GS1 Australia LiNK Magazine - Issue 25

THE SUPPLY CHAIN MAGAZINE

Streamlined Myer Delivering results GS1 Recallnet agreement signed with HP Office Supplies Call to Action

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CONTENTS

12… Health procurement leader turns to National

Product Catalogue to improve tendering

The National Product Catalogue (NPC) has been used successfully by one of the state health jurisdictions to improve the quality of data sourced for its pharmaceutical tendering process.

25… GS1 Bar Codes used to fight obesity Mobile phone technology and GS1 Bar Codes can be harnessed to fight obesity successfully, according to a report released by GS1 Australia and Victoria University.

26… Advice to SMEs: ‘Give GS1net a go’ Cheviot Bridge’s National Sales Administration Manager has some straight-talking advice for small to medium businesses.

28… Streamlined Myer The iconic Australian retailer Myer has completed a supply chain transformation that has driven bottom-line benefits and delivered solid results.

Features 05… GS1 Australia and HP to enhance product

recall process

GS1 Australia and HP have signed an agreement to develop a recall service that traces and removes potentially harmful food, healthcare and other products from the supply chain.

08… HGAG’s hard work starts to pay off After three years the GS1 Hardware Action Group (HGAG) is starting to see results from implementing the GS1 standards.

STARTERS

03… Welcome Chairman’s Message CEO Insights

04… Quickscan

Staff fund talking scanners for the blind

10… ASSA ABLOY builds solid foundation

THIS ISSUE

for eCommerce

After a two-year project to implement bar coding and numbering, ASSA ABLOY is poised to embark on a new and exciting phase of their eCommerce journey.

Hotdates

Local news

16…

Consumer electronics sector to pilot GS1net

19…

Agribusiness GS1 standards group launched

20… Office supplies leaders urge sector to adopt GS1net 23…

THE SUPPLY CHAIN MAGAZINE

Streamlined myer Delivering results GS1 Recallnet aGReement SiGned with hP Office SuPPlieS call tO actiOn

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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 crosssector, 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).

GS1 Australia LiNK | Issue 25 | spring 10 | 2

CONTRIBUTORS

Editor Mary Riekert Design Vetro Design PrintING 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 9551 General Email: gs1aust@gs1au.org LiNK Email: editor@gs1au.org www.gs1au.org

The Supply Chain Doctor

Alliance Partners 30… Supply-LINQ: 3PL specialists who have retail covered

Avery Dennison: vendor Connect a turnkey solution for retailers 31…

Leadtec: connecting business

32…

terling Commerce: SMEs can shorten invoice-toS pay cycle times

33…

arcodes4U: Speedy service backed by B expert advice

34…

insignia: Focused on supporting smaller businesses

WELCOME

Welcome to LiNK Spring 2010 edition 01 Russell Stucki Chairman gs1 australia 02 maria palazzolo ceo gs1 australia

Chairman’s Message

01

Persistence pays off in golf … and supply chain Many members I have met over the years will know that I am a keen golfer as well as a follower of the sport around the world.

I was recently inspired by the success of Australia’s own Stuart Appleby who recently won the Greenbrier Classic in the US. Appleby, triumphed with a round of 11-under par 59 in the final round, becoming the fifth player in history to shoot a 59 in an official PGA Tour event. The only prior 59s in US PGA history were all by Americans. Appleby had not won a title since the 2006 Houston Open and hadn’t shot better than 65 for seven years. It seemed as if his very future on the US PGA Tour was on the line but he persisted with his trademark never-say-die attitude to win through in the end.

The relevance of Appleby’s win to supply chains may not be obvious at first but consider this: Implementing best-practice supply chains can be frustrating and tricky. Giving up and going back to the old manual, paper-based ways can be tempting when the path to eCommerce and supply chain efficiency poses challenges. It takes determination and persistence to see through a project to streamline and transform a supply chain.

While the business benefits make it worthwhile in the end, the leadership team has to ensure that everyone in the business is as committed to change through thick and thin, for the whole journey. Also, Appleby was out on the course on his own but he was backed by a support team who made it possible for him to do what he does best. Similarly, GS1 Australia members should draw on the wealth of experience available to them through the GS1 Australia team to ensure their supply chain is efficient, competitive and delivering results.

02

CEO Insights

New service could save lives In this edition of LiNK magazine we bring you the exciting announcement that GS1 Australia has signed an agreement with Hewlett Packard (HP) to develop GS1 Recallnet, a new online product recall service that has the potential to save lives.

GS1 Australia has been working with the Australian Food and Grocery Council (AFGC), Efficient Consumer Response Australasia (ECRA), the Liquor Merchants Association (LMAA) and Food Standards Australia and New Zealand (FSANZ) to establish GS1 Recallnet for the Australian grocery, food service and liquor sectors. This service will then be made available to the healthcare sector based on requirements currently being developed by representatives from government health jurisdictions, the Therapeutic Goods Administration (TGA), suppliers, wholesalers and other stakeholders. A pilot of GS1Recallnet is scheduled for early next year.

We are operating in an economy where consumers are

more demanding and have an expectation that businesses will provide additional information about their products when asked. Consumers also want to be reassured that the food they put on their table, or the medicine they are taking, is safe.

Manufacturers need to know where their raw materials come from, whether they are produced in a sustainable way and whether they comply with regulations.

They also want to know that they can quickly and securely recall a product when necessary.

While our focus is to develop global standards for the supply chain, our members are asking us for effective solutions and services based on GS1 standards.

Through these value-added services we can help them as they work towards meeting the expectations of consumers and the regulatory requirements of their sectors.

As a secure, trusted source of industry product recall data, GS1 Recallnet has the potential to build a safer supply chain for the benefit of all Australians.

It is enormously exciting to know that the work we are doing could make a real difference in saving lives.

GS1 Australia LiNK | Issue 25 | spring 10 | 3

QUICKSCAN

Hot Dates

SEPTEMBER 2010 01 GS1 Webinar: “How do I get started with the GS1 System?”

07 GS1net Webinar: “Introduction to GS1net” 08 GS1 Webinar: “How do I apply GS1 Bar Codes to my non-retail items?”

14 GS1net Webinar: “Getting the most out of the browser template” 15 GS1 Webinar: “How do I achieve optimal bar code quality?”

16 Classroom Training: “GS1net implementation in the Liquor and Grocery sectors” – Melbourne and Sydney 21 GS1net Webinar: “Publishing and reporting within GS1net”

OCTOBER 2010 05 GS1net Webinar: “Introduction to GS1net” 06 GS1 Webinar: “How do I get started with the GS1 System?”

07 Classroom Training: “An introduction to GS1 Numbers and Bar Codes” – Melbourne 12 Classroom Training: “An introduction to GS1 Numbers and Bar Codes” – Sydney 12 GS1net Webinar: “Getting the most out of the browser template” 13 GS1 Webinar: “How do I apply GS1 Bar Codes to my non-retail items?”

14 Classroom Training: “An introduction to GS1 Numbers and Bar Codes” – Brisbane 19 GS1net Webinar: “Publishing and reporting within GS1net” 20 GS1 Webinar: “How do I achieve optimal bar code quality?”

NOVEMBER 2010 03 GS1 Webinar: “How do I get started with the GS1 System?”

09 GS1net Webinar: “Introduction to GS1net” 10 GS1 Webinar: “How do I apply GS1 Bar Codes to my non-retail items?”

16 GS1net Webinar: “Getting the most out of the browser template” 17 GS1 Webinar: “How do I achieve optimal bar code quality?”

23 GS1net Webinar: “Publishing and reporting within GS1net”

GS1 Australia LiNK | Issue 25 | spring 10 | 4

Staff fund talking scanners for the blind GS1 Australia staff have raised the funds to provide four IDMate “talking barcode scanners” for distribution to blind or low-visioned people by not-for-profit organisation Visual Independence.

Earlier this year John Hearn, General Manager – GS1 Australia Services Group, and Bernie Slagtman of Visual Independence, presented GS1 Australia’s second donation to Joan Andrews, of Victoria, with an IDMate Omni talking bar code scanner. GS1 Australia staff have also raised funds for a scanner for another Victorian and one for a single mother with a small child living in Sydney.

Andrews, who is blind, said the scanner was the most fantastic gift that had completely altered her life. “I never thought I would be able to afford this technology so just got on with things. My son used to take me shopping every couple of months and I would have all these tins in my home and I was driving myself silly not being able to identify what was in them. Now it’s wonderful because I can tell exactly what’s in each tin I open,” she said.

The talking bar code scanner, or IDMate Omni, is a portable “allin-one” talking bar code scanner. It allows an individual to identify items using a product's bar code. GS1 Australia has supplied Visual Independence free of charge with barcode numbers and product descriptions of nearly 1 million available items.

Drawn from available data in the GS1net data synchronisation service, the database gives the user a huge head start in identifying a product and getting information needed about it. This barcode and description data are preloaded to the scanner allowing its user to identify everyday items. The scanner can be used in the home or in the workplace to identify cans, jars, boxes, bottles, clothing, playing cards, prescription drugs, compact discs, albums, cassette tapes, gardening products, pictures, important documents or files.

Additional bar code labels are available for use as tags, stickers or iron-on labels. These can then be used to label anything that doesn't already have a GS1 Bar Code on it, for example, clothing, keys, files, computer disks, pictures and appliances. Extra information and memos can be recorded, played and erased on the lightweight, easy-to-carry scanner.

Visual Independence makes this assistive technology available to Australians who are blind or have low vision and who cannot afford to buy a scanner and has distributed 250 scanners so far.

Many Lions Clubs of Australia are donating scanners to blind or low-visioned people in their own communities and GS1 Australia Alliance partner insignia has donated sticky bar code labels for Australian users of the IDMate to label personal effects.

John Hearn, the General Manager of GS1 Australia’s Services, said, “The staff at GS1 Australia remains very excited about the opportunity this fantastic project gives us to assist people in the community benefit from GS1net in a way we’d never intended. A range of our staff has met the two donation recipients to date and to hear first hand how something so simple changes their lives makes us very proud.”

For more information about donating to this project contact Visual Independence, www.visualindependence.org.au

GS1 Recallnet

GS1 Australia and HP to Enhance Product Recall Process

GS1 Australia and HP have signed an agreement to develop a cloud-based recall service to remove potentially harmful food, healthcare and other products from the supply chain.

