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Features14 Appetite for traceability grows

Today’s consumers are demanding more inFormaTion abouT where Their Food comes From, wheTher ouT oF concern abouT Food miles and Their carbon FooTprinT, or because They need To be reassured abouT The saFeTy oF whaT’s on Their dinner plaTe. in ausTralasia, gs1 is working To ensure Fresh produce TraceabiliTy sysTems are based on global gs1 sTandards.

16 Major EPC/RFID project right on track

ausTralasia’s FirsT major commercial roll-ouT oF radio Frequency idenTiFicaTion (rFid) wiTh The elecTronic producT code (epc) sTandard is under way wiThin The kiwiFruiT indusTry. gs1 ausTralia’s sisTer organisaTion, gs1 new Zealand, reporTs on The logisTical challenges.

starters

03 Welcomechairman’s messageceo insights

04 Quickscanletterhot datesVox pop

This issue 06 Tech Headsbar codes for loyalty programs

keeping your data sharp

gs1net scores a winner as migration completed 08 Local Newsecommerce goes upstream in australia

gusi makes sense for unilever australasia

daicos delivers for kids

australian air express accepts ssccs

data needed to aid visually impaired australians 12 Industry Profilebe inspired at impetus 2008: australia's premier supply chain event 18 Global News70 uk hospitals to use gs1 system

monash pharmacy phase 2 project shines in europe

20 Get Smartgs1 signs mou with melbourne university

special offer winter discount on chain reaction program

skills matrix for supply chain managers of tomorrow 22 Emerging TrendsrFid solutions shift towards closed-loop applications

search our online solution provider directory

alliance partners 24 b2b messaging reshaping electronic data interchange

gs1 australia recognises alliance partner excellence 26 Traceability vital in healthcare supply chain 28 syscan international introduces liveTrack uhF

global gs1 standards – why it’s important for software developers.

30 Your Viewpoint

CONTRIBUTORSediTor mary riekertprojecT manager matthew Timoshanko adVerTising and producTion matthew TimoshankowriTers marian macdonald (Firefly marketing) mary riekertdesign Vetro designprinTing ra printing

GS1 AUSTRAlIA head oFFice axxess corporate park 100/45 gilby road mount waverley Vic 3149

SydNey OffICe lakes business park building 4b, 2–4 lord street botany nsw 2019

national number: 1300 366 033 international number: +61 3 9558 9559 Fax: +61 3 9558 9551general email: [email protected] email: [email protected]

gs1 australia is the only organisation authorised by gs1 global to allocate and administer gs1 bar code numbers in australia. gs1 australia adds value to its members’ businesses by promoting and developing the adoption of cross-sector, global supply chain standards. gs1 australia delivers supply chain solutions and services for bar coding, electronic business messaging, global data synchronisation and radio Frequency identification technology (rFid).

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Welcome

CHAIRMAN’S MESSAGE

For good times and for bad: traceability Traceability is the cinderella of the supply chain: rarely given a second thought until suddenly it's the centre of attention. unfortunately, traceability generally gets its moment in the sun when disaster strikes but it ought not to be that way.

The ability to track and trace products and materials up and down the supply chain is undeniably the best protection available for industry and consumers alike in the event of a product safety recall. dangerous products can be swiftly removed from shelves and the source rapidly identified, minimising the impact on people and profits.

That's certainly justification in itself but, like so many other supply chain management issues, complying with traceability standards brings other benefits if woven strategically into your operations.

perhaps the biggest of them all is the marketing advantages they bring. our agriculture and food manufacturing industries have long benefited from australia's “clean and green” image. mad cow disease and foot and mouth made our disease-free status a rare competitive advantage – something that can only be guaranteed with paddock to plate traceability. This, coupled with exporters’ need to meet biosecurity legislation, makes traceability a priceless asset to entire supply chains.

nor is traceability’s value limited to food. The swelling tide of concern associated with the safety of imported toys, clothing and appliances demonstrates its importance across every conceivable product category. in the healthcare sector traceability has a vital role to play in patient safety and to protect against the counterfeiting of drugs.

Fortunately, the gs1 standards australians use to trade millions of products every day are also the perfect foundation for traceability. Talk to us now about how gs1 can safeguard your business.

CEO INSIGHTS

Seeing through the eyes of GS1netsomething as mundane as doing the supermarket shopping or cooking dinner is a luxury for visually impaired australians. new technology that literally reads aloud the everyday information most of us take for granted to run our lives, promises new freedoms for those with poor vision and their families.

bernie slagtman, who began his search for this solution after his partner lost his sight a year ago, is inspirational. he’s appeared on the national news, on the Today show and met with countless politicians in his bid to make this life-transforming technology a reality.

he has teamed up with Vision australia and other organisations to get it to the people who need it so badly but, as clever as it is, a talking bar code scanner is only as good as the information that it contains. This is where you and gs1 australia come in.

The gs1net database could scarcely have been better designed for the job of supporting bernie’s work. it already has a million product records that give visually impaired people some of the information they need to live more independent lives. it has been gs1 australia’s privilege to provide the data, but it’s only a start. gs1net has the potential to do a great deal more.

The half a million australians who have lost their sight or are visually impaired need more gs1 australia members to go live on gs1net and for every gs1net supplier to populate as many fields as possible with up-to-date and accurate information. your trading partners will love you for it, of course, and you might just make a world of difference to some special people's lives.

0.1 russell stucki, chairman, with maria palazzolo, ceo, gs1 australia

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QuicKscan

LETTERAs we constantly improve and refine liNK we are keen to hear views from everyone involved in supply chain management, from all industry sectors and from a range of positions.

in this edition we have launched a new regular column called Viewpoint and asked three guest contributors to write about any issue in supply chain management they felt needed to be brought to our readers’ attention. we promised a free rein and no editorial interference. readers will find their guest columns interesting and thought-provoking.

andrew cummings, chairman of efficient consumer response australasia (ecra), chose to discuss their shelf-ready packaging initiative. charles paulka, editor of mhd magazine, takes an overview of automation in the supply chain and peter roebers, senior business manager ebusiness, retail support, for woolworth supermarkets, talks about how to assist small businesses to operate efficiently in the supply chain.

we would like to invite readers to contribute to this quarterly column if they have an issue they want to write about. as long as it relates to the supply chain we’re keen to hear from you. please email me at [email protected] for further information.

Mary Riekert ediTor

GS1 Australia wins Mentoring Awardgs1 ausTralia has won a gs1 menToring award in recogniTion oF iTs work supporTing The asia-paciFic region.

at the general assembly of gs1 member organisations, held in dubrovnik in may, ceo maria palazzolo accepted the award on behalf of gs1 australia. “we are all very proud to be recognised in this way,” she told the assembly. “our work in the asia pacific region is very important to us and we are seeing more and more initiatives supporting the gs1 system.”

GS1 AuStrAliA GoeS Green for the plAnet GS1 Australia has launched a GS1 GO Green project to reduce its carbon footprint and minimise usage of resources such as water, paper and ink. “While we are concerned about the state of our planet, we also must realise the business benefits in addressing climate change and resource usage,” GS1’s CIO Steven Pereira said. “This is just the beginning of making sure we are a sustainable business.”

GS1 ECOm ImPlEmEnTATIOn ExCEEdInG ExPECTATIOnSalmosT 100,000 companies in 44 counTries haVe implemenTed gs1 eancom sTandards, allowing rapid, eFFicienT and accuraTe auTomaTic elecTronic Transmission oF agreed business daTa beTween Trading parTners.

a gs1 survey of 76 of its member organisations found that the adoption of ecom during the last few years has been growing steadily, with evident acceleration last year.

ecom is a gs1 term used for electronic data interchange technology, which can be defined as “the transfer of structured data, by agreed message standards, from one computer application to another, by electronic means and with a minimum of human intervention”.

gs1 ecom provides two complementary standards for business messaging:

¤ gs1 Xml

¤ gs1 eancom

The report found the gs1 Xml standards have been implemented in 30 countries, by more than 10,000 companies.

For more information on gs1 ecom visit www.gs1.org

WHAT’S ONSTAy Up TO dATe wITh The lATeST SUpply ChAIN develOpMeNTS IN yOUR INdUSTRy SeCTOR wITh A qUICK vISIT TO The GS1 AUSTRAlIA weBSITe.

The new “industry sectors” page on the gs1 australia website contains names and contact numbers for industries, industry briefs of gs1 standards usage, industry-specific implementation guidelines, guidelines for numbering and bar coding and more. The web page also contains helpful links to retailer hubs and industry associations.

Find out what’s happening in your industry sector by visiting www.gs1au.org/industry

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VOX POP…WhAT ImPACT WIll RFId hAvE On yOuR SECTOR In ThE FuTuRE?

