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GS1 Bar Codes in Retail Deployment KitThe Fundamentals of an Efficient Supply Chain and Faster Check-out

GS1

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GS1 Bar Codes in Retail 2012

Fast and accurate data capture at every point in the supply chain

Deploying GS1 Bar Codes will provide plenty of benefi ts

to your users:

• Accuracy of data capture

• Speed of processes

• Better stock management

• Improved trading relationships

This Kit provides you and your MO with the implementation,

marketing, technical and training tools you need to assist

your users in the adoption of GS1 Bar Codes and partner for

a successful implementation.

You will fi nd in this Kit everything you need to know

about GS1 Bar Code implementation to drive adoption

in your country:

• You are a Member Organisation in a country where GS1

Bar Codes are not yet widely implemented within the retail

industry.

• You want a clear methodology for your roll-out, based on

proven examples and best practices from experienced and

successful MOs.

• You are looking for tools to help drive adoption, such

as case studies, market analysis, communication plans,

training material, etc.

Some fi gures:

• Good GS1 Bar Codes Symbols improve effi ciency: over

107 Million Euros in savings for the Spanish industry since

2010 (GS1 Spain)

• Annual savings of 5.69% of annual retail revenue through

the use of GS1 Bar Codes. GS1 Bar Codes lead to 11 billion

euros in annual savings in France (12 billion reasons to say

Thank you to Bar Codes, GS1 France, 2011)

• In New Zealand, the GS1 UPC has generated total cost

savings of over a $1 billion annually. The savings of each

New Zealander are around $280 per year or over $20 a

week for a family of four (Products talking to each other,

Brian Easton, 2009)

• The world top 10 retailers all use GS1 Bar Codes

DID YOU KNOW that more than 5 billion transactions are

realised everyday using GS1 Bar Codes?


Overview

• Executive Summary

• Acknowledgments

Steps for Deployment

• Summary

• Before You Get Started - Bar Codes Portfolio

• Before You Get Started - Mentoring Programme

> Step 1: Analyse your market and identify opportunities

> Step 2: Prepare your organisation for implementation

> Step 3: Support implementation and off er services

> Step 4: Analyse implementation level and quality

• The Shoprite Approach to Bar Code Scanning Hurdles at

Point of Sale

> Step 5: Develop an expansion strategy

Marketing Tools

• Summary

• Value Proposition

• Value Proposition - What is it and How to use it?

• Case study GS1 UK TESCO plc/Axicon

• Case study GS1 UK Barrie Meats Ltd implements GS1 Bar Codes

• Case study GS1 Spain - Bar Code Quality

• 12 Billion Reasons to say Thank you to Bar Codes (see inside cover)

• Brochure - Bar Code Quality – Impact of Quality at the Point of Sale

Technical Tools

• Summary

• General Specifi cations

• Global user manual

• GTIN and GLN Allocation rules

• Operational Guidance Bar Code verifi cation

• GS1 Bar Code Verifi cation for Linear Symbol

Training Tools

• Summary

• Bar Codes and ID Keys Workshop

• GS1 Bar Codes

• Bar Code Quality

• Bar Code Applications Logistic Units

• Bar Code Applications Trade Items

• Bar Code Certifi cate

• Online Tutorial - How to get started

• GS1 Verifi cation Video

• Frequently Asked Questions (FAQs)

• Glossary

Implementation Tools

• Summary

• Ten Steps for Bar Codes Implementation

• Starter Kit - Bar Code Colour Guide

• Starter Kit - Common Mistakes

• GS1 UK Scanner Guideline

• GS1 India Bar Code Quality Survey

• GS1 UK Validation Service

• GS1 Bar Code Verifi cation Report

• GS1 New Zealand Bar Code Verifi cation Report Guidelines

• GS1 New Zealand and GS1 UK checklist

• GEPIR

Reference Documents

• Findings of the 2011 Consumer Goods Forum

Compliance Survey

What's inside

All content is posted on GS1 online http://online.gs1.org/

Copyright 2012 GS1 AISBL

GS1 is a registered trademark of GS1 AISBL

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1 Overview

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Solutions – Collaborating to solve business issues with global standards

For example, Order-to-Cash, B2C, Product Authentification and Traceability, Master Data Management

Services – Supporting the implementation and development of standards

For example, standards development, training, education, data pools, consulting

Retail & Consumer Goods, Healthcare, Transport & Logistics

Efficiency

and save time

Safety

and product security

Collaboration

communication

Sustainability

information available

GS1 System of StandardsEnabling visibility in the value chain

Identify Capture Share

> >

Executive Summary

Why adopt GS1 Bar Code standards in Retail?

The GS1 Identifi cation and Bar Code Systems have provided

benefi ts to consumers around the world for over thirty

years. GS1 manages a global system that allows companies

all around the world to globally and uniquely identify: trade

items (products & services); assets; logistic units; shipments;

physical locations and virtual locations (electronic mailboxes

or a company); and a service relationship between a

provider and a recipient.

How to position Bar Codes in the GS1 System?

The GS1 System is divided into three blocks: Identify,

Capture, Share. GS1 Bar Codes are an integral part of this

system as they fulfi ll the needs to capture information on

the product or asset.

Objective of this Deployment Kit

The objective of the Bar Codes in Retail Deployment Kit is to

provide MOs with the implementation, marketing and training

tools they need to assist their users in the adoption of GS1 Bar

Codes and partner for a successful implementation.

Scope of the Kit: it covers the full retail value chain, from

the manufacturer to the retailer. The toolkit provides an

overview of the GS1 ID Keys used to identify these three

levels. The main focus of the Toolkit is however on capturing

the identifi ed information using Bar Codes.

In this Kit, you will fi nd:

• A step by step approach for a successful implementation

• Success stories from MOs

• The value proposition to share with your members

• Training tools for you, your staff and your members

• Case studies to show real life value of implementation

• Examples of services and support to provide to your members

• Technical information on GS1 Bar Codes and ID Keys

• And much more!

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We would like to thank our colleagues listed on the project team, our GS1 Member Organisations, CEOs, Bar Codes experts and Marketing experts as well as user companies who responded positively to this project and provided their help, guidance & good spirit.

GS1 Member Organisations Contributors

• GS1 France – Caroline Raymond, Cassi Belazouz

and Lidia Martinage

• GS1 UK – Neil Piper

• GS1 New Zealand – Owen Dance

• GS1 Nigeria – 'Kunle Oye-Igbemo

• GS1 India – Atul Mahajan

• GS1 Colombia – Sandra Milena Moreno Diaz

• GS1 Slovenia – Matjaz Martini

• GS1 Malaysia – Soo Keun Au

• GS1 US – Harsha Gohil

• GS1 Mexico – Daniel Eumaña

• GS1 Russia – Olga Soboleva and Sergey Fedoseev

• GS1 Saudi Arabia - Naeem Ahmed

• GS1 Canada - Daniel Clarke

GS1 Global Offi ce contributors

• Project Manager – Emilie Danel

• Project Sponsor – Philippe Wery

• Bar code Experts – Andrew Hearn, David Buckley, Ilteris

Oney, Monica Walsh and Francesca di Costanzo

• Marketing experts – Christine Cecil and Nora Kaci

• Training & Education Experts – Jean-Marc D’Hooghe,

Claudia Riemer and Glenda Connoll

Special Thanks to:

• Shoprite, South Africa, Glyn Fogell

• GS1 Spain - Pere Rossel and Rocío Varela

• GS1 Senegal - Saliou Gaye Ndoye

Acknowledgments


2 Steps for

Deployment

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Steps for MO Deployment

SummaryThis section provides key components on how to implement GS1 Bar Codes in Retail. This step by step approach will help you target the right users and provide them with solutions and services to create a profi table retail environment with GS1 Bar Codes.

What you will fi nd in this section:

• Before you get started

This section defi nes what GS1 Bar Codes are, as well as the

diff erent types and applications, for you need to know your

product before even starting your deploy ment. In addition,

in order to help you throughout your deployment, you will

fi nd a presentation of the mentoring programme in place

within the global GS1 community.

> Step 1 – Analyse your market

In this fi rst step, you need to understand your market and

the diff erent market drivers that will support take off of your

strategy, and build a strong business case to support your

arguments.

> Step 2 – Prepare your organisation

The second step is dedicated to the preparation of the

organisation for success. This implies training your staff ,

build a good communication plan and strong partnerships.

> Step 3 – Support implementation

The fourth step is crucial as it is the step of the concrete

implementation. We explain how to implement and support

users with specifi c services, from basic services to more

complex ones that can generate additional revenues.

> Step 4 – Measure Bar Code quality and market penetration

Once implementation is on track, you need to monitor it by

checking that it is done right. Measuring Bar Code quality is a

good indicator of the success of the implementation, and the

opportunity to stress the importance of the services you off er,

such as training or Bar Code verifi cation. In order to defi ne

further strategies and decide whether to move to another

sector, you will need to measure Bar Code penetration as well.

• The Shoprite Approach to Bar Code scanning hurdles

at Point of Sale

This striking experience from the South-African based

retailer highlights how important it is to support

implementation and monitor Bar Code quality very closely.

> Step 5 – Expand your market

Once you have fully exploited a sector or an application,

choose how to expand your market, with new applications

or by investigating new sectors.

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Before you get started Bar Codes Portfolio

Before starting your market research and throughout your implementation process, you need to be aware of which solutions

and products are at your disposal to build your off er. GS1 has developed several types of GS1 Bar Codes standards for several

applications. In addition, you need to know which ID key should be applied in which situation.

As a GS1 Member Organisation, you are expected to have a deep technical knowledge of GS1 Bar Codes, have the ability to

show that the GS1 Bar Codes are technically sound and work well in practice. You are also expected to share this knowledge

with your targeted and existing subscribers as to help them implement GS1 Bar Codes.

This knowledge will help you conduct relevant market research, build a business case as well as your communication plan,

identify the services you can provide, and approach your potential customers.

This is the foundation of your knowledge. The

training tools and the technical tools of this kit

will help you get more knowledgeable on the diversity and

complexity of GS1 Bar Codes standards.

Identifi cation Keys (ID Keys)

There are nine GS1 Identifi cation Keys that support the

identifi cation of items, services, locations, logistic units,

returnable containers, etc. The GS1 Company Prefi x assigned

to a user company allows that user company to create any of

the GS1 identifi cation keys.

ID Keys

• GTIN - Global Trade Item Number

• GLN - Global Location Number

• SSCC – Serial Shipping Container Code

• GRAI – Global Returnable Asset Identifi er

• GIAI – Global Individual Asset Identifi er

• GSRN – Global Service Relation Number

• GDTI – Global Document Type Identifi er

• GSIN – Global Shipment Identifi cation Number

• GINC – Global Identifi cation Number for Consignment

Application Identifi ers (AIs)

GS1 Application Identifi ers are a fi nite set of defi ned

identifi ers used to connect physical and logical things

to information or business messages related to them.

The defi nitions for the Application Identifi ers reside in a

standard called the GS1 General Specifi cations. There are

approximately 100 Application Identifi ers (AI)

GS1 Bar Codes

Several GS1 Bar Codes types are available for diff erent usage

and products.

EAN/UPC

• EAN/UPC are specifi ed for retail Point-of-Sale (POS) because

they are designed for the high volume scanning environment

• They are used at POS and in logistics

• They are limited to carrying GS1 Keys and special identifi ers

for restricted applications like variable measure trade items

and internal numbering

Example:

yp

fication Number Example:

• GDTI – Global Do


• GSIN – Global Shipment Identifi cation Numbe

• GINC – Global Identifi cation Number for Consignment

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GS1 DataBar

• Family of symbols that can be scanned at retail point-

of-sale (POS), are smaller than EAN/UPC and can carry

additional information such as serial numbers, lot numbers

or expiry dates.

• A subset of GS1 DataBar Bar Codes designed for use at POS

are being considered by a GS1 Board Task Force for future

adoption because GS1 DataBar can carry all GS1 Keys and

attributes and do so in a smaller space than EAN/UPC

• GS1 DataBar symbols are already approved for global use

on healthcare items that do not cross POS

Example:

GS1-128 (previously referred to as UCC/EAN-128 or

EAN-128)

• GS1-128: GS1-128 (UCC/EAN-128) Bar Codes can carry all

GS1 Keys and attributes but cannot be used to identify

items crossing POS

Example:

ITF-14

• ITF-14: ITF-14 Bar Codes can only carry GTINs, can be

printed directly on corrugated cartons, but cannot be used

to identify items crossing POS

Example:

GS1 DataMatrix

• Data Matrix: GS1 DataMatrix is becoming increasingly the

symbol of choice for many in healthcare

• Because GS1 DataMatrix requires camera based scanners, it

is currently specifi ed for healthcare items not crossing POS

and for direct part marking

Example:

GS1 QR Code

• GS1 QR Code standard makes it possible to “hard code” a

link to a website within a 2D Bar Code

• Contains a GTIN to ensure backward and forward

compatibility with other Bar Code applications and with

the GS1 B2C Trusted Source of Data (TSD) framework

Example:

Composite Component

• Composite Component is the only “2D linear” symbol

specifi ed by GS1

• It is called a component because it is only used with a

linear Bar Code like GS1-128 or Databar

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Technical documents

You need to identify technical staff in your MO who will

become experts in the technical (and if possible also

implementation) aspects of GS1 Bar Codes.

They will require a full understanding of the available

technical resources


• Global User Manual

• GTIN Allocation Rules

• GLN Allocation Rules

• Operational Guidance for Bar Code verifi cation

The better you get acquainted with these documents, the

more effi ciently you will support your companies.

See the technical tools of this Kit for an overview

of the technical documents that will be useful to

send to your users to guide their implementation.


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Before you get started - Mentoring programme between MOs to support a successful implementation

In 2002, GS1 launched a mentoring programme to support

new or developing Member Organisations and encourage

the sharing of knowledge between MOs. So far, 45 MOs

have been mentored, and the collaborations have been

established all over the world.

This mentoring programme is a great opportunity for new

or less experienced MOs to benefi t from processes and

knowledge transfer from well-established MOs.

The purpose of the mentoring is:

• To leverage knowledge and experiences among the GS1

MO community

• To create a framework where MOs can ask for and receive

support and advice

• To bridge the gap between ‘mature’ and ‘developing’ MOs

• To prevent MOs from having to ‘re-invent the wheel’

• To foster a spirit of cooperation and sharing among the MO

community

• To promote consistency and quality in the services off ered

by MOs

MO Example - GS1 France mentors GS1

Senegal

Since 2011, GS1 France has been supporting GS1 Senegal

in developing and administering its organisation. Their

common language, which is French, is a major factor in the

success of the collaboration.

