Tapping Into Supply Chain Tapping Into Supply Chain TechnologiesTechnologies

Implementing the Floral Implementing the Floral GTINGTIN®®

Gary Fleming Produce Marketing AssociationVice PresidentIndustry Technology & Standardsgfleming@pma.com

Sponsored By:

About Today’s SessionAbout Today’s Session

Put your phone on mute – not HOLDPut your phone on mute – not HOLD

Questions & AnswersQuestions & Answers Time will be allocatedTime will be allocated Live meeting Q&A function will be Live meeting Q&A function will be

monitoredmonitored

GS1 US OverviewGS1 US Overview

NNot-for-profit, user-driven, standards management and services ot-for-profit, user-driven, standards management and services organizationorganization

Headquarters in Lawrenceville, New JerseyHeadquarters in Lawrenceville, New Jersey Support offices in Dayton, OH and ChicagoSupport offices in Dayton, OH and Chicago

Established in 1973 to oversee U.P.C. developmentEstablished in 1973 to oversee U.P.C. development Previously named the Uniform Code Council (UCC)Previously named the Uniform Code Council (UCC) Over 200,000 Member Companies in the U.S.Over 200,000 Member Companies in the U.S.

Drives development, implementation and maintenance of GS1 Drives development, implementation and maintenance of GS1 identification standards in the U.S.identification standards in the U.S.

Food & Beverage Food & Beverage Consumer Packaged GoodsConsumer Packaged Goods General MerchandiseGeneral Merchandise Apparel & FootwearApparel & Footwear Office and School SuppliesOffice and School Supplies And many more…..And many more…..

Floral GTIN Implementation Guide Floral GTIN Implementation Guide Sponsoring AssociationsSponsoring Associations

Produce Marketing Association

Association of Floral Importers of Florida

Wholesale Florist and Florist Supplier Association

California Cut Flower Commission

Society of American Florists

California Association of Flower Growers and Shippers

GS1 United States

AgendaAgenda

Current State of Floral IndustryCurrent State of Floral Industry Floral Industry of the FutureFloral Industry of the Future Goal of GTIN ProjectGoal of GTIN Project Format of GS1 System standardsFormat of GS1 System standards Steps for Incorporating the GTINSteps for Incorporating the GTIN SummarySummary QuestionsQuestions

Today’s Floral IndustryToday’s Floral Industry

Little-to-no standardizationLittle-to-no standardization Little-to-no automationLittle-to-no automation Error-proneError-prone Informationally challengedInformationally challenged Disjointed/Fragmented Supply ChainDisjointed/Fragmented Supply Chain

Current Technology Current Technology State of Floral State of Floral

No current opportunities that could No current opportunities that could be used by all members of the be used by all members of the supply chainsupply chain Little to no electronic commerceLittle to no electronic commerce Little use of barcodes (pallet and box Little use of barcodes (pallet and box

level - proprietary only)level - proprietary only) No use of RFIDNo use of RFID No data synchronization effortsNo data synchronization efforts No supply chain standard protocolsNo supply chain standard protocols

The Floral Industry of The Floral Industry of the Futurethe Future

Industry EfficienciesIndustry Efficiencies

Proprietary vs. Supply Chain Proprietary vs. Supply Chain InitiativesInitiatives Proprietary PracticesProprietary Practices

Benefits available only to your companyBenefits available only to your company Causes a lot of extra work to translateCauses a lot of extra work to translate Creates multiple ways of doing the Creates multiple ways of doing the

same thingsame thing Breeds errors and failed expectationsBreeds errors and failed expectations Renders technologies inefficientRenders technologies inefficient Causes confusionCauses confusion

NO STANDARD = MULTIPLE LABELS, MULTIPLE NUMBERS

Supply Chain InitiativesSupply Chain Initiatives

Supply Chain Initiatives:Supply Chain Initiatives: All members of the supply chain can All members of the supply chain can

benefitbenefit Based upon standards/protocolsBased upon standards/protocols Systems configured ONE waySystems configured ONE way Maximizes productivity gains and Maximizes productivity gains and

increases ROIincreases ROI Aimed at the entire supply chain, but Aimed at the entire supply chain, but

also beneficial within your own four also beneficial within your own four wallswalls

ONE STANDARD = ONE LABEL, ONE NUMBER

ONE STANDARD Multiple StandardsVS

Why The Need For Why The Need For ChangeChange

Four different perspectives (equally Four different perspectives (equally important):important): Inefficient supply chainInefficient supply chain Buying community demanding Buying community demanding

changechange Marketplace has changedMarketplace has changed Competitive advantageCompetitive advantage

Buyers Demanding Buyers Demanding ChangeChange

Mass merchants already doing it for:Mass merchants already doing it for: CPG productsCPG products Produce (in the process) Produce (in the process) Other fresh foods (in the process)Other fresh foods (in the process) FloralFloral All products on one standardAll products on one standard

DistributorsDistributors For efficienciesFor efficiencies For better visibility and controlFor better visibility and control