PAUL BROADBRIDGEPETER DART

manager corporaTe deVelopmenT and sTraTegy, Finance and adminisTraTion, sa healTh

Within the healthcare sector, the application of RFId technology presents many opportunities to improve business processes that affect patient safety.

rFid enables automation and improved tracking and tracing capability related to warehouse and distribution, the movement of medical equipment and consumables within hospitals, the monitoring of products within the cold chain, and use within patient management systems.

in 2008, we are focusing on trialling the use of rFid within our warehouse and distribution function and cold chain management in order to develop a better understanding of the technology to enable it to drive business process improvement in the future.

inFormaTion serVices direcTor, pearson ausTralia group

There are three major areas where I can see RFId playing a role in the publishing industry in the future; all will have an impact on efficiency (cost) and quality (accuracy) of book delivery.

The first is the supply chain with single-use case tagging improving the traceability within logistics systems; the second is in the library sector where read/write tags will make a big impact on procedures, and finally book retailing where multi-use read-only rFid tagging of individual product will initially reduce shrinkage (theft) and may eventually be used more widely for inventory and returns. The major barriers to realisation of these goals are agreed standards and the cost of both the chips and their incorporation into our systems and processes.

www.gs1au.org/events

June 2008

04 gs1 webinar – “how do i get started with the gs1 system?”11 101 classroom Training – “The fundamentals of electronic messaging”18 gs1 webinar – “how do i improve visibility on my supply chain using the gs1 system?” 101 classroom Training – “radio Frequency identification and the epc global standards”

July 2008

02 gs1 webinar – “how do i get started with the gs1 system?”16 gs1 webinar – “how do i improve visibility on my supply chain using the gs1 system?”30 gs1 webinar – “how do i get started with the gs1 system?”

August 2008

06 gs1 webinar – “how do i get started with the gs1 system?”12 classroom Training – “use gs1 numbers & bar codes to improve your business” (melbourne)14 classroom Training – “use gs1 numbers & bar codes to improve your business” (sydney)19 classroom Training – “use gs1 numbers & bar codes to improve your business” (darwin)

September 2008

03 gs1 webinar – “how do i improve visibility on my supply chain using the gs1 system?”

17 gs1 webinar – “how do i get started with the gs1 system?”

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S ThE FOllOWInG dATES OuTlInE ThE EvEnTS lEAdInG uP TO SPRInG 2008.

keep an eye out for further listings in the next edition of LiNK, or visit the gs1 australia events website at www.gs1au.org/events for current details on seminar dates, times and locations.

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tecH Heads

BAR COdES for loyalty programsbar codes traditionally identify products but they are also being put to work identifying the members of australia’s leading loyalty programs.

among those to use gs1 bar codes is Virgin’s Velocity program. enda mansfield, Virgin blue manager – partners and operations, said the use of gs1 bar codes for Velocity member identification was the natural choice.

“gs1 bar codes are used all over the world to identify the products that our members purchase and the rewards that they redeem,” he said. “because they’re an integral part of the supply chain, it makes sense to standardise them right throughout our business processes.”

Virgin blue uses company prefixes for their loyalty programs, with unique global Trade item numbers (gTins) for each card.

gs1 australia’s andrew steele said loyalty program administrators should avoid the use of internal numbering schemes.

“internal numbering schemes will prevent the ability to use bar codes for loyalty programs across multiple trading partners, limiting capabilities for cross promotions or causing duplication with other retailers' use of internal numbering,” said mr steele.

“programs like Velocity prove just how versatile the gs1 standards are. and, as with product identification, the benefit is better customer service. There’s no need to stand around waiting while they type in your name and search for the right record – this is fast, error-free service at its best.”

For information on how to use gs1 identification keys and bar codes for loyalty programs, please contact andrew steele, national manager – corporate accounts on 1300 366 033 or via email [email protected].

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a new Tool auTomaTically sweeps daTa as iT is uploaded To gs1neT, keeping caTalogues more accuraTe and oFFering TroubleshooTing adVice when Things do go wrong.

The validator, says gs1 australia's richard jones, continues the good work done by companies as they prepare to trade online.

“when companies were becoming gs1net ready, we traditionally ran a once-off check to ensure their data met all the business requirements of their trading partners,” he said. “The validator does the same thing but operates quietly in the background every time new data is uploaded.”

The validator checks data against all global data synchronisation network (gdsn) syntax rules and local retailer business requirements. in fact, says mr jones, different rules can be turned on and off to suit different trading partners, making it easy for suppliers to match the needs of multiple retailers.

KEEPING YOUR DATA SHARP

“some retailers might want you to include nutritional information and others not, for example, and the validator takes all of that complexity in its stride,” he says.

any errors that are detected are colour-coded according to their importance and either passed with warnings or blocked altogether. an email is sent to the company that loaded the file with a full report on the errors and how they can be fixed.

“The validator is a great way to make sure that your gs1net data remains high quality over time, long after the training associated with the gs1net ready process is finished.”

The migraTion From eanneT To gs1neT has been compleTed wiTh oVer 1,000 members haVing made The moVe during The nine-monTh projecT.

gs1 australia’s general manager – service delivery, richard jones, said it felt like winning the aFl grand Final after languishing at the bottom of the ladder. “many suppliers underestimated the scope of changing over and ensuring business systems were integrated with gs1net,” he said.

The next phase of the gs1net project is to work with suppliers on the quality and accuracy of the data they are providing to their customers. “data quality is receiving a stronger focus now that we have built a critical mass of supplier catalogues in the grocery sector.

“we are looking forward to working with increasing numbers of users in the hardware, healthcare and automotive aftermarket sectors as those industries mature in their use of data synchronisation,” he said.

GS1net scores a winner as migration completed

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ausTralian suppliers and manuFacTurers haVe been quick To embrace The global upsTream supply chain iniTiaTiVe (gusi), which eXTends ecommerce To The head oF The supply chain.

The gusi model defines common business and data sharing processes to meet the major electronic communication needs of procurement, material forecasting, inventory management, dispatch, receipt and consumption of materials and financial settlement.

director of industry policy for the australian Food and grocery council (aFgc), russ neal, said the industry recognised the opportunities to improve supply chain relations “upstream” from manufacturers to their suppliers of raw materials and services.

“The aFgc supply chain committee did not hesitate to endorse this project work in principle after discussion with gs1 chief operating officer mark Fuller,” mr neal said.

“a working group and a separate reference group of interested companies now provide the framework and expertise to pursue the ideals behind this project. The input suppliers are now being identified and are showing great interest.

“The industry in australia recognises we do not have to ‘reinvent the wheel’. The global upstream supply chain initiative has identified business processes and data interchanges to support upstream improvements; it has helped refine and harmonise definitions and improve electronic communication.

“These new efficiencies are there for the taking. we are determined through this project to secure new efficiencies and so improve our corporate performances.”

gs1 australia's marcel sieira said the time had come for raw materials suppliers to realise the operational and financial gains stemming from the gs1 system that were already enjoyed by their trading partners.

“raw materials and packaging suppliers stand to optimise inventory levels, improve customer service, lower transaction costs and, in the process, streamline their operations,” he said.

sugar australia, as a key supplier to many Fmcg manufacturers in australia, is taking an active interest in the outcomes of the gusi project. robert camilleri, iT manager, sugar australia, said: “sugar australia is interested in the benefits for both parties of communicating electronically with customers.

“we also take great interest from the benefits we can achieve from implementing this with some of our key suppliers, being both a supplier and customer in the Fmcg marketplace. sugar australia would also like to ensure that some of the characteristics of the way we manage our product are supported in the gusi model,” he said.

The gusi project is scheduled for completion this year. For more information, contact marcel sieira at gs1 australia on 1300 366 033.

CommerCe g o E s u ps tr Eam i N au s tr a l i a

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Former AFL superstar Peter Daicos has launched a tool designed to help young people improve their sporting skills. The SportZstats counter captures performance statistics for upload into an online diary. The simplicity of the idea is matched with an equally streamlined approach to its distribution.

“during my seventeen years at collingwood Football club, my stats were recorded weekly,” mr daicos said. “as a junior footballer, i didn’t keep record of my stats. people constantly ask me what i was like as a kid and that’s why sportZstats was born. i developed the stats counter range to help kids record their game day stats and the online diary to track their development and improve their game.”

last year, the footballer-turned-entrepreneur teamed up with rino presutto to take sportZstats to market.

gs1 australia was able to help mr presutto with bar codes for the sportZstats counter range.

“gs1's helpdesk was very helpful and talked me through how to calculate the trade unit numbers i needed,” he said.

mr presutto knew getting sportZstats into major retail chains like kmart would demand a large investment in information technology and warehousing. instead, he asked third-party logistics provider, supply-linq, to manage the distribution process.