The service, GS1 Recallnet, will run on the HP cloud computing platform for manufacturing, which allows companies to see and share information across the supply chain. It allows Australia to rapidly exchange recall notifications both within the border of its own supply chain and with other countries. Food and consumer products organisations can use the service to reduce errors, decrease the amount of time it takes to respond to a recall, and mitigate the costs associated with managing the recall process.

Liquor Merchants Association (LMAA) and Food Standards Australia and New Zealand (FSANZ) to establish GS1 Recallnet for the Australian grocery and liquor sectors by March 2011. This service will then be made available to the healthcare sector based on requirements currently being developed by representatives from government health jurisdictions, Therapeutic Goods Administration (TGA) and global suppliers.

GS1 Recallnet will offer businesses:  A single, consistent, automated, online, industrybased recall and withdrawal notification process  Built-in security that sends notifications to authorised users and targeted retailers  Clear handling, disposal and reimbursement instructions to speed the recall process  The ability to customise alerts and target specific retailers and distributors with relevant information  A traceable security and audit trail to ensure compliance  Multi-media recall notification channels “Global supply chain standards are foundational to effective product recall. GS1 global standards are used by

millions of companies around the world to enhance the safety, security and efficiency of their supply chains. Tracking of products through the supply chain into the hands of consumers has been identified by the ACCC as fundamental to improving recall effectiveness and use of GS1 traceability standards can provide suppliers with this ability. Integration of GS1 standards and HP’s cloud-computing platform is a very powerful solution that will support industry efforts to improve consumer safety,” said Ms Palazzolo.

“The ability to mitigate consumer safety concerns around product recall is extremely important for manufacturers and retailers,” said Martin Dubé, General Manager, Manufacturing and Distribution Industries, HP Asia Pacific and Japan. “By simplifying the product recall process, we can demonstrate how cloud services add real value to our everyday lives.”

Developed by HP Software and Solutions Cloud Services Innovation Centre in Galway, Ireland, working in collaboration with GS1 Australia and HP Labs, the company’s central research arm, GS1 Recallnet will consist of HP software, services and infrastructure.

“GS1 Recallnet will reinvent the way recall information is handled between businesses,” said Maria Palazzolo, Chief Executive Officer, GS1 Australia. “By extending existing GS1 services, to offer the industry additional functionality for product withdrawal and recall, GS1 Australia is able to assist in improving consumer safety.”

This year, a review of the Australian product safety recall system by the Australian Competition and Consumer Commission (ACCC), revealed that in 2009 there were 779 recalls in Australia, some involving many thousands of products. The report said that the average return rate across recalls for all Commonwealth regulators is 56.75 per cent. The ACCC urged suppliers to implement tailored communications strategies in the event of a recall and said the days of relying just on newspaper advertisements as the major method of communication were past.

GS1 Australia is working with the Australian Food and Grocery Council (AFGC), Efficient Consumer Response Australasia (ECRA), the GS1 Australia LiNK | Issue 25 | spring 10 | 5

GS1 Recallnet

P rtal streamlines process Rapid Recall Exchange is a recall service developed and run by GS1 US in association with grocery industry manufacturers and associations. This case study looks at how Proctor & Gamble is using the service to streamline its recall process.

Retailers are very familiar with Procter & Gamble (P&G). Chances are that P&G is one of the best-known companies in the world. With its expansive product portfolio and far-reaching channels of distribution, it’s hard to find someone who hasn’t used a P&G product at some point in their life.

The company’s long-term success is driven by multiple factors – one major contributor being consumer trust and loyalty. Market Logistics Leader Daniel Triot shares his perspective: “Doing the right thing is one of P&G’s core values. While product recalls are something we strive to avoid, and take very seriously, in the unlikely event they do happen, we are ready.”

Recall notifications to the web of P&G channels – specifically its retailers and wholesalers – could present a complex challenge

for Triot. Yet, with the Rapid Recall Exchange™ service, this insightful leader reports he has simplified the process by communicating one recall message to many.

“We’re excited about the Rapid Recall Exchange service since it gives us a tool for communicating a single version of the truth,” explains Triot. “It allows us to deliver one consistent message to all retailers, regardless of the product category or marketplace they play in.”

Rapid Recall Exchange is an online service that allows manufacturers to send an email message to their retailers 24/7, alerting them about a product recall or withdrawal. The service was commissioned by the Food Marketing Institute (FMI) Associate Member Advisory Board and developed by GS1 US in collaboration with FMI and the Grocery Manufacturers Association (GMA) as part of their commitment to enhanced food and product safety. Rapid Recall Exchange is also endorsed by the National Grocers Association.

While P&G uses other communications tools, including news releases, customer letters and direct contact through its sales organisation, the company has adopted the Rapid Recall Exchange service to complement its product recall steps.

And Triot is anxious for others to join.

“The sooner additional retail partners and manufacturers join Rapid Recall Exchange,

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the sooner it will build critical mass and keep improving the value of the tool. This will significantly contribute to streamlining the recall notification process for us and our retail partners,” says Triot.

A Positive Experience Triot has quickly integrated the Rapid Recall Exchange service into the P&G best-practice recall process. Critical initial steps included creating awareness of the tool within the respective business units and training the personnel potentially involved in the recall process.

P&G trained more than just one or two people.

When multiple people know the tool, they can benefit by collaborating. “I believe training – initial and ongoing training – is very important. We have ensured that the right individuals in our organisation are very familiar with the process,” explains Triot. “The tool is user-friendly, yet I believe training has helped us leverage it to the fullest for maximum benefits.”

Initial experiences with the Rapid Recall Exchange service are positive for P&G. Here is a summary of ways Rapid Recall Exchange is making a difference for Triot, his team and P&G. Rapid Recall Exchange allows P&G to deliver one consistent message to many trading partners at the same time. It reduces the risk of communication errors since the recall message goes directly to retailers and wholesalers. A highly useful feature: the service provides a test environment where mock recalls can be conducted by manufacturers in advance of a real recall.

With Rapid Recall Exchange, P&G can select which customers should be contacted based on the product impacted. It also tracks who received and opened the notification and when, via the Rapid Recall Exchange audit report.

recall With this feature, P&G knows whether a follow-up or reminder is necessary. “We can quickly share any notification updates with our sales or logistics organisations for immediate action,” says Triot.

Rapid Recall Exchange gives P&G up-to-date retailer contact points for communicating via its twoway messaging capability by including contacts’ phone numbers and email addresses.

And it helps P&G keep internal contacts up to date and in one place.

Rapid Recall Exchange drives clarity about products being recalled. The recall form includes a comprehensive list of data: the reason for the recall, product details such as specifications and photographs, and handling and financial settlement instructions.

“It is a one-stop source of data that definitely reduces the need for numerous follow-up emails or phone calls to clarify the information provided by the manufacturers,” explains Triot.

With Rapid Recall Exchange, P&G can send its retailers the FDA Individual Case Safety

Report numbers, if necessary. It can also send specific information to a retailer via a targeted attachment. “It is a good tool for communicating additional information, when required,” advises Triot.

A Perfect Fit Rapid Recall Exchange is expected to contribute to P&G’s continuing efforts to enhance and simplify its best practices. As Triot considers the company’s successful use of the Rapid Recall Exchange, he distills his experience to report: 1. Where speed and accuracy of notifications are needed, the Rapid Recall Exchange is an effective tool to communicate a consistent message to customers.

2. Internal awareness and training on the use of the tool by both manufacturers and retailers are critical elements for its effectiveness.

3. Higher participation from both manufacturers and retailers is essential for the Rapid Recall Exchange service to reach critical mass and achieve its high-value potential.

Triot adds, “I strongly encourage anyone thinking about Rapid Recall Exchange to sign up and do so right away. Help make this tool a valuable asset for us all.”

P&G participation in the Rapid Recall Exchange service perfectly fits the company’s “doing the right thing” core value. It provides a single version of the truth for the benefit of the company, its trading partners, consumers and associates.

This case study was originally published by GS1 US and Rapid Recall Exchange.

“With Rapid Recall Exchange, P&G can select

which customers should be contacted based on the product impacted. It also tracks who received and opened the notification and when, via the Rapid Recall Exchange audit report.

”

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Hardware

HGAG’s hard work starts to pay off

Frustrated by a lack of implementation of numbering and bar coding, electronic messaging and poor level of data quality within their sector, key members of the Australian and New Zealand hardware sector formed the Hardware GS1 Action Group (HGAG).

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HGAG entering its third year of existence, it was timely to investigate how the group was progressing and find out if those frustrations still existed.

To do this, we gathered together some of the key players within the HGAG and Richard Jones, General Manager Industry Management, GS1 Australia, asked them what was really going on in the hardware sector. These key players were:  Andrew Price, Strategy and Architecture Manager, Mitre 10, HGAG Steering Committee Chair  Patrice Chan-Yam, Supply Chain Improvement Manager, DuluxGroup – HGAG Steering Committee Deputy Chair  Errol Kennedy – National Vendor Relations Manager, John Danks & Son, HGAG Numbering & Bar Coding work group Chair  Steve Minchenton – IT Operations Manager, Hyne Timber, HGAG Data Synch work group Chair Richard So, nearly three years in, plenty of meetings have been held, how do you think the HGAG is travelling?

Andrew We all feel frustrated by the rate of progress made; however, we do realise that we are working in an industry that is only now beginning to understand the value that standards play in the supply chain. So in that sense, we are making progress. The standards have been developed, but we found we needed to explain to the sector the benefits of implementing these standards. For example, the simple task of bar coding of products on all levels of packaging.

Patrice Having both retailers and suppliers in a room together has meant that the objectives of the group, from an expectation perspective, are balanced. While progress may seem slow, I believe we are now starting to get the message across to the sector that HGAG initiatives are not only here to stay, but will give suppliers and retailers alike a competitive advantage in the market place.

Errol Three years ago, when I was first introduced to GS1 Australia, I had no idea who they were. I was aware that bar coding was important but did not appreciate how important it was. We have seen bar coding of products at carton level, at our Braeside DC, move from just under 50 per cent of our products to 80 per cent, which means our warehouse personnel can put away products more efficiently and accurately. Without the HGAG, I don’t think that we could have achieved this level of improvement on our own.

Steve Working in the timber industry has unnecessary unique challenges. While the majority of the initiatives of the HGAG are doable, we have our own peculiarities that need to be addressed. I’m hoping that once we have the “easy” products and processes covered, we can start looking at how to efficiently implement the GS1 standards in not only the timber industry, but other sectors such as greenlife and outdoor furniture.