Process

Following the creation of GS1 Senegal, GS1 France hosted

GS1 Senegal staff for two weeks in their premises. The two

MOs are now in regular contacts via email.

Input

GS1 France shared its experience on the following topics:

• Overall administration and management of a GS1

organisation

• How to ensure good corporate governance

• Marketing and implementation support tools

• Relevant services to off er to users, such as technical support/

helpdesk, accreditation of solution providers (presentation

of GS1 partenaires, GS1 France’s programme for Solution

providers accreditation, see Step 3 for more de tails)

In addition, GS1 France provided the following support:

• Presentation of the GS1 community including mapping of

important contacts within the GS1 community.

• Strategic advice on how to approach local distributors and

understand the dynamic between international retailers

and local manufacturers.

• Strategic advice on collaboration with Solution Providers

and liaison with Solution Providers to ensure their products

and services support GS1 standards.

• 2 weeks of Training sessions for GS1 Senegal membership

manager covering Bar Codes printing, Bar Codes verifi cation,

helpdesk, and Transport and Logistics standards.

For more information on the GS1 mentoring

programme, contact Francesca Di Costanzo,

Global Offi ce Corporate Services Executive at

[email protected]

Read about another successful Monitoring example between

GS1 Korea and GS1 Mongolia in this article from GS1 InTouch.

http://online.gs1.org/intouch/articles/view/1220/GS1_

Mongolia_and_GS1_Korea_A_Mentoring_Success_Story

ch/articles/view/1220/GS1_

Process

F ll i th ti f GS1 S l GS1 F h t d


Following the creation of GS1 Senegal, GS1 France hosted

MOs are now in regular contacts via email.

http://online.gs1.org/intouch/articles/view/

Mongolia_and_GS1_Korea_A_Mentoring_Success_Story

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Step 1 – Analyse your market and identify opportunities

This step explains how to understand the market and the

market drivers in your country and identify the key players

you will need to approach to develop your customer base.

Markets can be very diff erent from one country to another;

you need to know on what your country’s economy is based

upon (retailers, manufacturers, what kind of industry, etc.).

Once this analysis is done, you can start with your marketing

plan, build a strong business case and develop arguments

to approach your potential users.

1. Analyse your market

The fi rst thing to do before taking action to implement

a solution is to analyse your market. You need to know

your playing fi eld. Get to know the actors of the retail

sector in detail and investigate whether there is a need for

your solution, in which retail sector, and for which kind of

stakeholders.

During this phase, you should also discover who the big

players in the diff erent sectors are. This will help you identify

who to contact at a later stage. The big players will always

pull smaller players with them, so it will be important to

get them on board fi rst.

Why analyse your market?

• To decide which sector you are going to target fi rst and the

level of resources to allocate. Take into consideration the

importance of the actors in the diff erent sectors and their

accessibility. Grocery is often an obvious sector to start

with, but other sectors can be preferred.

• To determine the proper skill set of the resources assigned.

New sectors may require more of a ‘sales focus’ while an

existing sector may understand the big picture, but needs

more support on the solutions themselves.

• To identify opportunities in adjacent sectors or within the

existing customer base that can be easily developed.

• To better understand your customers’ problems, needs and

the solutions they are currently using.

How to do it?

1. Find relevant information from reliable sources

There are plenty of organisations you can contact to fi nd

relevant information and readymade market analysis that

will help you build your understanding of the market:

• The Chamber of Commerce is a good place to start. They

regularly publish studies and reports on the economy and

diff erent sectors of your country.

• Ministries and Embassies also have a lot of information on

Market research

• Industry associations that do market analysis professionally,

such as The Consumer Goods Forum (TCGF). http://www.

theconsumergoodsforum.com/ , but other more local

associations or agencies will be very relevant too and can

tell you how the retail landscape looks in your country.

• Professional Organisations – such as retailers’ organisations.

• Institutes for statistics, such as INSEE (French National

Institute for statistics) or the ONS (Offi ce for National

Statistics in the UK)

• You can hire specialised consultants to help you build a

market research targeted to your needs.

Have a look at The Consumer Goods Forum

questions to learn what kind of information they

collect to analyse the market. http://www.globalscorecard.

net/live/view_kpi.asp. The Key Performance Indicators

(KPIs) and implementation measures used by TCGF for the

Global scorecard should be considered as input material for

your market analysis survey.

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2. Conduct surveys

Another way to gather relevant information about your

(potential) customers is simply by asking them. Set up a survey

template and call (some of ) your main/most representative or

potential customers. You will get a direct approach and collect

valuable information to build your strategy.

Here is some important information you need to gather:

• Type of activity of the company

• Number of employees

• Type of infrastructures

• Turnover

• Type of products they sell and in which quantities

• Current business processes

• Expectations towards an organisation such as GS1

This information will help you understand who you are

dealing with and whether they can be interested in your

off er. Make sure you only ask for data that is relevant to

your MO and is actionable i.e. data that allows you to make

decisions or take actions.

3. Build a strong database of your customers

If you already have a good base of GS1 users, it is important

you know them well; it is a good indicator of what kind

of stakeholders you are attracting. You should have a

customer database gathering the most important

information about each of your users (see list above)

2. Understand the market drivers

Market drivers are market fundamentals helping you

meeting your customers’ criteria, need, or desire to have

a GS1 product or service. They also generally constitute

the factor that will move a potential GS1 customer into

becoming an actual customer.

Why should you understand your market drivers?

Understanding your market drivers is fundamental for you

to develop winning business case. You need to understand

why your customers join GS1 and use your services.

Examples of market drivers relevant for GS1 Bar Codes

implementation:

• Retailer requirements

Retailers’ requirements are one of the key market drivers for

the GS1 Bar Codes implementation on the Retail Value Chain.

Retailers can also require for their organisation and for

their suppliers additional GS1 services such as Bar Code

verifi cation, which will increase your opportunities of

implementing the GS1 solutions.

In India back in 2004, retail majors Foodworld

Supermarkets, Giant Wholesale Club, Trinethra

Super Retail, and Nilgiris Franchise Division mandated that

all suppliers use the GS1 Bar Codes (at the time still EAN Bar

Code) on all products.

• Government Regulations

For example, there is growing regulation requiring Traceability

for products which results in the need for more information

to be available about a product. The amount of data needed

and the type of technology needed to ensure compliance

with these regulations can be met by existing GS1 Standards.

In Europe, the European Commission Regulation

(EC) No 178/2002 of 28 January 2002 laying down

the general principles and requirements of food law,

establishing the European Food Safety Authority and laying

down procedures in matters of food safety, is still the main

legislative text to encourage retailers to adopt traceability

standards in relation to Food products.

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CON

SLEG:2002R0178:20060428:En:PDF

This regulation impacts also the exporters of products from

other regions into the European Union.

• Consumer preference

This relates to traceability and safety in the supply chain when

implementing GS1 Bar Codes. Sometimes, the end consumers

will feel ‘safer’ when they see that a product benefi ts from the

traceability or recall options that a Bar Code can off er.

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• Snowball eff ect

If one actor of the supply chain is implementing, the others

will be pushed to implement as well to reduce the overall

costs and improve collaboration between trading partners.

This will have even more impact if the big players of your

market are on board from the beginning.

• Adapting to market changes to remain competitive

Changes in the market require adapting quickly and

therefore implementing innovative solutions. A growing

business will have a motivation to use GS1 Bar Codes to

facilitate the handling of an increasing number of products

in a quick and effi cient way, with bigger retailers such as

supermarkets.

• Industrialisation level of your country

The part of industry in your country’s economy is a big

factor of success for your business. The more Industry grows,

the more potential users you will have.

See examples of these market drivers in case

studies presented in the marketing tools

3. Develop the business case

Once you have built a clear understanding of your market,

you have to prepare strong arguments, based on the

products and services you have at your disposal, on the

value of the GS1 Bar Codes as a solution to business

problems of your potential customers.

As a convincing tool, we recommend you building a

business case that captures the reasoning for this industry

sector to adopt GS1 Bar Codes in retail. Methodologies for

building business cases are widely available in the literature.

The main focus here is on the customer, their needs and

how a GS1 solution can meet those needs. Understanding

the business problem to be solved and ‘speaking in their

language’ back to them is critical. This stage is too early

to discuss the technical aspects of the GS1 System. This is

the time to focus on the benefi ts that the GS1 System can

provide to meet their specifi c issues – not on the details of

how a GTIN is constructed.

Why developing a business case?

You need to understand what the problem of not having

GS1 Bar Codes is. This understanding can be based on the

market drivers listed above (e.g. small manufacturers will

need Bar Codes to access supermarkets), or the sector you

are targeting and its needs (fresh foods for instance).

Having a deep understanding of the problems companies

are facing in the targeted retail sector will help you further

engage this sector and be recognised as a credible partner.

If you do not understand the problem to be solved, you will

not be able to provide the correct solution to meet their

needs and you will be unable to relate the complex world

of GS1 Standards to those who are focused on solving their

real world problems – today.

Showing the benefi ts of Bar Codes

Once you have identifi ed the problems linked to a sector, it

is time to bring forward the benefi ts of your GS1 solution.

There are plenty of benefi ts that can be highlighted when it

comes to promoting GS1 Bar Codes in the retail value chain,

such as

• Fast and accurate data capture at every point in the supply

chain, including goods receiving, warehousing, item

picking, despatch and point of sale

• Better, more timely, management information

• Less stock-holding and less waste

• And many more…

See the value proposition in the marketing tools

for a complete sales pitch with an overview of the

benefi ts of GS1 Bar Codes standards in retail.

Regarding Bar Code quality, additional benefi ts can be put

forward, such as consumer convenience, less waiting time at

check out. The issue of Data Accuracy can also be raised.

Besides, consumers are looking for additional benefi ts of Bar

Codes, such as:

• Consideration for consumer access to product information

e.g. nutritional information, allergy information by scanning

a GS1 Bar Code.

• Information access through online services / mobile phone

applications etc.

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Example from MO - Business Case – GS1

France

12 Billion Reasons to say thank you to Bar Codes

Brochure

The Brochure developed by GS1 France (see Marketing

tools) is a great business case to show benefi ts from GS1 Bar

Codes in the context of GS1 eCom (Order to Cash) solutions.

In particular, page 6 of the brochure quotes:

“ Savings achieved through the use of Bar Codes lead to an

annual savings of 5.69% of retail revenue. The direct, concrete

and quantifi able savings from the use of Bar Codes amounts

to 2.8% of sales. These savings are related to the reduction in

time at the checkout, fewer errors and the better use of the

cashier operators’ time. The indirect savings come to 2.89%

of sales, which is related to the increase in sales due to better

customer service, better tracking of stocks and store fl ows and

the reduction of unknown markdowns.”

Annual savings of 5.69% of annual retail revenue

through the use of Bar Codes

The brochure is a follow up of the Price Waterhouse Coopers

study that was conducted in 2007, 17 Billion Reasons to say

Thanks, the 25th Anniversary of the U.P.C. and its Impact on the

Grocery Industry. The study compared the business case

conducted at the time of the adoption of the UPC code

back in 1974 with the situation in 2007. The study provides

good elements of methodology to build a strong business

case and to show that the benefi ts will be greater than the

costs of the implementation:

• Analyse hard benefi ts (quantifi able) or soft benefi ts (not

quantifi able)

Examples of hard benefi ts: reduction of labour costs,

reduction of check out losses

Examples of soft benefi ts: inventory management, tracking

of sales (implies changes in business processes)

• You have to make sure the benefi ts you are highlighting

are applicable to big players, but also to SMEs, depending

on your market and targets.

Make your Supply Chain more effi cient by

using GS1 Global Standards, IBM report 2011

In addition, the global report “Make your supply Chain more

effi cient by using GS1 Global Standards” is a great document

to highlight overall benefi ts of using standards on the

supply chain;

The executive brief outlines several benefi ts of standards

implementation, including:

• Improvements to the business measures by using

standards can be observed throughout the entire supply

chain, such as reduced distribution costs, lower out-of-

stock rates and better inventory cover.

• The panel sample (companies having participated in

the 2006 and 2010/11 surveys) shows an increase of

implementation levels and improved business measures

over the four-year span.

• Additional effi ciencies are evident in the supply chains of

companies with higher implementation levels.

Check the reference documents for the Executive

Brief of this report or http://www.gs1.org/docs/

retail/IBM_Make_your_supply_chain_more_effi cient_by_

using_GS1_standards.pdf

Examples of hard benefi ts: reduction of labour costs,

reduction of check out losses

Examples of soft benefi ts: inventory management, tracking

of sales (implies changes in business processes)

• You have to make sure the benefi ts you are highli

are applicable to big p


you are highlighting

pp cable to big players, but also to SMEs, depending

on your market and targets.

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Step 2 – Prepare your organisation for implementation

Once you have analysed your market and prepared your

business case, you need to prepare the fi eld to be able

to support your users’ implementation. Through solid

partnerships, a good communication plan, and a staff that

is well trained in their sector, you can build a strong GS1

organisation that will be a reliable support for your users.

1. Train your staff

It is essential that your staff is well trained before you

approach potential users.

GS1 Global Offi ce puts at your disposal an extended

portfolio of training courses and formats in order to train

your staff . In general, it is recommended that your staff is

trained on the GS1 System – a GS1 System certifi cate is

available and covers the basic knowledge around the topic.

Regarding Bar Codes, specifi c training is available and a Bar

Codes certifi cate is available that covers what you need to

know around Bar Codes and ID Keys.

Check the training tools of this Kit to know more

about the material available to train your staff

2. Create partnerships

A partnership is an arrangement where parties agree to

cooperate to advance their mutual interests; it is a win-win

situation. Creating strong partnerships will help you gain

credibility and users in your sector.

Why create partnerships?

Partnerships can be very useful because:

• They can help you carry your GS1 messages e.g. approach

retailers associations and consortium to get additional

support of your message and reach several actors at once.

• Eff orts are combined so no loss of effi ciency e.g. team up

with retailers to convince suppliers to implement GS1 Bar

Codes to be used in a retail environment.

• They can open doors e.g. you can have access to top level

managers (CEOs) with the support of trade associations in

countries where GS1 is not widely recognised.

• Example of partnerships that can be benefi cial to your

organisation:

– Industry organisations

– Retailer’s associations

– Universities and business schools

– Infl uent company that can drive the adoption

To conclude a partnership, it is always benefi cial to sign a

formal partnership agreement.