“To deal with kmart, suppliers must be able to trade electronically,” said supply-linq general manager david grieve.

“in simple terms, this means receiving orders via electronic data interchange (edi), having the product packed to store level by scanning individual product bar codes, delivered to kmart distribution centres and the transmission of an advanced shipping notice (asn). This paperless system has significantly lowered the cost of doing business with kmart by reducing administration costs and consolidating freight.”

“supply-linq offers a one-stop-shop solution for sportZstats encompassing the ecommerce system they need to trade with kmart as well as the warehousing, scan packing and transport to kmart's distribution centres.”

The simplicity of the process has worked well for sportZstats, mr presutto said.

“with supply-linq handling all of the edi functions, sportZstats only needs to factor in the 60-day lead time to get products made and shipped from china when orders arrive,” he said.

GUSI makes sense for Unilever AustralasiaLiNK spoke To unileVer ausTralasia’s alison cook For a local manuFacTurer’s perspecTiVe on The global upsTream supply chain iniTiaTiVe (gusi).

q: how is Unilever involved in the GUSI project?

a: unilever europe has been actively involved in the development and implementation of gusi with success in connecting with suppliers on the recommended global messaging standards and processes. demand and supply signals between unilever and suppliers have been a key focus as well as dispatch, receipt and consumption activities. in australia, unilever is participating in reviewing the gusi upstream integration model in two ways. First, ensure that the model is suitable for the australian supply chain environment. second, that all or parts of the model can be adopted by the wider manufacturing and supplier community in their day-to-day operations.

q: what benefits do you expect will come out of the project?

a: The long-term benefits of gusi include a standardised process of establishing or aligning upstream supply integration that can be applied to all suppliers and manufacturers. it is an opportunity to optimise processes using a common framework. There are many benefits to both suppliers and manufacturers that seek to improve business processes, such as service levels, maximising production capacity, and lowering inventory levels.

as an example, previously unilever europe had varied approaches on the usage of supplier managed inventory but has now aligned its approach to the gusi framework. as a result, other suppliers are now keen to engage with unilever using the same platform.

it is also a great opportunity to use gusi to review business processes that are not working efficiently, such as improving traceability of materials, automation of receiving inward goods, maintaining master data integrity from specifications to pricing, accurate data capture of goods between warehouse and accounts payable, and improved communication between supplier and manufacturer.

q: how have your trading partners responded?

a: in march 2008, aFgc and gs1, along with unilever, lion nathan and simplot, held information seminars for a range of suppliers and close trading partners. many of those who attended have been involved with the downstream supply chain projects between manufacturers and retailers. it comes as no surprise that upstream in the supply chain deserves the same focus. other suppliers not exposed to the retailers were keen to be involved as a way of improving the management of supply chain within their business. all agreed that gusi is the future for upstream supply chain, not only in australia but globally.

Daicos delivers for kids

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as parT oF a major naTional inFrasTrucTure upgrade, ausTralian air eXpress will soon accepT serial shipping conTainer codes (ssccs) For iTem leVel idenTiFicaTion and Tracking.

The change means gs1 members will no longer need to relabel cartons for transport using australian air express (aae). aside from the direct savings and convenience for customers, there will be broader supply chain benefits, aae commercial program manager sarah corin said.

australian air express AccEpTS SSccS

decided to build new auto-sortation centres in melbourne, sydney and brisbane and roll out next generation handheld devices, we jumped at the opportunity to make ssccs integral to our processes.”

“aae will also be using a number of other gs1 bar codes in the sortation centres to provide routing information for our inbound and outbound freight movements. That will mean faster movement and less manual handling of freight, which in turn will cut transit times and the risk of damage.”

The use of gs1 bar codes rather than proprietary alternatives will also allow aae customers to use the same identifiers throughout their supply chain processes rather than proprietary alternatives. ms corin said the change was welcomed by many aae customers.

“ssccs are quite popular with our bigger customers and an increasing number of smaller customers too,” she said. “it’s the way of the future. industry standards mean you can label your cartons just once, regardless of the carrier, and the use of ssccs adds to the efficiency of the supply chain as a whole.”

“as a link between trading partners, our use of ssccs will improve traceability and integration into our customers’ identification, tracking and systems used to consign and move freight,” she said.

The adoption of ssccs had been on aae’s agenda for some time.

“we wanted to support our customers’ investment in industry standards,” she said. “when aae

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data needed to aid visually impaired australiansAn AppeAl hAs gone out to gs1 AustrAliA members for product informAtion thAt will trAnsform the lives of the visuAlly impAired And their fAmilies.

Thanks to a talking bar code scanner, called id mate omni, visually impaired people are now able to identify everything from soup to socks. The technology is proven but bernie slagtman, who has arranged for its australian release by a newly formed charity, Visual independence, says capturing more data and keeping it updated is the next challenge.

“eventually, we would like to add information like nutritional information, instructions, allergy warnings and even recipes into the database,” he said, “right now, we need more gTins and descriptions added to gs1net to keep the id mate omni up to date with the latest product releases.”

“This information empowers the visually impaired with the ability to shop and cook for themselves – that’s a tremendous lift in their quality of life. it will also have an enormous impact on carers and family members.”

gs1 australia is already providing ongoing feeds of data from gs1net’s database of 1 million line items and is urging members to become involved by adding more data.

“This project is a great way to leverage the use of gs1net for a fantastic cause,” said gs1 australia’s john hearn.

“adding more data will ensure your retail trading partners use accurate product information, but that same gTin and description data can now benefit the visually impaired community with no extra effort.”

The id mate omni will be regularly synchronised with gs1net, helping visually impaired people to identify products when shopping and at home.

each unit retails at $1,500, putting it beyond the reach of many visually impaired people. while schemes in some states will subsidise the id mate omni, donations are sought to make the scanners readily available to the financially disadvantaged.

For more information, visit www.visualindependence.org.au or contact john hearn on 1300 366 033 or [email protected].

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insighT, innoVaTion and implemenTaTion are The key driVers oF ausTralia’s premier supply chain conFerence, impeTus 2008.

be inspired at impetus 2008: australia’s premier supply chain event

dr sanjay sarma, associate professor of mechanical engineering at massachusetts institute of Technology (miT), will discuss the latest developments in rFid technology across the globe and what implications they will have in australia. dr sarma is widely credited with defining and developing many of the standards and technologies that form the foundation of the commercial rFid industry.

richard umbers, general manager customer engagement, woolworths, will also deliver a keynote address looking at current and future supply chain challenges faced by the retailer.

on day Two the keynote address will be given by steven newton, metcash limited national Technical manager, on “business continuity planning” for a supply chain in a pandemic scenario. he will address what businesses need to consider when facing a pandemic, whether existing supply chain infrastructure is sufficiently robust

Expo The gs1 australia impetus 2008 expo is a free trade show presenting the latest supply chain and technology solutions. created especially for supply chain professionals and their business, the impetus expo provides an opportunity for conference delegates to explore and compare the most up-to-date technology and talk to the people making change happen in the supply chain world. showcasing more than 30 gs1 australia alliance partners and associates, the expo will give an insight into supply chain innovation and implementation.

Supply Chain Tech Sessions The “supply chain Tech Theatrette” sessions are complimentary for all visitors to impetus 2008. gs1 australia and our alliance community are pleased to present a program of on-site technical seminars addressing a number of cutting-edge technologies including rFid/epc, data synchronisation, the latest software and much more. Through targeted presentations and case studies, these seminars are a chance to learn about the latest supply chain developments and emerging technologies.

Wireless Internet Café The gs1 impetus wireless internet café will be located in the heart of the expo. wireless hot spots will ensure conference delegates stay connected with their business, colleagues, friends and family during impetus.

The impetus program will run over two days offering an impressive line-up of keynote speakers including representatives of a wide range of australian businesses who will share their hands-on experience in supply chain implementation and transformation.

master of ceremonies, celebrated journalist and author mike munro, will welcome conference delegates with gs1 australia ceo maria palazzolo. The president and chief executive officer of the gs1 global organisation, miguel lopera, will open the conference officially.

on day one of the conference delegates will have the opportunity to hear from leading-edge experts in rFid/epc. The keynote address will be given by simon langford, director – epc strategies for us retailer wal-mart, who will share strategy and learnings on epc at wal-mart and the sam's club wholesale club chain.

industry Profile

plaTinum sponsors

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be inspired at impetus 2008: australia’s premier supply chain event

healthcare, automotive and food and grocery. speakers representing the government and education sectors will also participate.

at the end of day one, gs1 australia will celebrate its thirtieth anniversary with a cocktail party to which delegates are invited.

impetus will run on Thursday, 23 october and Friday, 24 october at the sofitel hotel.

For more information on impetus 2008 visit www.impetus.gs1au.org.

