GS1 Australia year in review 2004

(Soon to be GS1 Australia)

overview

contents

overview

3

the journey

4

report from the Chairman

6

EAN Board Members

8

ceo’s report

10

update on GS1 International activities

12

who we are now

14

gathering impetus

16

update on work in four key industries

18

what we’re doing for our members

22

Amazingly, it is actually 25 years since a group of visionary manufacturers and retailers embarked on a journey that would change the way we work, sell and shop.

The genesis of EAN Australia was in the grocery industry, where it earned its stripes as an efficient, cost-saving business tool. The lessons of the grocery industry soon spilled over into other sectors of the economy. As the use of bar codes spread, EAN Australia played a vital role in maintaining the system’s integrity and helping industries see the potential of the EAN•UCC system unfold.

A membership base of just under a thousand in 1983 grew to 6,248 in 1993 and 14,512 by June 2004. Today, the system is embraced by 18 Australian industries as varied as steel, wool, furniture, health and the automotive aftermarket.

This exponential growth is testament to the effectiveness of the EAN•UCC system and the performance of EAN Australia’s 80+ members of staff under the guidance of its Board. Over its 25 year history, EAN Australia has continuously reinvented itself to remain relevant and able to provide its members with a window into the world of innovation in trade.

In the past decade, EAN Australia moved far beyond its early role as a bar code pioneer to become a proactive champion of best practice supply chain management. There has been a host of new support services, the innovative EAN Supply Chain Knowledge Centre (SCKC) education facility and a raft of partnerships with government, tertiary institutions, industry associations and technology suppliers.

In 2004, on the cusp of another supply chain technology revolution, EAN Australia has taken the next step, bringing Australian industry together with its inaugural Impetus conference and the rapidly growing EANnet® community.

Just as we have enjoyed a coming together here in Australia, our international EAN and UCC family has affirmed its commitment to one global language of trade under one name: GS1, which was officially launched at the International Head Office in Belgium at the Global GS1 Forum in February 2005.

As we celebrate EAN Australia’s 25th anniversary, we commemorate our heritage and look forward to a future with a new name symbolising our unity and a renewed dedication to the common good of our members.

OUR MISSION The Implementation of EAN standards by Australian industry for the benefit of all users.

EAN AUSTRALIA VALUES Act Professionally: Always ethical, honest and with respect for each other Work Together: Build trust based partnerships by valuing open communication and collaborative decision making Exceed Expectations: Pursue service excellence with enthusiasm Value our People: Encourage development, expect commitment and acknowledge contribution

04

PAGES 2 – 3

EAN Australia has all the hallmarks of a vibrant, pioneering, organisation: a proactive member focus, innovative offerings and rapid growth.

PAGES 4 – 5

the journey The celebration of EAN Australia’s 25 years recognises a very proud tradition of cooperation. Fierce competitors, buyers and vendors, even entire industries have set aside long-held rivalries to work in partnership for the common good that is the EAN•UCC system.

In fact, Australia was one of the first nations to truly embrace the EAN•UCC system and remains among the world’s leading users. Even so, it took us time to realise the potential of unique numbering and automated identification, as EAN Australia’s founding father Bill Pratt explained.

“Once we combined bar codes with the power of computers, we could ask questions we’d never even considered before,” Bill said.

“It meant a whole new way of thinking.

We learnt to ask ‘Is it possible?’

“It was no longer a stupid question to request information about how much we’d sold of a certain product this week and what our exact stock levels were right now, not just after stock take.”

These were the first steps in a remarkable journey, the EAN Australia journey, which led to a once inconceivable transparency, simplicity and certainty in business. Over the following two pages, those steps are retraced through the decades to where EAN Australia stands today.

1978 - Australian Product Numbering Association (APNA) was formed, with Mr Bill Pratt, Australian head of Safeway Supermarkets and representative of the Australian Retailers Association (ARA), as its Chair - Dr Robin Shaw appointed CEO of APNA - Grocery Manufacturers of Australia (GMA) guaranteed a loan to provide initial funding for APNA 1979 - APNA officially launched and commences trading - Rowntree Hoadley became APNA’s first member - SIMS Supermarkets become the first scanning store in Australia 1984 - 962 APNA members registered

1986 - 500 stores used scanning technology throughout Australia - 90% of grocery items sold in Australia carried EAN•UCC numbers and bar codes - Brian Smith was appointed APNA’s Executive Director 1987 - APNA celebrates its tenth birthday - 2,000 APNA members 1988 - Grace Bros. became the first scanning department store in NSW, while Kmart was the first in Victoria - 2,989 APNA members 1990 - Franklins became the first supermarket chain to introduce scanning in all of its 191 stores around Australia - Retail scan code received federal endorsement - North America adapted to an EAN 13-digit code - Industry Information Service introduced - The pharmacy industry adopted APN bar coding

1991 - The wine industry was the most advanced in the adoption of bar coding among Australia’s large liquor producers and distributors 1993 - APNA changed its name to EAN Australia - EAN Australia launched ICON, electronic communication for members 1994 - EAN’s Sydney office opened and began operating a bar code testing service - The nursery industry endorsed standard EAN•UCC bar codes 1995 - EANWorks was launched - 5,860 EAN Australia members 1996 - Mobile EANWorks was launched - Government IT head backed the EAN•UCC system - Product images became available to members - Laurie Wilson was elected Chairman of EAN Australia

1997 - Australia’s Deputy Prime Minister, Tim Fischer, officially launched EANnet - 400 members joined EANnet within its first month of operation - EAN Australia moved into other industry sectors, including steel 1998 - 10,729 EAN Australia members 2000 - EAN Australia celebrated its 21st birthday - 11,590 EAN Australia members 2001 - MoU signed by EAN Australia and Deakin University - The Professional Services and Accreditation Programme was introduced - Laurie Wilson was elected for a second term as Chairman of EAN International - V2.0 of EANnet launched to include commercially sensitive data 2002 - The Alliance Partner Programme began with Symbol as its first partner - Maria Palazzolo’s appointment as EAN Australia’s new CEO was announced

- MoU signed with the ATO to eliminate GST classification errors in the food and grocery industry using EANnet data synchronisation catalogue.