Marketplace Has Marketplace Has ChangedChanged

Options available today that were Options available today that were not available years agonot available years ago

Technologies available today that Technologies available today that were not available years agowere not available years ago

Cutting costs is more reasonable Cutting costs is more reasonable than raising pricethan raising price

The need for information is greaterThe need for information is greater The time to market is shorterThe time to market is shorter

BOTTOM LINE: We cannot continue to operate in today’sannot continue to operate in today’smarketplace the same way we did years agomarketplace the same way we did years ago

Competitive AdvantageCompetitive Advantage

More efficient to do business withMore efficient to do business with Easier to do business withEasier to do business with Increased partnershipIncreased partnership Time saved spent on value-added Time saved spent on value-added

activitiesactivities More collaborative relationshipsMore collaborative relationships Reduction in the cost of doing Reduction in the cost of doing

businessbusiness

So Why the Floral GTIN So Why the Floral GTIN ProjectProject

Address inefficienciesAddress inefficiencies Increase automationIncrease automation Reduce supply chain costsReduce supply chain costs Increase visibilityIncrease visibility Bring industry to one standardBring industry to one standard

The means to an endThe means to an end Start with product identification Start with product identification

standardsstandards Needed for supply chain technologiesNeeded for supply chain technologies

Move to automationMove to automation Data SynchronizationData Synchronization BarcodesBarcodes Electronic CommerceElectronic Commerce RFIDRFID

Move together as an industry to allow for Move together as an industry to allow for critical masscritical mass

Product Identification Product Identification StandardsStandards

Use of a common protocol to ensure Use of a common protocol to ensure accurate identification accurate identification

Allows flexibility within each Allows flexibility within each organization while providing organization while providing uniqueness by brand owneruniqueness by brand owner

NOT a single number that everyone NOT a single number that everyone uses for a single itemuses for a single item

The GS1 standardsThe GS1 standards Used in 145 countries world-wide, by more Used in 145 countries world-wide, by more

than 2 million companies in over 25 than 2 million companies in over 25 different industries.different industries.

Has standards for:Has standards for: Product identification (e.g. U.P.C., EAN,GTIN)Product identification (e.g. U.P.C., EAN,GTIN) Asset identification (e.g. AIN)Asset identification (e.g. AIN) Location identification (e.g. GLN)Location identification (e.g. GLN) Pallet identification (e.g. SSCC)Pallet identification (e.g. SSCC)

Already used by every supermarket/mass Already used by every supermarket/mass merchant operation using a U.P.C.merchant operation using a U.P.C.

Format of GS1 standardsFormat of GS1 standards All GS1 numbers essentially have 3 parts:All GS1 numbers essentially have 3 parts:

Company Prefix Company Prefix = a number assigned and managed = a number assigned and managed by GS1 that uniquely identifies a company from any by GS1 that uniquely identifies a company from any other company across the globe.other company across the globe.

Reference Number Reference Number = assigned by the owner of the = assigned by the owner of the Company Prefix to identify what is being numbered Company Prefix to identify what is being numbered (e.g. a pallet, a case, an item, a location, etc.)(e.g. a pallet, a case, an item, a location, etc.)

Check Digit Check Digit = an algorithm that serves as a “checks = an algorithm that serves as a “checks and balances” to ensure preceding digits were and balances” to ensure preceding digits were entered correctly. entered correctly.

NOTE: All three parts must not be separated in order to maintain uniqueness

GS1 Data StructuresGS1 Data Structures

Company Prefix

Reference Number

Check Digit

Indicator

Used For

X

X

X

X

X

XX

X

X

X X

XX

XItem/CaseItem LocationPallet

U.P.C.12 digits

GTIN14 digits

SSCC18 digits

GLN13 digits

ITEM (U.P.C.) ITEM (U.P.C.) assignmentassignment

ITEM 1 ITEM 2 ITEM 3

COMPANY PREFIX REFERENCE # CHECK DIGIT

ITEM 1

ITEM 2

ITEM 3

533925

533925

533925

00001

00002

00003

6

3

9

533925 533925 53392500001 00002 000036 3 9

NOTE: Company Prefix can vary from 6 to 9 digits

U.P.C. is 12 digits long

Example of a U.P.C. Example of a U.P.C. (item level) (item level)

Company Prefix Reference Number(i.e. Item Number)

Check Digit

U.P.C. = Universal Product Code

GTIN DiagramGTIN Diagram14 13 12 11 10 9 8 7 6 5 4 3 2 1

1 0 N N N N N N N N N N N CD

Position

Position 14 = Recommendation: Use “1” for floral companies

Position 2 - 12 = Combination of Company Prefix and Item # Company Prefix assigned by GS1 Item # assigned by owner of Company Prefix

Position 1 = Check Digit Algorithm to serve as a “checks and balances” to ensure preceding digits are accurate

1 4 D I G I T S L O N G

Position 13 = Recommendation: Use “0” for companies in U.S.

