ALC Supply Chain Standards Working Group

Transcription

1 ALC Supply Chain Standards Working Group Supply Chain Week 2012 Michael Kilgariff, Managing Director ALC Ken Brown, National Manager Linfox

2 Agenda ALC overview Some industry facts New industry working group Work plan How to get involved

3 About ALC The Australian Logistics Council is the peak national body representing the major and national companies participating in the Australian freight transport and logistics supply chain. ALC is the lead advocacy organisation to all levels of Government and industry on freight transport and logistics supply chain regulation and infrastructure issues. The mission of ALC is to influence national transport and infrastructure regulation and policy to ensure that Australia has safe, secure, reliable, sustainable and internationally competitive supply chains.

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5 Some Facts The T&L industry is a significant contributor to Australia s economy: 14.5% of GDP 1 million jobs 165,000 companies Australia is facing a rapidly increasing freight task: 500 billion tonne kilometres in billion tonne kilometres in billion tonne kilometres in Productivity growth for the transport sector only 0.6% per annum in the five years to June 2011

6 ALC Supply Chain Standards Working Group Mission To enable the Australian Transport & Logistics industry to improve supply chain efficiency and increase product and shipment visibility.

7 ALC Supply Chain Standards Working Group Objectives To work with industry groups to help resolve supply chain issues including non-compliant pallet labelling, poor intermodal visibility, rapid recall and withdrawal of defective products and poor data quality. To consider the potential benefits that other relevant technologies and services may provide including: GPS (Global Positioning Systems) Location Management (GS1 Locatenet) GSM (Global System for Mobile communications) RFID (Radio Frequency Identification) Data Synchronisation Solutions (GS1net) Product Information Databases Industry recall notification portals (GS1 Recallnet) Develop industry guidelines and case studies.

8 8 Start up participants

9 Some identified challenges Lack of interoperability b/w modes, b/w carriers Pallet label compliance Data quality is sub optimal Re-working of the same information along the supply chain Existing standard information not being leveraged Weight/dimension data - getting it right from source Location data management difficult to keep up to date Recall & withdrawal management

10 10 Four key issues

11 Working group team structure ALC Board of Directors ALC Industry Work Group Leadership Team Chair: Ken Brown (Linfox) 11 Pallet labeling work group Inter-modal interoperability work group

12 Inter-modal interoperability work group

13 Inter-modal interoperability Challenges Interoperability a lack of standards hindering the ability to achieve full end to end visibility across the supply chain. Re-work & transaction errors Sub optimal data quality Added cost Integration is currently achieved by building point to point solutions with each trading partner. This is not scalable and is costly to manage and support 13 Increases complexity Difficult to achieve agility and rapid response to customer demands

14 1 Integration without standards Buyer 1 Supplier 1 Buyer 2 Supplier 2 Buyer 3 Supplier 3 Buyer 4 Supplier 4 Buyer 5 Supplier 5 Buyer 6 Supplier 6

15 Standards support Global Interoperability

16 Pallet label Non compliance cost Pallet label quality 44% discrepancy across FMCG Poor pallet labelling is the biggest emerging issue in retailers supply chains Cost to re-work labels that can t be scanned ~ $10 ea 27,000 non compliant shipments in 13 week period 36% identified as label issues Total cost $10 x 9,720 = $97,200 x 4 quarters = $388,800 pa $388K x n retailers = Cost to Australian business $$$$$$$$ Re-labeling logistics units with proprietary labels Recipients can t auto receipt goods Use of third party warehousing increases risk of non-compliance 16

17 Pallet label compliance challenges Pallet label compliance there was consensus that the industry is suffering a huge cost burden due to poor labeling of shipments. Some of the problems encompass: poor quality Multiple SSCC labels applied different formats load shifting destruction of labels Incorrect product information Manually adjusted SSCC labels. pallet label position 3PL engagement 17

18 Poor Print Quality 18

19 19 Damaged label wont scan No SSCC Label can t scan

20 20 Multiple Labels Applied

21 21 Incorrect Product Information

22 22 Manually Adjusted Information

23 23 Two different SSCCs

24 24 GTIN on carton is different from GTIN on label Incorrect goods will be receipted Inventory will be incorrectly updated

25 Timelines First meeting was held 16 th August Ken Brown from Linfox is Group Chair Work groups scheduled to kick off mid October Pallet labelling Interoperability Next Steering Committee meeting 25 th Oct Will report progress to ALC board in November

26 How do you get involved? If you are interested in joining and participating in either of these industry wide project teams. We are currently taking expressions of interest so if you are interested you can contact either: Ken Brown at or Bonnie Ryan at 26

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