2003 - EAN Australia appointed Russell Stucki as Chairman - EAN Australia moved into new premises to better service growing membership base - EAN Australia awarded its first scholarship in Graduate Certificate in Supply Chain Management - The new EAN SCKC, both portable and fixed, officially launched - UCC and EAN International became a single organisation - Department of Health & Aged Care selected EANnet to host Australian catalogue of medicines - 12,815 EAN Australia members 2004 - Memorandum of Understanding MoU signed by Swinburne University of Technology and EAN Australia - RosettaNet Australia launched - EAN celebrates 25 years of servicing Australian business - EPCglobal Australia launched - 14,512 EAN Australia members

A Chairperson’s role is to provide perspective and keep the organisation focused on its mission. Perspective comes easily because while I was appointed Chair only 18 months ago, this is actually my second term in the role.

The first time was 20 years ago, when EAN Australia was in its infancy and still known as APNA. Yes, the name has changed (and is about to change once more), but now there are literally thousands more members, new technologies on the horizon and our staff numbers have grown from just a couple to over 80.

There have been marked changes in the EAN Australia Board of Directors too.

Our Board now consists of representatives from an impressive array of industry associations, including the Australian Retailer’s Association, the Australian Industry Group, the National Association of Retail Grocers Australia, the Australian Food & Grocery Council, the Packaging Council of Australia, Australian Meat and Livestock Industry, the Australian Information Industry Association and the Logistics Association of Australia.

Those directors also come from some of the world’s most high-profile companies, like Coles Myer, Colgate Palmolive, Gillette, IBM, Kraft, Nestle, Procter & Gamble, SAP and Woolworths.

This is no coincidence. Seats on EAN Australia’s board are now highly sought after as business appreciates the importance of an efficient supply chain and EAN Australia’s role in supply chain success. While, as local custodian of the EAN•UCC system, EAN Australia has always been the peak body dealing with supply chain issues, it has broadened its scope to become Australia’s most trusted information source about all things supply chain, from bar codes to Radio Frequency Identification (RFID) and the Electronic Product Code (EPC) network.

Russell Stucki Chairman EAN Australia

For that, you can take the credit.

Australians are famous early adopters of new technologies and ideas. Your own industry body, EAN Australia has been the beneficiary of that pioneering spirit. We have developed a culture of foresight, of looking deeper to recognise the potential in new ideas and sharing our knowledge.

That proactive culture has been the wellspring of fresh services for members that go far beyond simply allocating numbers. What does the future hold? We believe the next step for EAN Australian members will be a global one. Global data synchronisation and greater global transparency than ever before. As part of the new GS1 global standards network, we’ll be looking after you.

PAGES 6 – 7

report from the Chairman

2004 a year in review

The celebration of the 25th anniversary for EAN Australia could not have fallen on a more auspicious year.

This year saw much activity take place, highlights included: • the EAN•UCC system applied to medicines and pharmaceuticals, transport and logistics and automotive aftermarket industries • the launches of EPCglobal Australia and RosettaNet Australia • the signing of a MoU with Swinburne University of Technology • participation and establishment of the Victorian Government funded RFID Action Australia group • the launch of the Retail Business Case Framework • the Australian Government announced EANnet is to host GST information for approval by the ATO, on all food and grocery products, prior to their release to market • EAN Australia's first conference, Impetus 2004 • Coles Myer announced that all suppliers to BiLo and Coles Supermarkets to be live with EANnet by the end of 2004 • EAN Australia and GS1 New Zealand signed an agreement for EAN Australia to host the GS1 New Zealand EANnet community of users EAN Supply Chain Knowledge Centre Since the launch of the Portable and Fixed SCKCs in July and November 2003 respectively, the EAN SCKC has hosted in excess of 2,600 visitors. The centres have won international acclaim and received two

Education and Training Excellence Awards, one through the Supply Chain Council and the other from the Logistics Association of Australia.

The Australian Catalogue of Medicines (ACOM) The new central database of medicine information, ACOM, is based on EANnet.

Announcing ACOM, Federal Minster for Health and Ageing, Kay Patterson, said the system could “save lives and reduce hospitalisations”.

System design is completed and development is well underway EPCglobal Australia launched EAN Australia launched EPCglobal Australia and is developing support services and training programmes to equip businesses preparing for RFID/EPC's arrival with a working knowledge of the system. Certification and compliance programmes for technology and solutions suppliers are planned and it is considering partnerships to establish local implementation case studies involving members.

RosettaNet Australia launched An affiliation between the international nonprofit industry consortium, RosettaNet, and EAN Australia, RosettaNet Australia brings smart electronic trading to companies in the high technology, semiconductor manufacturing, telecommunications and electronic components sectors.

MoU with Swinburne Formalising a partnership in Education & Training, EAN Australia and Swinburne University of Technology have signed a MoU.