Richard What have been the major initiatives undertaken by the HGAG? Errol The first initiative undertaken by the group was to put out a Call to Action requesting suppliers to allocate unique bar code numbers to all levels of packaging and then to bar code their products accordingly. As I mentioned, we are now up to 80 per cent of products coming into the Danks DC that conform to this requirement.

Steve The data synchronisation group has worked in parallel to the numbering and bar coding work group. Our first task was to identify the information that we felt was important when synchronising product data between a supplier and a retailer. We have now completed a pilot and have two retailers – Danks and Mitre 10 – ready to accept product data via GS1net.

Richard What are the major issues facing the hardware sector?

Andrew The biggest issue we are facing right now is how to ensure we get quality data from our suppliers.

There is a common theme coming out of all the work groups and that is the issue around data accuracy. This can range from incorrect bar code numbers used in purchase orders, incorrect pricing, poor internal master data processes.

The list goes on. We don’t want to spend money developing our systems and then find that the processes implemented to support these systems are not adequate.

Patrice I agree with Andrew. Internally the DuluxGroup has had to re-think their approach to master data management. We do things pretty well in my organisation, but we realised that we can do better and should do better.

Richard And the future?

Errol We would like to get to as close to 100 per cent of all items and all levels of packaging bar coded. We will continue to work with our suppliers and help them to get across the line to achieve this. This work will lay a strong foundation for the sector to drive and support the adoption of electronic productdata synchronisation via GS1net.

Once we have good data in the system, we can then expand our eCommerce initiatives.

Steve Data synchronisation via GS1net is our next immediate focus.

We ask that organisations start looking at how they manage their own data now and begin planning for the day when one of their key trading partners comes knocking on their door asking them to send their product data via GS1net.

Andrew I believe with the numbering and bar coding work and introduction of electronic data synchronisation via GS1net we will have a strong foundation in place allowing further improvements in the supply chain. We have already started to look at how best to implement advanced shipping notices linked with logistics labels and expanding our set of electronic messages beyond simple purchase orders and invoices.

These are two major initiatives that will impact the sector over the next 12 months.

Looking back, I never thought we would be even considering these initiatives but now I am very excited about what we will be able to achieve in the near future.

Richard Gentlemen, thank you for your time this afternoon and for your open and honest feedback.

GS1 Australia LiNK | Issue 25 | spring 10 | 9

Hardware

ASSA ABLOY

builds solid foundation for eCommerce

After a two-year project to implement bar coding and numbering in their Australian operation, ASSA ABLOY is poised to embark on a new and exciting phase of their eCommerce journey.

As a global leader in door and window security solutions, ASSA ABLOY Australia supplies Australia’s major hardware retailers with a range of some 700 products. Their Security Products Channel, which includes household brands such as Lockwood, Yale and Whitco, is complemented by a commercial business servicing the building and development industry and an electromechanical security business providing access control, identification technology, automatic doors and hotel security.

Supplying retailers such as Bunnings, Danks and Mitre 10 meant ASSA ABLOY had to have GS1 Bar Codes not only on all retail items (and to ensure they scanned at point of sale), but also on all levels of packaging for these products (inners, outers, cartons, etc.). To achieve this, the company put together a cross-functional team with members from their logistics and IT departments, marketing communications (who handle packaging artwork) and their warehouses and trained them

in applying the GS1 standards at GS1 Australia’s Supply Chain Knowledge Centre.

However, as China is an important manufacturing centre for their products, the company realised it would need to train its suppliers there. Mark Solari, Packaging & Materials Handling Manager at ASSA ABLOY Australia, said he and a colleague fluent in Mandarin travelled to China and worked with the Chinese to ensure their packaging met the GS1 standards. “We gave

GS1 Australia LiNK | Issue 25 | spring 10 | 10

them written specifications, the magnification and the format of the bar code labels and we connected them with GS1 in Hong Kong, China and Taiwan where appropriate,” he said.

“Now they are aware of what the standards are, all we have to do is email them the bar codes and they ensure their packaging is compliant.”

John Szabo, GS1 Australia Industry Manager – Hardware, said bar coding had delivered not only benefits to organisations such as Danks, enabling them to scan receipt items more efficiently and accurately using carton level bar codes, but the allocation of bar code numbers had built the foundation for ASSA ABLOY to engage in electronic product data synchronisation via GS1net.

“The hard work has been done,” he said. “Working through your products and identifying the different levels of packaging and assigning bar code numbers is a major step that is required before anyone attempts to synchronise their product data electronically.”

With numbering and bar coding in place, ASSA ABLOY Australia is well placed to join GS1net and begin data synchronisation with their retail customers and the company is currently assessing middleware.

Solari stressed that their future use of GS1net would not just be limited to the big retailers.

“Independent businesses who want to get on board and use GS1net with us are more than welcome to do so,” he said.

Currently requests for packaging dimension and weight data requested by retailers is manually collected and supplied in a spreadsheet, but Solari said the move to GS1net would allow this information to be electronically exchanged and eliminate the potential for manual data-entry error.

Looking to the future, Solari said ASSA ABLOY Australia would work towards having all products bar coded to be able to scan in and out of their warehouses for better inventory control and order fulfilment as well as using GS1net to eliminate paper-based processes.

Healthcare

Healthcare sector meets with solution providers The GS1 Healthcare User Group (HUG) Australasia recently met two key groups of supply chain solution providers to brief the providers about the Healthcare sector’s use of the GS1 standards, and to understand these organisations’ GS1 standards-related solution development plans.

Solution providers to the healthcare sector were invited to attend HUG Australasia meetings in Sydney and Melbourne where leading members of the group’s leadership team outlined their expectations of the solution providers’ roles in assisting their customers to implement the GS1 standards in the healthcare supply chain. This was followed by one-on-one sessions where solution providers and the HUG Australasia leadership discussed current and future solution capabilities.

in turn, will recommend you to others,” she said.

Following this session, eight solution providers were invited to present to the broader HUG Australasia participation group, which comprises healthcare suppliers, wholesalers, government representatives and buyers. The objective was for the solution providers to provide case study implementation learnings about their healthcare

supply chain solutions. This was one of the three HUG Australasia meetings held per annum, each having the objective of assisting industry education and GS1 standards implementation.

GS1 Australia Industry Manager – Healthcare, Tania Snioch, said GS1 Australia planned to run annual solution provider sessions and solution providers working with the healthcare sector would be invited to attend.

The next HUG Australia meeting will be held in November in Sydney and will focus on Implementation Case Studies. This meeting is open to all companies trading in the healthcare supply chain. For more information about the HUG Australasia, including presentations and agendas from past meetings, refer to: http://www.gs1au.org/industry/ healthcare/australasia/

Key ERP/Pharmacy Software solution providers, solution providers offering National Product Catalogue (NPC) upload functionality, eMessaging, or bar coding/RFID solutions, were invited to participate in the meetings, which were well attended by the HUG Australasia leadership team.

HUG Australasia Chair Ged Halstead, of CH2, Deputy Chair Yvonne Bell, of Terumo Medical Corporation, and Dianne Prince, of Abbott, discussed their companies’ implementations of the GS1 standards and the NPC. They then addressed how solution providers could assist their customers to climb the learning curve that many organisations have had to address given the introduction of the NPC, electronic data exchange and supply chain reform.

Bell urged solution providers to work with the industry and GS1 Australia to see what new standards were being introduced and how they would need to be applied. “Introduce these new standards into your development plans for future upgrades to your solutions.

“Your customers look to you for solutions. Be prepared to provide information on what you have now and how it can assist them, on your future developments to meet the next set of standards and on what other tools they need to achieve the overall project,” she said. “Be one of the front runners in your industry, your customers will thank you and, GS1 Australia LiNK | Issue 25 | Spring 10 | 11

Healthcare

Health procurement leader TURNS TO National Product Catalogue to improve tendering

GS1 Australia LiNK | Issue 25 | spring 10 | 12

Tom Truman

The single source of item master data for health institutions in Australia, the National Product Catalogue (NPC), has been used successfully by one of the state health jurisdictions to improve the quality of data sourced for its pharmaceutical tendering process.

In 2009 Health Purchasing Victoria (HPV) requested suppliers who wished to tender to supply pharmaceutical products, to provide tender data in the format of the NPC Browser Template. For current NPC Ready/NPC Populated companies (loading validated data to the NPC), this provided a simplified process for tender submission. For HPV, this resulted in a 60 per cent improvement in data matching with items from the current contract.

Collective procurement Health Purchasing Victoria (HPV) was established in 2001 by the Victorian Government to facilitate access by public hospitals and other health-related services to goods and services on best-value terms. HPV contracts can be accessed by 76 public hospitals and healthcare services that provide healthcare to more than 5 million Victorians. HPV achieves optimal collective procurement outcomes through innovative practices and collaborative partnerships and by engaging public health service providers, consumers, funders, regulators and suppliers.

The organisation’s vision is to be a health procurement leader in Australia, acknowledged for innovation, ethical procurement practices and transformation of the health supply chain. HPV’s strategy is aligned with the Federal Government’s National eHealth Strategy, which is being implemented by the National eHealth Transition Authority (NEHTA). NEHTA initiated the National Product Catalogue (NPC) as the ‘single source’ of item master data for health institutions seeking to purchase medicines, medical devices and other necessary healthcare items.

The NPC, which has been endorsed by all state, territory and federal health departments in Australia, is hosted by GS1 Australia on GS1net.

For suppliers in the Australian healthcare sector to become ‘NPC Ready’, all their product and price data must be loaded to the NPC, the data validated, and published to the NPC data recipients (i.e. health jurisdictions and private healthcare organisations). The validation step in the process, performed by GS1 Australia, is crucial as it ensures the quality of the data provided, which will assist all jurisdictions such as Victoria to overcome difficulties in validating tender outcomes.

Tender program Every year HPV is required to consult with public hospitals and health services to develop its Confirmed Annual Tender Program.

HPV then publishes Requests for Tenders to establish best-rate prices per product and/or pricing benchmarking. To assist with tender development and viability assessment, hospitals and health

By Tom Truman, Manager Tenders and Contracts, Health Purchasing Victoria

services are requested to supply data and information to HPV about their current purchasing habits and usage volumes.

HPV then uses this data to form valid judgments concerning pricing viability of tenders and to perform evaluation of tender outcomes.

For a number of years, HPV has had an established policy of preference for tenderers who demonstrate the highest level of compliance with the requirements of the NPC as well as use of other aspects of the GS1 System, such as GTIN allocation, bar coding and eMessaging capabilities.