As a less formal form of collaboration, you can also receive

an offi cial letter of support from a company or an

organisation. That document can be used to build further

partnership or in your communication plans.

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Example from MO – GS1 Nigeria - MO/

Retailer’s association partnership

GS1 Nigeria has partnered with big Supermarkets’

organisation NASON to reach out to Retailers. They tell

us the process to build a sustainable partnership.

What is NASON?

The National Association of Supermarket Operators in

Nigeria (NASON) is the umbrella body for all recognised and

registered Supermarkets or Retailers in Nigeria. It promotes

the interests of retailers and also supervises their operations.

NASON is one of the promoters of GS1 Nigeria and holds

a seat at our Board, with the representation of NASON

National Chairman being the Vice-President of GS1 Nigeria

and the new President.

The collaboration is meant to foster close alliances with

retailers who are drivers of the adoption and implementation

of bar-coding system by manufacturers.

Why we decided to collaborate?

We decided to collaborate with NASON as a way of raising our

membership, promoting adoption and implementation and

fostering partnerships for other services we render.

Through NASON, it is easier to get hold of retailers at once

and also by the mandate of their controlling body, which also

gives credence to our operations as they are well represented

on our Board and can have their interests enforced with us.

The quest to have retailers buy into the standards of GS1

is a major issue to any MO bearing in mind, the various

possibilities that lie within. Having NASON with us therefore is

a great advantage that we leverage, particularly, considering

that adoption of GS1 standards is still low in Nigeria.

How did we proceed?

We started the process at a formal staff and management

meeting where we discussed the various benefi ts having

this alliance. It was later discussed with the NASON National

Secretary, who is also on our Board as well as with his

National Chairman, who gave us a nod. We thereafter put

in a formal proposal which is being giving attention. GS1

Nigeria also made a presentation at one of their National

meetings, where they highlighted the values of GS1 and the

benefi ts we off er.

What are the results of the collaboration?

The results of the collaboration are in line with our

expectations, the benefi ts to retailers, the values to

consumers and the advantages to GS1 Nigeria.

Basically, we want to achieve:

• Suppliers on Boarding Program: where a supplier is referred

to us to obtain a clearance for having satisfactorily passed

through the bar-coding process, including the verifi cation.

• Database search for authorized GTIN: this alliance is meant

to expose GS1 Nigeria to the database of the various

retailers so that we can fi sh out the non-GS1 GTINs. We

also intend to periodically compare the numbers in their

databases to our members GTIN list, so we could tell if

there are numbers issued by unauthorised resellers, or from

other unscrupulous sources.

• Verifi cation: this is in the interest of the retailers to ensure

the Bar Codes on their products will scan accurately and

they will have faster checkout times.

• Referrals: this is meant to enforce referrals from the retailers

to GS1 Nigeria offi ce for bar-coding related services.

• Training of Staff : the staff members of the retailers are

often required to have good training in bar-coding, supply

chain management and the likes. We intend to contract for

trainings in our areas of expertise.

• Exposure to GEPIR: this is intended to expose the retailers

to the use of GEPIR in the event of any discrepancy.

• We also aim to push for other Retail Value Chain processes

such as B2C and MobileCom.

p g

meeting where we discussed the various benefi ts having

this alliance. It was later discussed with the NASON National

Secretary, who is also on our Board as well as with his

National Chairman, who gave us a nod. We thereafter put

in a formal proposal which is being giving attention. GS

Nigeria also made a present


g attention. GS1

ade a presentation at one of their National

benefi ts we off er.

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3. Build a strong communication plan

Building a strong and coherent communication plan will

allow you to make noise around the benefi ts of your solution

and gain the attention of potential and new customers.

How to build a strong Communication Plan?

There are plenty of ways to highlight the benefi ts of GS1

Bar Codes. A good communication plan is essential to

demonstrate that your product is the best.

You have to defi ne:

• Who is your target?

– Primary/Secondary

– Infl uencers

• What is your value proposition for the target?

• How can you reach them best?

• What do you want them to do? What is the fi rst step?

• How can you package the message most eff ectively?

– Content

– Language

– Illustrations

– Design

Example from MO - GS1 UK communication

plan around GS1 DATABAR

GS1 UK developed a full portfolio of media to demonstrate

the benefi ts of GS1 Databar in the Fresh Foods sector

• Website solely devoted to GS1 DataBar

www.gs1databar.org.uk

• GS1 DataBar awareness campaign

• Annual conferences were organised in the past to raise

awareness on GS1 Databar where all members were

invited to, where Bar Code workshops were organised

which address use of GS1 Bar Codes, Bar Code quality

problems, resolving Bar Code problems etc.

• Specifi c brochure for GS1 DataBar

(available here: http://www.gs1uk.org/what-we-do/

PublicDocuments/DataBar.pdf )

• Creation of several other documents explaining the use of

GS1 Bar Codes for use in the retail supply chain including

one called “Bar coding getting it right” which has been

provided already in electronic format. These documents

are marketed through our website and are also provided

to our solution partners / providers to pass on to their

customers / host on their web sites.

Understanding Global Data Synchronisation (GDS)An introduction to GDS for suppliers and retailers

GS1 DataBarMore data…less space

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Step 3 – Support implementation and off er services

After you have prepared your organisation and engaged new

customers, you should expect these customers to be willing

to implement GS1 Bar Codes and to seek for your support.

1. Support and monitor implementation

Your level of support can vary from providing basic

guidance and answering basic questions up to providing

professional implementation services via a pool of experts

in the GS1 System possessing extended & practical

implementation expertise across a range of industry sectors.

Why support implementation?

• To enable the success of the implementation

• To build the confi dence and trust of your users

• To maintain sustainable customer base

• Implementation support can be a revenue generating activity

How should you do it?

• 10 Steps to Bar Codes

GS1 has developped the Ten Steps to Bar Code

Implementation for companies starting with “Get a GS1

Company Prefi x” up to “Build a Bar Code Quality Plan” (http://

www.gs1.org/barcodes/implementation).

To date, these Ten steps have been translated in more than

20 languages and are available from 40+ GS1 websites.

Check the Implementation Tools of this Kit to read

the full steps

2. services to be off ered to your users

GS1 Global Offi ce off ers GS1 Bar Code and identifi cation

tools for global use, but it is important to note that GS1

Member Organisations are highly engaged in Bar Code

and identifi cation implementation in their local area. The

Member Organisations provide a broad range of services

including helpdesk support, training, standards publication/

translation, guidelines, and data management systems.

Some of these services should be provided for free, like the

access to the helpdesk, to basic documents and resources as

well as to a basic training in some cases. Other services can

be the object of an additional fee, like Bar Code verifi cation

services or extended training sessions for users.

Why off er additional services?

• To make sure that the implementation is done well, it

is better if you can control some aspects of it via these

additional services

• To build additional trust – the users will feel that they have

additional support from the same source

• To generate additional revenues

1. Customer Service and Helpdesk

Customer service and helpdesk are an essential service

to provide to your users. By answering their questions on

the spot and being a reliable source of information, you

show your availability and willingness to help making their

implementation successful.

A complementary service is to have an FAQ section on your

website. FAQs from the Global Offi ce are available in the training

tools, but you can also adapt them to your country situations.

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Examples of question you will likely get (source: GS1 New

Zealand FAQs)

• I need to Bar Code my product and I was told to ring you.

What do I have to do?

• Why should I join GS1 New Zealand?

• How much does it cost and how long does it take to get a

number?

• How many numbers do I get?

• Can I have just one Bar Code number?

• Do you provide me with the actual Bar Codes or how do I

go about it?

• Do you keep a register of the numbers I have assigned to

• What is the diff erence between scanning and verifying a

Bar Code?

2. Training & Education

Your customers will need to understand how GS1 Bar Codes

and Identifi cation Keys work and how to implement them.

You can re-use all of GS1 Global Offi ce’s training material to

train your users, or develop more specifi c, customer-tailored

educational material.

Examples from MOs - Training Programmes:

GS1 UK

GS1 UK off ers to new joiners a classroom based course. It

covers a basic introduction to GS1 standards but mostly

focuses on the requirements for providing GS1 Bar Codes

/ GTIN’s to the FMCG sector, mostly EAN-8, EAN-13, UPC-A

and UPC-E. In addition, GS1 UK off ers a webinar based

training session that lasts approximately 2 hours as an

option instead of the classroom course.

GS1 UK also runs a training course tailored to the needs of

the client as they may trade across multiple sectors e.g. retail

and healthcare. For instance, a specifi c training suite was

developed for the retailer “Boots the Chemist” that also sells

pharmaceutical products.

GS1 France

The GS1 France training center trains more than 1,000

people a year.

Training is provided to companies but also to training

institutes, universities, schools and various professional bodies.

GS1 France off ers a comprehensive training with:

• Basic and specifi c training in the offi ces of GS1 France

• Company training tailor made to the needs and specifi c

expectations of companies (Onsite training in the

company, specifi c target audience, program, duration, etc.)

• E-learning modules available on the international platform

LEARN in multiple languages and training kits or modules

can be created following requests from companies.

To add even more quality and service, the training center

of GS1 France is developing partnerships with professional

organisations, federations, schools, universities, training

institutes, and other major stakeholders.

Knowledge Centers

Many MOs have developed demonstration centers in

conjunction with their training facilities. These centers give

end users hands on view of how the standards work in

real life examples. A few examples are GS1 Germany Live!,

GS1 Sweden Concept Center and GS1 Mexico Experience

Rooms, GS1 Norway’s Smart Centre, GS1 Spain Competency

Center etc. More information on these centers can be

found in the Solution Provider Deployment Toolkit –

Implementation section.

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3. Partnerships with Solution Providers

Solution Providers have a great role to play in the success of

an implementation:

• They implement GS1 Standards among our members

• They have a very good knowledge of the market with

commercial power

• They are key prescribers of the GS1 System

• They can help GS1 MOs to speed up implementation and

improve quality.

(source: GS1 Spain)

In general, you can provide a list of certifi ed/accredited solution

providers, to remain neutral however do not recommend a

specifi c company to your users. GS1 France off ers a Tender Tool

to help connect their users with solution providers that meet

their specifi c requirements.

Users cannot implement the GS1 Standards without the

support of products and solutions that implement them. Be

sure to off er training programmes specifi cally to train the

solution providers on any new standards as soon as they are

available. For example, it is important to off er training on

the new multiple Bar Code standards so Solutions Providers

can incorporate the GS1 GTIN +URL into the new QR Codes.

See the Solution Provider Deployment Kit for best

practices on how to build partnerships to enable

GS1 Standards Implementations. In this toolkit you will fi nd

the steps to develop a Solution Provider (SP) programme

including how to identify who the SP market leaders are,

examples of MO SP Programme off ers, examples of joint

marketing initiatives, engaging SPs in knowledge/demo

centers, SP Training and accreditation programmes etc.

Many MOs have developed Solution Provider (SP)

Progammes. One feature of many of the SP Programmes is

to off er a Solution Provider Finder. Example SP Finders can

be found on the websites of GS1 Australia, GS1 UK, GS1 US,

GS1 Austria and GS1 Ireland.

A GS1 Global Solution Provider Finder is also available

to MO Solution Partners accessible from the GS1 website:

http://www.gs1.org/spfi nder. This fi nder tool helps users

fi nd a reliable solution provider and identify which products

have undergone GS1 Certifi cation to further reduce user

implementation. From the GS1 Bar Code implementation

webpage http://www.gs1.org/barcodes/implementation

users can click the button Find a Solution Provider Quick

Link to access a short list of Bar Code hardware products

(readers, scanners, printers etc.)

Examples from MOs - Solution Providers

Programmes:

GS1 UK - Solution Partner Finder

When members and prospective members call GS1 UK they

are often directed to the Solution Partner Finder. Accredited

Solution Partners and providers of Certifi ed Solutions are

clearly highlighted and promoted on the Solution Partner

Finder (and elsewhere on the website). This tool enables to

access hundreds of solution partners who can help in the

implementation of bar coding and supply chain solutions

that use GS1 standards. The search is available by category.

Accredited Solution Partners are examined by GS1 UK in

their chosen area of expertise and demonstrate a high level

of knowledge and understanding of GS1 standards and a

commitment to maintaining this knowledge. GS1 UK also

certifi es specifi c solutions to ensure they are capable of

correctly and consistently implementing GS1 standards.

GS1 France – GS1 Partenaires

GS1 France has created a programme to off er its users the

insurance that they can be supported by reliable solution

providers.

The solutions providers of the programme:

• Have direct access to the information on standards

(specifi cations, progress, ongoing projects)

• Are aware of the orientations of GS1

• Have access to the technical helpdesk of GS1 France

• Can meet with GS1 experts to get explanations on

standards or train their team

• Have easier access to GS1 members

• Participate to GS1 programmes open to solution providers

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GS1 members then can benefi t from the competency and

expertise of solution providers members of the programme.

The programme off ers an online directory, live workshops,

guidelines, and the opportunity to participate to working

groups and committees.

Registrations can be made online.

4. Bar Code Verifi cation

Bar Code verifi cation is a great service you can off er to your

users. Bar Code quality is indeed a major challenge when

implementing Bar Codes in retail.

If a Bar Code does not scan, data inaccuracy and time delay

can enter the supply chain. Verifi cation is an important

quality control tool, helping ensure that your Bar Codes scan

with accuracy and speed at each point in the supply chain

and that trading relationships are well supported.

Bar Code verifi cation can become a mandatory service that

retailers request from their suppliers. Bar Code verifi cation

can also be encouraged via solution providers you support.

The biggest benefi ts of verifi cation are, simply, reassurance and

confi dence that the Bar Code will perform as intended at all

stages of the product’s passage down the supply chain, leading

to untroubled supplier-customer relationships. Additional

benefi ts accrue to the symbol producer, who is able to make

use of the measurement information on the symbols he is

producing to monitor his production process and adjust his

equipment or procedures in order to correct any deviations

from his optimum quality. Package designers can use feedback

from verifi cation to make sure that symbol size, position and

colour will not result in point-of-use diffi culties.

The receiver of Bar Coded products, too, reaps advantage from

verifi cation of incoming Bar Codes, to assess the likelihood

of their causing him scanning problems in his handling and

inventory control systems, or at the point of use.

(Source: GS1 New Zealand)

Examples from MOs - Bar Code Verifi cation

GS1 New Zealand – Bar Code verifi cation

GS1 New Zealand off ers a verifi cation service to both

members and non-members.