GS1 Australia awards at Impetus 2008 nominations are now open for the gs1 australia 2008 supply chain excellence awards. The awards will be presented at impetus 2008. They include:

2008 Leadership in Standards Award This award recognises the contributions made by an individual in championing the promotion and implementation of the gs1 global best practice standards, within the company, sector or industry.

2008 Award for Standards in Action This award recognises the company who has driven the implementation of the gs1 standards within its organisation and has utilised the services of gs1 australia to raise the knowledge on the standards among its staff and partners.

If you would like to nominate an individual or company to receive a GS1 Australia Excellence Award, please complete the form on the GS1 Australia website at www.gs1au.org/excellence_awards.asp. Nominations close on Friday, 28 September 2008.

to sustain heavy demands, what technologies need to be in place and what security measures must be activated to ensure vital supplies are delivered to those in need.

conference delegates will also have the opportunity to hear from the ceos of australian industry associations. in a panel discussion they will discuss critical supply chain issues and the trends that lie ahead for their members.

other speakers will relate their hands-on implementation experience in supply chains across sectors such as hardware, retail,

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Today’s consumers are demanding more inFormaTion abouT where Their Food comes From, wheTher ouT oF concern abouT Food miles and Their carbon FooTprinT, or because They need To be reassured abouT The saFeTy oF whaT’s on Their dinner plaTe. in ausTralasia, gs1 is working To ensure Fresh produce TraceabiliTy sysTems are based on global gs1 sTandards.

APPETITE FOR TRACEABIlITygroWsfeature

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with the beijing olympics just months away the chinese government is putting in place a food produce quality tracing system to ensure food safety for the event. gs1 china has an agreement with the beijing administration for industry and commerce and the beijing Food safety supervision office. gs1 bar codes will be used to track and trace a wide range of food from source.

closer to home, the fresh produce industry is embarking on projects to enhance food safety. a call to action went out in march aimed at developing guidelines for any company implementing traceability practices in the fruit and vegetable (“produce”) supply chain anywhere in the world. The Traceability implementation guidelines for Fresh Fruit & Vegetables work group will work under the auspices of the gs1 global standards management process (gsmp).

consumer safety has become one of the most critical issues for the food supply chain. despite the best efforts by fresh produce supply chain participants, food safety problems may never be completely excluded. however, an effective and cost-efficient traceability system can pinpoint a problem to a specific region, packing facility, group of growers, a grower or even a field, rather than an entire commodity group.

richard bennett, product integrity manager & Team leader at horticulture australia limited (hal), a national research, development and marketing organisation that invests almost $80 million annually in projects that provide benefit to australian horticulture industries, manages the development and implementation of quality food safety and environmental assurance systems as well as product identification and traceability.

“you can’t manage what you can’t monitor and this is an industry plagued with transpositional errors. The quicker you can track and trace up and down the supply chain, the greater your advantage. There are also times when businesses need to rapidly track and trace to verify the source of contamination – even if it’s just to confirm that it is not fresh produce.

“environmental assurance standards requiring traceability, the us biosecurity act and its equivalent in europe have given traceability a real kick-along,” he said.

“more sophisticated supply chains track raw materials up the chain, with recipient-created tax invoices and the tying together of all the functions.”

mr bennett said it was important to track the origin of the produce, the harvest date, and pest and disease management.

because of the diversity of international produce supply chain practices, it is critical that growers, packers, importers/exporters, and logistics providers work with their partners in distribution and retail to develop technologies and global standards that allow identification to follow produce from the field to the retailer, gs1 australia’s general manager – member & industry support, john hearn said.

wORKING fOR A SAfeR fReSh pROdUCe SUpply ChAIN

improving the speed and accuracy of tracking and tracing implicated food items can help limit the risk in a food safety issue. rapid and effective traceability can also minimise the unnecessary expenditure of private and public resources and reduce consumer concerns. Tracing implicated food items may help public health services and industry operators in determining potential causes of a problem, thereby providing data to identify and minimise health hazards, he said.

“agreed upon procedures and the global gs1 standards for produce identification and documentation will enable a quick and automated tracking of individual produce trade units from farm to the retailer,” mr hearn said.

The gsmp Fresh Fruit vegetable Traceability call-To-action can be viewed at www.gs1.org/docs/gsmp/call_to_action/cTa_Fresh_Fruit_Vegetable_Traceability_implementation_guidelines.pdf

For further information on gs1 australia’s initiatives within the australian Fresh produce sector contact rachel kairuz on 1300 366 033.

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major project right on track

eastpack is a new Zealand grower-owned kiwifruit company which each year packs 12.02 million trays of fruit for 389 suppliers and forwards to export a significant share of the nation’s $1 billion-plus kiwifruit crop. its pack houses must respond constantly to international market signals received through the industry’s exporting arm, Zespri.

it’s a supply chain with major logistical challenges that reflect the competitive market positioning of new Zealand kiwifruit. eastpack turned to gs1 for innovation to enable the pack house to deliver export shipments with greater efficiency, to reduce fruit losses and to raise operational productivity.

gs1, through its supply chain enhancement program, has designed, and given close ongoing support to the implementation of a system that will enable eastpack to track and trace every pallet of kiwifruit throughout its extensive operations.

feature

australasia’s first major commercial roll-out of radio Frequency identification (rFid) with the electronic product code (epc) standard is under way within the kiwifruit industry. gs1 australia’s sister organisation, gs1 new Zealand, reports on the logistical challenges.

gS1 australia's gm – member & industry Support, john hearn, said:“it is great that eastpack and gs1 new Zealand have allowed us to share this implementation with our readers. while gs1 australia has quite a few epc/rFid implementations under way, they are all quite strategically confidential at this early stage, and we aren't in a position to share these examples just yet.”

epc/rFiD

This is likely to be the first whole-of-operations application of epc/rFid technology in the asia-pacific region. it is an application designed and implemented specifically to meet the demands of a large-scale operation in the heart of new Zealand’s export sector. epc/rFid went live at eastpack from the start of the 2008 kiwifruit season.

logistical challengesFor edgecumbe-based eastpack, export market signals hit the tightly packed lanes of its 42 cool stores most days of the season. From late march, the company receives the freshly picked kiwifruit for sorting, packing and temperature-controlled storage in readiness for trucking to ships. eastpack’s Te puke pack house is the biggest such facility in the industry, expected to handle 9 million trays this season.

Fruit coming off the sorting lines is packed by type, size, grade and harvest date on pallets before going into cool stores. The pack houses respond constantly to market orders from Zespri – orders that give ten days’ notice of the next shipment but may repeatedly change in detail until just a few hours before product is due on the wharf.

flexibilityFlexibility in filling orders is what helps make new Zealand so competitive on the international market – but it must be matched by extraordinary operational flexibility between orchard and ship. “everyone in the supply chain has got to do their part to make it happen,” says eastpack company administrator donna smit.

in the cool stores pallets are typically stacked in rows twelve long and two high and are moved in, around and out as product is selected and accessed. in the height of the season, that can mean 24 forklifts at work during three shifts in each 24-hour period.

The kiwifruit must be kept in the correct cool temperature range. ideally, pallets move

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epc/rFiDin and out of storage on a first-in/first-out basis, with softer fruit being taken for export ahead of harder to minimise spoilage. but the flow of orders and constant updating of type, size and packaging requirements invariably disrupts the ideal. some pallets must be urgently retrieved, with others pulled aside and relocated. eastpack makes a final check on product quality at the loading dock and mrs smit says this can mean further juggling as sub-standard fruit is removed and new trays added.

Incentiveskeeping inventory records and pallet locations up to date is critical – when the squeeze is on, the task becomes extremely difficult.

For eastpack, there are obvious financial incentives in increasing efficiency in cool store operations: easy and quick retrieval of fruit to the exact specifications of each order means higher sales volume and lower wastage; fewer forklift movements mean less likelihood of fruit being “lost” within the store, and lower requirements for both energy and labour; less juggling of pallets means more stable temperature control, with less energy consumption and fruit spoilage.

in all, eastpack will be better positioned to fill the more urgent and lucrative orders coming through from Zespri, and to avoid penalties that apply when pack houses inadvertently send the wrong kiwifruit to the wharf.

The solutioneastpack saw big potential for automatic data capture and came to gs1 for ideas in early 2007.