Flagging supply chain efficiency as a priority, HPV has also encouraged tenderers to offer and describe any current or proposed supply chain solutions that could provide a demonstrated improvement to the efficiency and effectiveness of delivery. HPV asked the tenderers to outline the anticipated benefits to all Victorian public hospitals and other health and related services arising from the implementation of solutions, including how the success of each solution would be measured.

Working collaboratively, the Victorian Department of Health and HPV recognised the need to improve the data integrity within the pharmacy supply chain. HPV resolved to integrate the use of NPC data into the tendering process. The steps taken were: 1. Tenderers were to submit the item and price data relating to products they were tendering in the ‘GS1net/NPC browser template format’. The browser template is a csv file format that can be used by suppliers to load data to the NPC and also read data output from the NPC. Prior tenders had requested suppliers enter data into a proprietary HPV spreadsheet, which created additional work for suppliers.

GS1 Australia LiNK | Issue 25 | spring 10 | 13

For existing NPC Ready/NPC Populated companies, this meant that provision of product data for the tender simply meant downloading information from the NPC and adding appropriate tender pricing. Non-NPC Ready/NPC Populated companies were required to get familiar with the data requirements and prepare their data. However, these companies then had data ready to load to the NPC. 2. HPV stipulated that it would prefer to enter into an agreement with tenderers who would load and publish all product information and pricing for products selected as part of the contract on to the NPC prior to execution of the contract. Loading of this data is required at least one month prior to the anticipated commencement of the contract on 1 April 2010, or as otherwise determined by HPV. Data must be published to both Victoria Health (as a data recipient) and also any wholesalers/distributors nominated in the tender submission as authorised suppliers on behalf of the tenderer.

3. Tenderers would be required to maintain in a timely fashion, all product data loaded to the NPC for contracted products, for the life of the Agreement. Should a contractor fail to load all product and price data to the NPC for any deliverable, HPV also reserved the right to contract with an alternative tenderer for supply of those products.

Tender submissions The Request for Tender was issued on 20 August 2009 and the tender closing date was 2 October 2009. Significant supplier education and engagement were undertaken prior to the tender.

This took the form of two supplier seminars (tender briefings), help desk support provided by GS1 Australia, and face-to-face supplier meetings.

Using data from past tenders, HPV was able to assess if the new tender data provision process had any impact on the rate of response to the tender. HPV received 35 tender responses, including responses from all but two incumbent suppliers. Twelve responses were from tenderers not currently on contract, and approximately 3,000 product lines were tendered. All distributors responded to the tender and all have now published GTINs to the NPC. Of the currently contracted suppliers who responded, all but three have published to the NPC. Overall, the number of tenderers and number of items tendered have not changed appreciably since previous pharmaceutical tenders, which indicates the new process has not discouraged participation in the tender.

By September 2009, the number of GTINs published to the NPC

by HPV’s incumbent suppliers increased from less than 8,000 to more than 10,000, an increase of 25 per cent. By January 2010, the number of GTINs loaded to the NPC by incumbent suppliers had exceeded 11,000. This indicates that use of the NPC for the tender process had a direct impact on the number of companies loading data to the system.

In the month before the tender closed the number of GTINs published to the NPC by the incumbent suppliers increased by 25 per cent.

Tender data quality analysis Using data from the current tender and as well as the previous tenders, HPV was able to undertake two key comparative analyses: 1. Identify if there was a difference in quality of data provided for the current tender when compared between suppliers who had previously achieved NPC Ready/NPC Populated status versus those who became familiar with the NPC data requirements for the tender and did not complete the strict NPC data validation process. Accuracy of selected data elements was quantified for all tenderers and a comparison made between those who had GS1 Australia LiNK | Issue 25 | spring 10 | 14

published data to Victorian Health (i.e., were NPC Ready/ NPC Populated) and those who hadn’t. The results of the data quality analysis showed that information provided by companies who were NPC Ready/NPC Populated was of much higher quality than that from other companies.

Other data issues revolved around the familiarity of the tenderers with the browser template and inconsistent data typing.

2. Assess the impact of the improved data quality on the financial evaluation of the tender outcome. There was a 60 per cent improvement in data matching with items from the current contract, significantly increasing the confidence in financial impact statements for the Victorian Hospitals’ pharmaceutical costs.

Benefits and next steps For HPV access to accurate and validated data from the NPC made tender analysis and evaluation significantly easier when submissions were from NPC Ready/NPC Populated companies. More companies becoming NPC Ready will further streamline the tender process. HPV also intends to use the NPC for ongoing contract management as a single source for validating, communicating and promulgating data updates.

This eliminates the use of multiple spreadsheets and manual data communication and manipulation, and the attendant opportunity for error.

Given these benefits, HPV intends to implement a plan to roll out a similar process for future tenders in other categories of product, e.g., medical devices, consumables.

Learnings Given that this tender was the first undertaken using the new process, a number of learnings and process improvements have been identified. These include updates to supplier documentation, specific supplier training sessions in

NPC implementation in Victoria Use of the NPC data in contracts and tenders is only one element of the business application of the NPC in Victoria. There is a project currently under way to assess the feasibility of implementing a solution to allow the automatic receiving and routing of data from the NPC to the various Victorian health locations.

This project is being coordinated by both HPV and the Victorian Department of Health and is integral to the longer-term data management and eHealth plan of the state.

It should be noted, that apart from the tender process, current data from NPC Ready/ NPC Populated companies is being manually accessed by Victorian health locations.

The opportunity for the use of NPC data in Victoria is significant and the implementation of this system will be a foundation to Victoria’s continued development of eHealth infrastructure.

addition to tender briefings and introduction of alternate supplier support mechanisms.

Modifications to all of these areas are currently in progress.

Also, due to the data quality difference seen as a result of this tender (between NPC Ready/NPC Populated and other companies), HPV is currently assessing its ability to ensure that population of the NPC and completion of the NPC Ready/ NPC Population process are mandatory pre requisites for future tender submission.

This will ensure that validated data is presented as part of the tender process.

This case study was originally published in the GS1 Healthcare Reference Book 2010/2011.

Healthcare

GS1 & IHTSDO join forces to support patient safety The International Health Terminology Standards Development Organisation (IHTSDO) and GS1 have signed a Memorandum of Understanding to collaborate and ensure compatibility between their respective standards systems, where appropriate.

Miguel Lopera, President and CEO of GS1, said: “GS1’s global standards for automatic identification provide the opportunity to make the healthcare supply chain safer. This partnership with IHTSDO will accelerate the development and adoption of global standards for sharing information.”

Jennifer Zelmer, CEO of IHTSDO, said: “The collaboration with GS1 will be to the benefit of the healthcare community

by aligning global standards and joining forces to promote their appropriate use.”

GS1 and IHTSDO are both members of the Joint Initiative Council (JIC), together with ISO TC 215, CEN TC 251, HL7 and CDISC. Under the umbrella of JIC, these standards development organisations coordinate standards development efforts and work to develop interoperable and compatible standards to the benefit of the patient.

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Phone 02 8020 2000 GS1 Australia LiNK | Issue 25 | spring 10 | 15

Consumer Electronics

Consumer electr nics sector to pilot GS1net

Australia’s leading consumer electronics retailers and suppliers are set to pilot data synchronisation between trading partners via GS1net.

GS1 Australia LiNK | Issue 25 | spring 10 | 16

The pilot is part of a move by the Consumer Electronics Working Action Group (CEWAG) to promote eCommerce in their sector.

CEWAG was set up in 2009 with the aim of:  Eliminating paper-based forms through the adoption of data synchronisation  Removing manual processes  Improving the accuracy of master data  Reviewing the reverse logistics processes to make it more efficient

Key participants in the group are retailers Harvey Norman, Dick Smith, JB Hi-Fi, The Good Guys, Bing Lee and Betta Electrical and suppliers Electrolux, Sony, Sunbeam, Canon and Panasonic.

GS1net is not-for-profit GS1 Australia’s data synchronisation service, already used by the food and grocery, liquor, hardware and healthcare sectors. By using GS1net, trading partners can achieve:  Improved accuracy of item master data  Improved accuracy of orders  Improved inventory control and management  Consistency of sell-through reports  Consistency of item descriptions  Increased accuracy of printed catalogues  Lower overall supply chain costs CEWAG steering committee Chair, Shane Harris of Betta Electrical, said the GS1net pilot would be held in the first quarter of 2011.

Mr Harris said the work completed by CEWAG’s three working groups had made the GS1net pilot possible. The group’s eMessaging working group

Local news

Supply Chain Week is back

Supply Chain Week is back due to popular demand.

GS1 Australia will host a second Supply Chain Week in September following the one held in March.

“ The group’s eMessaging

working group had completed a draft of Messaging Implementation Guidelines (MIG) for orders, order responses, order changes and dispatch advice and will now look at eInvoicing.

”

had completed a draft of Messaging Implementation Guidelines (MIG) for orders, order responses, order changes and dispatch advice and will now look at eInvoicing, he said. The master data management workgroup had completed the data set and the reverse logistics workgroup had reviewed return-reason codes and produced a consolidated list of codes.

Through GS1 Australia CEWAG will be involved in the work being done at a global level to improve the consumer electronics supply chain.

For more information about CEWAG and the GS1net pilot please contact Lisa Caponio on 1300 366 033 or by emailing lisa.caponio@gs1au.org

The March event was attended by more than 300 members who heard retailers talk about their GS1net implementations and requirements for suppliers as well as from representatives from the grocery, liquor, hardware and healthcare sectors.

This month the free event will be held in Brisbane, Sydney and Melbourne There will be speakers from Woolworths, Metcash and the Australian Food and Grocery Council. The following sessions will be held: Melbourne Monday, 13 September  Grocery and Liquor Tuesday, 14 September  Office Supplies & Consumer Electronics Wednesday, 15 September  Agribusiness & Hardware Sydney Tuesday, 14 September  Agribusiness & Hardware Wednesday, 15 September  Grocery and Liquor Thursday, 16 September  Office Supplies & Consumer Electronics Brisbane Thursday, 16 September  Hardware & Automotive For more information or to register to attend contact GS1 Australia on 1300 366 033.

GS1 Australia LiNK | Issue 25 | spring 10 | 17

Synchronise your master data with customers…

With GS1net / National Product Catalogue (NPC) you can: • Synchronise price and product information with your trading partners • Remove manual paper-based processes for › new product introductions and › product & price change maintenance

• Improve data quality • Reduce errors and costly claims administration • Save time and money

1300 366 033

www.gs1au.org

Agribusiness

Agribusiness GS1 Standards Group launched Major players in Australia’s Agribusiness Sector have joined forces to drive supply chain efficiencies to improve their bottom line through the adoption of GS1 global standards.