The “MyGS1” interface allows members to fi ll in a form (see

template in the implementation tools) and send Bar Codes

to GS1 New Zealand offi ces in order to get them verifi ed. The

verifi cation process is usually completed within two working

days. An urgent service is off ered at additional cost and tests

are completed as soon as the sample is received. Where

a member has too many products to send for testing at

reasonable cost (e.g. a manufacturer of hose couplings who

had three thousand items) a GS1 New Zealand technician

will go to the member’s location and verify Bar Codes on site.

In order to verify Bar Codes, GS1 New Zealand uses the

following material:

• A verifi er is a precision measuring instrument designed

to provide consistent and repeatable measurements of

a symbol and to analyse these measurements in relation

to the likely scanning performance of the symbol under a

range of conditions. It has to be calibrated before use and

be controlled regularly to maximise the repeatability and

consistency of its measurements.

The receiver of Ba

verifi cation of incoming Bar Codes, to assess th


inventory control systems, or at the point of use.

(Source: GS1 New Zealand)

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• A Bar Code scanner simply

decodes the pattern of bars and

spaces into the data encoded in the

symbol. It does not measure any of

the parameters that aff ect how a

Bar Code can be decoded.

A verifi cation report is then sent

to the members by email or fax. Follow up is given after

sending the report to make sure the member understands

the report.

The service also allows the member to share their

verifi cation reports with their trading partners online.

A similar service is available for non-members via the public

website.

Members receive ten free tests each year and pay a

discounted rate for each test. Non-members receive no free

tests and pay a higher rate.

GS1 UK – Bar Code Image Validation Service

As an additional service preceding verifi cation, GS1 UK off ers

a service called “Bar Code image validation service”

The GS1 UK Bar Code image validation service helps the

customers to understand the issues involved in producing

Bar Codes and checks the likely scanning performance

of their Bar Codes by checking against certain criteria,

including:

• The GTIN (Global Trade Item Number) is encoded correctly,

including the correct use of the company prefi x and a valid

check digit

• The light margins around the Bar Code symbol are large

enough

• Appropriate colours are used

– The Bar Code is within the allowable range of sizes and

proportions (note, the fi nal size will depend upon print

quality tests)

– The Bar Code is positioned correctly on the product

Check out the Bar Codes Verifi cation Operational

Guidance and the manual Bar Code Verifi cation for

Linear Symbols in the Technical Tools of this Kit to learn

more about Bar Code Verifi cation.

5. GEPIR

GEPIR (Global Electronic Party Information Registry) is a

unique, internet-based service that gives access to basic

contact information for companies that are members of

GS1. These member companies use GS1’s globally unique

numbering system to identify their products, physical

locations, or shipments. By simply typing a product Bar

Code number into GEPIR, anyone can fi nd the owner of that

Bar Code’s contact information. Physical location numbers

and Shipment numbers can also be used as search criteria.

GEPIR can be used by:

• Consumers looking for more contact information than

printed on the packaging

• Buyers in supermarkets fi nding contact information when

sourcing new products

• Application providers confi rming who owns a Bar Code number

As an MO, you can either develop your own platform to use

GEPIR, or be hosted via the Global Offi ce. Both methods

have advantages and drawbacks; you need to choose what

is most convenient for you.

Check out the Implementation tools in this Kit to

fi nd tools you can reuse to support your users

implement GS1 Bar Codes.enough

• Appropriate colours are used

– The Bar Code is within the allowable range of sizes and

proportions (note, the fi nal size will depend upon print

q alit tests)


quality tests)

– The Bar Code is positioned correctly on the product

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Step 4 – Analyse implementation level and qualityFollowing implementation, the analysis of the processes

and results will allow you to measure and adjust the user’s

processes if needed. Measures on Bar Code Quality are

particularly important at this stage. By identifying the

problems of Bar Code Quality, you can improve and boost

implementation by showing your reliability.

1. Measure and adjust Bar Code quality

Identifying early problems of Bar Code quality is important for

a successful implementation. By measuring Bar Code quality

and spotting issues, you can provide additional support

to your users with resources, expertise, and highlight the

importance of new services such as verifi cation.

Examples from MOs - Bar Code Quality Surveys

GS1 India

In GS1 India, a survey is sent to users to verify their Bar Code

Quality.

Examples of questions asked to the users:

• Is Bar Code scanning at Point of Sale a problem? If yes, how

frequently?

• Bar-coded labels sent to vendors for affi xing on supplies?

• Multiple Bar Codes applied on your products? If yes, reasons?

• SKU's (Stock Keeping Unit) Bar Code labeled/relabeled at

your end?

• etc

The template of this survey is available in the

implementation tools of this Kit.

The survey has two objectives:

• Once the survey has been conducted, GS1 India checks

various SKUs and talks to concerned people in the

departmental store regarding quality of Bar Codes made

according to GS1 norms (whether it can be scanned). On

getting this information they speak with their subscribers

and tell them that there are is some problems with respect

to Bar Code quality and suggest them to send a sample so

that they can verify the same and can suggest changes.

• Another important objective of the survey is to fi nd out

which SKUs do not have GS1 Bar Codes at all. Generally

retailers in India give their own proprietary Bar Codes to such

products. This increases the transfer time from Distribution

center of the retailer to its retail store for such products.

Such suppliers become a source of potential opportunity for

us to incorporate them as GS1 Subscribers.

GS1 New Zealand

GS1 New Zealand usually starts engaging its key company

members by approaching targeted executives and gaining

permission to carry out a limited study. Based on the results of

this limited study, GS1 New Zealand requests permission and

support for a larger more detailed study. That study provides

the basis for a proposal to the retailer that they should insist

on GS1 verifi cation of Bar Codes for their supplier.

Examples from MOs – Bar Code quality

Analysis

GS1 Colombia

In GS1 Colombia, the Symbol Quality project conducted in

2009 aimed at obtaining up to date information about the

quality of Bar Codes read at the point of sale from key retailers

in Colombia, identifying companies who have product related

issues due to symbol (Bar Code) quality, analysing the impact

symbol quality has on the supply chain for these retailers based

on usage, and looking for identifi cation issues as opportunities

for GS1 Colombia-LOGyCA to provide better services.

17 Locations (Point of Sale) were targeted, covering 160,149

scanned products. In total, 13,47% of products needed

rescanning.

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Through this study, several problems were identifi ed:

• Two products with the same Bar Code

• Products with two Bar Codes each

• Coupon prefi x coincides with a retailers’ discount

• Symbol scaling

• Color contrast

From these problems, solutions were proposed:

• At the end of the study, each retailer received a document

with results by each point-of-sale and a summary from all

locations measured by the study.

• GS1 Colombia contacted the retailers and printing

companies that showed problems with their Bar Codes

and off ered them information on how to improve their

package design processes and identifi cation system.

• It was also an opportunity for GS1 Colombia to propose

training to improve knowledge and application

GS1 France

In 2011, GS1 France conducted an analysis on Bar Code

quality to highlight the diff erent issues depending on what

kind of retailers they were analyzing and to defi ne their

expectations toward GS1

The methodology of the study was two-fold:

- Quantitative to evaluate the scanning problems and

identify issues

- Qualitative with direct interviews of professionals

Although the general scanning rate was much better in

comparison to the similar study conducted in 2006 (12.5%

better reading), GS1 France could highlight two types of

retailers with two diff erent problems:

- “Autonomes” (autonomous) – this is the bigger group.

For these retailers, Bar Codes are managed internally and

problems are dealt with directly. For them the main issue is

scanning problem (bad printing, wrong colors). They need

to ask their manufacturers to redo the Bar Codes.

- “Hierarchisés” (dependent of their hierarchy) – smaller group

of retailers. For them, Bar Codes are managed by a central

offi ce, so that no direct intervention is possible. For them, the

main issues are wrong or unknown Bar Codes, which lead to

stock issues. These problems take a long time to be solved as

they need to wait for the central offi ce to take action.

Following this study, GS1 France noticed that expectations

towards GS1 France especially comes from the ‘autonomes’

– they expected GS1 to put pressure on manufacturers

to raise the quality of their Bar Codes to avoid reading

problems. GS1 is also expected to control printing

processes. GS1 needs to be in constant connection to the

fi eld to spot issues and bring solutions.

In addition to these examples, check the GS1

Spain case study presented in the Marketing tools

of this Kit for another analysis of Bar Code Quality and ways

that were proposed to overcome the problem.

2. Measure market penetration

Another element to measure following implementation is

the market penetration for GS1 Bar Codes, i.e. measure of

the adoption of GS1 Bar Codes and its associated services

compared to the total theoretical market for GS1 Bar Codes.

Basically, you need to measure how many of your

subscribers are primarily interested in the GS1 Bar Codes

and compare this number to the total number of potential

customers within your local market.

Why measure market penetration?

• Evaluate how successfully your market is rolling out GS1

Bar Codes

• Input for expansion strategy

• Helps identifying future projects / markets to focus on.

• Input for your MO business / fi nancial plans

Global Scorecard

Every year, measures of the implementation of GS1

standards worldwide can be found via The Consumer Goods

Forum (TCGF) scorecard

The global scorecard is a tool allowing companies to

measure their current performance and capabilities using

a global standard set of measures. This permits a company

to benchmark itself against other groups within the same

geography, the world and distribution channel or product

category.

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With the GS1 Annual Implementation Survey, GS1 has the

opportunity to measure, collect, consolidate, and report the

implementation of GS1 Standards locally, regionally, and

globally. It enables GS1 to start using the same measures

and track the progress of local, regional and global GS1

Standards adoption initiatives. It will enable GS1 and

member companies to identify opportunities and barriers of

GS1 Standards implementations from global to local levels.

Approach

Each MO is encouraged to participate in the GS1 Annual

Implementation Survey. GS1 MOs need to measure the

level of implementations in their country based on an

agreed minimum set of Core Implementation Measures and

participate with a minimum of 100 CPG manufacturers. It is

needed to divide the member companies in a minimum of

three tiers (small, medium and large) based on the annual

turnover and make sure t hat each sample is representative.

Check out the reference documents to read the

full Scorecard brief and 2012 report.


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The Shoprite approach to Bar Code scanning hurdles at Point of Sale

A retailer’s perspective to Bar Codes implementation –

challenges and ways to overcome them

Introduction

The Cape Town based Shoprite Group of Companies is the

largest retailer in Africa with a presence stretching from

East and West Africa down to the tip of Africa as well as

Madagascar and Mauritius. Corporate stores total over 1250

across several diff erent brands and formats, with a further

269 franchised convenience stores. The Group also operates

120 liquor stores and 121 pharmacies.

Scanning was introduced initially in the late 1990’s and was

rolled out aggressively to all stores, regardless of country

and format over a period of approximately fi ve years.

South Africa as a whole had only been testing scanning

for a few years when Shoprite started its implementation

at point of sale. The target scan rate in terms of items per

minute in order to achieve payback for the implementation

from a pure man-hours point of view was 16, but as time

progressed it was found that the average was sitting at

approximately 10 to 12 items per minute.

At approximately the same time, the Group was starting to

use a centralised data warehouse for the fl edgling Business

Intelligence team and one key collection of data was the

electronic journals from scanning stores in order to allow

more intelligent sales analysis and testing of automated

ordering systems. Interrogation of the database at various

intervals between mid-2000 and mid-2004 showed a

consistent and worrying pattern with approximately 5% of

the more than 2.4 billion item sales having been handled

manually at point of sale.

Action steps

Having confi rmed that there was a problem to be

addressed, the broad set of actions which were undertaken

was as follows, and these will be discussed further below:

1. Determination of cost to business

2. Obtaining business buy-in to the need to improve scan rates

3. Identifying causes of scanning failure

4. Addressing the causes

5. Ongoing monitoring and evaluation

6. Communication

Determination of Cost to Business

Until a value can be put to the time spent when an item

fails to scan or takes several attempts before it is recorded, it

will be hard to obtain business buy-in. The perception that a

“few extra seconds will not make much diff erence” had to be

dispelled. Studies were done at the checkouts to determine

the average time taken when an item had to be captured

manually after the mandatory three scanning attempts. This

was then multiplied by the number of manually captured

items, translated to man-hours and a value assigned to

this as cost to company based on cashier hourly cost to

company. An additional amount was calculated as potential

savings if everything else took just one second less to

scan and the total amount ran to eight fi gures: attention

grabbing, to say the least. This wasted time can be seen as

customer queuing time and thus a service failure as well

as potentially being able to reduce the number of open

checkouts in larger stores at peak times and resulting in a

cost saving.

the more than 2.4 billion item sales having been handled

manually at point of sale.

g


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Obtaining Business Buy-in

Hard numbers always “talk” in business terms. Having

demonstrated the potential for improvements in effi ciency,

better stock ledger accuracy and reduction in shrinkage

(“sweethearting” by keying a cheaper item’s GTIN after

pretending that the item would not scan is easier to identify

if manual Bar Code capture is the exception), a dedicated

person was allocated to the task of improving scanning rates.

This team of one became a team of two when the results

became clear and was later expanded to a third person.

Budget was required for hardware and training since the only

way of dealing with the problem was to be able to understand

it fully. The hardware was Axicon Bar Code verifi ers, a digital

camera and a fl atbed scanner for analysis of Bar Codes and

illustration of feedback to suppliers and printers.

Identifying causes of scanning failure

This required identifi cation of specifi c problem items,

examination of the Bar Code symbols both visually and

by means of a Bar Code verifi er, and then comparing with

applicable standards and best practice recommendations.

Shoprite took the view that merely telling a supplier that their

Bar Codes wouldn’t scan and to fi x them would not result in a

rapid and satisfactory response so a full critique was provided

in a form that predates the current GS1 Conformance report

but was essentially very similar in format and content as it

was based on the Axicon verifi cation report with additional

photographs and comments.

In addition to source-coded items, three additional potential

points of failure were addressed:

1. Store scales used at service departments. Poor head

maintenance by store staff , failure to recognise and report

faults for the service provider to respond and rectify, and

poor adherence to agreed service levels and quality of

service all had to be addressed.

a. Stores are measured on speed of reporting faults

and are reported to senior management when

they fail to react to failures identifi ed in the cashier

performance reports. Equally, stores are ranked

quarterly and annually in terms of best and worst for

scanning performance so that excellent performance

is published and recognised by peers, and poor

performers are also seen to be such by their peers.

Example of a bad quality Bar Codes

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b. Scale service providers’ adherence to response times is

monitored closely as well as return visits where a fault

was not dealt with correctly. A preventive maintenance

check on all scales is carried out whenever a technician

is in a store for a service fault or for delivery of labels.

Failure to deal with faults that were present at time

of visit is penalised: the evidence of the checklist

with attached labels from each scale and required

photographs of overall condition is used when needed.

