataMatrix as a universal standard for pharmaceutical product labeling. >> The GS1 DataMatrix will be used on all pharmaceuticals in France beginning in Activities in the m-commerce (mobile commerce) domain may also spur progress on the EPC/RFID and GS1 DataMatrix front. For example, the GS1 DataMatrix on drug packaging could be photographed so as to allow for verification of the authenticity of the drug by means of the serialized GTIN number (application identifier 01, GTIN, in conjunction with application identifier 21, serial number). This solution would allow consumers, in this case patients, to benefit directly from the advantages of automatic data capturing technologies. The GS1 DataMatrix could also ultimately pave the way for the implementation of EPC/RFID. Introduction of the EPC is currently being extensively discussed in the US in connection with the e-pedigree. The EPC could potentially allow for early detection of counterfeit products through seamless tracing using the EPCglobal network (cf. section 4.2). As with transponder technology requirements for points of sale, it must be ensured that healthcare applications of EPC are stable from a technical standpoint, which means: >> The reading rate must be sufficient. >> The technology must be compatible with all system environments so as to ensure that seamless e-pedigree verification can be achieved. >> The technology must be implemented internationally in a uniform fashion. >> The prices of transponder technology must decline to an acceptable level. The GS1 DataMatrix constitutes not an obstacle to investment in the healthcare field, but rather an auxiliary standard that will pave the way for implementation of the EPC. With the Application Identifier System, a serialized GTIN number of the type used in EPC transponders can now be integrated into the GS1 DataMatrix. Given that the data content is the same and the data carriers are compatible, the user needs to modify the relevant data processing and communication systems in such a way that serialized GTIN numbers are supported. 7 Once this has been done, the user will then only have to migrate from the GS1 DataMatrix to EPC transponder technology. The GS1 DataMatrix can be used in the medium term as a backup solution for the migration process, and in the long term as a machine-readable backup for any transponder data that cannot be read out. 7 Use of the GS1-128 standard has already allowed for integration of the Application Identifier System into most healthcare systems.

22 Product identification Healthcare EPC-Pilot EAN-13 GS1-128 GS1 DataMatrix EPC Fig. 8: The GS1 DataMatrix will enable the implementation of new data capturing capabilities in the healthcare field At a glance: EAN-13, GS1-128 and the GS1 DataMatrix will remain the gold standard data carriers for product marking in the medium term. The choice of technology in such cases is ultimately determined by the distributive channel involved, the information that needs to be captured, the amount of space available, and the printing methods that come into play. The GS1 DataMatrix is being used increasingly owing to the space limitations that often exist, as well as the options this technology opens up for direct part marking. The GS1 DataMatrix will probably become available for implementation in all distributive channels and for all product types in the healthcare sector, including all pharmacy and hospital specific supplies. The EPC is set to play a dominant role for all pharmaceuticals in the medium to long term, in view of increasingly stringent e-pedigree requirements for the verification of product authenticity. However, continued use could be made of the GS1 DataMatrix as a backup solution in this field as well.

23 2.9 Other application domains: GS1 DataMatrix and EPC/RFID offer exciting new options! Automatic data capturing systems can and are being used for countless other applications such as production control and component tracking. These systems play often a major role in warranty and maintenance processes as well, which need to be optimized for cross-company use and therefore require unified standards. However, this presupposes regularly the encoding of serialized GTIN numbers as unique item identifiers; and the encoding of additional information. Especially when tracking single components this is the serial number of the component. Labels oftentimes cannot be used in these situations, and it is instead necessary to carry out direct marking of the components and/or elements concerned; or to integrate a data carrier. The GS1-128 standard, the GS1 DataMatrix, and the EPC transponder play a leading role when meeting the practical requirements of these applications. Using the Application Identifier System, necessary data such as the GTIN plus serial number can be encoded in a uniform fashion. In order for the GS1-128 standard to be used, there must be enough space on the target item, which also must be able to accommodate a label. Because these criteria are often not met in certain production processes and for the labeling of electronic components (among others), users often opt for the GS1 DataMatrix. The other advantage of this solution is that it is highly suitable for use in harsh application environments. Industry actors are also considering the possibility of implementing EPC/RFID for the aforementioned application domains, the advantage of this approach being that EPC transponder data can be read out without any line-of-sight connection. In such environments, the compatibility of transponder use with metallic environments must be tested in advance. In view of the fact that GS1 DataMatrix-enabled two dimensional scanners are widely used in numerous manufacturing sectors, it is worthwhile to leverage the efficiency optimization potential of the GS1 system. The GS1 DataMatrix can be used to pave the way for EPC rollout in cases where EPC/RFID is not yet applicable. In such cases, the process of rendering ERP systems compatible with the Application Identifier System, and implementation of the associated information processing solutions translates into the following enterprise advantages: >> new, multi-interface automatic data capturing options are enabled by virtue of the fact that >> in-house enterprise system are harmonized with the Application Identifier System, thus allowing for >> migration from GS1 DataMatrix to EPC transponder technology at any time whereas >> the GS1 DataMatrix can serve as a long term backup solution for data encoded in transponders.