Swinburne will include EAN material in its courses and introduce students to the supply chain using the EAN SCKC. RFID Action Australia EAN Australia has played a key role in the establishment of a new association known as RFID Action Australia. Launched in August was a collaboration of users, solution providers and others concerned with the development and application of RFID and EPC technology standards. The Victorian Government has signed a $100,000 funding agreement with EAN Australia to kick-start the initiative.

Inaugural Impetus conference EAN Australia’s inaugural conference, Impetus 2004, was the first time our organisation has hosted such a large gathering of its members.

The intensive programme drew speakers from around the world and showcased local success stories. Over two days, Impetus proved just how sophisticated Australian companies have become in their supply chain practices. For the first time ever EAN Australia recognised an individual and company with an award for Supply Chain Excellence.

Launch of the Retail Business Case Framework The cost-saving secrets of some of Australia’s most successful retailers were revealed in a Business Case Framework document developed by the ARA and EAN Australia. The principles identified can be utilised to further opportunities for all retail businesses large and small to improve their current operations, enabling them to trade as efficiently as any corporation around the world.

Maria Palazzolo (Chief Executive Officer)

Ian Dunn (Vice Chairman)

Bob Boucher (Vice Chairman)

Harris Boulton (Treasurer)

Andrew Potter (Senior Officer)

Peter Weber (Senior Officer)

Giovanni Curnis (Council Officer)

Oca Sanez (Council Officer)

John LaVacca (Council Officer)

EAN Board Members

Chad Gates (Senior Officer)

EAN Australia is proud to attract a board, rich in a wealth of industry experience and expertise.

The EAN Australia Board composes an array of executives from Australian and International companies who represent a large cross section of Australian Industry Associations.

Introducing the 2004 EAN Australia Board Members:

Gavin Williams (Council Officer)

Ian King (Council Officer)

Ken Grundy (Council Officer)

Alan McKenzie (Council Officer)

Len Augustine (Council Officer)

Munro Farmer (Council Officer)

Name

Employer

Position

Russell Stucki (Chairman)

Independent Chairman

Maria Palazzolo (Chief Executive Officer)

EAN Australia

Chief Executive Office

Ian Dunn (Vice Chairman)

Woolworths Ltd

Senior Business Manager

Bob Boucher (Vice Chairman)

Colgate-Palmolive Pty Ltd

Director Customer Service & Logistics

Harris Boulton (Treasurer)

Australian Food & Grocery Council

Deputy Director

Chad Gates (Senior Officer)

Australian Retailers Association

Director IT & eCommerce

Andrew Potter (Senior Officer)

Coles Myer Ltd

Group General Manager Coles Myer Supply Chain

Peter Weber (Senior Officer)

Nestle Australia Ltd

Executive Director Operations

Giovanni Curnis (Council Officer)

Kraft Foods Ltd

Supply Chain Director Australia & New Zealand

Oca Sanez (Council Officer)

Procter & Gamble Australia Ltd

Managing Director

John LaVacca (Council Officer)

IBM Business Consulting Services

Leader Strategy, Marketing & Sales Operations Asia Pacific

Gavin Williams (Council Officer)

Packaging Council of Australia Inc

Chief Executive Officer

Alan McKenzie (Council Officer)

Aust Asia Pacific Wholesalers Pty Ltd

Chief Executive

Ian King (Council Officer)

Aus Meat Ltd

Chief Executive Officer

Len Augustine (Council Officer)

SAP Australia Pty Ltd

Director Marketing Resource Centre APA (Asia Pacific Area)

Ken Grundy (Council Officer)

Logistics Association of Australia

Executive Manager

Munro Farmer (Council Officer)

Gillette Australia Pty Ltd

IT Director

PAGES 8 – 9

Russell Stucki (Chairman)

EAN Australia’s 25th anniversary has been a celebration of its people, with Impetus 2004 showcasing the talent of our members, staff and international colleagues. While it’s great to have that recognised at such an auspicious occasion, the real value of EAN’s people shows through in the everyday.

PAGES 10 – 11

ceo’s repor t

Maria Palazzolo Chief Executive Officer

Having your bar codes verified in record time, guiding you through the intricacies of and helping your business to benefit from the potential of the EAN•UCC system, helping you become EANnet Ready™ and forging better relationships with your trading partners – these are the things that matter to EAN Australia’s staff.

At EAN Australia, you can hardly take the everyday for granted. First, the impact of the EAN•UCC system on Australian business amounts to millions, if not billions, of dollars in annual savings.

Second, it’s a miracle that the everyday is possible. The EAN•UCC system is based on a simple concept but its implementation is far reaching and best practice supply chain management principles add an entirely new dimension.

Supply chain management is a new fullyfledged business discipline that universities are only now beginning to address.

EAN Australia’s support staff are eminent specialists in this emerging field, some with more than a decade of experience serving members of all sizes from all sorts of industries. They travel all over the world to keep up to date with the latest developments and are admired throughout the EAN international community for their professionalism.

That reputation means EAN Australia staff members are invited to sit on a number of international boards and committees, including the CEO Advisory Council and the Global Data Synchronisation (GDSN) Board, two of the most influential bodies in the EAN International and UCC community. We also play an important role in the taskforce for the Global Systems Management Process (GSMP) and coordinating the impending name change to GS1.