2. Poor scanner maintenance was identifi ed. Scratched and/

or dirty glass was found to be an issue and steps are in

place for glass replacement as part of a maintenance

agreement when required. Maintenance guidelines

were published for store management to refer to and

the importance of clean, undamaged glass stressed

particularly on the run up to peak trading periods when

queue length will increase dramatically if scanning rates

are poor.

3. Cashier training was identifi ed as a problem area. The

correct method of scanning may seem to be intuitive to

some but this must be standardised within the training

modules for cashiers.

Addressing the causes

The way in which in-house and related causes were

addressed has been discussed. The harder part was

addressing external causes, which can be classifi ed as

follows:

1. Design-related.

a. Bar Codes in the wrong place or orientation

b. Using the wrong colour combinations

2. Standards related

a. Incorrect height or magnifi cation

b. Poor print quality resulting from repro errors or quality

management on the press

c. Wrong symbology

A series of educational workshops was run both in South

Africa and in sub-Saharan Africa for suppliers, designers,

printers and repro houses with appropriate technical focus

for the audience. These were continued over a period of four

years with additional supplier or printer in-house sessions

where focus was placed on various aspects of bar coding

as well as specialised workshops on verifi cation. Some

workshops were also conducted in conjunction with GS1

South Africa, GS1 Kenya and GS1 Ghana.

Shoprite also provided signifi cant support to GS1 South Africa

as well as supporting the formation of GS1 Nigeria and GS1

Tanzania. Some technical assistance was provided to all of

these as well as GS1 Kenya as we see a strong GS1 member

organisation as valuable ally in countries in which we trade.

Ongoing Monitoring and Evaluation

The scanning failure rates are monitored on a weekly basis

and action is taken on any disturbing trends that may

appear. We also advise suppliers, particularly the newer small

enterprises to whom bar coding is a new complication,

as well as their packaging designers and printers where

appropriate, when we are doing our regulatory compliance

checks on their products if a bar coding problem is detected.

Self-evaluation was provided for our suppliers via access to

scanning effi ciency data on our supplier web portal. They

can identify problem products by line-item and region with

manual capture rates against total sales. This means that

they cannot plead ignorance when we raise an issue.

Communication

The business is kept up to date with scanning trends so that

action can be taken by each divisional operations team to

improve effi ciencies. Where particular achievements are

notable, these are published in the company journal: two

cashiers were rewarded last year for their performance as they

achieved over 66 scans per minute in one case and over 72 in

another and this was made public through this medium.

Quarterly and annual scanning league tables are published

to the divisional operations teams as well as the Group Chief

Operating Offi cer.

Results

The results speak for themselves. As we have grown market

share, the need for operational effi ciencies has also grown.

The overall manual capture rate in South Africa for the Group

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GS1 Bar Codes in Retail 2012GS1 Bar Codes in Retail 2012

now sits at 0.82% with the two biggest departments, Dry

Groceries (which includes Personal Care and Self Medication

as well as other non-food traditional supermarket lines

such as laundry and cleaning materials for example) and

Perishables running now at an average of 0.35% and 0.45%

non-scanned sales. It must be borne in mind that these

numbers include traditionally “unscannable” large items

as checkouts are not provided with supplementary hand

scanners in addition to the fi xed scanners. There are still

some challenges, some of which are hardware related.

Extrapolation of the results against where we would be if we

had not put corrective measures in place shows a monthly

manpower saving that equates to just under a million rands

($120,000 approximately) just by dealing with items that

would not scan and that does not account for additional

benefi ts where items scan faster than they did previously.

Nigeria and Ghana started with non-scanning rates of up to

nearly 70% in some departments and this is now down to

single fi gures in the main: there is still work to do.

A major shrinkage win was in Zambia where manual

capture rates for particular cashiers identifi ed possible

“sweethearting” and focus on that resulted in a dramatic

reduction in shrinkage by a factor of over 50% as appropriate

detection measures could be used in specifi c instances.

A lesson learned through painful experience is that

focus on bar coding must be maintained otherwise

standards will start to drop again, undoing much of the

good work and results previously attained.

Prepared by Glyn Fogell

Manager – Regulatory Compliance

Shoprite Group of Companies

Brackenfell - South Africa

January 2012

Examples of bad quality Bar Codes

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Step 5 – Develop an expansion strategy

Grow your market

The Market Expansion step is that period when a company

assesses current markets, identifi es untapped markets,

and seeks opportunities for revenue growth through new

market opportunities.

During this phase, you will decide:

• Which existing retail sectors you will focus on and for

which you will develop new applications

• Which new retail sectors you will be willing to enter.

Why expand?

• To grow your business and attract new subscribers

• To ensure companies from non-covered retail sectors can

also benefi t from GS1 Bar codes and Identifi cation Keys.

Where to expand?

To expand your market, you need to know where the

industry is going.

“2020 Future Value Chain: Building Strategies for the New

Decade” is the third report published as part of the Future

Value Chain Initiative, a think tank designed to develop a

collective future vision and response for our industry in light

of the rapid changes impacting consumer goods and retail

companies.

The document provides a framework to help the industry

and individual companies understand the trends that

impact our business, envision how they will impact, and

then formulate plans to benefi t our business from those

changes.

The report draws on insights from nearly 200 retailers,

manufacturers, academia, logistics service providers,

consultants and subject matter specialists worldwide in

order to present a comprehensive vision of the industry’s

future.

One of the key objectives is to develop a shared supply

chain where new technologies will enable new ways of

sharing information among trading partners, and also

towards consumers.

More information can be found at http://www.

futurevaluechain.com/

How to expand?

• Vertically (sector by sector approach) – From a sector to

additional sectors. For instance, GS1 New Zealand started

their implementation with the grocery sector, and once

this sector was fully exploited, went forward with new

sectors such as stationary or DIY.

• Horizontally (new applications) – The concept is here to

move from one application/product to another but stay in

the same sector. In GS1 France, the strategy shifted from

consumer units to logi stic units.


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3 Marketing Tools

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Marketing Tools

SummaryDid you know that Bar codes lead to an annual saving of 5.69% of retail revenue according to a PWC study? You can fi nd more to engage your target users in the Value Proposition, case studies and brochures below.


Value Proposition

This one-pager is the basis for understanding the value

GS1 Bar codes brings to our retailer members, enabling

you to develop communication materials. This is your

main “selling” pitch and should be included in all material

developed. A Value Proposition targeting manufacturers will

be developed at a later stage. We have included a factsheet

on how to use the value proposition to develop your

communication material.

Case studies

• Case study TESCO plc/Axicon: this case study produced

by GS1 UK highlights the challenges of Bar code Quality

and how to work with accredited Solution Provider.

• Case study Barrie Meats Ltd implements GS1 bar

codes on its gourmet sausages and pallets to support

its business growth internationally: this case study

produced by GS1 UK shows that Bar codes can support the

international growth of a small manufacturer.

• Case study Effi ciency in Retail with GS1 Bar codes: This

case study produced by GS1 Spain demonstrates how

Spanish industry has saved over 107 Million Euros since

2010 thanks to good GS1 Bar codes symbols.

Brochures:

• 12 Billion reasons to say Thank You to Bar codes

This brochure is a business case highlighting the benefi ts

of GS1 Standards (Bar codes and EDI) and demonstrating

that theiruse by everyone in the supply chain leads to a

savings of 12 billion euros a year.

This brochure is inserted in the binder cover.

• GS1 Bar code Quality - Impact of quality at the point of sale

The studies, research papers, business and technical

analysis on barcode quality and scanning rates included

in this brochure provide GS1 members a reference of the

impact of poor quality bar codes at the point of sale.

This brochure was developed in collaboration with GS1

Brazil, GS1 France, GS1 New Zealand and GS1 UK.

internationa g

• Case study Effi ciency in Retail with GS1 Bar codes: This

case study produced by GS1 Spain demonstrates how

Spanish industry has saved over 107 Million Euros since


2010 thanks to good GS1 Bar codes symbols.

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Value Proposition – GS1 Bar Codes in Retail

Value of the off ering

For… Retailers

who… Need to drive and improve Bar code adoption for a greater effi ciency of their supply chain and to gain

customer satisfaction through faster check out.

our… GS1 Bar code Standards

that… Provide fast and accurate product identifi cation and data capture, lower costs and increased effi ciency at

every point in the supply chain

Positioning of the value

Unlike… Proprietary or manual solutions

our… GS1 bar code standards provide proven, off the shelf, solutions for an automated and interoperable supply

chain based upon a truly global supply chain standards and access to a network of support professionals

because… Created by the industry for the industry, GS1 standards have proven their benefi ts worldwide and allow

millions of savings every day

Product positioning

Off ering • GS1 ID Keys and Attributes – GTIN, GLN, SSCC, etc

• GS1 Bar codes – EAN/UPC, GS1 128, ITF 14, Databar, Datamatrix

• Services and support – Bar code verifi cation, Training, Helpdesk, etc

Customer Retailers

Compelling

reasons to act

• Its eff ectiveness is proven by the mass global adoption by all the largest retailers and the benefi ts can be

enjoyed by the smallest retailers too

• 5 billion transactions are realised everyday using Bar codes and GS1 standards.

Benefi ts* • Accuracy of data capture

– Fast and accurate data capture at every point in the supply chain

– Fewer errors in the recognition of goods

• Speed of processes

– Better, more timely, management information,

– Greater responsiveness to trade customers and consumers, faster check-out

– Ability to automate warehousing

• Less stock-holding and less waste and better control over distribution and storage

• Improved trading relationships (communication is more transparent and standardised)

References * How to identify and Bar code Products, GS1 UK

DID YOU KNOW?

• Good GS1 Bar codes Symbols improve effi ciency: over 107 Million Euros in savings for the Spanish

industry since 2010 (GS1 Spain)

• Annual savings of 5.69% of annual retail revenue through the use of Bar codes. Bar codes lead to 11 billion euros in

annual savings in France (12 billion reasons to say Thank you to Bar codes, GS1 France, 2011)

• In New Zealand, the GS1 UPC has generated total cost savings of over a $1 billion annually. The savings of each New

Zealander are around $280 per year or over $20 a week for a family of four (Products talking to each other, Brian Easton, 2009)

• The world top 10 retailers all use GS1 bar codes

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Value Proposition – What is it and how to use it?

What is the value proposition?

The Value proposition is an internal marketing tool to ensure

a simple and consistent message on our off er and its value

to the customer.

It forces you to be specifi c and selective in your messages:

your product cannot do everything for everyone - and even

if it can, people can only remember one benefi t, and you

probably only have enough resources to go after one target.

The value proposition is the ground work that can then be

used to derive multiple communications purposes:

• to align internal teams around a common message

• to develop a PowerPoint presentation about the off er

• to build a “one-liner story” for C-level audience

• to brief agencies for the development of marketing

collateral

• etc.

It is a work tool, not a presentation document!

How to use it?

You can use the Value proposition to build your own

communications towards users

1. One-liner summary:

used for the elevator pitch to C-level executives, used in

the introduction of any documents to remind people what

we’re talking about...

In a nutshell: The (GS1 Solution) provides (who) with

(what benefi ts) to (solve what business problem)

Value of the Off ering: GS1 Bar Code Standards provide

retailers with fast and accurate product identifi cation and

data capture that lower costs and increase effi ciency at

every point in the supply chain.

2. One-slide summary:

used for any presentation

Issue : Description of target and their business problem

from “Value of the off ering”. Illustrate with “Compelling

reasons to act”

Solution: Description of GS1 solution and key benefi t from

“Value of the off ering”. Elaborate on the off er from “Product

positioning – off ering” if the off er is complex

Benefi ts: Explain why it is better than the competition

/ alternative from “Competitive positioning of the value”.

Develop the benefi ts from “Product positioning – benefi ts”

See Value positioning

Issue: Retailers need to drive and improve Bar code

adoption for a greater effi ciency of their supply chain and to

gain customer satisfaction through faster check out.

Solution: GS1 Bar code Standards provide fast and accurate

product identifi cation and data capture, lower costs and

increased effi ciency at every point in the supply chain

Benefi ts: Unlike proprietary or manual solutions, GS1 bar

code standards provide proven, off the shelf, solutions for

an automated and interoperable supply chain based upon a

truly global supply chain standards and access to a network

of support professionals.

Introduction

Tesco uses GS1 bar codes on its retail

and distribution items, clubcards, electronic

gift cards and coupons. The company

ensures that its suppliers adopt the GS1

System of standards by assessing the

quality of bar codes on all new lines and

monitoring supplier conformance in store

and at distribution centres. Tesco is

working with Axicon, an accredited GS1

Solution Provider, to resolve bar code

issues on new lines, work with suppliers to

resolve bar code errors and to provide

advice on developments in bar code

technology.

Bar codes on new products

Tesco launches tens of thousands of new

products every year and the vast majority of

these are bar coded with an EAN-13 or GS1

DataBar at retail level and a GS1-128 or ITF 14 bar

code at distribution level. These new items are

required to pass bar code authorisation prior to

launch to address quality issues and compliance

with GS1 standards. In order to achieve this Tesco

uses verifiers provided by Axicon across three

sites to verify suppliers’ new product bar codes.

If a bar code fails to meet GS1 standards, Tesco

will offer the supplier practical advice on how

this can be resolved.

As a leading UK retailer, Tesco has always placed a high importance on using GS1

compliant bar codes to drive efficiency across the business. Whether the bar codes

are used in store at point of sale or throughout the supply chain, bar code accuracy

plays a crucial role in a company’s operations. For example, it takes at least five times

longer to key in a bar code than it takes to scan one at the point of sale.

Case studyTESCO plc/Axicon

As a leading UK retailer, Tesco has always placed a high importance on using GS1

compliant bar codes to drive efficiency across the business. Whether the bar codes

are used in store at point of sale or throughout the supply chain, bar code accuracy

plays a crucial role in a company’s operations. For example, it takes at least five times

longer to key in a bar code than it takes to scan one at the point of sale.

IntroductionTesco uses GS1 bar codes on its retail and distribution

items, clubcards, electronic gift cards and coupons. The

company ensures that its suppliers adopt the GS1

System of standards by assessing the quality of bar

codes on all new lines and monitoring supplier

conformance in store and at distribution centres. Tesco

is working with Axicon, an accredited GS1 Solution

Provider, to resolve bar code issues on new lines, work

with suppliers to resolve bar code errors and to provide

advice on developments in bar code technology.