24 Other application domains EPC-Pilot GS1-128 GS1 DataMatrix EPC Fig. 9: The GS1 DataMatrix and EPC/RFID can be used in other application domains. At a glance: The GS1-128 barcode and GS1 DataMatrix remain the predominant element for today s component labeling technologies. The decision as to which of these solutions to use is determined by the amount of space available on the product, and the printing modality options. GS1-128 is unsuitable for situations where space is at a premium and direct part marking is to be carried out. Owing to the outstanding resistance of the GS1 DataMatrix to harsh application environments, it is likely to outlast the GS1-128 barcode label over the long term. The EPC is set to come into greater use by virtue of the versatility of transponder technology for production processes. Owing to its technological properties as well as its Internet search capabilities based on the EPCglobal network, EPC/RFID offers numerous opportunities for the development of application domain potential in the e-commerce and m-commerce spheres, e. g. measures aimed at preventing counterfeiting and shrinkage. The GS1 DataMatrix is likely to be used as a backup for EPC solutions over the long term, given that the establishment of a comprehensive RFID infrastructure cannot be foreseen at present, particularly owing to the fact that transponder use for production and component labeling applications will be limited by the metallic environments involved. EPC/RFID would very likely be a suitable standalone solution of applications where no GS1 DataMatrix-based solution is technically feasible, e. g. for varnishing processes or alloy plating baths.

25 2.10 GS1 data carriers on a timeline: Paving the way for EPC/RFID solutions The GS1 data carrier timeline clearly indicates that a technological sea change is in the offing, since conventional barcode technologies are giving way to EPC-based transponder solutions. However, this technological jump cannot be accomplished in one fell swoop, since a series of criteria must be fulfilled, including across the board implementation of basic technologies and further optimization and development of transponder technologies. In order to achieve full compatibility between the various data carriers, data content customization measures must be carried out, such as the integration of the Application Identifier System with the EPC, so as to allow additional information to be incorporated into tags. From the user s standpoint, it is crucial that the GS1 data carrier portfolio (a) tap the full potential of automatic identification in the short to medium term; and (b) pave the way for future technological developments. Other applications EPC-Pilot GS1 DataMatrix EPC GS1-128 Product identification Healthcare EPC-Pilot EAN-13 GS1-128 GS1 DataMatrix EPC EPC-Pilot Logistics processes EPC** GS1 Data Matrix*** GS1-128 PoS EPC-Pilot GS1 DataBar* EPC EAN Fig. 10: The GS1 data carrier timeline * The GS1 DataBar is the backup solution from the standpoint of EPC/RFID ** Concurrent operation of the two technologies will be necessary for a number of years *** The GS1 DataMatrix is the backup solution from the standpoint of EPC/RFID It should be noted that the projections shown in Fig. 10 are general estimates concerning the evolution of GS1 data carriers and may be subject to exceptions depending on the application involved.