EAN Australia’s position within its international community permits us real influence with standards policy makers and invaluable insights for our members. No matter what, when or where international supply chain standards work is done, you can count on us to make your voice heard and keep you up-to-date. And when it comes to implementation of the latest innovations, EAN will be ready to help Australians make the most of them. In fact, over the past year, EAN Australia has been proud to host guests from; – – – – – –

Belgium New Zealand USA UK Korea Russia

– – – – – –

Austria Hong Kong Thailand Malaysia Singapore The Netherlands

These guests have visited our offices to observe from the innovative, and the more well-established products and services EAN Australia offers it's members.

The most high profile supply chain news internationally is without doubt RFID and the EPC Network. As we have been watching its implementation in North America and Europe, it has become clearer than ever that RFID is inevitable here too. The other certainty is that those of us who are well prepared will find it to their benefit, while those who wait until requested to comply will bear it as a cost.

For this reason, EAN Australia is prepared to meet the needs of it's members as they embrace the next generation of supply chain technology.

In many ways, RFID and the EPC Network present many of the same challenges that bar codes did 25 years ago. This time, however, we have the advantage of being well informed and equipped with a wealth of supply chain expertise.

In these early days of RFID implementation, there is an opportunity to plan, build a foundation by synchronising data using EANnet and run pilots to see how the system works in the real world. It will take time and we must begin immediately.

During your preparation for RFID, you have a trustworthy partner in EPCglobal Australia. As a wholly owned subsidiary of EAN Australia, EPCglobal Australia will offer members hands-on support at both a strategic and an operational level.

Let us help.

Maria Palazzolo

Fiona Wilson

General Manager: Standards Development

To make EAN Australia even more responsive to you, our members and partners, we recently restructured our organisation around the different layers of support we provide. It now consists of three core units: business operations lead

by Mark Fuller, COO; business information and systems lead by Steven Pereira, CIO; and business support services lead by Colin Barnes, CFO.

Neal Austen

General Manager: Information Systems

Business operations is focused on working directly with industry to provide the support that is the essence of EAN’s mission. Finally, business support services provide the financial, risk management, legal, administrative and asset management services that maintain EAN Australia as a healthy organisation.

The result is a streamlined, efficient multi-skilled body dedicated to the support of its members.

Chief Executive Officer

Mark Fuller

Chief Operating Officer

Steven Pereira

Chief Information Officer

Colin Barnes

Chief Financial Officer

John Hearn

General Manager: Business Development & Professional Services

Sue Schmid

General Manager: Member & Industry Support

Richard Jones

General Manager: Service Delivery

Tim Smucker

PAGES 12 – 13

Miguel Lopera

update on GS1 International activities (Formerly known as EAN International)

Unity of historic proportions makes 2004 a turning point for EAN International. The organisation has merged with its North American cousin, the Uniform Code Council (UCC), under the new name of GS1.

The year began with the appointment of one man, Miguel Angel Lopera, as CEO of both GS1 International and the UCC. Announcing the appointment, GS1 International President Tim Smucker said it was “another step towards our vision of a single global standards organisation”.

For decades, the EAN International and UCC organisations worked in parallel and more recently, in tandem, separated only by national boundaries.

Increasing volumes of international trade made cooperation imperative.

Representing more than one million companies in 155 nations, GS1 membership is now indisputably a passport to global trade.

• EPC Compatibility As the EPC continues to develop, GSMP is helping to ensure that data transmitted for bar code and EPC tags is compatible. In early 2004, the first EPC Tag Data Standard was approved in conjunction with a new section in the General EAN•UCC Specifications that defines use of EAN•UCC Application Identifiers within EPC tags.

Global Commerce Initiative (GCI) and Efficient Consumer Response (ECR)

The main objective of the GSMP is to ensure quality and speed in development of the EAN•UCC system, according to business driven needs emerging from users around the world. The GSMP allows for a uniform approach and methodology for global standards management. This includes standards development and maintenance, and implementation support.

• Data Matrix A new GSMP-approved application standard deals with direct part marking and very small healthcare items.

GSMP revolves around five foundation principles, which detail that standards should be:

EAN Australia invites local companies to become involved in the GSMP process.

Participants have a great opportunity, not simply to influence a new standard, but the way in which all standards are developed. EAN Australia will be facilitating local GSMP groups in 2005.

These will mirror the international groups and EAN subject matter experts will act as conduits between the local and international groups.

EAN Australia contributed to the preparation of two reports published by ECRA in 2004. The first report was titled ‘Data Integrity & Synchronisation – Building a foundation for industry collaboration’. The ECRA Board commissioned this work to facilitate progress towards full implementation of data integrity and synchronisation (DIS) across the Australasian grocery industry, based on a single regional data pool, EANnet.

Global Standards Management Process (GSMP) EAN•UCC standards must be continually updated in order to be relevant in today’s economy. In order to be a positive contributor in improving supply chain management of goods and services EAN International has developed with UCC a worldwide platform called: the GSMP.

1.

2.

3.

4.

5.

User driven Open Single pass Business-needs based Global

Developments approved by GSMP during 2004 include:

• Reduced Space Symbology (RSS) This is a new technology for applying bar codes to very small items as an open standard at point of sale on a global basis.

EAN Australia works closely with both the GCI and the local arm of the ECR movement, ECR Australasia (ECRA), to actively support the implementation of EAN•UCC standards and the adoption of world’s best practices.