Putting competition aside, both key suppliers and retailers have formed an industry working group, AGSG (Agribusiness GS1 Standards Group), and have met to identify how to develop and implement supply chain standards.

The group has called on businesses in the agribusiness sector to come forward and participate in this initiative.

Participants in AGSG include Landmark, Elders, Ruralco, First For Farming, Syngenta Crop, Nufarm, Incitec Pivot, Farmoz, Ridley AgriProducts, Pacific Seeds and Pfizer. The group is working with GS1 Australia.

AGSG steering committee Chair, Andrew Pollard of Landmark, said: “Bar coding is our number one focus so we can enable improved data accuracy. We have to use GS1 Australia’s expertise in this area as currently vendor knowledge of retail bar coding is poor. This will set the stage for a new level of standards for rural sector B2B.” The group’s key objective is to work with all interested industry trading partners to develop, promote and implement aspects of the GS1 standards including product identification, automatic data capture, electronic messaging, data synchronisation and product classifications to enable effective and efficient business processes.

The group will initially focus on three areas:  Numbering and bar coding  Data synchronisation  Batch management traceability

The group believe these are three areas that can deliver tangible results to all participants in a short timeframe.

AGSG steering committee Vice-Chair, Keith Quiney of Syngenta Crop, said, “The agribusiness sector needs to leverage the work already done by the hardware sector to jumpstart the implementation process and shorten implementation time as much as possible.”

The AGSG has called for interested parties to participate in three work groups that have been set up – Numbering and bar coding, Data Synchronisation, and Batch Management Traceability. AGSG will meet regularly, alternating between Sydney and Melbourne for meetings, and will offer both webinar and teleconference facilities to participants.

For further information please contact GS1 Australia Senior Advisor Joseph Taylor on (02) 9695 2227 or 0413 366 905.

“ The agribusiness sector needs to leverage the work already done by the hardware sector to jump-start the implementation process and shorten implementation time as much as possible.

”

GS1 Australia LiNK | Issue 25 | spring 10 | 19

alliance partner advertorial

Office supplies leaders urge sector to adopt GS1net The Office Supplies GS1 Action Group (OSGAG) has issued a Call to Action to suppliers in the sector to engage with GS1net to drive costs from their supply chains.

At information sessions for suppliers and retailers in the office supplies industry, OSGAG Chair Brett Proposch, of Officeworks, and Deputy Chair, Martin Rodger, of Australian Office Supplies, called on suppliers to adopt GS1net as the single-source data repository for the sector’s master data.

The information sessions were held recently in Melbourne and Sydney to report on the successful pilot of data synchronisation via GS1net by suppliers Australian Office, Pelikan Artlines, ACCO Australia and Dalton Office and Officeworks, supported by OfficeMax and Corporate Express.

GS1 Australia LiNK | Issue 25 | spring 10 | 20

Q. Why is this program so important?

A. Like every industry, suppliers need to share product information with their trading partners to ensure the supply chain operates effectively and that their products reach consumers or end users. Data recipients (or buyers) require product information from their suppliers to drive areas of their business such as merchandising, warehousing, distribution and point-of-sale systems.

Today, sharing product information with trade partners is largely a manual process through emails, faxes and telephone calls. The information provided is often inconsistent in content, format and detail, requiring significant additional work by data recipients to ensure standardisation of their data in their own systems. This has proved costly, error prone and inefficient.

The objective of adopting GS1net, a globally certified and well accepted data pool, is to ensure better overall data integrity throughout the industry so that errors in the merchandising, ranging, procurement, distribution and fulfilment Attention: All suppliers to activities in our supply chain can be reduced or even eliminated the Office Supplies Industry – thereby reducing cost and Accurate, complete and up-to-date master improving service for the data information is becoming increasingly benefit of the entire sector. important in order to support the efficiencies OSGAG, who represents the of standard business processes across the interests of the industry, is now supply chain. calling on ALL suppliers and retailers to adopt this new model The Office Supplies sector is joining and start realising the benefits of other industries that are already seeing the having accurate, up-to-date and benefits of cost containment while advancing complete master data in your productivity and customer service by business and in our respective improving the overall quality of data flowing supply chains. through the supply chain. While technology Q. What are the benefits? has been at the heart of many eCommerce A.Adoption of GS1net as the initiatives over the years, our industry is still single source data repository fraught with errors as a result of poor-quality for our industry’s master data data. A seamless supply chain can only be will enable: achieved if the information flows can be 1. Improved accuracy of orders trusted to be up to date, accurate and timely, 2. R educed catalogue and the first time and every time. data management costs OSGAG (Office Supplies GS1 Action across the sector Group), represented by a leadership group 3. Fewer forms to fill out of companies, has been working together 4. F ewer duplicate systems and and with GS1 Australia to determine a more processes – one format for efficient and standard way that buyers and many trading partners sellers can share item master data. The result 5. I mproved inventory control of this work is a comprehensive set of data and management attributes and rules, based on GS1 open global standards that all industry players can adopt.

The pilot was undertaken following the completion of a comprehensive set of data attributes and rules for the sector, based on GS1 open global standards. During the pilot Officeworks exchanged data with its trading partners and established that the data set met its needs.

Proposch told suppliers at the sessions that by adopting GS1net the office supplies sector would ensure better overall data integrity throughout the industry and reduce errors in merchandising, ranging, procurement, distribution and fulfilment activities. This would reduce cost and improve service for the benefit of the entire sector, he said.

6. Improved efficiency and accuracy of reporting, both internally and with trade partners 7. A quality foundation for effective eCommerce initiatives 8. Consistency of sell-through reports 9. Consistency of item descriptions across the sector 10. Increased accuracy of printed catalogues Q. Why does GS1net make a difference?

A. Already in use by hundreds of companies in other industries including grocery, healthcare and hardware, GS1net enables suppliers and buyers to share information with their trading partners both in Australia and around the world, via a single common mechanism. To make sure everyone is speaking the same “language”, information in GS1net is based on consistent global standards.

There are three steps for suppliers to provide data to their trading partners via GS1net: 1. Register with GS1 Australia. Information about membership and the benefits is available at www.gs1au.org 2. Register for GS1net. GS1 Australia membership is a prerequisite for registration with GS1net.

For more information refer to www.gs1au.org/ services/gs1net 3. Become “GS1net Ready”. This involves understanding the GS1net data requirements, gathering and validating your product data, loading this to GS1net and publishing it to your trading partners.

Information about the GS1net Ready process is available in the GS1net User Guide located at: http://www.gs1au.org/industry/office_supplies/ We look forward to working with our trade partners to achieve a better, leaner and more productive supply chain!

Brett Proposch – Officeworks Office Supplies GS1 Action Group Steering Committee Chair Martin Rodger – Australian Office Office Supplies GS1 Action Group Steering Committee Deputy Chair OSGAG GS1net training sessions will be held on  Tuesday 28 September 2010 in both Melbourne and Sydney – 9 am to 1 pm  Tuesday 26 October 2010 in both Melbourne and Sydney – 9 am to 1 pm For more information contact Bonnie Ryan, GS1 Australia on 1300 366 033 or bonnie.ryan@ gs1au.org GS1 Australia LiNK | Issue 25 | spring 10 | 21

Train your team Upgrade your skills with GS1 Australia’s training courses covering barcoding and data capture, eCommerce, supply chain and data synchronisation:

• • • •

Classroom & workshop sessions Online self-paced courses 24 x 7 Scheduled webinars Supply Chain Knowledge Centre hands-on and interactive

1300 366 033

www.gs1au.org

LOCAL NEWS

New fees in line with CPI GS1 Australia is committed to delivering all products and services on a cost-recovery equitable basis and this is reflected in the membership fee structure for the financial year 2010/11, according to GS1 Australia General Manager – Customer Service, Peter Chambers.

“For the financial year 2010/11 fees for membership and services have only increased

in line with the annualised Consumer Price Index (CPI). It is important to highlight that GS1 Australia continues to be committed to providing the necessary service levels and infrastructure to meet industry requirements in relation to supply chain efficiencies through the proper use of the GS1 standards,” he said.

Chambers urged members to save by using the direct debit option when paying for their membership subscription and GS1 Australia services. “If members choose this option they receive a 6 per cent discount on all invoices. GS1 Australia debits the amount from their account 10 working days after an invoice is sent to them.

“The efficiencies offered by auto-settling enable us to offer this discount to members,” he said. “A large percentage of members paid their fees on time in 2009/10, which means that GS1 Australia can focus on offering the best services to members rather than following up overdue accounts.

We will continue to outsource the collection of overdue accounts for the small percentage who don’t meet their membership commitments,” Chambers said.

A full breakdown of all GS1 Australia fees can be found at www.gs1au.org or members can request a copy by calling the GS1 Australia Customer Service team on 1300 366 033.

2. Go back to head office and convince them to use the Electronic Despatch Advice.

purchasing department has no information about what was not fulfilled (against the original order) until the entire load is verified.

Because each item is bar coded and has a unique serial number at manufacture, an electronic record actually exists for each item. If this data was passed on to the 3PL who then used it as the basis for order fulfilment, the picking details would be available to all countries in electronic form (Despatch Advice).

The use of the Electronic Despatch Advice would give the purchasing manager seven weeks advance notice (before the goods arrived physically), allowing the products to be re-ordered immediately.

This could remove the necessity for receivers to scan items at receipt. The corporation as a whole could significantly reduce cost and time and maximise profitability.

The ability to track and trace products to meet government, industry and ethical practice requirements is a fundamental part of the GS1 standard.

GS1 Australia can show you how this can be implemented in your business.

 serve as the basis for running real-time perpetual inventory trigger payment

A recent visitor to the Supply Chain Knowledge Centre was looking for advice about tracking and tracing products. On questioning them I found that they import 100 per cent of their product with two to three full containers loose stowed per week.

Their products are produced by their parent company at the global factory in Europe. Every individual product is bar coded with a GS1 128 Bar Code and a unique serial number and forwarded to a third-party logistics (3PL) provider in Central Europe for distribution to the rest of world.

The use of the Electronic Despatch Advice also has a major benefit for purchasing. The lead time between order and delivery is eight weeks. The

The problem they have is that because of the type of product they sell and the industry they are in, they have to be able to track and trace every single unit (not carton) so they have to physically record the item and serial number details of every single unit upon receipt as they unload the container. This requires a lot of time and effort and causes considerable cost and delay.