26 GS1 communication standards 3.1 Electronic data interchange: The connecting link between product flows and machine-readable identification GS1 identification systems and the GS1 data carrier portfolio are rounded out by EDI standards that allow enterprise users to leverage all available efficiency optimization potential for business processes. These identification systems provide a basis for an automated process in that they are applied to specific products and are transmitted electronically to transaction partners together with all relevant supplementary information. The use of EDI entails the interchange of structured data between computer systems using a standardized and machinereadable format. EDI eliminates media incompatibility, thus optimizing communication process speed as well as the content reliability of all messages that are transmitted. One of the key business process advantages of EDI is that it rules out duplicate data capture and manual data input errors on the part of all supply chain stakeholders. Company A Company B In-house GS1 XML EANCOM In-house Converter Converter Fig. 11: Standard GS1 products for electronic data interchange between data processing systems

27 Use of EDI provides the following demonstrable process and cost optimizations: >> Cost reductions thanks to the elimination of manual paperwork, and savings on administrative and personnel costs >> Process time reductions thanks to (a) optimized processing times from order placement right through to payment; and (b) reduced inventories and higher liquidity >> Optimized data security through avoidance of manual data entry processes, thus reducing errors that can potentially increase costs >> Improved customer retention: EDI capabilities enhance vendor evaluation rating and promote strategic competitiveness >> Increased process versatility, allowing for the formulation of future-oriented concepts and visions The GS1 EDI product portfolio provides the user with optimal electronic process flexibility. The additional WebEDI capability takes into account the distinction between the needs of small and medium sized companies on the one hand and large companies on the other EANCOM A well-established solution for standard processes The GS1 EANCOM standard is the leading and most widely used EDI standard in the world today. EANCOM is based on GS1 identification solutions, with a view to ensuring that EANCOM is seamlessly compatible with other GS1 system components. The use of EANCOM descriptions substantially reduces the time and effort needed for a vendor to coordinate the relevant processes with those of its business and communication partners. The key advantages of the EANCOM standard include: >> Simplification of UN/EDIFACT messages >> Uniqueness worldwide >> Referencing of unique GS1 identification keys ensures reduced data volume >> Integrates only those basic components that are genuinely needed for the target EDI transaction >> Provides rules, descriptions, explanations, and examples that allow for detailed use of the available EDIFACT messages, and reduces the number of possible message interpretations and versions >> Provides a shared point of reference for EDI use within the user community >> Provides stability and coordinated implementation for message versions >> Reduces data volumes and the associated data transfer and processing costs

28 EANCOM integrates a catalogue of standard messages that form the basis for comprehensive and smoothly running business processes. 3) Instruction Message (IFTMIN) Shipper Supplier 5) Shipping status (IFTSTA) 10) Credit Advice (CREMUL) 1) Price list/catalogue (PRICAT) 2) Orders (ORDERS) 4) Dispatch Advice (DESADV) 7) Receiving Advice (RECADV) 8) Invoice (INVOIC) 6) Arrival notice (IFTMAN) 9) Payment order (PAYMUL) Customer Bank Fig. 12: Smoothly running business processes with EANCOM GS1 XML: An advanced standard for new application domains In addition to EANCOM, GS1 XML has been incorporated into the standard GS1 portfolio in The great advantage of XML is that it allows users to create documents and applications quickly and simply. The downside of XML is that users are able to define the structure and content of XML-based EDI documents (e. g. orders and invoices) in their discretion and at their transaction partners expense. GS1 XML solves this problem with unique message elements whose semantics is defined in a clear and unambiguous fashion.