They had long used bar code scanning to track pallets, but were aware of inherent limitations when demands of the export season really hit. staff just could not devote the time and rigour required to scan and record every pallet movement.

enter gs1 new Zealand’s professional services team and its successful supply chain enhancement program.

on request from eastpack, senior consultant erik sundermann immersed himself in cool store operations. gs1 new Zealand came back with a proposed solution that would build on the company’s experience with gs1 standards serial shipping container codes (ssccs) and bar coding, and support the existing inventory management system. with gs1’s professional support, eastpack put out a request for proposal (rFp) to source the components for robust application of rFid.

providersproviders were selected in august 2007, with peacock bros. of australia and new Zealand appointed to the role of project integrator (gs1 new Zealand was retained to provide close technical advice and project overview). The solution is simple: place epc/rFid tags on pallets and epc/rFid readers on forklifts; capture events automatically whenever a forklift picks up or drops off a pallet; identify where in the store these activities are occurring; and transmit the data back to eastpack’s inventory management system.

The project team experimented with a prototype solution using one forklift to move pallets between a limited number of locations in one store. success led to a fully operational pilot throughout one store, the forklifts then being operated by staff in the business-as-usual rush to locate pallets and fill orders.

locations around the store were tracked through the use of forklift-mounted cameras and location markers (dot matrix bar codes)

attached to the ceiling: the cameras recorded the location through the bar codes each time a pallet was picked up or dropped off. This data was matched to cool store coordinates fixed on a floor grid pattern and along with the sscc of the relevant pallet and a time-stamp, was transmitted to the management system.

Roll-outThe pilot results were impressive. The accuracy rate for data capture in the management system exceeded 95 per cent and the ceiling-mounted markers enabled pallets to be identified to within 20cm of their exact locations. From there, eastpack and its project team began a full-scale roll-out of epc/rFid at all 42 cool stores at three sites – all with the goal of full implementation in time for the 2008 season (starting in the final week of march).

The value of the solution lives in eastpack’s vastly improved ability to locate particular pallets in store and to quickly retrieve them for export at optimum times with minimum reshuffling of other pallets. The management system already holds data on all fruit received for packing (e.g. type, grower, harvest date) – and the system now will also hold real-time information on the location and status of that fruit by pallet.

powerful toolmrs smit says the epc/rFid solution gives eastpack a powerful tool for streamlining every aspect of its cool store operations. The company will have a full history of each pallet and this will greatly increase its ability to track and trace product.

The solution will also provide new streams of data on forklift movements, cool store utilisation and other variables on which to measure and improve the operating performance of each facility, opening the way for savings in energy consumption, labour and

time. There will also be benefits in terms of safety for staff working in a busy, crowded environment.

Time is often the most critical element of all for eastpack. when fruit can be accessed and moved with greater certainty and speed, the company can far more easily manage the risk of its deterioration and loss. all parties expect the epc/rFid solution will lead, ultimately, to reduced fruit loss, increased sales, cost savings and the avoidance of any wrong or missed shipment penalties. even with conservative assumptions, eastpack anticipates recovery of the capital costs during the first two years of implementation.

“we thought rFid was the way forward but couldn’t have moved so quickly and so effectively without the knowledge and drive provided by erik sundermann,” says mrs smit. “he gave us an immediate ‘101’ understanding of the technology and very quickly wrote us a report explaining how it could work in our business.”

The eastpack solution will mean Zespri receiving 15 per cent of its product with gs1 standard epc/rFid tags attached. The globally standard nature of this technology will open opportunities for wider application in the new Zealand kiwifruit supply chain, from the grower to the supermarkets of new york, paris and Tokyo.

This article was first published in the may edition of SCAN, gs1 new Zealand’s supply chain magazine. gs1 australia would like to acknowledge gs1 new Zealand for the sharing of this article.

For information on how gs1 australia can assist your organisation to implement the epc/rFid standards, please contact gs1 australia on 1300 366 033.

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Global neWs

The hospitals, which include chelsea and westminster, university hospital of south manchester and university college london need to address the threat posed by transferable diseases through the cross contamination of surgical instruments and to eliminate problems caused by wrongly issued medication.

nhs connecting for health (cfh), a department of health agency set up to encourage the use of technology in the national health service to improve patient care and services, is working with gs1 uk to engage and inform hospitals on the importance of using automatic identification and the gs1 standards. The automatic identification, enabled by bar codes which adhere to gs1 system standards, allows hospitals to trace the lifecycle of surgical instruments, including the verification of the decontamination and sterilisation process, and to determine for which operation instruments were used.

70 uk Hospitalsto usegs1 system + medication and health represent

the prior sector in which to apply traceability.

+ people expressed a particular interest in information connected with the origins, the raw materials and the ingredients of products.

+ manufacturers are considered the main guarantors of product quality.

+ retailers get a high level of confidence and people trust the biggest establishments (hyper or super markets).

+ The main limit of traceability is the extra cost passed on to both consumer and manufacturer.

+ consumers don’t express a high level of satisfaction about information displayed on product labels and expect a lot more information (especially about the origins and the detailed list of ingredients). This is particularly strong in countries like china, russia and brazil, where people are prepared to pay more for traceability.

+ labels that ensure the product complies with traceability standards are seen as the best way to reassure people, rather than detailed reports of all the stages of the traceability process.

+ eighty-five per cent believe that rFid labelling was likely to develop and do not perceive any fear or risks connected with rFid labelling.

Consumers aware of traceability, says GS1 france reporta survey conducted by gs1 France to study the perception of traceability by consumers has shown that the issue has a high level of awareness all around the world. of those surveyed in France 86 per cent were aware of the issue, 22 per cent in russia, between 25 and 31 per cent in english-speaking countries, 50 per cent in china and 45 per cent in south africa.

As a joint collaboration between GS1 france and Trace One, an IT company providing collaborative solutions for manufacturers and retailers, the study was conducted among consumers on five continents. Results included:

+ Traceability is seen as a guarantee of product quality for the consumers, valued more highly than security considerations.

Thanks to gs1 uk’s work with the nhs connecting for health initiative, 70 hospitals are to begin using the gs1 system of standards to improve patient safety.

GS1 System selected for veterinary drugs identification in ItalyThe italian health ministry has recently issued regulations governing the use of gs1 bar codes on the packaging of veterinary drugs destined for retail.

The GS1 System proposed by GS1 Italy has been chosen by the Italian health Ministry and veterinary pharmaceutical companies as the system best designed to meet two requirements of this field:

+ to ensure traceability of veterinary drugs right up to the end user, thus guaranteeing public and animal health.

+ to monitor the packages of veterinary drugs on the market, so as to fight any fraud that might endanger human or animal well-being.

The new regulations make it obligatory not only to have a drug identification number (which is the basis for any traceability system), but also a system that can encrypt and automatically read variable data, such as expiry date and batch number.

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the monash pharmacy project phase 2 has been enjoying centre stage in europe this year. it was chosen as one of only three business case presentations to the gs1 general Assembly in dubrovnic in may and was also presented at the ninth gs1 healthcare conference in granada, spain, earlier this year.

phase 2 of the project, which involved seven pharmaceutical manufacturers, two wholesalers and the southern health pharmacy department operating from five hospitals, was project-managed by gs1 australia.

it used gs1 standards-based electronic messaging to deliver savings in the hospital pharmaceutical sector and achieved a 60 to 92 per cent reduction in the time taken to receive stock into pharmacy management software.

phase 3 of the project is about to commence with the general aims of improving supply chain efficiency and laying the foundations for increased patient safety in australia.

gs1 australia ceo maria palazzolo, presenting the case study to the general assembly, paid tribute to the australian team who worked on this project and the world-class case study. “This is a fantastic result given that there are over 100 countries around the world that submitted case studies and the competition is pretty fierce,” she said.

gs1 australia general manager – member and industry support, john hearn, presented the results of the project at the gs1 healthcare conference in spain where he told delegates phase 1 of the project was an influential demonstration of use of the gs1 system in the hospital pharmaceutical supply chain.

he said phase 2 furthered the phase 1 concept by broadening both the project team and the implementation scope, while focusing on ease of implementation and further roll-out of the standards.

Monash Pharmacy project phase 2 shines in europe

Making an impact on counterfeitingThe world health organization (who) has launched impacT (international medical products anti-counterfeiting Taskforce) in response to the growing public health threat of counterfeited drugs and medical devices.

impacT aims to build coordinated networks across and between countries to halt the production, trading and selling of fake medical products. gs1 healthcare is part of the impacT Technology work group.

at a recent impacT conference in singapore, gs1 healthcare was invited to talk on the topic of “global standards”. maria palazzolo, ceo of gs1 australia, presented the work of gs1 healthcare in the area of standards for unique identification and traceability.

For more information visit www.who.int/impact.

Korea expands the use of GS1 standards in healthcarekorea’s mohw (ministry of health & welfare) has announced new regulations expanding the use of gs1 standards in healthcare. previously all drugs, except specific types of small drugs, were required to carry a gs1 standard ean-13 bar code.

