IT in supply chains

IT in supply chains

…and the value added by standards

http://www.gs1.org/

© 2010 GS1 Sweden

Agenda

• A few words about GS1• Information Requirements in Supply Chains

• Master Data• Transaction Data• Event Data

• GS1 Standards in Supply Chains• GS1 Identification Keys• Data Carriers• Data Exchange

• How it all fits together

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© 2010 GS1 Sweden

Staffan Olsson

1985-1989 Master of Science Mechanical Engineering,

Industrial Economics and Management, KTH

1989-2002 Consultant – Electronic Data Interchange

and Electronic Commerce B2B• EDI-Gruppen• Frontec• Scandinavia Online• Atello

2002- Head of Standards & Implementation, GS1

Sweden

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A few words about GS1

http://www.gs1.org/

© 2010 GS1 Sweden

GS1 in a nutshellGS1 is a not-for-profit organisation that develops global standards for the identification of goods and services.

GS1's standards foster cooperation and encourage information-sharing worldwide. GS1 helps businesses and organisations improve the efficiency of their supply and demand chains by adding useful information to any exchange of goods or services.

The global language of

business

© 2010 GS1 Sweden

108 Member Organisations.

150 Countries served.Local services, global reach.

Countries with a GS1 Member Organisation

Countries served on a direct basis from GS1 Global Office (Brussels)

GS1 Member Organisations

© 2010 GS1 Sweden

GS1 in numbers

• Over 30 years of experience • 108 member organisations spanning 5 continents• Over a million companies doing business across 150

countries• Serving all points in the supply chain• Over 20 sectors (FMCG, healthcare, transport,

defence…)• Over 5 billion transactions daily

International organisation created in 1977 (EAN International)

© 2010 GS1 Sweden

GS1 Values

• GS1 is a not-for-profit organisation• GS1 is neutral from our business partners• GS1 is user-driven and user-governed• GS1 serves all companies: from multinationals to

SMEs• GS1 is a platform for collaborative agreement between

partners

© 2010 GS1 Sweden

Some key user companies

RetailConsumer

GoodsFood &

Beverage

Healthcare & Life

Sciences

Electronics & High Tech

Logistics & Transport

http://direct.tesco.com/

http://www.cadburyschweppes.com/EN/

http://www.philips.com/global/index.html

http://www.loreal.com/_en/_ww/index.aspx

http://www.bayer.de/

http://www.astrazeneca.com/ncm.aspx

© 2010 GS1 Sweden

Aerospace & Defense Chemical Industrial

Footwear & Apparel Automotive

Some key user companies

http://www.galeria-kaufhof.de/sales/aktionen/catdetail.asp?FLEXID=0&Sub=1&Sub1=36523

http://www.espritshop.com/index_us.htm

© 2010 GS1 Sweden

GS1 Sweden

“GS1 Sweden simplifies companies’ local and global trade”

Through cooperation,GS1 developssector-neutral standards and serviceswhich enable efficiency improvementsin the flow of information and goods

© 2010 GS1 Sweden

Our development in Sweden

• Started in Sweden in1977• Focus on supply chain• Formerly known as EAN Sweden• 10 000 customers (almost)• Owned by the Consumer Goods

Retail Industry

© 2010 GS1 Sweden

Some of our customers

http://www.jti.com/english/

http://www.electrolux.com/index.aspx

http://www.arlafoods.com/APPL/HJ/HJ202COM/HJ202D01.NSF

http://www.abb.com/

http://www.dhl.se/publish/se/sv.high.html

http://www.sandvik.com/

http://www.ericsson.com/

http://www.sca.com/en

http://www.scandinavian.net/

http://www.astrazeneca.se/

http://www.nordea.se/sitemod/default/portal.aspx?pid=200000

Information Requirements in Supply Chains

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http://www.gs1.org/

© 2010 GS1 Sweden

Need for information in supply chains

- What do my customers need from me?- How much inventory is in stock?- When should I ship this product?- What are the characteristics of this item?- Where are the shipments related to this purchase

order?- What parties have handled this item before I received

it? And why?

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© 2010 GS1 Sweden

IT in supply chains

Information is crucial to supply chain performance

IT= Information Technology

The technology is the means to support the need for information

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© 2010 GS1 Sweden

Necessary characteristics

Information must be• Accurate• Accessible• Appropriate• Timely• Shared within the supply chain

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© 2010 GS1 Sweden

Supply chains

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Supplier Relationship Management

Internal Supply Chain Management

Customer Relationship Management

Transaction Management Foundation

The Macro Process in a Supply Chain (Chopra/Meindl)

Supplier Customer

© 2010 GS1 Sweden

Flow of products and money

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Internal Supply Chain

Management











Company A Company B Company C

© 2010 GS1 Sweden20







Information must be• Accessible• Accurate• Appropriate• Timely• Shared within the supply chain

IT systems need to be able to talk to each otherAnd they need a language

© 2010 GS1 Sweden

What will IT systems talk about?