29 In view of the fact that XML has specific properties, it is complementing EANCOM in an outstanding manner for specific applications, including enterprise internal deployment of XML as an interface format between various in-house applications. This type of solution enables businesses to leverage the inherent versatility of XML expeditiously in accordance with their individual needs, and without the need to coordinate their efforts with external partners. In addition, GS1 XML is a powerful solution primarily for applications where rapid response times and a high level of interactivity between people and machines, or flexible data inquiry and visualization options play a key role. Such applications include the use of online catalogues for e-procurement processes, as well as new business processes such as global networking of local product master database pools, including SA2 (formerly Sinfos) within the GDSN (Global Data Synchronization Network). GS1 XML also allows users to leverage the potential of heretofore unexplored EANCOM application domains in a manner that bases EDI implementation directly on latest-generation syntax. The decision as to whether GS1 XML or EANCOM should be employed also hinges on the envisaged volume of data that is to be transferred. Here, EANCOM is particularly suitable for bulk data exchange, whereas GS1 XML is more relevant for the transmission or calling of specific data sets. GS1 XML offers the following advantages: >> GS1 XML is an integral element of the GS1 standards >> Outstanding investment protection by virtue of the fact that GS1 XML is fully compatible with UN/CEFACT XML schema >> GS1 XML was developed on the basis of specific enterprise needs as part of a globally coordinated process, thus allowing for a high degree of versatility >> GS1 XML can be used across multiple sectors and applications >> GS1 XML provides an outstanding user support program in numerous languages through more than 100 central and local GS1 organizations >> GS1 XML was developed on the basis of EANCOM s extensive business process experience >> GS1 ensures seamless compatibility between EANCOM and GS1 XML structures

30 The EPCglobal network: Real-time supply chain information via Internet The EPCglobal network enables the automatic dissemination and discovery of real-time, accurate, and on-demand product information for all parties in the supply chain, to the exclusion of the interchange of data regarding projections, requests for proposal (RFPs), procurement processes, invoicing and so on. These types of data are still being interchanged using classic EDI methods. This means that the EPCglobal network is used to launch data searches concerning products, shipping units, or other supply chain elements, thus making the network the ideal add-on for EDI in that it enables users to leverage the extra advantages of e-communication. The core purpose of the EPCglobal network is to ensure that supply chain information is available at all times over the Internet which is why the network is also referred to as the Internet of Things. The EPCglobal network interconnects decentralized servers that contain all master/supply chain data that is associated with a specific EPC number, and allows for the transmission of this information over the Internet. EPCglobal network servers, as well as authorization procedures and information access permissions, are managed by various service components in the network. WLAN, Internet Centralized management Decentralized management Fig. 13: Paradigm shift from externally managed to self-managed logistics processes The EPCglobal network is based on the interplay between various components that are provided by the EPCglobal network s standardized interfaces. The cornerstone of the network is the EPC. Network users employ what is known as the Object Name Service (ONS) to find product information regarding specific EPCs. In addition to RFID interface applications other interfaces also operate in the network using various types of GS1 barcodes.

31 ECore EPCglobal network services EPC stakeholder authentication EPCIS determination Main ONS Tag data translation under development under development ONS interface TDT interface offline Application with access to EPCIS EPCIS query interfaces EPCIS event data directory EPCIS data capture interface Local ONS ONS interface Application with access to EPCIS Transaction partners EPCIS data capture application Application level events (ALEs) Middleware Fig. 14: Elements of the EPCglobal network The EPCglobal network offers the following advantages: >> Provides real-time information >> Ensures information transparency throughout the supply chain. Without the network, such transparency is only partially achievable between related interfaces. >> Standardized interfaces at all data transfer points, i. e. transponders readers middleware internal applications cross-company applications. >> Granular product flow handling. Fig. 15: The EPCglobal network: Real-time information at your fingertips Core EPCglobal network services (e.g. Object Name Service, EPCIS determination) Interfaces = EPCglobal standards Company Company EPCIS EPCIS data searches EPCIS Data interchange EANCOM, GS1 XML, WebEDI

32 All other potential benefits associated with the use of RFID (e. g. anti-theft and piracy mechanisms, seamless traceability, time-savings and so on) result from the real-time information capabilities and improved transparency offered by this technology. This means that the full potential of RFID technology can only be leveraged through the use of a global communication and information network. Although the EPCglobal network comprises a series of components, only its core element, the EPC Information Service (EPCIS), will be discussed in the present section of this document. For detailed information concerning the other EPCglobal network components, please consult the relevant GS1 Germany documentation. The EPCIS enables an enterprise to connect to the EPCglobal network. In so doing, the service archives EPC information, which is then exchanged between the user s internal system applications such as product management systems and specific system components. In this process, product information and read-events (EPC readouts, as well as registrations in conjunction with the associated time stamp, place and context of the capture) are archived and made available to network users. This means that the EPCIS enables you to call information at any time, whereas classic EDI such as EANCOM transmits information at scheduled times or in response to specific events. EDI (EANCOM, GS1 XML) is inherently process oriented and is based on past performance data (e. g. sales data reports (SLDRT) as well as forward looking information (e. g. order data (ORDERS)). EPC network information is event-based and generally relates to information that is associated with transponder readouts, thus rendering this information historically oriented. However, projection-related information can also be derived from the data available in the network.