The new regulation includes the following requirements:

+ all drugs, except specific types of small drugs, must have a gs1 bar code with a gTin structure (effective 15 january, 2008)

+ all drugs, regardless of their size, must have a gs1 bar code encoded with a gTin structure (effective 1 january, 2010)

+ all specified drugs (effective january 1, 2012) and ethical drugs (effective 1 january, 2013) must have a gs1 datamatrix or a gs1-128 linear bar code which also contains the expiry date and batch number.

Educating the Australian healthcare industryTo ensure that the australian healthcare industry has access to the latest information about development and use of the gs1 system in healthcare around the world, in the coming months gs1 australia will be running a series of education sessions.

These sessions will be repeated three times annually, with both face-to-face training and webinar facilities. more information will be circulated soon to gs1 australia’s healthcare industry members.

For further information about the topics discussed in this article, please contact Tania snioch on 1300 366 033.

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Get smart

Special offer Winter discount on Chain Reaction Program

Supply chain managers who need to improve their skills have a chance to do so this winter and save their company money.

gs1 australia’s supply chain knowledge centre is offering a 25 per cent discount on the fees for its chain reaction program during june, july and august.

The chain reaction program is a full-day session from 9am to 5pm and covers the importance of the supply chain, what is supply chain collaboration and integration and how to achieve it.

The chain reaction program is made up of six modules and tutorials constructed against the supply chain operations reference model (scor) for supply chain management. These modules can be tailored to the demands of different industry and business environments.

a certificate iV version of the chain reaction program is now available. This was developed in conjunction with swinburne

university and participants are given a unit credit towards any certificate iV course (nationally), where this subject can be credited.

The chain reaction program requires a minimum of four participants and the cost includes morning tea, a light lunch and afternoon tea. with the special discount the course costs just $148 for a gs1 australia member or alliance partner or $211 for a non-member. certificate iV versions of the program cost $342 for a gs1 australia member or alliance partner or $405 for a non-member.

The program is held at the gs1 australia knowledge centre, axxess corporate park, unit 100/45 gilby road, mt waverley, Victoria or at gs1 australia’s sydney office, lakes business park, building 4b, 2–4 lord street, botany. For more details and to book online visit www.gs1au.org/services/education_and_training.

gs1 signs mou wiTh MELBOURNE UNIVERSITYone of australia’s “sandstone universities” has a thoroughly modern approach to supply chain management, joining forces with gs1 australia to ground its research and students with real-world experience.

in February, the university of melbourne became the eleventh tertiary institution to sign a memorandum of understanding (mou) with gs1 australia. associate professor damien power said the mou would work well for both gs1 australia members and the university.

“Together, we can apply for research grants and collaborate on important research projects,” he said. “The use of radio frequency identification in the healthcare sector is a good example. gs1 australia can provide the industry with partnerships we need for good empirical research and we can provide access to the findings of university research.”

making the connection between theory and practice had already paid dividends for both undergraduate and post-graduate students, associate professor power said.

“just last month, 90 students spent half a day at the supply chain knowledge centre to see what we discuss in class in a real-world context. we had excellent feedback from students, who could see first hand how gs1 standards contributed to more efficient and effective material flows.”

“The mou is a great initiative because gs1 australia’s work fits perfectly with what we teach at melbourne uni.”

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Four times a year gs1 australia holds a supply chain management (scm) Futures Forum focused on educating the next generation of supply chain professionals. The last meeting in 2007 led to the creation of a skills matrix listing the competencies students should acquire during their studies.

The forum concluded that the majority of scm graduates have a scientific and analytical background, and while this provides a valuable set of technical skills, they also need additional skills so they can work effectively and be commercially savvy when applying their knowledge in the workplace.

universities and other partners of the forum have committed to check their course curriculums against this matrix to make sure they are giving their students the appropriate skills for industry readiness.

Training the supply chain managers of tomorrow continues to be a focus for Australian universities working with GS1 Australia’s training and education team.

now the university of melbourne is taking the skills matrix to industry for consultation as it designs supply chain management courses for students next year. damien power, associate professor of operations management in the university’s Faculty of economics and commerce, said the matrix was very much a work in development.

“we have been taking it to people in industry to show them what we are proposing and asking them whether it is consistent with their requirements,” he said. associate professor power said the response from industry so far had been “pretty positive”.

These skills in the matrix include the ability to: be socially interactive,

communicative and technology savvy.

analyse and solve problems as they arise in the business.

demonstrate an appropriate knowledge on supply chain management and its connection with other disciplines.

apply supply chain knowledge in a practical environment in a critical, creative and ethical way.

demonstrate responsible behaviour and social conscience through leadership.

For more information on this skills matrix and on the forum, contact camille dreyfuss on 1300 366 033 or email [email protected].

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emerGinG trends

rFiD SolutionS

ShifttowArdS cloSeD-loop applicationS

the rfid mArket is still evolving through its eArly phAse, but there hAs been A perceptible shift from open-loop ApplicAtions to closed-loop ApplicAtions, According to intermec’s director of rfid business strAtegy, chris kelley. “closed-loop ApplicAtions Are emerging As successful And will define mArket segments And the future winners And losers,” he sAid.

intermec is a major us manufacturer and worldwide supplier of automated identification and data capture equipment, including bar code scanners, bar code printers, mobile computers and rFid systems. intermec is a strategic alliance partner of gs1 australia and mr kelley recently briefed a meeting of solution providers at gs1 australia in melbourne.

“we are beyond the hype of rFid but it is still early days. open-loop overhype caused over-investment but there has been a shift away from all the talk towards real projects and pilots in the supply chain. now companies are using rFid in applications that provide good roi,” he said.

The most successful rFid applications were closed-loop applications which had the potential to become open, he said. “For example, once that is successful in an organisation it then can be extended to its trading partners.”

The implementation of rFid technology is primarily based on an open, global standard epcglobal, a subsidiary of gs1. electronic product code (epc) provides unique identification for the rFid tags and is fundamental to the low-cost adoption of rFid technology.

mr kelley predicted that chip manufacturers would soon produce high-value chips with massive memory and sensors with the ability to monitor data such as temperature as well as being able to connect to other systems to log data.

Turning to working with intermec’s business partners, mr kelley said: “in my experience successful rFid applications involve re-engineering business processes. by just adding rFid to existing business processes you are pretty much just adding cost.

“one of the first steps intermec will take when working with a partner is to look at whether rFid is the best

solution for the situation and if so, what the business process should look like,” he said.

intermec was particularly focused on rFid applications in four sectors: industrial goods, transport and logistics, consumer goods and retail distribution. “we aim to deliver solutions through partners like you. we have easily customised systems to enable you to be more effective and to deliver solutions more rapidly, drawing on our expertise, scale and capability to make rFid work,” he said.

director of rFid business strategyChris Kelley

2007 saw a shift away from talk and hype towards real projects and pilots in rfid, according to intermec’s director of rfid business strategy, chris kelley. three projects in which intermec used rfid successfully in the supply chain, for asset tracking and for security were:+ swiss post, switzerland: intermec used rFid to track the movement

of postal containers. “we used 600-odd readers to track some 45,000 containers with a great result,” mr kelley said. “while the scale was small compared to an organisation like china’s postal service, which has millions of containers, our application is very scaleable.”

+ gerry weber apparel, germany: item-level tracking in retail using handheld technology to conduct a periodic cycle count.

+ pan am games, brazil: intermec technology was built into officials’ badges and rFid was used for security.

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search our ONLINE SOLUTION PROVIDER DIRECTORY

some leading icT companies have recently joined the gs1 australia alliance partner program. Through this program gs1 australia works with companies that share its business-oriented vision of delivering real supply chain benefits to australian business and industry associations.

The gs1 australia website now has a searchable directory of alliance partners and the services and solutions they provide. you can search by company name or by category and results can also be listed specifically by state. There are now more than 80 alliance partners who provide both small and large businesses with a diverse range of supply chain hardware, communications products and services to assist members with the implementation of the gs1 system in their business.

all gs1 alliance partners are gs1 system accredited by gs1 australia so you can trust that their solutions are compliant, proven and effective with the gs1 system of standards.

To view the online directory of alliance partners visit www.gs1au.org/membership/spd.

gS1 australia

moves to new fee structure

“at the time of going to press we have had a positive response from more than 80 per cent of our subscriber base and we would like to thank them for working with us to establish a strong, healthy and relevant subscription membership structure,” gs1 australia’s general manager – customer service, peter chambers, said.

“by now gs1 members will have received a letter and email detailing what the new fee structure will be if they provided us with details of their company turnover. This new structure offers significantly reduced fees for most of our subscriber members, and will facilitate faster adoption of gs1 standards by industry.” he said.

For a new gs1 subscriber this could mean a reduction of up to 50 per cent in joining and annual subscription fees if their annual company turnover is less than $1 million.

mr chambers stressed that it was not too late for subscribers to advise gs1 australia of their company turnover details to take advantage of the new fee structure. “however, we need to have the complete company turnover, not just the turnover related to the use of gs1 Trade item numbers (gTins) for bar coding,” he said.

