Retail and Apparel Workshop

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2 Retail and Apparel Workshop 1. Source Tagging and Serialization 2. Supply Chain Applications 3. Core Store Operations 4. Secondary Store Applications

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5 Source Tagging and Serialization 5

6 Source Tagging and Serialization Agenda What is serialization? Methods of Serialization Service Bureau Internal Logic TID 6

7 What is serialization? Serialization makes it possible to trace individual products as they move through the supply chain. 7

8 Just the Numbers 38 bits is equal to 12 digits. Must be less than 274,877,909,944 8

9 Your Operations 9

10 The World is Flat 10

11 Solution Providers 11

12 Service Bureau Serialization Service Bureau Dos Check service locations Ensure capabilities Back up Plans Do not limit yourself to one provider REQUIRE Guarantee of unique serialization 12

13 IT Based Serialization Serial numbers must be unique to sku. 13

14 IT Based Serialization SKUA SKUB OR SKUA SKUB

15 Build in Logic 38 bits is equal to 12 digits. Must be less than 274,877,909,944 15

16 Build in Logic You can utilize parts of the 38 bits to store useful information for you. 16

17 TID 17

18 TID 18

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21 Serialization Basics 21

22 Importance of Serialization Serialized identifiers help RFID readers sort and count without human intervention Scanning a bar code is a serial process, so counting is automatic (one at a time past the scanner) Humans supplement the bar code for counting RFID readers scan many tags at once, not one at a time past the reader. The reader relies on the unique serial number to know if it read 100 items or the same item 100 times. Serialized identifiers improve our ability to track specific items or shipments as they move between physical locations What did I see? Was it the same one I saw an hour ago or a different one? 22

23 Serialization Business Processes Commissioning assigning serial numbers to product How to allocate serial number? What data carrier / format? Recording the chosen serial number Picking/Packing Recording serial numbers picked/packed Hierarchy: item-to-case, case-to-pallet serial numbers Shipping/Receiving Recording serial numbers shipped/received Verification of serial numbers received (probably not for apparel) In-store Tracking individual items Reporting serial numbers moved to sales floor, purchased Afterwards Using serialized observations ( visibility data ) to analyze the supply chain (transit time, dwell time, in-store visibility, etc) 23

24 Understanding serialization

25 Electronic Product Code = EPC GS1 Company Prefix Item Reference Unique Serial Number Every item has distinct serial number New business processes based on tracking individual things 25

26 Who is in charge? Current Standard: The GS1 General Specification Section 3.8.2: Serial Number: AI (21) The Application Identifier (21) indicates that the GS1 Application Identifier data field contains a serial number. A serial number is assigned to an entity for its lifetime. When combined with a GTIN, a serial number uniquely identifies an individual item. The manufacturer (Brand Owner) determines the serial number It is CRITICAL that each brand owner - small, medium or large - develop a strategy for creating and maintaining serial numbers unique to each GTIN. Duplicates negate the advantages of RFID! 26

27 Define who you are! Understand your organization s specific business scenarios and requirements: EXAMPLE SCENARIO 1: Small Brand Owner minimal number of medium large volume GTINS, manufacturing on a single line So=ware ensures that no duplicate serial numbers are issued for this GTIN Serialization in this scenario may be quite simple all manufacturing and number assignment is isolated to this ONE manufacturing line no coordination with any other parties internal or external is required Any of a variety of serialization methods may be utilized May choose to DIY or outsource to a service bureau or other third party 27

28 SCENARIO 2: Define who you are Medium Sized Brand Owner above average number of medium high volume GTINS, with the same GTIN manufactured on multiple lines Line 1 Line 2 Local so=ware ensures that no one duplicate serial numbers are issued on that line. Line 3 Serialization requirements are slightly more complex manufacturing is split across lines Lines may be in distributed locations Serial number assignment must be coordinated across the multiple locations and lines 28

29 Define who you are SCENARIO 3: Large Sized Brand Owner with a large number of high volume GTINS, with the same GTIN using contract manufacturers, service bureaus or other third parties Line 1 Contract Mfg A Line 2 Line 1 Serial number is assigned and applied by someone other than the Brand Owner Contract Mfg B Serialization requirements are more complex serialization is assigned by a party perhaps multiple parties other than the brand owner Brand Owner still owns the serial number and has the responsibility to ensure a strategy is in place to avoid duplication 29

30 Now what? Understand approaches to managing serialization Outsource to a third party - Service Bureau IT-Based Serialization Rely upon information systems of stored information to track which serial numbers are available to allocate Software may employ various methods for managing Can exist at a variety of levels in an enterprise s organization Chip-Based Serialization Makes use of an RFID tag hardware feature the Tag Identifier (TID) The TID is a big ( bits) serial number that identifies the silicon (the CHIP!) in the RFID tag it is unique to each chip manufacturer; it is different than the serial number in the product EPC The TID of the chip can be used for the serial number in the EPC, but must be compressed down to 38 bits in a chip manufacturer-specific way 30

31 The choice is yours Develop a plan on how you will best manage and utilize serialization for your product identification Key Considerations: What products are to be serialized? What are their GTINs? What is the expected volume of each GTIN that will be manufactured over the life of the GTIN? This helps to assess how many serial numbers will be needed over time. Where will serialization take place? In the brand owner s own manufacturing facility, in 3 rd parties contracted by the brand owner (contract manufacturers, serviced bureaus, etc), by other supply chain parties? How many different internal facilities and/or 3 rd parties will be used? What IT capabilities are available, or can be made available, to manage serialization? How are the answers to the above expected to change over time? These questions will help select among the various ITbased and chip-based approaches 31

32 And there is help! The GS1 US Serialization Guideline for SGTIN-96 is available for your use! 32

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