33 4. Specialized GS1 applications The GS1 portfolio at work The scenarios described below illustrate how GS1 products and their various elements can be used in conjunction with each other in a manner that meets enterprise needs optimally. 4.1 Optimal serialization solutions, thanks to the GS1 system The generation of unique identifiers for specific elements in the supply chain is a requirement that has become increasingly important in recent years. In this process, which is known as serialization, specific GS1 identification schemes such as the SSCC and the Global Returnable Asset Identifier (GRAI) are serialized on the basis of their enumeration structure. This is done, in the case of the SSCC (for example), with a view to enabling shipment tracking at the package level and the addressing of individual shipping units. However, in the past this process was not referred to as serialization. Products are often serialized as well nowadays, since many items (particularly in the electronics sector) are identified and marked on the basis of their GTIN in conjunction with a serial number. Hence it goes without saying that suitable automatic data capture mechanisms are already being used for these applications. The ideal solution for the structured and uniform integration of serialized GS1 numbering systems into GS1 barcodes is the Application Identifier System, which is already being used successfully for the GS1-128 barcode, GS1 DataBar, and GS1 DataMatrix. In addition to that the EPC has been developed as the solution allowing for the transfer of serialized GS1 identification keys using RFID technology. The EPC always incorporates a serialized GS1 number. In other words a serialized GTIN known as a Serialized Global Trade Item Number (SGTIN) is encoded at the article level, whereas the SSCC or GRAI is used for logistics purposes. The logistics identification system is the SSCC, regardless of which data carrier is used. This number provides a unique identifier for all packing units, and in so doing serializes them. The most commonly used data carrier nowadays is the GS1-128 standard, which will be combined with transponder technology at some point in the future (see section 2.7). The key factor here is that a uniform GS1 numbering system renders the various technologies seamlessly interoperable, which means that users can migrate from GS1-128 to EPC/RFID by merely switching from one data carrier to another.

34 Various data carriers that allow for article serialization are available. The connecting link in terms of barcode encoding is constituted by the Application Identifier System, which allows for uniform encoding of serialized GTIN numbers. The available options in this domain are GS1 DataBar Expanded, the GS1-128 barcode, and the GS1 DataMatrix. The serialized GTIN (= SGTIN, Serialized Global Trade Item Number) is an own identification key for EPC/RFID. The observations made thus far translate into the following application scenario: In the upstream operations sector, the GS1-128 barcode, GS1 DataMatrix, and EPC/RFID are the most suitable data carriers in SGTIN encoding. The decision as to which of these solutions to employ is based on the criteria described in the previous sections of the present document. The downstream processing level, usually manufacturing companies, must take into account the nature of the packing unit that will be used for the target product. For consumer products that need to be scanned at the point of sale, only the GS1 DataBar and (in the long term) EPC/RFID technologies are appropriate; whereas GS1-128 and the GS1 DataMatrix are the best options for items that are not scanned at the PoS. The GS1-128 standard can also be employed for trading units not passing PoS to encode SGTINs using the Application Identifier System. Serialization EPC/RFID GS1 DataBar Expanded GS1-128 GS1 DataMatrix Serialization Logistics level: SSCC GS1-128 EPC/RFID Article level: SGTIN GS1-128 GS1 DataMatrix EPC/RFID GS1-128 GS1 DataBar EPC/RFID GS1 DataBar EPC/RFID Fig. 16: Serialization for trade scenarios: selecting the appropriate auto ID method