The second report titled ‘From Barcode to Electronic Code’, evaluates the readiness of the Australasian market to embrace RFID technology using the EPC standards. What emerged is a picture of a region where many companies have moved beyond a ‘wait and see’ approach to a ‘watch and learn’ phase which is a preliminary step to implementation. The report also detailed issues such as the establishment of regional standards and privacy codes, which need to be addressed as part of industry-wide implementation plans of RFID/EPC. EAN Australia is an active participant in

the GCI Global Data Synchronisation Implementation Team working with colleagues from around the world to drive the global implementation of EAN•UCC Data Synchronisation standards.

Global Data Synchronisation Network (GDSN) The GDSN is set to make truly borderless trade closer than ever. While each bar coded product is unique throughout the world, the information about the coded product resides in regional data pools, such as EANnet. In the past, interoperability between various regional or country data pools has been challenging.

The GDSN is underpinned by a set of emerging EAN•UCC standards.

Interoperability between data pools is via a Global Registry, which provides the role of index and synchronisation facilitator. Put simply, using the GDSN, a retailer in the USA could, subscribe to details of a particular Australian product, which would then set up the ongoing synchronisation between the supplier’s data pool with the retailer’s data pool.

The primary benefit is that potential trading partners from across the globe will be able to exchange data seamlessly without needing to subscribe to more than one data pool.

The implementation of a fully operational GDSN in 2005 began with a vision by the GCI, which is supported by the world’s largest consumer packed goods manufacturers, retailers and GS1 international. The GDSN is great news for Australian companies as it connects both our manufacturers and retailers to the largest world markets. EAN Australia is committed to making EANnet part of the GDSN

EAN Australia Membership Breakdown 4% 1% 1% 3%

1% 1% 1%

60% Manufacturing Wholesale Trade

Property & Business Services Health & Community Services Cultural & Recreational Services

who we are now

Personal & Other Services Consolidated Group Agriculture/Forestry & Fishing

Consolidated Group Breakdown 21%

There are 14,512 reasons why EAN Australia is a unique Australian organisation.

Our members make their livelihoods from pies, model airplanes, steel, beef, apples, hammers, spare parts, pharmaceuticals, microwave ovens, wool, paper, nappies, furniture, fashion and fine wine. Our EAN•UCC system takes them all over Australia and across the globe. We are a community of micro businesses, family businesses, government departments, multinationals and industry associations.

Each one of EAN Australia’s members makes it an organisation of unparalleled diversity united by a common language of trade where the success of one is to the benefit of all. In recognition of this, EAN Australia pledges to stay true to its philosophy of inclusiveness, partnership and support.

20% Communication Services

What EAN Australia means to members “My EAN Australia membership fees are the best money I’ve ever spent. I’ve had the cheapest access to highly qualified consultants and following their advice has given us a real advantage over our competitors.”

“I hope my competitors never realise what they’re missing out on!”

“The best aspect of dealing with EAN is that you know they have no commercial interest in selling you something because they’re a not-for-profit organisation – but it’s something that they passionately believe in and they really want to help you.”

David McNeil, William A McNeil & Co – homeware textiles

Government Administration & Defence Mining

"From a small business point of view, EAN Australia has been immensely proactive and wonderfully helpful with getting us EANnet Ready. Because of that, we nailed EANnet Ready status in no time at all just one week."

"I'm really encouraged by that experience.

When I first got into the industry, I thought EAN was just bar codes, but now I'd like to take advantage of more of their services and streamline our ordering, despatch, stock control and deliveries so I don't have to spend so much of my time doing menial work that could be taken care of by an automated system."

Electricity/Gas & Water Supply Accommodation/Cafes & Restaurants Finance & Insurance Education

16%

Construction Transport & Storage

9% 2% 15%

5% 2% 10%

Andrew Cardwell, Motherly Group – baby food manufacturers

14, 512

members

PAGES 14 – 15

Retail Trade

28%

PAGES 16 – 17

gathering impetus

Cooperation, the most vital ingredient of every supply chain success story, is built on the momentum of compelling communication. It was with this in mind that Impetus 2004, EAN Australia’s inaugural conference was conceived.

In October, more than 300 EAN Australia members and Alliance Partners met at Impetus 2004 to share knowledge, expertise and a vision for supply chain management in Australia.

The conference was the ideal forum for industry members to explore the potential of new technology and RFID and the EPC Network.

Impetus also saw the genesis of new collaborative efforts inspired by the wisdom of speakers from around the globe.

In many ways, Impetus 2004 embodied the spirit of cooperation for mutual benefit that has characterised EAN Australia from its very beginnings - the perfect occasion to celebrate a noble 25-year tradition and the promise of an exciting future.

“Supply chain management is a unique business discipline.

In no other field are so many relationships beyond the traditional buyer seller partnership so central to success.”

Maria Palazzolo, CEO EAN Australia

PAGES 18 – 19

update on work in four key industries

A number of those industries are very active, for the purposes of this report we have selected four industries that have looked to EAN Australia for assistance with using the EAN•UCC system within their industry sector: 1.

2.

3.

4.

Defence Transport and Logistics Healthcare Liquor

One sector, retail, cuts across all industries. EAN Australia is committed to supporting retailers in their adoption of the EAN•UCC system and good supply chain practices.

In July 2004, EAN Australia, the ARA and a number of EAN Australia Alliance Partners launched an eBusiness guide targeting the retail sector. The guide outlines how retailers including 7-Eleven, Betta Stores Ltd and SuperCheap have lifted the profitability of their companies using EAN’s global standards and explores the multitude of cost savings that can be reaped by other retailers.

In 2005, EAN Australia will continue to encourage the uptake of the EAN•UCC system by retailers from all industries as they strive for improved eCommerce and supply chain management.