Bar codes on new productsTesco launches tens of thousands of new products

every year and the vast majority of these are bar coded

with an EAN-13 or GS1 DataBar at retail level and a

GS1-128 or ITF 14 bar code at distribution level. These

new items are required to pass bar code authorisation

prior to launch to address quality issues and compliance

with GS1 standards. In order to achieve this Tesco uses

verifiers provided by Axicon across three sites to verify

suppliers’ new product bar codes. If a bar code fails to

meet GS1 standards, Tesco will offer the supplier

practical advice on how this can be resolved.

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To support these activities, the company has

also created bar code quality guidelines for

suppliers to ensure compliance with the GS1

System of standards and provided bar code

training for their key commercial staff. Regular

reports on new line authorisation are carried

out to ensure bar code quality across the

business.

Bar codes in distribution

Goods at all Tesco distribution centres (DC) are

booked in and picked by scanning the bar code.

This process increases the visibility of stock at

Tesco’s DC enabling the company to allocate

and distribute its goods to stores efficiently and

on time.

However, when a bar code fails to scan this can

have a significant impact on business operations

with problems such as rejected deliveries, re-

labelling of goods and blocked delivery bays.

These problems create a burden for staff at the

Tesco DC as they have to work hard to ensure

that all deliveries are sent out on time and that

no store runs out of stock.

Tesco takes these issues seriously and works

with its suppliers on resolving bar code failures

by providing advice on the nature of the

problem and the corrective action needed.

The company is also able to remain proactive in

improving bar code quality in distribution by

monitoring its performance at both depot and

supplier level and creating reports on

compliance levels and trends across the supply

chain.

For more information on GS1 UK and log on to www.gs1uk.org or call the GS1 UK Service Team on Freefone 0808 178 8799

Benefits of GS1 bar code standards

Using bar codes that comply with GS1 standards

ensures consistency across Tesco’s supply base

enabling supply chain visibility throughout the

business. The process of ensuring that supplier

bar codes are GS1 compliant has improved the

bar code quality on all their products.

Conclusion

Tesco uses the full spectrum of GS1 bar codes in

distribution, supply chain and retail environment

and understands the importance of complying

with GS1 standards to help drive efficiency

across the business. With the support of their

solution provider, the company ensures that it

is able to advise suppliers with academic and

practical knowledge of the GS1 System.

“It is essential that we monitor our suppliers and

ensure that they comply with GS1 standards to

achieve high quality bar codes that enable us to

operate an efficient supply chain and pass the

benefits to our customers through a faster and

more efficient service” says Diane mellowship.

“We have seen a 20% decrease in

the number of reported errors

during 2007,” says Diane Mellow-

ship, Barcoding Manager at Tesco

plc. “This is due to our continued

efforts to monitor and assess the

quality of bar codes coming into

the business, ensuring their com-

pliance with GS1 standards.”

“We have seen a 20% decrease in

the number of reported errors

during 2007,” says Diane Mellow-

ship, Barcoding Manager at Tesco

plc. “This is due to our continued

efforts to monitor and assess the

quality of bar codes coming into

the business, ensuring their com-

pliance with GS1 standards.”

To support these activities, the company has also

created bar code quality guidelines for suppliers to

ensure compliance with the GS1 System of standards

and provided bar code training for their key commercial

staff. Regular reports on new line authorisation are

carried out to ensure bar code quality across the

business.

Bar codes in distributionGoods at all Tesco distribution centres (DC) are booked

in and picked by scanning the bar code. This process

increases the visibility of stock at Tesco’s DC enabling

the company to allocate and distribute its goods to

stores efficiently and on time.

However, when a bar code fails to scan this can have a

significant impact on business operations with

problems such as rejected deliveries, re-labelling of

goods and blocked delivery bays. These problems

create a burden for staff at the Tesco DC as they have to

work hard to ensure that all deliveries are sent out on

time and that no store runs out of stock.

Tesco takes these issues seriously and works with its

suppliers on resolving bar code failures by providing

advice on the nature of the problem and the corrective

action needed. The company is also able to remain

proactive in improving bar code quality in distribution

by monitoring its performance at both depot and

supplier level and creating reports on compliance levels

and trends across the supply chain.

Benefits of GS1 bar code standardsUsing bar codes that comply with GS1 standards

ensures consistency across Tesco’s supply base enabling

supply chain visibility throughout the business. The

process of ensuring that supplier bar codes are GS1

compliant has improved the bar code quality on all their

products.

“We have seen a 20% decrease in the number of

reported errors during 2007.”

“This is due to our continued efforts to monitor

and assess the quality of bar codes coming into

the business, ensuring their compliance with GS1

standards.”

Diane Mellowship,

Barcoding Manager at Tesco plc.

ConclusionTesco uses the full spectrum of GS1 bar codes in

distribution, supply chain and retail environment

and understands the importance of complying

with GS1 standards to help drive efficiency across the

business. With the support of their solution provider,

the company ensures that it is able to advise suppliers

with academic and practical knowledge of the GS1

System.

“It is essential that we monitor our suppliers and ensure

that they comply with GS1 standards to achieve high

quality bar codes that enable us to operate an efficient

supply chain and pass the benefits to our customers

through a faster and more efficient service” says Diane

Mellowship.

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IntroductionW , IKEA’s

previous system for traceability and identification

of products had become too fragmented. The

furnishings compan

standards to introduce a more efficient and

standardised structure to their supply chain.

Pilot projectommenced a study of which

systems and methods were being used for

traceability in the group and how these could be

improved. The results of the study found that

goods could not be traced at pallet level outside

an individual IKEA warehouse, but only at truck

level. As the deliveries arrived from the supplier,

they were logged at the inbound goods dock.

The pallets were given unique numbers by each

individual warehouse. However, if a pallet was sent

from one IKEA warehouse to another, it needed to

be re-registered, a very time consuming process.

Following the results from the survey, IKEA began a

pilot projec

its unique identification key, the Serial Shipping

Container Code (SSCC) for their warehouses in Älmhult

and Torsvik (Sweden) together with three of their

largest suppliers. ly

demonstrated positive effects during the pilot.

Barrie Meats Ltd, a leading supplier of quality British sausages for the food and meat trade, has experienced

increased demand for its gourmet sausages amongst European expatriate communities in Spain, Portugal and

Greece. To meet this demand, the £1.5m turnover company has implemented GS1 bar codes on its individual

retail products and pallets to support the growth of its business and comply with retailer requirements in Europe.

Case studyBarrie Meats Ltd implements GS1 bar codes on its gourmet sausages

and pallets to support its business growth internationally

Introduction

Barrie Meats has been trading in Waltham Cross, Hertfordshire

since 1975. A moment of inspiration by its founder Frank Rider

led to the company deciding to specialise in sausage

manufacturing which soon became the core business.

The company has significantly grown to become a major

provider of fresh and frozen sausages, offering a nationwide

next-day delivery service and more recently expanding into

Europe to meet the demand for British catering sausages from

expatriates now living abroad.

It manufactures a wide range of over 30 sausage products,

employs over 25 full-time staff and has a current turnover of

approximately £1.5m a year.

GS1 bar codes to facilitate expansion plans

Barrie Meats made its name supplying the foodservice sector

in London before expanding its customer base to the Home

Counties. In the last three years, it has expanded its range and

distribution to service national and European customers as

part of its five-year plan to expand the business.

The company recently developed its first retail pack of 1lb

frozen sausages for its expatriate customers in Spain, Portugal

and Greece. It was at this point that Barrie Meats first needed

to start bar coding its products which were being sold in

leading European retailers.

The company sought advice from GS1 UK’s Service Team to

understand the importance of GS1 UK bar codes and the

implementation process. GS1 UK explained that bar coding

was an essential part of supplying the retail business sector,

both in the UK and internationally.

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During the pilot project, the SSCC bar code was read

as the pallet was unloaded allowing it to be picked up

and stored immediately by a truck driver. The time to

unload a truck was reduc er

in the warehouse’s

’s pilot project ended with

standards had rapidly improved their traceability,

exception handling and product quality. According to

Jan Ståhl, business developer, supply chain

development at IKEA of Sweden, "Inventory control has

improved, stock information has become more

accurate and traceability of our pallets has improved.

These benefits have also been realised by the three

suppliers who have star

internal traceability in their own warehouses."

The pilot found that traceability at pallet level had also

improved IKEA’s product quality by simplifying the

warehouses’ exception reporting to the suppliers since

all information on the pallets origin were readily

available. "The idea is that, due to the different legal

demands on product quality and product content in

different countries, we can easily trace the raw

materials from which our products are made thus

further improving quality," explains Jan Ståhl.

IKEA adopts GS1 System of standards

Following the success of the pilot project, it was

decided that all of furniture giant IKEA’s warehouses

worldwide and their 400 largest suppliers would start

adopting the GS1 System of standards and the SSCC in

September 2007. The GS1 System is currently in the

process of being adopted by all of IKEA’s warehouses

worldwide which handle over 20 million cubic metres

of goods each year. IKEA’s warehouse staff have

already received training on how to use the GS1

System and the company has implemented a

warehouse management system that is able to process

pallet numbers. This has allowed the furniture giant to

start implementing the GS1 System of standards to

trace their pallets.

For more information on GS1 UK log on to www.gs1uk.org or call the GS1 UK Service Team on Freefone 0808 178 8799

of 18 digits and is bar coded using GS1-128. By using his GS1

key a package can be uniquely identified by everybody

involved: suppliers, transporters, and, in this case, IKEA’s

warehouses and stores.

"It’s not just about adopting the SSCC, but also getting all of

IKEA’s other IT systems to process this information and GS1’s

identification procedures," explains Jan Ståhl. “The cost

advantages achieved by introducing the GS1 System will in

general automatically result in price reductions for IKEA’s

customers.

Costs and prices will be reduced even further through a parallel

project for the implementation of the GS1 System in IKEA stores.

Our store in Malmö can already accept, capture, and process

SSCC numbers," says Jan Ståhl. "Next year we will start to roll out

the system to all our other stores worldwide." In addition to this,

more suppliers will be included in the next phase of the

adoption and the GS1 System will finally be used by

approximately 900 suppliers.

Future plans: RFID solution

IKEA is also studying the possibility and business case for

implementing RFID following their adoption of the GS1

System of standards to further improve traceability, exception

reporting and inventory control. "By using RFID we would be

able to have multiple read points to ensure that we load and

unload the right goods automatically. In principle it is easy to put

tags on the pallets, but implementation of a full RFID solution

also requires the installation of various related equipment such

as RFID middleware to enable data exchange," says Jan Spjuth,

project manager at supply chain development at IKEA of

Sweden. IKEA’s use of RFID in their supply chain is dependent

on a number of market factors. The cost of RFID tags and

readers is expected to go down and their competitors are

planning strategic RFID initiatives. IKEA is currently supporting

and following the developments of RFID/EPC standards.

"The RFID project has only just started," says Jan

Spjuth. “We will not be developing our own RFID

system, but will follow the standards that exist. IKEA

plan to start carrying out RFID tests at a

number of stores for certain product flows.

"We have already taken the first step by joining GS1 and

starting to use SSCC. This is a prerequisite for the

introduction of RFID/EPC," concludes Jan Spjuth.

Previously when the warehouse had received pallets,

these were left in the dock area awaiting logging and

processing before they could be moved further into

the warehouse.

IKEA has adopted the GS1 SSCC to uniquely identify

pallets in their warehouses worldwide. IKEA’s pallets

are uniquely identified using an SSCC which consists

“The Iberian Roadshow was the very first show we had done at

home or abroad. It definitely made us look at a wider customer

base than the UK market which meant that we needed to acquire

a greater understanding of bar codes and standards, which

fortunately GS1 UK has now given us,” says Andrew.

Conclusion

In the future, Barrie Meats may be able to gain further benefits

from implementing GS1 standards by improving its efficiency

through better stock management and using electronic business

messages to invoice or send Advanced Shipping Notices (ASNs)

to their retail customers. The company could also use the data

pool to electronically exchange accurate product information

with local and international retailers.

“We had no idea how to approach bar coding so we simply

searched online and found the GS1 website. During a brief

phone call, the GS1 Service Team explained in general what we

were required to do, the process of signing up and creating our

own number bank. The joining was complete in less than 30

minutes and we were exploring the website and our GS1

numbers immediately,” says Stephen Andrew, Director, Barrie

Meats.

“Soon afterwards, we received a new member’s pack which

included a booklet with recommendations for best practice in

bar coding which was very useful.”

Global Trade Item Numbers (GTINs) are used to uniquely identify

the company’s retail sausages. These are shown as EAN-13 bar

codes which can be found on the company’s retail products whilst

GS1-128 bar codes are used on product’s outer cases and pallets.

Tackling new export markets

Barrie Meats has now found potential growth opportunities for its

products internationally and is actively working on this prospect.

The company’s recent attendance at an Iberian Roadshow has

resulted in positive discussions with leading Spanish and

Portuguese retailers.

“It is difficult to put a figure on how much additional revenue we

have received from the show at the moment, but we have

probably grown our sales by approximately 8% from new

customers. As a business, we have also opened our eyes to the

potential of the export market and have so far found a customer

in Greece, who is taking over 200,000 sausages every seven to

eight weeks, for which bar codes are necessary.”

“GS1 UK has certainly helped us immensely in understanding the importance of bar codes and assisting us in implementing them into our workplace and on our products. As an essential part of moving from foodservice into the retail sector, their help has been invaluable,” says Stephen Andrew, Director, Barrie Meats Ltd.

“As we hadn’t used GS1 bar codes before, we needed some handholding to understand how to use the labels. GS1 UK explained the process of using GS1-128 bar codes on our outer cases and pallets and we have since sent a label to our new customer in Portugal which has been confirmed as being correct. GS1 UK also validated the GS1 bar coded label for us via email,” says Stephen.

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Industry initiative to improve Bar Code quality

In June 2009, the Spanish Identification and Electronic

Commerce Committee decided to launch a Working WWoWoWorororork ginkikrk ngginkingingorrk nggor nor ngrkki g

Group to improve the efficiency in the check-out process he e ce ccheheheececckk-o-oou-outoutut procutuuttutut p

in the stores and the process of moving goods in the ovmf moovivinng gogogoooo

warehouse environment. One of the key elements in he kentent. OnOne of tof the e kek

order to achieve fast and sustainable results is the quality fase fast andand sustsusta nabainable

of Bar Codes in all the different steps of the supply chain.Codes ines in a theall the diffee differeenterent

The quality of the Bar Code is very important in the TThee quuaality of ty of thhe Bthe Bar Cr Co

check-out process since the final consumer decides chheckk-ouut pp ocerocessss si

not to buy 1% of the product that cannot be scanned,noot tto buuy %

leading to lost sales opportunities. Furthermore, everyleeaddingg t

time a Bar Code is not scanned, the cashier spends in tim

average 23 seconds to solve the issue, leading to spend

unnecessary resources. The potential savings when the

project started in 2009 were almost 90 M €/year.