35 4.2 Serialized GS1 identification keys: The ideal anti-counterfeiting weapons Trade item serialization is inextricably bound up with the issue of anti-product counterfeiting measures. For the fact of the matter is that individual products can only be tracked and traced seamlessly in the supply chain if they are positively identified via GTIN numbers in conjunction with a serial number. In order to achieve this, in addition to the use of unique identifiers, an auto ID solution needs to be employed so as to allow for automatic registration of the relevant data at each interface in the supply chain. This tracing data must also be made available to the relevant partners, since this then allows for seamless e-pedigree verification in connection with a specific item. As mentioned above (see section 4.1) the principal data carriers for automatic data capture processes are the GS1-128 barcode, the GS1 DataMatrix, and EPC/RFID. The relevant information is provided through the EPCglobal network, and the complimentary processing of business transactions like order, dispatch advice and invoice are handled via EDI. The graphic below shows how e-pedigrees can be verified along the entire pharmaceutical supply chain (used here as an example). Fig. 17: E-pedigree verification in the pharmaceutical supply chain Authentic epedigree before products are delivered, including all previous owners Product receipt: conformance of the inbound product with the e-pedigree documentation referred to in step 1 Shipping: re-verification of the outbound e-pedigree, which is then routed to the relevant downstream actor, which ships the product Internet Manufacturer P X Wholesaler A Internet P X Wholesaler B E-pedigree E-pedigree E-pedigree Internet P X Retailer E-pedigree E-pedigree Serialized GTIN number for pharmaceuticals Manufacturer E-pedigree Serialized GTIN number for pharmaceuticals Manufacturer Wholesaler 1 E-pedigree Serialized GTIN number for pharmaceuticals Manufacturer Wholesaler 1 Wholesaler 2 Serialized GTIN number for pharmaceuticals Manufacturer Wholesaler 1 Wholesaler 2 Pharmacy/Drugstore

36 Tracking & tracing: The GS1 system in its entirety The example of counterfeiting prevention through seamless e-pedigree verification underscores the pivotal role played by GS1 standards in terms of tracking and tracing. The groundwork for the integration of GTIN, GS1-128 and EANCOM solutions into tracking and tracing systems was laid by EC Regulation no. 178/2002, which requires comprehensive tracing and tracking across the entire food industry supply chain. The interplay between the three core GS1 elements identification, data carriers and communication is underscored in this context, and is illustrated by the following product delivery scenario. Once a specific packing unit has been configured (or picked and packed), its SSCC is marked on the package using a GS1-128 barcode (slated for replacement in the coming years by EPC transponder technology). The shipper sends the product recipient an electronic dispatch advice, in EANCOM or GS1 XML format, containing all key information concerning the packing unit such as the GTIN number, sell-by date, batch number, and delivery information. This information enables the recipient (among other things) to make any preparations that may be necessary for the product delivery process. The SSCC comprises the reference (and thus the connecting link) for the physical product flow and the electronic information flow. The product recipient saves the dispatch advice in the recipient s ERP system. Once the packing unit arrives, the recipient need only to scan the SSCC or read the number out via the transponder. The SSCC is then verified automatically, and if the verification is positive the user is able to access the archived delivery data. Since all information is already stored in the recipient s information system, the products' receipt can be posted with one click of a mouse, thus allowing the user to dispense with manual data input and shipping note verification. Fig. 18: Interplay between numbering systems, data carriers, and EDI in a product delivery scenario Electronic file Shipper SSCC and additional information via DESADV Recipient Electronic file SSCC (00) A B A B C D C D Outgoing goods dock Incoming goods dock

37 Although the Serialized Global Trade Item Number (SGTIN) is the decisive element for the e-pedigree verification process (see section 4.2), most of today s tracing and tracking systems are implemented at the batch level with a view to minimizing the financial impact of any product recall that may occur in the future. It is of course essential in such cases that products marked with GTIN numbers and batch numbers (this can be carried out via the GS1-128 barcode, GS1 DataBar, or GS1 DataMatrix) be linked with their packing units, which are identified and thus serialized via the SSCC. Only in this way can tracking & tracing (a) be accomplished at the packing unit level; and (b) easily retrace dispatch of specific consignments as well as the recipients of individual batches. Ideally, the parties to the transaction exchange the relevant packing unit information electronically so that manual data entry at the interfaces between the companies can be avoided. Traceability data enquiries via the EPCglobal network constitute an extension of the aforementioned process. Fig. 19: Traceability along the supply chain Product flow Upstream supplier Manufacturer Retailer Consumers Flow of information Traceability data Traceability data Traceability data