Defence Defence has perhaps the most difficult logistics challenges of any industry.

Destinations are changeable on short notice and the range of products supplied stretches from bacon to ballistics, but the imperatives of order accuracy and timely delivery remain.

Defence first approached EAN Australia more than a decade ago in conjunction with the pharmaceutical industry and has since maintained a relationship with the organisation. A newly drafted Australian Defence Organisation (ADO) policy for ‘Automatic Identification Technology’ (AIT) recognises the role of bar codes and electronic identification systems for reliable and accurate logistics.

The ADO has asked EAN Australia to comment on the report based on our experience working with other industries implementing global standards and new technology. While the ADO is already highly ‘logistics AIT capable’, it plans to expand its capability across the organisation.

EAN Australia will liaise with and support ADO suppliers in the exploitation of the EAN•UCC system and EPC/RFID technology. As with many EAN Australia projects, there is no set end date but an ongoing commitment to education and training in the sector.

Transport and Logistics The adoption of EAN•UCC standards gained momentum when, in 2003, Deputy Prime Minister John Anderson released a statement urging the industry to act based on advice from the Australian Logistics Council.

Since then, a number of working groups have been established under the Council’s auspices, including the Information Standards Working Group (ISWG), of which EAN Australia is a member. An Information Technology Online (ITOL) grant from the Department of Communications, Information Technology & the Arts has been used to fund a pilot study of the implementation of EAN•UCC standards by transport providers, suppliers and retailers.

Currently in stage two, which sets out the requirements of the participants, the project’s demonstration phase will be carried out in 2005, with the results expected in the latter half of the year.

Further progress is being made in the Victorian transport and logistics industry as the state government works to position Victoria as the centre of supply chain and transport, distribution and logistics excellence. Information on the group’s work is available at www.supplychaingateway.org.au On an international level, discussions are being held with the Australian Customs Service, the meat industry and US Customs to conduct a pilot using the Serial Shipping Container Code (SSCC) as a Unique Consignment Reference on behalf of the World Customs Organisation.

Transport and logistics is an emerging, yet complex, field for the application of supply chain standards, but EAN Australia is confident the EAN•UCC system will ultimately deliver enhanced customer service levels and traceability.

PAGES 20 – 21

Healthcare

The Monash Project

Hong Kong Health Authority (HA)

Liquor

This year, three major healthcare projects build significantly on EAN Australia’s long-standing involvement in the sector:

Complementing the ACOM project, the Monash Project is focussed on a more efficient pharmaceuticals supply chain.

Already, a pilot has shown faster and more accurate receipts can be achieved using EAN•UCC standards.

EAN Australia’s experience with the local health industry proved invaluable to fellow EAN•UCC member organisation, the Hong Kong Article Numbering Association (HKANA).

In the last financial year, approximately 180 liquor companies joined EAN Australia, which now counts in excess of 50% of the industry among its membership.

The HA is planning the implementation of a new enterprise resource planning system in its 45 public hospitals. In order to smooth implementation, the health authority was keen to benefit from the lessons of others’ real-life experiences.

The industry is expanding rapidly, with a new wine producer opening for business every 35 hours on average over the past three years. Aside from the natural growth of the sector, prominent members of the industry have encouraged EAN membership in the area of numbering and bar coding for Automatic Data Capture over a number of years.

1. The Australian Catalogue of Medicines (ACOM) 2. The Monash Project 3. Hong Kong Health Authority (HA) The Australian Catalogue of Medicines A central database of medicines information based on EANnet, called ACOM, is being developed to provide quality assured information. Rather than facilitating electronic commerce, ACOM is designed to provide healthcare professionals with detailed, up-to-date and correct information about the makeup and performance of medicines.

The Health Department will oversee a comprehensive quality assurance process to ensure that all information stored in the database meets stringent accuracy standards.

The first phase involved transactions between the Monash Medical Centre’s pharmacy department and three suppliers: Clifford Hallam Pharmaceuticals, Hospital Supplies of Australia and Orion Laboratories. Key stakeholders included; Health Purchasing Victoria, National Supply Chain Reform Task Force, Pharmos Software and project manager, EAN Australia.

Currently work is being completed to move to stage two of this project looking to include tasks such as the roll out of eCommerce using the EAN•UCC system to all five Southern Health hospitals. Stage two aims to include other parties within the supply chain, the suppliers, in addition to reviewing the use of data synchronisation and other data carrier technologies such as RSS and RFID.

• Elimination of paper-based buying forms, price lists and paper-based catalogues • Reduced costs associated with processing purchase orders • Fewer invoice errors

Seeking truly impartial advice, HKANA and HA called on EAN Australia and Alliance Partner, Right On Line, who worked closely with the HA to examine the infrastructure, role of government, funding and other issues involved.

The project concluded with a supply chain business analysis, a seminar for hospital executives and a two-day detailed workshop for key managers in Hong Kong.

In 2002, a working group including some of the industry’s largest retailers, manufacturers, wholesalers and distributors circulated an open letter promoting the adoption of EAN Australia’s electronic data synchronisation catalogue, EANnet.

This year, the group ran a pilot that saw participants Southcorp Wines and Brown Bros successfully synchronise data with their trading partners. Key benefits enjoyed by both companies included:

• Improved business efficiency from enhanced data integrity between trading partners The next aspect of the standards likely to be adopted is the labelling of logistic units, like pallets, with SSCC as well as electronic messaging. Some companies particularly in the wine industry, are also investigating the use of EAN standards for asset tracking with wine barrels and vats.