GTIN = Global Trade Item Number

CASE (GTIN) assignmentCASE (GTIN) assignment

CASE 1 CASE 2 CASE 3

COMPANY PREFIX REFERENCE # CHECK DIGIT

CASE 1

CASE 2

CASE 3

533925

533925

533925

00001

00002

00003

6

3

9

533925 533925 53392500001 00002 000036 3 9

NOTE: Company Prefix can vary from 6 to 9 digits

10 10 10

Example of a GTIN (case Example of a GTIN (case level)level)

1 0 5 3 3 9 2 5 9 9 9 9 9 6

Company Prefix Reference Number(i.e. Case Number)

Check Digit

Steps for Incorporation Steps for Incorporation of GTINof GTIN

Step 1: Brand owners to obtain Step 1: Brand owners to obtain Company Prefix from regional GS1 Company Prefix from regional GS1 (see (see www.gs1.org for location of for location of regional GS1 office)regional GS1 office) Who needs a Company Prefix?Who needs a Company Prefix? Where do you go to get a Company Where do you go to get a Company

Prefix?Prefix? What questions will you be asked?What questions will you be asked? How long does it take to get one?How long does it take to get one?

Steps for Incorporation Steps for Incorporation of GTINof GTIN

Step 2(a): Brand owners to assign GTINs Step 2(a): Brand owners to assign GTINs to all box configurations (see Floral GTIN to all box configurations (see Floral GTIN Assignment Strategy)Assignment Strategy) Is the item # the same as the box #?Is the item # the same as the box #? Will all boxes of one item have the same Will all boxes of one item have the same

GTIN?GTIN? Step 2(b): Brand owners to assign Step 2(b): Brand owners to assign

U.P.C.s to all bunches and bouquets (see U.P.C.s to all bunches and bouquets (see Floral GTIN Assignment StrategyFloral GTIN Assignment Strategy Can use the same strategy as the GTINCan use the same strategy as the GTIN

Steps for Incorporation Steps for Incorporation of GTINof GTIN

Step 3(a): Brand owners to communicate Step 3(a): Brand owners to communicate GTIN information to buyersGTIN information to buyers What does this GTIN number mean?What does this GTIN number mean? Specific meaning, no ambiguitySpecific meaning, no ambiguity Data SynchronizationData Synchronization

Data behind GTIN is the same for buyer and Data behind GTIN is the same for buyer and sellerseller

Step 3(b): Brand owners to communicate Step 3(b): Brand owners to communicate U.P.C. information for bunches and U.P.C. information for bunches and bouquets to buyersbouquets to buyers

Steps for Incorporation Steps for Incorporation of GTINof GTIN

Step 4: Those packing product Step 4: Those packing product responsible for putting GTIN responsible for putting GTIN information in human readable information in human readable format on boxformat on box Needed in the event the barcode cannot Needed in the event the barcode cannot

be readbe read

Steps for Incorporation Steps for Incorporation of GTINof GTIN

Step 5: Those packing product Step 5: Those packing product responsible for putting GTIN responsible for putting GTIN information into a barcode shown on information into a barcode shown on boxbox Needed for the automated capture of Needed for the automated capture of

informationinformation

Steps for Incorporation Steps for Incorporation of GTINof GTIN

Step 6: All business transactions should Step 6: All business transactions should begin using GTIN as primary source of begin using GTIN as primary source of identification (e.g. purchase orders, identification (e.g. purchase orders, invoices, etc.)invoices, etc.) The number shown on the box MATCHESThe number shown on the box MATCHES The number shown on the purchase order The number shown on the purchase order

MATCHESMATCHES The number shown on the invoice MATCHESThe number shown on the invoice MATCHES The number shown on the bill of ladingThe number shown on the bill of lading ALL can be reconciled using the same numberALL can be reconciled using the same number

The Floral OpportunityThe Floral Opportunity Elimination of cross referencesElimination of cross references Elimination of manual inputElimination of manual input Differentiation of product by supplierDifferentiation of product by supplier Product movement by supplierProduct movement by supplier Effective category managementEffective category management Reduction of box sizesReduction of box sizes Automation of manual processesAutomation of manual processes Ability to track product through supply chainAbility to track product through supply chain Tracking shrinkTracking shrink

Begin the path of Begin the path of automationautomation

GTIN is a necessary cornerstone to all GTIN is a necessary cornerstone to all supply chain technologiessupply chain technologies

Real ROI comes in the form of automationReal ROI comes in the form of automation Data SynchronizationData Synchronization Electronic CommerceElectronic Commerce BarcodingBarcoding RFIDRFID

Subsequent work to take place after GTIN Subsequent work to take place after GTIN implementation to lead the floral industry implementation to lead the floral industry in the use of these technologiesin the use of these technologies

For More InformationFor More Information

Gary FlemingProduce Marketing Association

Vice President,Industry Technology & Standards

gfleming@pma.com

Visit the Floral GTIN website at www.floralGTIN.com