A common process based on clear KPIs

The retailers involved in the Working Group and GS1

Spain established a common process to measure the

established KPIs, identify the suppliers / products with

poor Bar Code quality and approach them in order to

provide the correct support to solve any issues.

The working group established 3 clear key performance

indicators (KPIs) to measure the effectiveness of the work:

Bar Codes that can be read at the point-of-sale, Bar Codes

that are read at the first-attempt at the point of-sale he fir t a

and Bar Codes that are read in warehouses. Since the and Bar Coodes thhat are readd inn wareehousn B C e t t es

beginning of the project, all of the KPIs improved.f e KP s b ningg of thee projectt, a l oof the KPbegeginnnningg of t mprmproveoved

GS1 Spain collected actual data from the stores every

month and retailers provided the data from their point-

of-sales systems to:

Measure the agreed KPIs

Identify those items that were not scanned correctly

and proactively approach the supplier to provide

support to remedy the issues identified

Identify re-sellers and users of non-assigned

GS1 Prefixes.

Case study: Efficiency in Retail with GS1 Bar Codes Spanish industry saves over 107 Million Euros since 2010 thanks to good GS1 Bar Codes symbols

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© Copyright 2012 GS1 AISBL - GS1 is a registered trademark of GS1 AISBL

With special thanks to:

The results provided are based on statistics of over 90

million scans at the point of sale and the warehouse

environment. KPIs are tracked quarterly with all the data

collected from the retailers.

Faster check-out, increased inventory accuracy and

increased sales

There were benefits in the implementation of the project

for all the parties involved in the project:

Increased sales

Improved efficiency and productivity at point-of-sale:

faster check-out process and less time spent on

keying data.

Increased inventory accuracy and sales forecasting

Improved consumer satisfaction and reduced

frustration since it reduced the time to cross the point-e po nt-in

of-sale and unnecessary waiting time in the lines.in thhe linees.

Overall, the savings achieved since the Working Group chievvedd sincce tthe Whe Woorkkingg GG oup

started are estimated at 107 M Euros, 40M € in 2010 and immateed at 107 M07 MM Euroos, 400M €M € inn 200100 a dare estes

67M € in 2011. The quality of the Bar Codes at point-of-67 ThhThe qquaality oof t e Bhe Bar Coodes at77MM n€ 201 .inn 20011M i 01011MM

sale increased from 95% in January 2010 up to 99% in ssa fromm 995%m 95%% in Jaanuuar 201le i ec fdaseascrea edne inc asede nc

January 2012. The results provided are based on statistics JJaan he res lt pronua 0122u y 2aryua ThTTh0 2.

about over 90 Million scans at the point of sale and in the aabboout over 90 Mt o 900u outut oveover

warehouse environment. KPIs are tracked quarterly with wwa

all the data collected from the retailers.

Companies involved

GS1 Spain has more than 650 professionals involved

in the different committees and working groups.

Committees and Working Groups of GS1 Spain are formed

by retailers and suppliers like: El Corte Inglés, Carrefour,

Alcampo (Auchan), Mercadona, Procter & Gamble, Nestlé,

Henkel, Unilever, and many others.

The specific working group was established in June 2009

to address this topic and monitor its progress with the

involvement of the biggest retailers in Spain.

The role of the retailers has been key in all this process

since they automatically provide actual data from point-

of-sale scanning and allow GS1 Spain to test real products

in the stores and warehouses.

A collaboration that benefits all

Manufacturers and retailers benefited from this his

collaboration to achieve a common goal and work for thecocoomomommmmmmm d or t eoal andd woorkk forr thea ammomo goonom n goaogoonn gon g lmmoon ggmm nmmo gog

efficiency of the supply chain. This led to enormous direct upplsue supplypplyplyy cchchhaiainain. n TTThTh mouus dis direct ect hihis led tihhii l

benefits and savings for the whole sector.gs foben fitsefits andand avinsavinggs fos forfor tr th

GS1 Spain serves big companies as well as Small and S1 GS1 SpainSpain sser serv

Medium-sized enterprises. Now their main focus is to MM diuediumm-siz

speed up the time-to-market for those SMEs joining GS1spspeed

Spain.

GS1 Bar Codes

GS1 Bar Code Standards provide fast and accurate

product identification and data capture, lower costs and

increased efficiency at every point in the supply chain.

Created by the industry for the industry, GS1 standards

have proven their benefits worldwide and allow millions

of savings every day.

Increased Bar Code quality up

to 99% led to 107 million Euros

savings over 2 years

Contact information:

Interested in learning more about this case? Contact Pere Rosell, GS1 Spain: [email protected]

Interested in learning more about GS1 Bar Codes? Contact your local GS1 Member Organisation: www.gs1.org/contactor visit our website: www.gs1.org/barcodes

2009 2010 2011

% Barcodes read at Point of sale 95,34% 97,43% 98,99%

% Barcodes read in the first attempt 87,05% 95,76% 97,71%

% Barcodes read in the Warehouse 79,88% 83,28% 89,03%

Savings in Euros per year Baseline 47 M € 60 M €

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99,0%

99,4%

100%

Distribution Center Retail - POS GS1 CertifiedBarCode

Good bar codes’ scanning rates

GS1 France & IRI Study, June 2006

GS1 Brazil BarCode Certification Business Case - December 2006

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23,5040,75 x-barra14,89 s5,27 SE7,74 t calc.

2,861 t 99%00,0%

24,63,63%

97,001,92

42,83

GS1

Certi

fied

BarC

ode

GS1

Bar

Code

NON

certi

fied

X + 26% Time to scan a Bar Code

X

One Two Three or more One Two Three or more

29%

54%

17%

95%

4% 1%

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GCI Product Id Work Group

Result of verification on bar code read rates in a Distribuiton Center

5

50

98

1 3

45

0

25

50

75

100

Labels Pre Print Ink Jet

% Read Fail

Before Verification After Verification

Study done in 2005 in a Distribution Centre to analyze different printing methods and their scanning rates before and after implementing a verification programme.

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Conformance Clauses

Pass Thresholds

GS1 BarCode Quality Assessment Report

Methodology to Assess Conformance

Standards

Support & Training

Implementation

Benchmarking

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4 Technical

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Technical Tools

SummaryBar code Quality is critical for success! To ensure this, you will need to master the key technical aspects of bar codes. GS1 provides all technical guides and reference documents to support you and the users for an easy implementation of bar codes in Retail. This chapter provides a summary of each of these documents and information on where to fi nd them and how to use them.



The GS1 General Specifi cations are the standard reference

document describing how bar codes and identifi cation

keys should be used to comply with GS1 standards. It

covers the whole GS1 System and has the most detailed

information on the GS1 standards.

• Global User Manual

The objective of the GS1 Global User Manual (GUM) is

to provide an introductory "user-friendly" and simple

document describing the GS1 System with particular focus

on the GS1 Bar Codes and Identifi cation Keys.

• GTIN Allocation Rules and GLN Allocations Rules

This document will explain you and your users how to

correctly allocate GTINs and GLNs depending on the

circumstances related to the products or locations.

• Operational Guidance GS1 Bar code Verifi cation

This document is an operational guideline, with a primary

target audience of GS1 Member Organisations, for running

a GS1 compliant BarCode Verifi cation Service.

• GS1 Bar Code Verifi cation For Linear Symbols

This document is a technical overview for applying ISO

verifi cation to GS1 linear symbols.


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General Specifi cations

The GS1 General Specifi cations are the core standards

document describing how bar codes and identifi cation keys

should be used to comply with GS1 standards. They are used

throughout the GS1 System. A new edition of the General

Specifi cations is published every year, maintained by GSMP.

The main sections are as follows:

Section 1: Basics and Principles of the GS1 System

This section contains the GS1 principles of Open Standards,

Diff erentiation, Transparency, and Non-Signifi cance. Also

included are the identifi cation system policies under which

the specifi cations are developed, and the technology

adoption policies. Human factors and performance

requirements are also included in this section.

Section 2: Application Identifi cation

This section contains the Areas of system Application:

1. Trade Items

2. Numbering and Marking of Logistics Units

3. Assets

4. Locations

5. Numbering and Marking of Service Relationships

6. Numbering and Symbol Marking for Special Applications

Section 3: GS1 Application Identifi er Defi nitions

This section contains the defi nition and data structure for

each Application Identifi er independent of the Data Carrier.

Section 4: Application Rules

User established application rules for GS1 keys are contained

in this section:

• Global Trade Item Numbers (GTIN)

• Logistics Unit (SSCC)

• Global Location Numbers (GLN)

• Global Individual Asset Identifi er (GIAI)

• Global Returnable Asset Identifi er (GRAI)

• Global Service Relation Number (GSRN)

• Global Document Type Identifi er (GDTI)

• Global Identifi cation Number for Consignment (GINC)

• Global Shipment Identifi cation Number (GSIN)

Section 5: Data Carriers

This section contains the technical specifi cations and

production and quality assessment specifi cations for GS1

approved data carriers. It contains specifi cations for each

unique application environment.

Section 6: Symbol Placement Guidelines

This section contains package bar code placement

guidelines and Label placement for transport, clothing, and

fashion accessories.

Section 7: AIDC Validation Rules

This section contains bar code processing techniques,

message structures, and check digit calculations.

Section 8: Glossary

This section contains the GS1 Glossary of Terms and

Defi nitions, Acronyms and Legacy (Retired) terms.

The General Specifi cations are available at the following link

http://online.gs1.org/index.php/genspecs/

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Global User Manual

The objective of the GS1 Global User Manual (GUM) is

to provide an introductory “user-friendly” and simple

document describing the GS1 System with particular

focus on the GS1 Bar Codes and Identifi cation Keys. This

document is not exhaustive and does not replace the

GS1 General Specifi cations, which remains the standard

reference document.

However, this document is perfect for a fi rst overview of

the GS1 System and to understand how to implement it

in your supply chain.

The Global User Manual is updated annually to refl ect the

changes of updates coming from standards development.

The document covers:

• Basic principles of the GS1 System

• Use of ID Keys

• Use of Bar codes

• Use of AIs (Application Identifi ers)

• Specifi c cases of Bar codes applications

The Global User Manual is available to users via their

Member Organisations and via GS1 online

http://online.gs1.org/index.php/docs_and_reference/


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GTIN & GLN Allocation Rules

GTIN Allocation Rules

This document explains how to correctly allocate GTINs on

your products.

A Global Trade Item Number (GTIN) is used to identify any

item upon which there is a need to retrieve pre-defi ned

information and that may be priced or ordered or invoiced

at any point in any supply chain. A separate unique GTIN is

required whenever any of the pre-defi ned characteristics of

an item are diff erent in any way that is relevant to the trading

process. The guiding principle is if the customer is expected

to distinguish a new trade item from an old trade item and

purchase accordingly, a new GTIN should be assigned.

GTINs have specifi c allocations rules depending on your

target market and country of distribution, on your branding,

your packaging, your product itself. Other factors such as

selling price or whether you are including a promotional

aspect to your product (promotional pack for instance)

will have an impact on the allocation of GTINs. In addition,

manufacturing or logistics conditions are also to be

considered, as well as type of products, such as fresh foods

or seasonal products.

The GTIN allocation rules are a reference document for

anyone wanting to identify their products correctly.

They have been translated in many languages, and the

diff erent versions are available online:

http://www.gs1.org/1/gtinrules/index.php/p=overview

In addition, a specifi c document is available to quickly

answer the needs of the retail sector when it comes to GTIN

allocation rules. It is available at this link:

http://www.gs1.org/docs/idkeys/GS1_GTIN_Allocation_

Rules.pdf

GLN Allocation Rules

The GLN Allocation rules explains to you and your

users how to allocate and implement Global Location

Numbers (GLNs).

GLNs are for identifying locations and legal entities. This

information is used in eCom, Global Data Synchronization

Network (GDSN), Automatic Identifi cation and Data Capture

(AIDC) and with the Electronic Product Code Information

System (EPC IS).

In the document, you will fi nd information on general rules,

how to deal with the creation of new locations, and how to

do minor or major changes to existing locations.

http://www.gs1.org/1/glnrules/index.php/p=overview

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Operational Guidance

GS1 Bar Code Verifi cation

Awareness and understanding of overall bar code symbol

quality, and the complete process to determine and

understand it, can have many benefi ts to the users of

bar code driven AIDC (Automatic Identifi cation and Data

Capture) systems.

This manual provides the basic structure or framework for

creating a b ar code symbol quality verifi cation operation

or service. This will include guidance on the minimum

recommended requirements and basic items including:

• staffi ng considerations,

• training and education,

• general operational considerations,

• creation of procedures / guidelines,

• recommended basic reference documents and guides,

• ISO conformant verifi cation devices and other optional

tools, gauges & equipment.

Within this general framework it will also provide further

practical guidance through example and reference to

published standards, existing reference material and

procedures that will give greater detail in the practical,

operational and educational aspects of bar code symbol

quality determination.

Important: Overall “bar code symbol quality” is much more

than just “print quality” (as measured by a verifi cation

device).

There is great benefi t in looking at the whole picture of

quality and gaining the knowledge and understanding

of what these checks, tests and results can provide

in the way of practical diagnostic advice to improve

overall scan rates.

This guidance document is available online

http://www.gs1.org/docs/barcodes/GS1_Operational_

Guidance_Bar_Code_Verifi cation.pdf

Important: Overall “bar code symbol quality” is much more

than just “print quality” (as measured by a verifi cation

d i )


device).

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GS1 Bar Code Verifi cation For Linear Symbols

This GS1 Global Offi ce publication has been developed

with the intention of providing a clear explanation on the

practical implications of Bar Code Verifi cation within the

GS1 System. Although the target audience is GS1 Member

Organisation staff involved in Bar Code Verifi cation, it is

hoped that the information contained will be of use as a

basis for training and/or reference material for specialists or

end users involved in Bar Code production and print quality.

This booklet answers the more common questions about

the role, use and interpretation of bar code verifi cation and

its results. It concentrates on the application of the “scan

refl ectance profi le” assessment methodology (now known

as “ISO verifi cation” or “ISO/IEC 15416 method”) as defi ned

in International Standards and on its use for bar code

verifi cation in the GS1 System.