EAN Australia continues to chair the Liquor Industry EANnet User Group - a forum for manufacturers, distributors, retailers and wholesalers in the Australian liquor industry to seek further input and clarification on any issues relating to the implementation of EANnet.

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what we’re doing for our members

The many facets of EAN Australia support members in almost every supply chain management endeavour.

A low-cost membership provides invaluable access to Australia’s most experienced professionals in the field.

This year, EAN Australia’s services were more popular than ever with members: Technical phone enquiries answered:

20,400

Product bar codes tested:

80,322

Products imaged for EANnet: People trained in EAN•UCC:

8,225

At EAN Australia’s heart is the administration of the EAN•UCC system, a universal global standard. Well-managed and consistently applied common coding rules enable the EAN•UCC system numbers and bar codes to be recognised by trading partners anywhere in the world.

EAN Australia members are only a phone call away from clear, unbiased advice on bar codes, the supply chain and eCommerce. EAN Australia experts staff a range of specialised member assistance divisions dedicated to assisting the EAN community.

207

Companies accredited on EAN•UCC:

76

Individuals Accredited on EAN•UCC System

314

Visitors to the the EAN SCKC

Custodian of the EAN•UCC system

2,600

EAN Australia’s work begins with its role as custodian of the EAN•UCC system and now extends to the support of a number of complementary subsidiaries. Read on to discover just how comprehensive EAN Australia’s assistance for industry has become.

From simply issuing numbers through to strategic supply chain consulting, EAN Australia helps thousands of members every year make the most of the EAN•UCC system. In fact, a staggering 80,322 bar codes were verified in the 2003/04 financial year, which represents a 17% increase over the previous year’s record.

EAN Australia’s Member and Industry Support Team helps members with: • Expert advice on the eight steps to EAN•UCC system implementation • Assistance on how to apply bar codes and numbers • Helpdesk support on EAN•UCC system queries • On-site visits • Education & training The Member and Industry Support Team also delivers the Industry Engagement Programme assisting entire industries progress towards adoption of the EAN•UCC system.

EANnet EANnet, Australia’s data synchronisation catalogue, is experiencing exponential growth. In just the five months to November 2004, the number of EANnet subscribers jumped by more than 35% and is in excess of 500 companies.

The EANnet community now includes 97 of Australia’s top 100 grocery suppliers*.

Growth is also impressive across the Tasman with the recent launch of EANnet in New Zealand prompting 25 companies to join the EANnet community.

EANnet is a logical extension of the EAN•UCC product identification because it means that suppliers upload product information just once to a central point to make it available to potentially all trading partners rather than many times to individual trading partners. Endorsed by the Australian retail grocery and liquor industries, EANnet contains information on approximately half a million consumer packaged goods. EANnet stores product identifiers, images, descriptions, dimensions, packaging configurations, bar code verification results and price-related information.

EANnet enables the continuous and automated sharing of item master data between trading partners on a machine-

to-machine basis and is accessible via the Internet. While already a valuable enabler of efficient eCommerce based upon bar code numbers, EANnet is a particularly important foundation for the introduction of RFID and EPC in Australia.

In response to the unprecedented interest in EANnet, EAN Australia has expanded its Professional Services resources and is well-equipped to assist subscribers become EANnet Ready. * Source; AC Neilson Top 100 Grocery Suppliers Report, July 2004

Professional Services The growth of EANnet has fueled demand for the comprehensive strategic guidance and implementation services offered by EAN Professional Services.

EAN’s Professional Services consultants provide cost-effective professional advice covering all elements of the EAN•UCC system, supply chain management issues and of course, eCommerce.

This year, Professional Services delivered over 45 projects for manufacturers, distributors and retailers from the grocery, healthcare, automotive, industrial and general merchandise industries, as well as

government departments and industry bodies.

Many of the projects revolved around EANnet. EAN Professional Services provided assistance ranging from EANnet training courses and implementation programs through to fully managed implementation services. It was also responsible for the enhancement of EANnet to support the ACOM. Other significant services offered by the Professional Services team included EAN Supply Chain Reviews for members implementing automatic data capture (bar code scanning throughout the physical supply chain); eCommerce strategy development; and eMessaging implementation.

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EAN Supply Chain Knowledge Centre (SCKC) EAN Australia’s innovative training facility, the SCKC, has been recognised with two awards, one international and one Australian, in 2004.

The SCKC hosts training courses covering the implementation and business benefits of the EAN•UCC standards. Advanced courses on XML, Data Capture, CPFR and EDI messaging are also held regularly.

It was the SCKC’s unique learning environment that caught the attention of award presenters, the Supply Chain Council and the LAA. The SCKC experience is limited only by the visitor’s creativity. Built by industry experts, the interactive simulation model immerses attendees in realistic trading scenarios without the cost and risks associated with real-life experimentation.

Since the portable and fixed SCKCs opened in July and November 2003 respectively, the facility has hosted over 2,600 visitors The LAA award acknowledged EAN’s significant contribution to education, training and further career development in logistics and supply chain management, while, the Supply Chain Council named the centre the winner of the 2004 Award for Supply Chain Academic Excellence at its Chicago conference.

Aside from fulfilling its training role, the SCKC offers neutral and well-equipped venues for commercial initiatives, which are well utilised by Alliance Partners and trading partners.

EAN Australia’s broad objectives for the centre emphasise RFID, eMessaging and data synchronisation. To facilitate input from members on the centre’s direction, EAN plans to build user groups and advisory groups by industry or function.