Thanks to a tremendous response from its members, gs1 australia will introduce a new more equitable subscription membership model based on company turnover effective from july 1, 2008.

other changes that subscribers should be aware of include:

+ a revised invoice with more detail about gs1 number usage and more functionality.

+ a direct debit facility for subscription fees with an improved facility for direct debit payments for all invoices not just renewals.

+ The ability to make part payments of renewals on a monthly basis via a credit facility that gs1 now offers.

For more information on the new subscription fees visit www.gs1au.org.

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ALLIANCE pArTNEr excHanGe

B2B mESSAGInG REShAPInG electronic data interchange

Joseli who can benefit from these new platforms?

Scott There are still hundreds of australian supply chain participants using traditional edi networks who can benefit from a change to internet-based edi provided by leadtec.

Telstra announced in a media release dated 29 February 2008, “Telstra has entered into an outsourcing agreement with leadtec systems australia pty ltd to provide improved business outcomes for its eTrading customers via ip-based enterprise messaging services.”

Joseliwhat will companies moving to ip-based platforms notice?

leadtec managing director Scott Needham

gs1 australia’s Joseli Munive

Scott internet-based edi provide efficiencies by allowing companies to use their primary internet connections rather than having a separate communications channel for trading electronically.

it also brings newer communication protocols that better handle things like guaranteed delivery between trading partners. more powerful security and more powerful data models also allow them to structure their data in a more complex way more easily structure edi data in line with the gs1 eancom or gs1 Xml edi standards.

For example, the traditional networks just move the message from point a to point b but the new platforms will also help manipulate data so rather than receiving or sending the edi directly, they can ask their service provider to convert that edi into, say, a standard myob gs1 Xml or gs1 eancom file, so that the file can be loaded straight into myob transmitted in this standard format to their trading partners. Traditionally, they would have had to have some software to do that at their end, which is an additional cost.

new b2b messaging platforms that leverage the power of the internet are reshaping electronic data interchange, says scott needham, managing director of leadtec. he chatted with gs1 australia’s joseli munive about what users could expect.

Joseli what are the big-picture benefits?

Scott The primary benefit is less data entry. For things like purchase orders, it generally saves around five minutes to half an hour once you factor in the cost of errors, depending on the complexity of the document. That’s the first-round benefit.

The second-round benefit comes from efficiency gains associated with introduction of things like the advance shipment notices, which make the whole supply chain work more smoothly.

again, having the gs1 standards in place to govern the structure and format of the edi makes the whole supply chain work more smoothly for everyone.

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B2B mESSAGInG REShAPInG electronic data interchange

GS1 AustraliarecognisesAlliance partner excellenceGS1 Australia CeO Maria palazzolo recently presented Alliance partners with certificates acknowledging their participation in the Alliance partner program.

presenting the certificates in both sydney and melbourne ms palazzolo said the program brought together the world’s best supply chain management solution providers, all with solid reputations for the quality of their services and products to support and assist members in making the implementation of the gs1 system smoother and easier.

maria palazzolo presents greig Francis, of strategic alliance partner markem-imaje, with a gs1 australia certificate.

Joseli what’s involved in changing from an edi Van to internet-based edi?

Scott most of the time, this is machine-to-machine communication, so generally, there can be quite a bit of work on day one to get things set up and make sure all the fields are all correctly aligned for their particular accounting package. once that’s implemented, it all runs without the need for any human intervention. a customer using myob just has the files loaded straight into their system. Tracking and interpreting the communications happens within the network and it’s delivered ready to go.

it shouldn’t be too tricky for anyone still using an edi Van to move onto the new internet-based platforms. most of their trading partners will have already moved away from the older technology, so in most cases it’s really a matter of finding a service provider that can assist them to move. That service provider can generally manage the connection with the trading partners on their behalf. primarily, it’s an opportunity for them to upgrade their technology and, in most cases, the communications protocols are quite common and based on windows platforms so there’s generally not a significant investment in technology.

all up, it’s a really worthwhile change that will save you money, time and help build better relationships with your suppliers and customers.

marcy larsen, of strategic alliance partner microsoft, pictured with maria palazzolo and gs1 australia’s manager, alliances & partnerships, joseli munive at the certificate presentation.

“again, having the gs1 standards in place to govern the structure and format of the edi makes the whole supply chain work more smoothly for everyone.”

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ALLIANCE pArTNEr advertorial

traceability vITAL IN hEALThCArE SuppLy ChAIN

This has put great pressure on the healthcare industry to remain vigilant and record-keeping has become paramount to assist in managing supply as well as ensuring a high standard of quality product. Implementing traceability systems and anti-counterfeiting measures has become a priority, according to Greig francis, National Sales and Marketing Manager for coding and marking specialist Markem-Imaje.

“one of the most important sectors in today’s market is healthcare, in particular the pharmaceutical industry. every day millions of consumers rely on various products to alleviate symptoms, increase well-being and in some cases for survival. That is why accurate traceability is so vital in the healthcare and pharmaceutical industries,” mr Francis said.

“an example would be one of our clients: ivor shaw, a privately owned manufacturer of single user medical devices and customer procedure packs. ivor shaw produces approximately 300,000 products a day across its range, and as a result has high coding demands.

“Trading under the brand name of pennine healthcare, ivor shaw supplies their products to healthcare providers globally and is one of the most trusted healthcare brands. with such a high volume of products being produced daily, it is vitally important that a secure traceability and quality control system is in place in the event a recall is required, especially when working on a global scale,” he said.

“in today’s fast-moving society, production demands have increased and in a high-demand workplace it is easy for raw materials and products to be lost in the production process. however, if a traceability system is implemented, manufacturers would have accurate information at every stage in the process, enabling swift resolution of potential inefficiency in production and saving substantial amounts of money.”

with mandatory traceability increasing internationally, the most trusted companies were demonstrating their quality assurance by advertising their use of rFid and complex coding technologies and gs1 codes, gaining trust from their core clients, mr Francis said.

With the growth of an ageing population, Australia has seen an increased demand for healthcare products. This has been matched by a surge in counterfeit medications and the appropriation of medications for illegal use.

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traceability vITAL IN hEALThCArE SuppLy ChAIN

he said companies should consider how a traceability system would streamline their business. “don’t just adopt traceability systems as a quick fix for distribution compliance, but rather view the traceability solution as a whole. if the system is not embedded into the current workflow, then it simply will not work. use the traceability system as a platform to identify opportunities where your own workflow can be improved, where human interaction can be minimised and productivity increased.

“consider the solution as an initial investment rather than a cheap upfront cost. manufacturers should seek the total cost of ownership, and recognise that these technologies not only enable compliance with external forces, but also open an opportunity for manufacturers to streamline and improve on their current procedures and as such save them substantial amounts of money.

“also, manufacturers should look for a company that manufactures and services what they sell to ensure complete commitment and support of the technology. The company that provides the identification

technology must be one that invests heavily in research and development to ensure cutting-edge technology and future-ready equipment to maximise the customer’s initial investment,” he said.

mr Francis said as coding and marking specialists, markem-imaje ensured their customers’ gs1 bar codes were of optimum quality and legibility to support their traceability systems.

“markem-imaje brings together the strength and experience of two leading marking and coding companies to form the largest product identification solutions provider in the world. we are uniquely positioned to partner with companies who are looking for a team that can deliver a complete, global solution at the best cost of ownership,” he said.

“our mission is to be a trusted business partner. we bring knowledge and experience to every product identification and marking challenge. we strive

to solve problems, increase uptime and improve business through

With mandatory traceability increasing internationally, the most trusted companies were demonstrating their quality assurance by advertising their use of rFiD and complex coding technologies and gs1 codes, gaining trust from their core clients, mr Francis said.

our deep market knowledge and consultative approach. we see ourselves as complete traceability solution providers, with each of our staff regularly undergoing training at gs1 classrooms,” he said.

as part of the $us6 billion-plus dover corporation, markem-imaje would continue to invest heavily in research and development to ensure they were at the forefront of traceability technology to meet and exceed their customers’ marking and coding requirements, mr Francis said.

“There is particular focus on new technologies such as rFid and laser as well as the control-centre software applications that enable networking of labelling and coding technologies to streamline the information process, saving the customer both time and money.

“These are just a few applications that are being refined at present. we also value and are proud to be strategic alliance partners with gs1, ensuring that we are at the forefront of traceability technology and assisting companies to work towards the common goal of international traceability.”