38 Conclusions The GS1 system provides a set of modular tools that allow for the optimization of information and product flows between companies. The core element of this solution is the GS1 identification system, which is supported by data carriers such as barcodes or RFID, as well as electronic data interchange processes. All GS1 system tools are reciprocally interoperable and can be combined and implemented successively to form a comprehensive, integrated solution that promotes smooth and efficient business processes. The GS1 system not only provides basic elements such as data content, data carriers, and data interchange capabilities, but also supplies additional services that are fully integrated with the basic elements. These services include EDIINT AS2, which enhances Web-based data interchange, but also the standardization work in the field of classification. These tools form the basis for GS1 to provide customers with recommendations concerning efficient business processes. This service centers around process recommendations that are produced as part of the Efficient Consumer Response (ECR) program. The GS1 system is optimized on an ongoing basis as new technologies and requirements emerge. However, reciprocal compatibility of the various standards is and will remain a constant, irrespective of any system upgrades that may be implemented thus protecting the user s investments. Processes Tracking & Tracing Optimal Shelf Availability (OSA) Classification Recommendations/Services: GEPIR GTIN allocation rules in the healthcare field etc. Data carriers: EAN-13 GS1-128 GS1 DataBar GS1 DataMatrix EPC Transponder Recommendations/Services: Electronic data interchange: Identification: GLN GTIN SSCC GRAI EANCOM GS1 XML WebEDI EPC network EDIINT AS2 elnvoicing etc. Efficient Replenishment Upstream (ERU) Efficient Unit Load (EUL) Efficient product recall process etc. Fig. 20: The GS1 system: a comprehensive and integrated solution

39 Appendix: The GS1 identification system The GS1 identification system is based on the principle that an object can be best identified on the basis of a short unique number, which serves as a portal to additional database information that is associated with the number and the relevant object. The GS1 system has become a widely accepted and proven solution in recent decades by virtue of the fact that it makes identification processes simpler, faster and more reliable. As there exists different types of objects (e. g. locations, load carriers, service products) whose volumes vary depending on user and context, GS1 took this into account by choosing a set of identification schemes with differing capacity. 1. GS1 identification keys at a glance All GS1 identification numbers have the same structure, their main component being the GS1 company prefix that is allocated to the user by the GS1 organization and to which the user adds either an object reference, a serial element, or both. 8 GLN: GS1 company prefix* Encoding system for Location reference * The counterpart element in the EPC is the EPC manager ** directly serialized as an EPC *** optional element GTIN: GS1 company prefix* Item reference Serial number ** SSCC: GS1 company prefix* Serial number GRAI: GS1 company prefix* Package type Serial number *** GIAI: GS1 company prefix* Serial number Fig. 21: The GS1 identification system at a glance The GLN (Global Location Number) identifies locations or addresses; the GTIN (Global Trade Item Number) indicates the article number of products and services; the SSCC (Serial Shipping Container Code) identifies logistic units; the GRAI (Global Returnable Asset Identifier) serves as identification number for returnable assets; and the GIAI (Global Individual Asset Identifier) identifies any type of object or asset. 8 For security reasons, particularly in connection with barcode applications, some GS1 identification keys close with a check digit.

40 Differing formats but identical content Such as 100 and EUR 100 are different ways of indicating the same information, various types of formats need to be used at various junctures in the supply chain so as to maximize the technological efficiency of the element or system concerned. This simply means that the relevant information is translated into a language that the target technical device can read. For example: In the case of GS1 barcodes, application identifiers are mainly used; a qualifier is used for EDI messages from the GS1 system; and a Uniform Resource Identifier is used in the EPCglobal network. This allows transaction partners to interchange the same information (chiefly GS1 identification codes) across a range of technological and enterprise-specific interfaces. The following graphic shows several examples of this: GTIN in the GS1-128 barcode Start C FNC SCC # Stop in an EANCOM segment LIN :SRV' in EPC URI format urn:epc:id:sgtin: Fig. 22: Examples of GTIN processing in differing technological environments # symbol check character