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Contracts

Prices

Trade items

Purchase orders

Invoices

Delivery notes

Parties and locations

Inventory reports

Sales forecasts

Recalls

Traceability

Movements of goods

Sales

Master data Transactional data Event data

Returns

© 2010 GS1 Sweden

Information Exchange

Three main types of Supply Chain Data

• Master Data• Foundational data that is fairly stable

• Transactional Data• Instructions for what we want to happen

• Event Data• Tracking of what actually happened

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© 2010 GS1 Sweden

Master Data

Trade Items• Identifier of trade item• Product class• Brand• Description• Measurements• Package type• Storage temperature• …

Parties / locations• Identifier of party/location• Name• Adress• Contact information• …

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Price (Contract)• Identifier of trade item• Supplier• Buyer• Price• …

static information describing products, locations, contracts

© 2010 GS1 Sweden

Master Data – Trade Items

Base unit

Consumer unit

Case

Orderable unit

Pallet

Logistics unit

Organized in hierarchies

Each level identified by a Trade Item Number

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Consumer items

• Shelf planning• Temperature zone• Till roll /receipt text• Shelf labels• Etc.

© 2010 GS1 Sweden

Orderable units

• Optimizing store distribution• Optimal use of roll cages and trucks• Correct storage (temperature / humidity)

© 2010 GS1 Sweden

Logistics units

• Find a suitable storage location• Temperature zone• Optimization of order quantities

© 2010 GS1 Sweden

Transactional Data

Purchaser Order• Purchase order number• Buyer• Seller• Trade item number• Quantity• Delivery date• Reference to contract• …

Invoice• Invoice number• Buyer• Seller• Trade Item number• Quantity• Price• Amount due• Due date• Reference to purchase order• …

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Transport booking• Transport booking number• Pick-up location• Delivery location• Quantity• Pick-up date/time• …

instructions for what we want to happen

© 2010 GS1 Sweden

Transactional data

Business transactions organized in Business processes like:

• Order to cash• Transport management• Third party logistics• Payment management

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Purchase Order

Order Response

Despatch Advice

Invoice

Business Process: Order to cash

SellerBuyer

© 2010 GS1 Sweden

Event data

Visibility of:• Movement of goods• Returns• Traceability• Sales

An event (observation) consists of:• What? (ID of object being observed)

• When? (timestamp)

• Where? (ID of location)

• Why? (business step)

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tracking of what actually happened

AcceptingArrivingAssemblingDepartingDestroyingInstallingLoadingPackingShippingEtc…


Supply Chain Visibility by Sharing Event Data

Tracking

Following an item forward through the supply chain from source to destination.

Tracing

Working backwards from an item’s current location and status to discover where it (and possibly its constituent parts) has been.

PedigreeWho has handled or had ownership of this product?

Product AuthenticationIs this product genuine or could it be a counterfeit?

GS1 Standards in Supply Chains

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http://www.gs1.org/

© 2010 GS1 Sweden

What about GS1?

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GS1 develops global standards • for the identification of goods and services• that foster cooperation and encourage information-

sharing worldwide• that help improve the efficiency of supply and demand

chains

© 2010 GS1 Sweden

Numbers – the language everyone understands

• Unique number ranges for labelling and identifying, for example

• Trade Items• Pallets• Locations• Companies

© 2010 GS1 Sweden

GS1 Identification Keys

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7310070364326

GS1 Company Prefix

Location reference

Check digit

Example: Global Location Number

Each GS1 subscriber is allocated a GS1 Company Prefix Each GS1 identification key is generated by the subscriber based on their prefix

© 2010 GS1 Sweden

Global numbers

All parties in the supply chain should use the same identifiers for the same things

7310070364326 7310070364326Producer Distributor User

© 2010 GS1 Sweden

The GS1 System

EAN-13 ITF-14

GS1 DATABAR GS1-128

EAN-8 RFID/EPC

Business relationship

Individual asset

Returnable asset

Product class

Shipping container

Location

Item number

GS1 DATA

MATRIX

Document type

Iden

tific

atio

n

eCom

Data C

arrier

© 2010 GS1 Sweden

EAN-13 and ITF-14

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