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ALLIANCE pArTNEr advertorial

ausTriamicrosysTems and gs1 associaTe alliance parTner syscan inTernaTional haVe released a new liVeTrack uhF rFid “simply gen2” reader.

as3990 livetrack is an innovative hand held mobile uhF reader chip to create low-power and low-cost rFid reader solutions.

austriamicrosystems is a leading global designer and manufacturer of high-performance analogue ics for communications, industrial, medical and automotive applications. syscan international has incorporated austriamicrosystems’ new as3990 livetrack uhF rFid “simply gen2” reader chip into their latest product, the livetrack uhF reader.

“we thought the rFid journal conference in las Vegas marked a great pre-release event for the product,” said mr john leerberg, engineering manager, syscan international in australia.

The price point and functionality of the product is greatly needed in this uhF space and syscan hopes to capitalise on the market need for a low-cost and highly functional hand-held reader.

austriamicrosystems’ as3990 is a single chip, gen 2 uhF reader ic. ideally targeted for power/cost-sensitive applications, the as3990 sports the industry’s lowest power consumption and lowest cost bill of materials (bom). it includes a gen 2 protocol engine for speed to market, and is available with an integrated power amplifier to further reduce the bom.

The as3990’s unique programmable features enable a single device that is shippable worldwide. its simplicity is emphasised with only 32 registers to enable full rF, filtering, and protocol control, while maintaining ease in implementation.

The as3990 is available in qFn 64 9x9 mm package and is specified for 0 to 70° c.

more information is available at http://www.austriamicrosystems.com/03products/products_ detail/as3990/description_as3990.htm.

Syscan International introduces livetrack uhF

The new uhF livetrack offers uhF class 1 gen 2 capability, ideal for asset, inventory management and supply chain applications as well as on-board micro processing capability tailor-made to the customer’s requirements, thus reducing the costs for simple rFid applications. The scroll-through menu will guide users through the application which then can send data back to a simple spreadsheet through a bluetooth interface.

“The speed at which syscan international were able to develop their application was very impressive,” says kambiz hayat-dawoodi, manager wireless business line, austriamicrosystems.

“This, along with their user-friendly design, embodies exactly what we are trying to achieve with the as3990.

“we have had a great time designing this version of livetrack which, as a low-frequency product, has been so successful in livestock and mining asset management applications. This project has been a collaborative effort between syscan international in canada and the new acquisition, sunshine Technologies, in australia.

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while it’s possible now to link varied supply chain solutions together through software development, with standardisation it will become easier and more cost effective.

Technology moves at light speed; what was dismissed yesterday is a reality today. once only big businesses with the funds and manpower could implement a customised integrated solution. now with global standards and the right software framework, it’s a reality for medium to small businesses to access the same variety of solutions.

with global standards we as developers have more freedom to really bring forth the golden goose to the end user at an affordable price.

nortech australia’s aim has always been to link together different aspects of electronic supply chain communication, both internal and external. joining with gs1 was the next logical step in building the potential software development in edi trading and supply chain management.

with standardised data processes captured from bar codes, rFid, edi and ecommerce transactions, the sky is the limit.

nortech australia pty ltd and its trademarked software products, goFar, are australian owned and developed. in the process of

developing customised solutions we’ve been aware of the unlimited potential of application linking, while also being aware of the need for realistic and affordable solutions for businesses of all sizes.

as a software developer with a global standards platform it’s possible for us to make software applications even more scalable.

For example, take any supplier in the chain. aspects of business may include:

» edi trading with major retailers

» supply to independents, domestically and internationally

» mobile sales staff, with mobile inventory and delivery capacity

» online ordering

» domestic and international freight management

» importing

» in-house or 3pl warehousing.

whaT’s eXciTing abouT sTandardising supply chain daTa processes Through gs1, is The greaTer poTenTial To link The daTa across a large range oF supply chain scenarios.

Global Gs1 standardsWhy it’s important for softWare developers.

combinations of these areas were once predominantly part of an enterprise business scenario. in today’s supply chain many medium to small businesses are operating with equal diversity. it’s changed the landscape of supply chain trading and communication. as software developers and solutions providers we understand the need for developing scalable customisable solutions.

pick one, two or all of the above and somewhere the data can link for greater efficiency no matter what the size of business. The golden goose in supply chain management is to electronically link each aspect of the chain through standardised data and drastically reduce the need for manual input and intervention.

goFar software platforms cover a range of scenarios and solutions: edi trading, warehouse management, web management, freight management, mobility solutions for sales and inventory and more. These applications can be linked to your accounting software as well as to each other.

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retail ready packaging, product introduction/delisting and supply chain training opportunities are among the key tools being delivered for industry by efficient consumer response australasia (ecra).

The ecra board of senior retail and manufacturing executives from australia and new Zealand has just completed a thorough review of its work streams.

The aim is straightforward – to drive the adoption of cost-effective, efficient and consumer-focused initiatives through industry-wide collaboration.

That’s why the board commissioned and published a set of common industry standards and guidelines on shelf ready packaging.

We wanted retailers, manufacturers, wholesalers and packaging companies to have access to real world solutions for emerging problems.

Major works now under way include a partnership with GS1 Australia and New Zealand to explore the impact of poor carton and trade unit master data dimensioning.

it is expected this work will be completed in july and result in a call to action to industry to improve data quality within their own operations, for the betterment of industry in general.

another area of particular interest to the Fast moving consumer goods supply chain – product introduction and delisting – has been fully analysed in a dedicated ecra report to industry.

it identifies operational inefficiencies and unnecessary costs to manufacturers, retailers and wholesalers which arise when introducing new product lines and delisting others.

here again, the emphasis is on understanding the issue – then delivering the answers.

There are ways to cutting some costs and inefficiencies out of these important decisions.

we’ve taken up the challenge of showing how.

ecra’s work is freely available to industry participants.

Full access to reports and recommendations is at www.ecraustralasia.org.au.

There is growing interest in a new online training resource, the supply chain capability development program.

established in conjunction with accenture and the university of wollongong, the course offers a cost-effective way for managers to improve their planning, forecasting and inventory management skills.

a dedicated consumer focus will remain paramount: the board has resolved that over the next twelve months its priorities will be in the policy areas of on-shelf availability, retail ready packaging, loss prevention and sustainability.

it’s an exciting agenda that will continue delivering real benefits.

From its inception, ecra has recognised similarities between the food and grocery industry on either side of the Tasman.

There is strong involvement from industry in both nations, and so consumers across both markets are the winners.

Andrew Cummings Chairman, Efficient Consumer Response Australasia and Managing Director, Clorox Australia

retail-ready packaging

it’s been quite a few years now that c-level management became aware of the power of supply chain management. in a world of shrinking distances, shrinking lead times and shrinking margins, a well-managed supply chain became an essential tool for survival.

yet supply chains today continue to face extreme challenges and companies are turning to automation as one of the key solutions, for at least three good reasons: cost, people, and carbon.

building a large warehouse or distribution centre with wide aisles and low racking is no longer feasible. instead, narrow aisles and 8-metre-plus racking rule, with every square centimetre allocated. along some of these aisles, channel- or optically-guided stock-pickers run effortlessly, in others, fully automated storage and retrieval systems work 24 hours a day.

with automatic palletisers, robotic vehicles and monorail systems, the number of people required to run these facilities is minimal, their efficiency and tireless operation making them extremely cost-effective.

This is just as well, as good workers are very hard to come by in these labour-starved days. also, automation contributes to a cleaner, more pleasant working environment which means that you will find it easier to hang on to staff.

Thirdly, as environmental awareness and energy efficiency are about to have a price put on them through carbon trading, it is not hard to see that automatic systems will provide the most energy-efficient solution.

Charles PaulkaEditor mhd magazine

Three good reasons for automation

when considering supply chain improvements or processes in our business at woolworths, it’s easy to focus on the larger, more capable organisations you work with. however, in our industry there are many smaller businesses who struggle to either understand or implement various solutions to optimise our supply chain.

This was evident a few years ago when woolworths presented a range of ebusiness initiatives to suppliers in our perth warehouse. as people assembled i noticed an older woman with a boy who seemed young enough to be missing school.

after the session the confused pair lingered about, so i approached them to help answer any questions they may have had. in broken english the lady asked me to explain “a little more” to her son, as he held the technical knowledge and operated the computer systems in their small family business.

when i’m involved in discussions about supply chain initiatives, i reflect upon how and if that young boy could implement this initiative in his family business. people “giving things a go” in their own business is a strong part of australia’s business landscape. our ebusiness initiatives aim to enable them and other smaller suppliers to operate in our supply chain just like the big guys.

Peter RoebersSenior Business Manager eBusiness Retail Support Woolworths Supermarkets

Enabling small businesses just like the big guys

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Demand-driven Manufacturing & Theory of Constraints

Inventory optimization can increase your pro�tability

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gs1 australia link magazine - issue 18

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