They had two alternatives: 1. Use a hand-held device to scan the data.

Use the scanned data to create an electronic receipt. Besides providing the track-and-trace information, producing an electronic receipt would have a number of flow-on benefits. It could be used to:  automatically reconcile goods received against the original order  provide the basic information required for electronic put-away processes  serve as the basis for electronic order picking  provide the basic information required for stock rotation (FIFO) GS1 Australia LiNK | Issue 25 | spring 10 | 23

Need a hand implementing the GS1 standards?

GS1 Australia Professional Services can help you with your internal projects to implementing the GS1 standards and solutions throughout your supply chain:

• • • •

GS1net Data Synchronisation Implementations EDI / eMessaging Implementations Track and Trace Solutions Inventory Management Solutions

1300 366 033

www.gs1au.org

alliance partner advertorial

GS1 Bar Codes used to fight obesity

Steven Pereira

Mobile phone technology and GS1 Bar Codes can be harnessed to fight obesity successfully, according to a report released

by GS1 Australia and Victoria University.

At a GS1 Global MobileCom conference in Singapore, GS1 Australia Chief Information Officer Steven Pereira and Victoria University, Senior Lecturer Dr Michael Mathai presented the outcome of their Nutritional Health Research Pilot Case Study.

During an eight-week trial conducted by Victoria University honours student Carla Battaglia at the university’s School of Biomedical and Health Sciences, overweight participants used mobile phones to scan GS1 Bar Codes on breads, breakfast cereals and biscuits and received a “traffic-light” rating of the sodium and saturated fat content of each of the products, based on recommended serving values from the National Heart Foundation.

To deliver the ratings the mobile phone application drew data, extracted from GS1 Australia’s electronic product catalogue, the GS1net data pool, and supplemented it with data gathered from products from four major supermarkets in Melbourne’s west.

Project participants with a Body Mass Index of more than 25 were invited to take part in a fourweek observational stage in which they completed weekly three-day food diaries followed by a trial stage where they scanned products, purchased products and retained their shopping dockets.

A database with participating consumers’ personalised characteristics and combined product data of breads, breakfast cereals and biscuit products, including their description, serving sizes and sodium and saturated fat content, produced a successful result when uploaded via a web application written by another Victoria University honours student, Vladislav Vintsarevich, and displayed via a mobile phone. Schepisi Communications, a Telstra Dealer, provided the project with 20 Nokia 6210 phones with a highresolution auto-focusing camera, with access to the internet.

GS1 France contributed its Codeonline mobile phone application that identifies a product by capturing a picture of the bar code and routing the call out to the product’s manufacturer website.

For this research, the application developer, QSN Technology, a Swiss company, made a slight modification and routed the call via an Australian third-party web service provided by Insqribe, to the Victoria University’s computer server where the database was hosted.

The study found 40 per cent of participants did change their purchase because of the information provided. While for the majority purchasing was not altered, due in part to their continued purchase for household members, the application made all participants more aware of their diet. The study established that while technology could make information accessible, education and motivational tools are needed to encourage

“ The study found 40 per cent of

participants to change their overall purchasing and eating habits. More than 90 per cent of participants indicated that such a system would be useful to their needs if more products were included.

Pereira said an industry set of extended-packaging information needed to be determined, supported by a process to automatically populate nutritional data in GS1net. “Looking ahead the logical direction is to expand the database to include the majority of products within the Australian supermarket range, as well as the inclusion of the main nutrients and other attribute information found on food labels, e.g. allergens, additives,” he said.

An industry initiative would be needed to urge suppliers and manufacturers who were not yet using GS1net to contact GS1 Australia to join GS1net and ensure that their data would be included in any future extendedpackaging database initiative.

participants did change their purchase because of the information provided.

”

GS1 Australia LiNK | Issue 25 | spring 10 | 25

Liquor Industry

Advice to SMEs:

‘Give GS1net a go’ When it comes to implementing GS1net Gerri McCurtayne has some straight-talking advice for small to medium businesses: “Don’t be afraid – just give it a go.”

McCurtayne has a wealth of experience in implementing GS1net with wine company Cheviot Bridge where she is National Sales Administration Manager. In fact, GS1 Australia’s Industry Manager for the liquor industry, Andrew Steele, describes her as a GS1net veteran. “Cheviot Bridge was an early adopter of GS1net within the liquor industry and is GS1net Live with both Coles and Australian Liquor Marketers. They have been innovative and proactive in using the GS1 standards and GS1 Australia’s services to meet their business requirements,” he said.

GS1 Australia LiNK | Issue 25 | spring 10 | 26

In February 2007 McCurtayne attended an EANnet seminar (GS1net was formerly EANnet).

“To be honest it was a bit of a shock as it seemed like they were talking another language in acronyms. A representative of Coles was there and said they wanted to engage their top 25 liquor suppliers through GS1net so we signed up,” she said.

After consulting with middleware suppliers Cheviot Bridge decided to use the browser upload template in GS1net as they had less than 100 products. With the help of GS1 Australia’s Professional Services team they used the Fast Track service to load 60 Global Trade Item Numbers (GTINs) and the

with Coles also includes using the Serial Shipping Container Code (SSCC) label to uniquely identify their stock on pallets. “Once we were exchanging data electronically with Coles we discovered we could also do so with Woolworths although they are not yet on GS1net. We were able to set up electronic purchase orders with them and this has been working very well. We are very pleased to hear they will be implementing GS1net with suppliers as this means we will be able to make our catalogue available to them,” she said.

The key enabler behind all of this is, of course, the Global Trade Identification Number (GTIN), which uniquely identifies the product or carton both in the GS1net catalogue and also on the physical product itself via the GS1 Bar Code.

Cheviot Bridge is also using GS1net with Australian Liquor Marketers (ALM) and has set up EDI with Metcash for purchase orders. They are also working with data recipients ILG, HLW and Victorian wholesalers SIL to replace manual spreadsheets with electronic exchange of data.

McCurtayne has also joined a technical work group on the Liquor Merchants Association of Australia (LMAA) Industry Market Read (IMR) project (Right).

“The GS1net journey has been a lot of hard work but the benefits make it worthwhile. It eliminates UBFs (paperbased forms), reduces error from manual data entry and ensures accurate pricing so we no longer have pricing claims,” McCurtayne said.

“Deborah Prince, the GS1net Client Services account manager we have has been absolutely wonderful to work with. My advice to small to medium businesses that are starting out on GS1net is to use the help given by Client Services, use the webinars on the GS1 Australia website, which are brilliant because you can do them in your own time, and attend the seminars. You may only get one tip at a seminar but it could make all the difference to your business,” she said.

“In the future we hope to integrate our invoicing systems with our electronic trading. My mantra is to reduce manual processes and GS1net is helping Cheviot Bridge achieve this.”

“ The GS1net journey has been

a lot of hard work but the benefits make it worthwhile. It eliminates UBFs (paper-based forms), reduces error from manual data entry and ensures accurate pricing so we no longer have pricing claims.

”

associated data in just three days. For McCurtayne “the whole thing started to make sense.”

“We engaged with Coles and have been using GS1net with them ever since then,” she said.

At a subsequent GS1net seminar McCurtayne discussed further data integration options with a representative from the pharmaceutical sector who told her about DaisyChain EDI, an affordable solution that would enable them to begin electronic invoicing with Coles.

Exchanging electronic messages

Phased rollout for liquor reporting tool The Australian liquor industry is on target for a 2011 phased rollout of a groundbreaking business-to-business sales reporting tool.

More than 20 liquor suppliers are now publishing their GS1net catalogue to the Liquor Merchants Association of Australia (LMAA) for the Industry Market Read (IMR) tool, according to Sandra Przibilla, Managing Director of LMAA and the liquor industry representative on the GS1 Australia Board of Directors.

The IMR is a data collection and reporting tool designed around channel and category sales for the Australian liquor industry and will report sales in geographic locations based on four product categories. The LMAA is the leading provider of services and information to the Australian liquor industry and in developing an efficient liquor supply chain.

As a not-for-profit organisation governed by a board of directors, it is positioned to be the neutral, trusted source for industry data.

The LMAA is working with GS1 Australia and Nielsen Australia to collect and analyse data for the IMR, matching sales data from retailers with suppliers’ product information in the GS1net data pool. “The IMR will deliver comprehensive sales data and analysis to enable industry to make informed business decisions in the liquor category. Currently this information is not accessible to suppliers.

The LMAA is working with both suppliers and retailers to ensure this is an efficient and effective industry tool,” Przibilla said.

GS1 Australia Industry Manager Andrew Steele said the IMR implementation would be a staged rollout with reporting on spirits as the first phase. “This will be followed by data on sales of ready-to-drink beverages (RTDs), wine and beer. The IMR is the first of its kind globally and the LMAA and GS1 Australia are breaking new ground with this service,” Steele said. “The LMAA has been very active in supporting the use of the GS1 standards to develop an efficient liquor supply chain.

The IMR will leverage their work as well as drawing on the experience of the GS1net team in this sector.”

For more information on the IMR please contact the LMAA directly on 1800 257 286 or email info@liquormerchants.org.au GS1 Australia LiNK | Issue 25 | spring 10 | 27

Feature

Streamlined Myer The iconic Australian retailer Myer has completed a supply chain transformation that has driven bottom-line benefits and delivered solid results.

Its supply chain delivers results GS1 Australia LiNK | Issue 25 | spring 10 | 28

When Bill Wavish and Bernie Brookes took the helm at Myer, they elevated supply chain management to a core competence and made supply chain transformation one of the new cultural imperatives within the company.

In 2006 Myer was acquired by private equity firm TPG, the Myer Family and members of the Myer Management Board. Bill Wavish, a former Chief Financial Director and Director of Supermarkets at Woolworths, was appointed Executive Chairman and was joined by Bernie Brookes, formerly Woolworths Marketing Director, as Myer Chief Executive.

“ This type of dynamic

achieved within one year, ahead of time and budget. “Electronic Data Interchange (EDI) is the cornerstone of how we run our supply chain,” said Darragh Miller, Myer’s National Manager Supply Chain.

“Myer was a pioneer in this area. Right from the early days of EDI in Australia, Myer and GS1 Australia had a strong partnership. Now our new leadership has elevated eCommerce and the use of GS1 standards to a high level of importance and is taking Myer back to be leading edge in this space.”