41 3. Differentiating between GS1 identification keys and additional information In order for product and data flows to be handled via the various process steps, the relevant information must be provided so as to allow these processes to access the requisite information through various external and internal sources. The GS1 identification number acts as an access portal for these types of data by allowing unique addresses to be assigned to them. The optimal paradigm for enterprise-wide and cross-company use has always been and remains today, the following: Data carriers should integrate as much information as necessary, but as little information as possible. Additional information available from GS1 identification key accommodates In-house systems Physical products/data carriers External data sources such as EDI, data pools, etc. Fig. 23: The GS1 identification keys allow for the access of additional information

42 Graphics Fig. 1: Fig. 2: Fig. 3: Fig. 4: Fig. 5: The GS1 system a comprehensive solution thanks to the system s modular architecture 4 GS1 system components optimize value creation by tapping into your organization s efficiency enhancement potential 5 GS1 application protection across all technologies 7 The GS1 Application Identifier System interconnects all GS1 data carriers 8 The GS1 application identifier standard allows the user to leverage high-performance data carrier technologies 9 Fig. 12: Smoothly running business processes with EANCOM 28 Fig. 13: Paradigm shift from externally managed to self-managed logistics processes 30 Fig. 14: Elements of the EPCglobal network 31 Fig. 15: The EPCglobal network: Real-time information at your fingertips 31 Fig. 16: Serialization for trade scenarios: selecting the appropriate auto ID method 34 Fig. 17: E-pedigree verification in the pharmaceutical supply chain 35 Fig. 6: EAN-13: the gold standard for points of sale 17 Fig. 7: Fig. 8: Fig. 9: GS1-128 the logistics gold standard paving the way for EPC/RFID 19 The GS1 DataMatrix will enable the implementation of new data capturing capabilities in the healthcare field 22 The GS1 DataMatrix and EPC/RFID can be used in other application domains 24 Fig. 10: The GS1 data carrier timeline 25 Fig. 11: Standard GS1 products for electronic data interchange between data processing systems 26 Fig. 18: Interplay between numbering systems, data carriers, and EDI in a product delivery scenario 36 Fig. 19: Traceability along the supply chain 37 Fig. 20: The GS1 system: a comprehensive and integrated solution 38 Fig. 21: The GS1 identification system at a glance 39 Fig. 22: Examples of GTIN processing in differing technological environments 40 Fig. 23: The GS1 identification keys allow for the integration of additional information 41 Acknowledgement GS1 in Europe would like to thank GS1 Germany for the outstanding original version of this publication.

43 Publications Herewith we would like to call your kind attention on some other publications of GS1 in Europe. Please visit for more details! The European Guide to implement EPC/RFID for Retailers and their Suppliers The adoption of EPC and RFID technology is expanding rapidly in different regions of the world, including in Europe. Since the technology is based on its potential to improve business processes across the global value chain, it has been championed by more and more industries. In order to use EPC and RFID efficiently, all companies involved need to agree initially on basic specifications and standards about how to implement this technology. The European Guide supports companies to prepare their deployment and to protect their investment while increasing confidence to those who are new to the technology. Waste Management using the GS1 Standards This publication is the general overview of the European Waste Management guideline. The guideline is the result of a two year long GS1 in Europe project. The goal of the project was to prove the suitability and the potential of GS1 Standards and Solutions in the field of Waste Management. It aims to provide a proper and common solution for all those companies, organizations and public administration sectors which are affected by the EU Decrees. GS1 Europe Logistic Label version13 updated: GS1 in Europe Logistic Label These guidelines are an outcome of the GS1 in Europe project aimed at harmonizing the use of logistic labels across Europe. The document sets out best practice recommendations for identifying and labeling logistic units, for example pallets, using the GS1 System. Its aim is to provide a common approach to labeling logistic units across Europe with an internationally accepted numbering and bar coding system the GS1 System. The globallanguage of business