A downscale version of the centre will be established in the renovated EAN Australia office in Sydney, NSW by the end of 2005.

For more information about the EAN SCKC visit the website www.ean.com.au/knowledgecentre

EPCglobal Australia EAN Australia officially launched its new wholly-owned subsidiary, EPCglobal Australia at the Impetus 2004 conference in October.

EPCglobal Australia, as a wholly owned subsidiary of EAN Australia, is the local peak body for the EPC Network standards to support RFID product information exchange. The EPC Network combines RFID technology, existing communications network infrastructure and a unique EPC number for true, costefficient visibility of information across multi-industry supply chains.

While, aside from a few pilots, EPC is yet to be implemented here, EAN Australia is already busy assisting companies in the planning phase with credible information about the future of EPC/RFID in Australia.

A neutral, consensus-based, not-for-profit standards organisation EPCglobal Australia is industry’s trusted partner.

Early members may take an active role in shaping RFID’s future in Australia as they are invited to participate in setting the standards applicable to specific industry groups. The big drawcard for most members however, is expected to be the operational level support for implementation. EAN Australia offers support services and training programmes to equip members with a working knowledge of the EPC/RFID system.

Certification and compliance programmes for technology and services suppliers are also planned.

The organisation will leverage the innovative EAN SCKC, which will be expanded to incorporate an EPC/RFID training module. It is also considering partnerships to establish local implementation case studies involving members.

For more information on EPCglobal Australia visit www.epcglobalaustralia.com.au

RosettaNet Australia EAN Australia and international non-profit, industry consortium, RosettaNet, formed an alliance to launch RosettaNet Australia in 2004.

RosettaNet will make smart electronic trading a reality for Australian companies in the high technology, semiconductor manufacturing, information technology, logistics, telecommunications and electronic components sectors.

Worldwide, more than 500 companies from the information technology, electronic components, semiconductor manufacturing and telecommunications industries have implemented RosettaNet standards, conducting B2B transactions valued in the billions.

Among the heavyweights using RosettaNet are; Dell, Ericsson, FedEx, Fujitsu, GXS, HP, IBM, Intel, Microsoft, Motorola, NEC, Nokia, Oracle, Peoplesoft, Philips, Sanyo, SAP, Sharp, Siemens and Visa.

The strategic alliance between EAN Australia and RosettaNet will offer the best of breed B2B eCommerce solutions of eMessaging, data capture using RFID and best practice processes to businesses in the electronic components, semi conductor, telecommunications and customer/logistics sectors.

RosettaNet Australia’s early emphasis is on educating Australian industry about the benefits of the eCommerce standards.

After the successful launch in Melbourne, a series of road show to Sydney, Brisbane and Adelaide has been planned for March 2005. Speakers will include members of RosettaNet Australia, from both solution providers and user companies.

For more information on RosettaNet Australia visit www.rosettanet.org.au

EAN Australia works with companies that share its business-oriented vision of delivering real supply chain benefits to Australian business and industry associations.

The alliance partner programme offers both small and large member businesses a diverse range of supply chain tools and professional advice.

Benefits of the Alliance Partner Programme include: • Bringing together of the world’s best supply chain management tool providers, all with solid reputations for the quality of their services and products • Priority notification of new technologies and innovation initiatives to improve supply chain efficiency • Comprehensive best practice case studies • Supporting and assisting in making the EAN•UCC implementation smoother and easier • Security that Strategic, Business and Associate Alliance Partners are EAN Accredited and trained in the EAN•UCC system

EAN Australia Strategic Alliance Partners provide a significant contribution to eCommerce and supply chain management improvement and include:

The EAN Australia Associate Alliance Partner level was introduced in July 2003 as the third-tier, entry level to the existing EAN Alliance Programme and includes:

> > > > > > > > > > > > > > > > > > >

> > > > > > > > > > > > > > > > > > > > > > >

Australia Post Bearing Point Computer Sciences Corporation Datanet EAN Australia - Professional Services Global eXchange Services IBM Business Consulting Services Information Process Technology Innovation Xchange Network Intermec Australia Leadtec Systems Australia Matthews Australasia Oracle Corporation Australia SAP Australia Telstra eBusiness Services VeriSign Capgemini Unisys Symbol Technologies

Business Alliance Partners are involved in an Alliance Plan designed to ensure effective alignment of joint resources.

They include: > > > > > > > > > > > > > > > > >

AAPT Axway Bar Code Data Systems Cedar Creek Company Cobra Systems Dy-Mark Fuel Marketing Solutions Imaje Coding Technology insignia Mid-Comp International Paxar Corporation Pronto Software Right On Line Riordan Hume Lawyers SSA Global Supply-LINQ Applied Electronic Commerce

Beyond Commerce Consulting Principles Denso International Australia Dexion Integrated Systems Dzign Diezel Group Exago Existco Gamma Solutions iCRYSTAL Innovit Intermax LXE Australia Moveit Pacific Commerce Parcelhouse International Phil Heenan Consulting Realtech RT Management SMS Management and Technology Supply Chain Consulting Supply Chain Solutions Unique Micro Design Walker Datavision

PAGES 26 – 27

Alliance Partners

Head Office: Axxess Corporate Park Unit 100/45 Gilby Road Mt Waverley VIC 3149

Sydney Office: Lakes Business Park Building 4B, 2-4 Lord Street Botany NSW 2019

EAN Australia National number: 1300 366 033 Email: eanaust@ean.com.au Website: www.ean.com.au