Their in-house eCommerce system is completely integrated with the business, working with 1,200 suppliers across 12 different business sectors and dealing with more than 500,000 SKUs (stock-keeping units).

Another key cultural imperative at Myer is fanatical simplicity. The focus here is firstly to get the process right and then harness technology to deliver incremental improvements.

Myer has focused on achieving 100 per cent eCommerce compliance with suppliers and has done this in partnership with suppliers rather than issuing a mandate. The work done with furniture suppliers is an example of the journey Myer has embarked on with suppliers. “The furniture sector has many smaller businesses operating within it.

We explained the benefits of EDI and bar coding at all levels. We wanted relationships with our suppliers that allowed visibility and the sharing of information so we could work together. With GS1 Australia we trained and educated our suppliers in EDI standards and in bar coding at all levels to achieve compliance,” Miller said.

This strategy delivered a 99.98 per cent eCommerce compliance with suppliers and a 40 per cent reduction in shipment errors.

At the same time Myer partnered with GS1 Australia to train their staff in supply chain best practice. “We had 20 or 30 key buying personnel come into the GS1 Australia Supply Chain Knowledge Centre to see a supply chain in action and to learn about global best practice,” Miller said. “They have to work closely with our stores to ensure speed and efficiency in getting products into stores and so need to understand supply chain standards – this is critical in giving us competitive advantage.”

GS1 Australia worked with Myer on bar code reviews to ensure that bar code quality and standards were being maintained. This process

information sharing or collaboration will enhance the relationship between Myer and our suppliers to our mutual benefit. If we can measure it, we can manage it (another cultural imperative), ensuring a smooth flow of merchandise.

”

With their eCommerce experience at the retailer, both men had a strong understanding of the importance of the GS1 System in building an efficient supply chain. They appointed Prakash Menon, one of the directors of the Myer board, as Supply Chain Director and began a transformation of the Myer supply chain.

Their vision was an efficient end-to-end supply chain with five key drivers – service, safety, speed, flexibility and cost.

Before they could implement a new supply chain they had to simplify, streamline and consolidate the 24 off-site warehouses and deal with an excess of inventory that had built up over the years.

They cleared $400 million worth of stock in a ‘HistoryMaking Clearance’ and replaced the warehouses with four regional distribution centres in four major Australian cities and four key hubs in Asia.

Within two years Myer had reduced distribution centre costs by 50 per cent, reduced international freight costs by 22 per cent and domestic freight costs by 11 per cent.

A key goal was the transition of supply chain eCommerce from Coles-Myer to an inhouse team and this was

guarantees the smooth flow of product through the supply chain without disruption to the customer experience or added cost to the supply chain.

In redeveloping their supply chain Myer also reached out to three key GS1 Australia Alliance Partners to ensure they were prepared for the future:  Avery Dennison, who design and manufacture tickets, tags and labels and provide the technology for retail product identification  Leadtec, who specialise in EDI messaging, catalogue synchronisation and scan packing/ logistics  Supply-LINQ, who provide floor-ready merchandise and scan packing In Asia, Myer partnered with Cargo Services who manage all in-bound goods from the Asian region. Stock comes packed and store-ready, from any of the four Asian hubs that Cargo Services manages. Together Myer and Cargo Services have managed to reduce lead times to the Myer distribution centres by approximately 50 per cent, enabling a higher rate of stock turns throughout the chain.

Now Myer has the eCommerce platform and systems in place, it is working on a range of initiatives to continue to improve supply chain efficiency with a special focus on compliance checking at carton and item level. “When we find that a supplier has issues we work with GS1 Australia to help the supplier – after all they are members of GS1 Australia too,” Miller said.

Data quality is another key focus. Myer has built a new data warehouse with a browser-based front end to be able to assess suppliers’ ASN compliance and delivery performance.

This enhanced reporting will allow Myer’s supply chain team to engage with suppliers to give them benchmarking with real-time data and will allow suppliers to benchmark their own performance dynamically and make adjustments where necessary.

“This type of dynamic information sharing or collaboration will enhance the relationship between Myer and our suppliers to our mutual benefit. If we can measure it, we can manage it (another cultural imperative), ensuring a smooth flow of merchandise,” Miller said.

Looking to the future, Myer has several projects planned, is looking at using a range of new technologies including RFID and has started exploring options to replace the existing Warehouse Management system.

“Supply chain in any organisation is about making money for the company by bringing in efficiencies. We have to keep improving the way we do things so our supply chain transformation is ongoing,” Miller said.

GS1 Australia LiNK | Issue 25 | spring 10 | 29

alliance partner Profile

SupplyLINQ-3PL specialists who have retail covered To ensure their supply chains run as smoothly as possible large retailers have moved to electronic trading. The requirements of electronic trading are exacting and unless the system is followed by suppliers with 100 per cent compliance, including the requirement to deliver stock within a time window, their product simply does not make it into the stores.

Engaging a third-party logistics provider (3PL) who understands the electronic trading system,

and has systems and planning built around them, ensures your product is delivered on time and ends up in front of the consumer.

Supply-LINQ is a specialist provider of third-party logistics services, with a specific focus on the retail supply chain and has been operating as a 3PL in the general merchandise and apparel sector since 1996. Having started out by running a distribution centre for Myer, Supply-LINQ is very familiar with what the retailer requires from its

Vendor Con nect a turnkey solution for retailers

Avery Dennison is a global leader and strategic partner to retailers, brand owners and apparel manufacturers who need consumer intelligence, creativity and sustainability. Major retailers and their suppliers use their solutions throughout the retail supply chain and the Vendor Connect suite of software, which was developed in Australia, provides a turnkey supply solution for electronic trading.

Avery Dennison, Australia 61 Vore Street, Silverwater 2128 T. (02) 9647 1833 Toll free (Outside Sydney only) 1800 224 404 E. swalker@paxar.com.au, ccoburn@paxar.com.au www.averydennison.com

GS1 Australia LiNK | Issue 25 | spring 10 | 30

suppliers. The company offers Supply-LINQ a complete service to suppliers 32 Commercial Drive to all the major retailers with Lynbrook VIC 3975 Australia electronic trading, from EDI T. (03) 8795 4111 messaging to scan packing and www.supply-linq.com.au delivering to their distribution centres. Some of the retailers include Myer, David Jones, Harris Scarfe, Kmart, Target, Big W, Coles, Woolworths, Priceline and Rebel Sport.

Supply-LINQ provides complete logistics services, including warehousing, transport, floor-ready merchandise (FRM©), scan packing, returns management and a Customs bond store. The business will warehouse products for suppliers where delivery has to be delayed; for example when imported winter clothing is shipped to Australia during summer but the retailer does not require it in store for several months. As Supply-LINQ’s Lynbrook warehouse is a Customs bond store, suppliers only have to pay duty when the product is sent to the retailer, not while the product is being stored.

Supply-LINQ will also handle every aspect of third-party logistics for smaller business who do not have the IT infrastructure to engage in EDI. The management team are the business owners, which sets Supply-LINQ apart from the larger 3PL providers. “Many of our clients are also owner-operators of their businesses and they can’t afford a slip-up in their logistics. As the owners of this business we relate to that and have a cultural fit with our clients,” said Managing Director Bryce Ferguson. “We are committed to providing the best solutions for our customers’ logistics needs, through close collaboration. Each customer is allocated an Account Supervisor who provides a personalised and responsive service to ensure the client’s supply chain processes work smoothly,” he said.

The company also provides brand development, security solutions, data management and supply chain solutions and is a recognised leader in RFID technology. It helps partners elevate their brand and accelerate their performance.

The company offers an unmatched reservoir of expertise that they bring to industries as diverse as retail, manufacturing, distribution, health, primary products, mining, government and transport.

One of the pioneers in introducing thermal label printers to the Australasian market, the company designs, engineers, manufactures and sells its own range of products and sales and service facilities are offered in all mainland states.

For more than 10 years, the Vendor Connect division has been providing solutions to assist suppliers and retailers to implement the GS1 standards for:  Electronic trading  Accurate data capture  Floor-ready merchandise  DC-ready shipments Through Vendor Connect integrated solutions for managing the retail supply chain are provided.

The software enables them to improve trading relationships by implementing:  Electronic trading  GS1 numbering  Accurate data capture  Floor-ready merchandise  DC-ready shipments

 Vendor-managed inventory (VMI)  Wireless technology (RF) Vendor Connect allows users to:  Import EDI purchase orders  Import sales and inventory data  Compile reverse purchase orders  Create picking slips generated from EDI purchase orders  Retail article labels generated from EDI purchase orders  Scan pack each GTIN by store and verify against EDI purchase order  Generate Shipping Container Marking (SCM) labels automatically for transport unit  Compile EDI Advance Shipment Notice (ASN)  Compile EDI Despatch Advice The user-friendly interface is backed by excellent technical support and complete documentation and online help.

For further information on the Avery Dennison’s solutions capabilities contact Stephen Walker or Chris Coburn on 02 9647 1833 or via email.

alliance partner advertorial

Leadtec connecting business Leadtec is a leading business-to-business solutions provider and consulting firm with global affiliations and trading partners.

Leadtec has been assisting organisations throughout the Asia Pacific region over the last 20 years to implement their eCommerce requirements and deploy eCommerce programs within their business communities.

At Leadtec, connecting business is what our business is all about. Leadtec’s specialised solutions in EDI messaging, catalogue synchronisation and scanpacking/logistics enable vendors to connect to, and meet, the EDI-messaging and scanpacking requirements of partners.

More than 1,000 businesses trust Leadtec to manage their eCommerce needs and

“ At Leadtec, connecting business is what our business is all about. ”

boost efficiencies within the supply chain. The only Australian company to offer a full supply chain services suite, Leadtec offers:  electronic document exchange – EDI messaging and data transformation  electronic scanpacking – EDI orders and pallet labelling solutions  maintaining and uploading product catalogues onto data pools, such as GS1net.

The eBusiness field is becoming more complex with a myriad of products and services.

Leadtec’s experienced consultants can assist and advise with all aspects of an eBusiness strategy.

From business process reviews to implementation and integration,

Leadtec can be there to see that an eBusiness strategy delivers on expectations.

Leadtec’s infrastructure leverages the latest web services technologies and has been fully developed under the Microsoft .Net framework to streamline and enhance our service capabilities and to decrease deployment and operational costs to our customers.

Leadtec’s client base spans many industries including grocery, liquor, general merchandise and apparel, healthcare, convenience, hardware, transport, logistics and automotive. Some of our clients include Myer, Woolworths, Harris Scarfe, General Pants Group, Healthscope, Ford, Holden Toyota, PBR, Bosch, Star Track Express and DB Schenker.

Leadtec Level 1, 5 Lakeside Drive Burwood East, VIC 3151 T. 1300 LEADTEC www.leadtec.com.au

GS1 Australia LiNK | Issue 25 | spring 10 | 31

alliance partner advertorial

SMEs shorten invoice-to-pay cycle times If you are a small to medium-sized business that supplies goods and/or services to a major retailer you’ve likely been asked to become EDI compliant.

You may or may not have IT staff to do this, and you may be wondering “What is EDI anyway?”

Electronic Data Interchange is the “exchange of documents in standardised electronic form, between organisations, in an automated manner, directly from a computer application in one organisation to an application in another”.

Most of the major Australian “hubs” (i.e. large retailers, manufacturers and financial institutions) have established EDI trading standards and platforms, and have notified their supplier community of this capability. How does this help or hinder small to medium-sized organisations?

There are identifiable costs associated with not being EDI-enabled. They include: 1. Higher operational costs associated with manually preparing invoices, mailing them, follow-up when payments are not received, etc.

2. Protracted invoice-to-pay cycle times that result from lost invoices, billing adjustments, or missing information 3. The high cost of auditing and fraud prevention that can arise from uncorrected billing errors and fraud associated with invoices and payments Outstanding Cash

$ $ $

Potential Cash Flow

$

$

30

1

$

60

90

120

Days

Manual, paper-based invoicing can increase payment delays and seriously affect your cash flow. Not because customers don’t want to pay you, but because your invoice cannot be quickly processed by your customer due to missing or incorrect information. And the longer it takes to fix the problem, the longer you wait for payment – which means less cash flow and more stress on your business.

That ultimately impacts your ability to invest in those areas of your business that can generate the greatest returns – for you and your stakeholders.

According to the Euro Banking Association1 electronic invoicing is growing rapidly, but is greatly under-utilised in the SME sector. The typical purchase-to-pay cycle is 30 to 100 days.

That’s one to over three months from the time a purchase order (PO) is received, the goods sent to your customer, an invoice raised, sent, verified and then authorised for payment by a customer.

Most small business payment terms are 30 days from date of invoice. However, paper-based invoicing processes often cannot be completed in this timeframe, making it impossible for your customers to pay your invoice within your terms of payment. And worse, you’ll likely not discover a problem until you start to chase your customer for late payment.

How can you speed up your invoice-to-pay cycle time?

You can automate the exchange of your invoice with your customer by using their EDI platform, thus ensuring that your invoice can be immediately accepted, reconciled, and authorised for payment.

There are fundamentally three ways you and your customers can EDI-enable your invoicing process. It’s just a matter of selecting the most cost-effective and appropriate approach for your business and technical requirements.

1. EDI-enable your financial applications. For those businesses that already have applications for inventory, purchasing and invoicing you may be able to EDI-enable your application to send and receive POs, advanced shipping notices (ASNs) and invoices electronically.

E-invoicing 2010: Eurpean market guide. Jaap Jan Nienhuis (Innopay), Charles Bryant (EBA). May 2010. ISBN/EAN 978-94-90587-04-8.

GS1 Australia LiNK | Issue 25 | spring 10 | 32

The Sterling Collaboration Network, an on-demand solution for electronic document exchange, will link your invoicing application to your customers’ accounts payable system.

2. Outsource your invoicing function to a third party who can scan and send an electronic invoice to your customer for you. There are a range of local companies that can offer this as an outsourced service.

3. Utilise electronic invoicing on-demand, a solution that enables you to create electronic documents, including invoices, without modifying your current application.

Each of these three strategies will help you reduce payment acceptance time, eliminate invoicing errors, and ensure that your invoice is received by your customer almost immediately, and ready for their accounts payable approval process.

The bottom line: Enabling eInvoicing means more cash in your business, by …  Substantially reducing overhead costs associated with the exchange of paper documents  Significantly reducing the purchase-to-pay cycle times by utilising your customer’s ability to receive the invoice electronically, and quickly authorise the payment of your invoice  Improving the reliability and predictability of your cash flow, P&L, and balance sheet, thus giving you flexibility to direct working capital into more productive and profitable areas of your business To learn more about getting EDI capable visit: http://www. sterlingcommerce.com/products/ b2b-integration/network/

alliance partner Profile

Speedy service backed by expert advice

Electronic bar code masters from Barcodes4u are backed up with a wealth of printing experience and product packaging knowledge to ensure that all printed bar codes meet the strict scanning criteria and related parameters as required

by GS1 Australia’s Bar Code Verification Report.

As an Associate Alliance Partner of GS1 Australia, Barcodes4u has been working closely with GS1 Australia to ensure that all bar codes supplied by Barcodes4u are in compliance with GS1’s GS1 Bar Code specifications.

With more than 20 years experience in the consumer bar code industry, Barcodes4u provides high-quality electronic bar code images that can be ordered online or via email with quick turn-around times.

With the acquisition of thermal label printing equipment, Barcodes4u now offers short-run bar codes on adhesive labels with quick turnaround times. Barcodes4u has more than 450 clients including some of Australia’s leading manufacturing and dairy companies, printers, graphic design houses and book and magazine publishers, as well as overseas customers in Malaysia, Singapore, Papua New Guinea and New Zealand.

Customers can place bar code orders by fax, by phone, via email or by using Barcodes4u’s online order forms on their website. The well-structured layout of these forms provides a product/item number checklist that is helpful in avoiding errors or duplication of bar code numbers.

Barcodes4u will email bar code images as attachments to customers or direct to their graphic designer. Customers are asked to specify bar code number, magnification (size), printing process and preferred file format, e.g. EPS or Adobe Illustrator files to suit Macintosh or IBM compatibles. They will also supply files that can be imported into Adobe Illustrator, Adobe Pagemaker, AdobeInDesign, Photoshop, QuarkXpress, CorelDraw or any other popular desktop application.

Bar code Whisperer Terrence Tan said bar code electronic masters are emailed on the same day once a complete order is received. If customers required bar code electronic masters on disk, this is delivered the next day via Australia Post Express Post to the Melbourne metropolitan area, country Victoria and interstate for orders received by 4:00pm Eastern Standard Time.

Mr Tan provides free expert advice about bar codes, from which bar code customers can then decide what colour is best to use on packaging.

“A scanner ‘reads’ the bar code through a red light source, so what it sees is quite different to what the human eye sees. Although many combinations are clearly visible to the eye, some will scan and some won’t. We advise our clients on which colours will and won’t scan as well as how to position them on their products to ensure they do scan,” he said.

Barcodes4u Pty Ltd Suite 8, 63 Denham Street Hawthorn Victoria 3122 Australia T. (61 3) 9815 2180 barcodes@barcodes4u.com.au www.barcodes4u.com.au

GS1 Australia LiNK | Issue 25 | spring 10 | 33

alliance partner advertorial

insignia focused on supporting smaller businesses

Label manufacturer insignia has recently appointed a team to help smaller businesses address their business objectives.

According to insignia National Marketing and Sales Manager Andy Hecke, many small and medium enterprises (SMEs) find that suppliers sometimes do not view their business as valuable because it only represents a small portion of the suppliers’ revenue.

“When this is the case, they might struggle to receive critical advice and follow-ups because sales reps are more focused on larger accounts. This can be frustrating when you have limited resources and are trying to source something as standard as a label,” he said.

“With this in mind insignia recently created a new position to cater for SMEs. Account Manager Carly Brown has been appointed specifically to focus on and respond to smaller businesses. She has the same access to resources as the account managers who look after corporate customers.

Likewise in the Labelling Systems Department we have an internal sales representative, Alice Kun, to help SMEs with printer requirements.

“We believe a labelling partnership is much more than a sale or a transaction. It is an intuitive relationship, developed over time to identify and then address business needs, impacts and issues. insignia makes the effort to carry this approach into every single customer interaction,” Mr Hecke said.

Many SMEs also faced issues when expanding their business. Mr Hecke said that, as a national business, insignia was in a position to help SMEs grow. “We have service technicians around the country and manufacturing in Brisbane GS1 Australia LiNK | Issue 25 | Spring 10 | 34

and Melbourne. This means that we can have overnight delivery to capital cities. You won’t need to find label companies all over the country and if your requirements change as you grow, we can upgrade your products as we offer a wide range of solutions. In most cases we are very competitive in smaller runs of custom labels if a stock line product doesn’t fit the bill,” he said.

“SMEs find it difficult to be recognised in a competitive market so packaging is very important to gain a competitive advantage. To compete with larger organisations or to help position their product as a premium option, well-designed prime labels are a great option.

This is when our GS1-accredited press room can be a real peace of mind when incorporating a GS1 barcode. There are several ways insignia can structure supply options to make high-quality labels more cost effective and accessible for SMEs. “Whether clients are providing a niche product or starting a new product line, we can help them through the process of discovering and matching their branding requirements with the best value label option,” Mr Hecke said. insignia could help SMEs improve their productivity and lower costs by minimising data errors that could lead to returns and incorrect orders and invoicing. “To help SMEs lower costs we offer face-to-face service and industry experts to help provide the right advice. Expert product training for SME staff can mean fewer mistakes made, less spent on repairs and happier staff,” he said.

“We have a range of customised service-support options, from a dedicated service hotline to 24/7 service contracts.

We have experts who can help implement systems and take the issue out of your hands and we have service contract options that are flexible so that you don’t have to worry about your equipment maintenance.

“Many SMEs may not have designated procurement people but insignia can help simplify and lower times for ordering by having a one-stop shop for labelling requirements including blank, prime, bar codes, printer and print-and-apply systems,” Mr Hecke said.

“As a GS1 Australia Strategic Alliance Partner insignia regularly participates in events such as bar code classroom training to help understand the GS1 standards. We have GS1-accredited, awardwinning quality systems to ensure compliance. For Domino equipment we have the experts and the variable quality machines to make sure your packaging lines comply with the GS1 standards. We have installed state-of-the-art software system, Axicon Online Verification System, in line with GS1 standards to verify barcodes and print accuracy reports. This ensures quality barcodes every time. In short this means that the significant SME sector in Australia has access to the same capabilities and resources as the big guys without having to settle on second-tier service.”

“We will continue to be innovative with our service, but often the best ideas come from the market itself, so we are always grateful for feedback and suggestions,” Mr Hecke said.