It is intended as a guide and it does not replace the GS1

General Specifi cations which remains the repository for all

GS1 Technical Specifi cations related to Bar Code.

This document is available on the GS1 website at

http://www.gs1.org/sites/default/fi les/docs/barcodes/

GS1_Bar_Code_Verifi cation.pdf

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q

the role, use and interpretation of bar code verifi cation and

its results. It concentrates on the application of the “scan

refl ectance profi le” assessment methodology (now known

as “ISO verifi cation” or “ISO/IEC 15416 method”) as defi ned

in International Standards and on its use for bar code

verifi cation in the GS1 System.


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5 Training Tools

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Training Tools

SummaryA key success factor for implementing bar codes is the training of knowledgeable and competent staff , in the MOs and with the users. Global Offi ce therefore provides a number of resources for developing a local training course. It is important of course, that the training is adapted to the knowledge level of the audience and local needs such as specifi c business practices and legal requirements, for instance.


• Available Trainings

The relevant training modules you can follow to gain a

suffi cient knowledge of bar codes in retail.

• Bar code certifi cate and GS1 System Certifi cate

To extend your knowledge in bar code, qualify for the bar

code certifi cate by taking 7 modules composing the full

bar code and ID keys course. Your overall understanding

of the GS1 System can also be tested with the GS1 System

certifi cate.

• How to get started with bar codes Tutorial

Learn about this easy to use interactive tutorial that will

give you the basic information you need to understand bar

codes

• GS1 Verifi cation video

This educational video will take you through the

techniques and processes of using an ISO verifi er as bar

code quality control tool.

• Frequently Asked Questions

Clarify your knowledge on specifi c aspects

• Glossary of terms


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GS1 Bar Codes and ID Keys workshop

This course covers the following topics:

• GS1 Identifi cation Keys

• Global Trade Item Numbers

• Global Location Numbers

• Serial Shipping Container Codes

• Bar code Symbologies

• Bar code Verifi cation

• Variable Measure Trade Items

• The GS1 Application Identifi ers

• The GS1 Logistics Label

• Introduction to the Bar Codes training materials

This “expert” workshop aims to create an environment where

MOs can really benefi t from each other’s experience.

Each topic will be covered in detail with the aim to provide a

clear understanding of the core principles of GTIN and GLN

Allocation, GS1 Application Identifi ers, scanning & printing

tricks, etc.

Objectives are to provide:

• A working forum to advance collective knowledge.

• A detailed understanding of the underlying principles of

the GS1 System.

• A detailed analysis of the key principles of GTIN & GLN

Allocation and in depth examination of GS1 System topics.

Available format: Classroom

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GS1 Bar Codes

GS1 Bar Codes are fundamentally important to the overall

GS1 System. Understanding of the technical merits, and

indeed limitations, of the various symbol types provides

solid foundation for future learnings.

The GS1 Bar Codes course covers each of the GS1

endorsed Bar Code symbologies:

• EAN/UPC - ITF-14 - GS1-128

• GS1 DataMatrix

• GS1 DataBar

• Composite1

and aims at providing a basic grounding on the advantages,

uses and limitations of each of the GS1 endorsed Bar Code

Symbologies. It covers the most important aspects and

is an ideal course to prepare students for more detailed

applications of the overall GS1 System. This course provides

a foundation for additional Bar Code and ID Key related

courses.

Available format: e-learning & classroom

To follow this training, visit http://learn.gs1.org

1 GS1 QR Code, released in January 2012, will be added in the next release

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Bar Code Quality

The Bar Code Print Quality course aims at providing a basic

understanding on the issues around printing quality of

GS1 bar codes that scan fi rst time, every time. It provides

an ideal introduction to anyone wishing to learn about the

common causes of bar codes failing to scan and the pitfalls

to be avoided when printing GS1 compliant symbologies

and provides a basic understanding on Print Shop related

implementation issues of the GS1 Standards.

Upon completion of this course, students will be better

prepared to attend introduction classroom training.

They will understand some basic concepts related to the

implementation of GS1 Standards while designing and

printing products, labels and packaging.

This course covers the following topics:

• Selecting a Symbology

• Colour Combinations

• Bar Code Placement

• Bar Code Verifi cation



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GS1 Bar Code Applications Logistics Units

This training will give you an insight in the use of

GS1 Logistic Labels in meeting tracking and tracing

requirements of Logistic Units in global supply chains. You

will understand the fundamental principles of applying

GS1 Logistic Labels and the concept of applying a Serial

Shipping Container Code (SSCC). GS1 Bar codes (and GS1-

128 in particular), GS1 Identifi cation Keys and Application

Identifi ers are covered in this course.

This course covers the usage of two key aspects of the GS1

System:

• The Serial Shipping Container Code (SSCC) which is used to

identify the logistic unit

• The GS1 Logistics Label which provides the format to

encode the SSCC - and any other required data - on the

logistic unit.



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GS1 Bar Code Applications Trade Items

Trade Item Identifi cation, using the GTIN and the

appropriate Bar Code Symbol, is by far the most widely used

application of the GS1 System.

This course provides a detailed overview of this application

and understanding the principles in this area provide a solid

foundation for other more detailed applications of GS1

System. This course covers the following topics:

• The concept of 'Areas of Application'

• The various requirements of Point-of-Sale, Supply Chain,

Open & Restricted Circulation

• The increasingly important Healthcare area.

This course combines the two technical concepts learnt

in the two the foundational courses GS1 Application

Identifi ers & ID Keys and GS1 Bar Codes.



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GS1 Bar Code and GS1 System Certifi cates

The GS1 Bar Code Certifi cate

In addition to individual courses, GS1 proposes a full GS1

Bar codes certifi cate covering both Bar codes and ID Keys,

to acquire a sound knowledge in Bar codes. The Bar codes

Certifi cate contains the following courses:

• Introduction to GS1 (no test)

• GS1 Bar codes

• GS1 Bar code Quality

• GS1 Application Identifi ers and ID Keys

• GS1 Bar code Applications – Trade Items

• GS1 Bar code Applications - Logistic Units

• GTIN Allocation Rules

These courses are available as on-line training accessible to

MOs and to the users via their MO.

The GS1 System Certifi cate

The “GS1 System” training course covers all the basic

knowledge of the GS1 System and the “GS1 System

Certifi cate” is considered as the evidence that GS1 Staff

Members are able to fully support their industries in the

implementation of the GS1 system.

The GS1 System Certifi cate is awarded to those students

who:

• Succeed the fi nal test of the 2-days classroom “GS1 System”

training course

• Succeed the eLearning courses below with a score of

90% at the virtual tests (except for the fi rst module, which

contains no test):

– Introduction to GS1 (no test)

– GS1 Application Identifi ers and ID Keys

– GTIN Allocation Rules

– GS1 Bar Codes

– Basics of e-Com

– EPC Basics

– Basics of Data Quality & GDSN

For more information on these certifi cates and to register,

visit http://learn.gs1.org/

For more information on our Training programmes,

contact [email protected]


contact [email protected]

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Online Tutorial Getting started with Bar Codes

GS1 New Zealand created a great interactive tool to get

introduced with the world of Bar codes. The Getting

started with bar codes tool transforms the basic bar code

instructions into a fun and eff ective experience!

By navigating throughout this web-based tutorial, the users

are invited to identify their product while receiving hints

and technical information needed to take the fi rst steps.

It can be easily translated and added to your website; this

tool can save call center eff ort and provide excellent and

24/7 service to your members.

To follow this training, visit

http://www.gs1.org/barcodes/training

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Instructional Video: GS1 Verifi cation –Techniques and Analysis

How to use GS1 Verifi cation as a Bar code Quality Control Tool

The combined use of ISO bar code verifi cation and GS1

Standards is a vital element in today’s bar code scanning

quality control procedures. This video takes you through the

techniques and processes of using an ISO verifi er, analysing

the results, the additional GS1 requirements needed

for scanning compliance and the importance of using

verifi cation as a bar code quality control tool.

Use this video to train your GS1 staff as well as your local

solution providers. Users interested in understanding bar

code quality control procedures would also fi nd this video

valuable.

Obtain your copy from the Training & Education

Department, contact [email protected]


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FAQs for Bar CodesAnswers to your most common questions

What is a bar code?

A bar code (also barcode) is a machine-readable

representation of information in a visual format on a surface.

Originally Bar Codes stored data in the widths and spacings

of printed parallel lines, but today they also come in

patterns of dots, concentric circles, and hidden within

images. Bar codes can be read by optical scanners called bar

code readers or scanned from an image by special software.

Bar codes are widely used to implement Automatic

Identifi cation & Data Capture (AIDC) systems that improve

the speed and accuracy of computer data entry.

Understanding bar codes is helped by separating the three

concepts:

Symbology: A defi ned method of representing numeric

or alphabetic characters in a bar code (e.g., EAN/UPC

Symbology).

Symbol: The combination of symbol characters and

features required by a particular symbology, including

Quiet Zone, Start and Stop Characters, data characters, and

other auxiliary patterns, which together form a complete

scannable entity (e.g., an EAN-13 Symbol)

Data: The data encoded in the symbol (e.g., a Global Trade

Item Number (GTIN)).

GS1 endorsed Bar Codes allow the globally recognised GS1

Identifi cation Keys to be used on things such as trade items,

locations, logistic units, and assets. The more advanced bar

codes, like GS1-128, GS1 DataBar and GS1 DataMatrix, allow

attribute information such as Batch Numbers and Expiration

Dates to be encoded using the GS1 Application Identifi ers.

What is a GTIN – Global Trade Item Number?

GTIN stands for Global Trade Item Number. It is used to

identify any trade item (product or service) upon which

there is a need to retrieve pre-defi ned information and that

may be priced, or ordered, or invoiced at any point in any

supply chain. This covers services and products, from raw

materials through to end user products, all of which may

have pre-defi ned characteristics.

GTIN is always stored in databases in a 14-digit format.

Shorter number structures are right justifi ed and fi lled with

leading zeroes. The following structures are used:

• GTIN-13 – general use for all items that are priced and may

be merchandised by the supply chain. The basic structure

used for item identifi cation at the retail point of sale.

• GTIN-14 – common application on logistic units, boxes,

bundles, containers, containing a group of homogeneous

items. The 14-digit number may be included in a supplier's

sales catalogue, and may be a reference for a purchase

order. However, they cannot be processed at the retail

point of sale. The GTIN-14 may be used for an item

group included in a logistics unit, allows the record of

descriptions of included items (which are identical) and the

quantity packaged in a box or bundle.

• GTIN-8 – only for identifi cation of very small sized units.

• GTIN-12 – is traditionally used in the USA and Canada (see

FAQs on 2005 Sunrise) for general use for all items that are

priced and may be merchandised by the supply chain.

Fully compatible with GTIN-13

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Does the EAN-13 bar code show the country

of origin?

No, the GTIN (the bar code number) does not imply any

signifi cance.

A GTIN starts with the GS1 Prefi x of the GS1 Member

Organisation that allocated a GS1 Company Prefi x to a company

to allow them to generate GTINs and bar code their products.

This does not mean that the product was manufactured in a

specifi c country or by a specifi c manufacturer, it may have been

produced anywhere in the world.

You can type the full number into the GEPIR system

and fi nd out the company information. For more

information please try http://www.gepir.org

My company needs to bar code products.

What do I need to do?

When you need a bar code number, please contact a GS1

Member Organisation. They will provide you with a GS1

Company Prefi x and the specifi cations in your language.

You will then be responsible for allocating a unique number

to each product from the number bank associated with

the Company Prefi x in line with the Ten Steps to Bar Code

Implementation.

Are all bar codes the same?

No. EAN/UPC, ITF-14, GS1 DataBar, GS1 DataMatrix and

GS1-128 bar codes have a standardised data content, which

means they can be used by any company that has adopted

the GS1 System. GS1 bar codes have special features that

ensure they are not confused with any other bar codes.

Other bar codes do not have a multi-industry standardised

approach to the data they contain and so are only really

suitable for use in closed systems.

The bar codes used by GS1 include EAN/UPC, GS1

DataBar, GS1-128, ITF-14, GS1 DataMatrix, and Composite

Component. For more information please click here.

Are the description and price of the item

included in the bar code?

Generally no. The bar code represents the number that

simply identifi es the item uniquely. All the information

about a product is held in a computer database. By

scanning the bar code, this information (also description

and price) may be retrieved from the database.

The only exception is the specialist numbering system

devised for retail Variable Measure Trade Items and coupon

numbers that include the price of the item or value of the

coupon.

Are all GTINs unique numbers?

Yes. All GTINs are unique when they are right justifi ed

in a fi xed length 14-digit reference fi eld, called the GTIN

Application Format:

Numbering

Structures

GTIN ApplicationFormat

T1

T2

T3

T4

T5

T6

T7

T8

T9

T10

T11

T12

T13

T14

GTIN-14 N1

N2

N3

N4

N5

N6

N7

N8

N9

N10

N11

N12

N13

N14

GTIN-13 0 N1

N2

N3

N4

N5

N6

N7

N8

N9

N10

N11

N12

N13

GTIN-12 0 0 N1

N2

N3

N4

N5

N6

N7

N8

N9

N10

N11

N12

GTIN-8 0 0 0 0 0 0 N1

N2

N3

N4

N5

N6

N7

N8

I am looking for a document showing me

the relation between a bar or a space and a

number. I would like to learn how an EAN/

UPC Bar Codes is encoded.

The GS1 General Specifi cations are the core standards

document describing how barcodes and identifi cation

keys should be used to comply with GS1 standards.

They are used throughout the GS1 System. GS1 General

Specifi cations Section 5.2 explains how an EAN/UPC Symbol

is constructed.

approach to the data they contain and so are only really

suitable for use in closed systems.

They are used throughout the GS1 Syste

S


The bar codes used by GS1 include EAN/UPC, GS1

DataBar, GS1-128, ITF-14, GS1 DataMatrix, and Composite

Component. For more information please click here.

ghout the GS1 System. GS1 General

Specifi cations Section 5.2 explains how an EAN/UPC Symbol

is constructed.

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Becoming a GS1 member and obtaining an

GS1 Company Prefi x

When you need a bar code number, you must contact a

GS1 Member Organisation (see www.gs1.org/contact). After

subscription, they will provide you with a GS1 Company

Prefi x and the specifi cations in your language. You will

then be responsible for allocating a unique number to

each product from the number bank associated with the

company prefi x.

Please refer to our 10 steps to bar code implementation

page which takes new bar code users through the basic

steps they must take to begin using bar codes: http://www.

gs1.org/productssolutions/barcodes/implementation/

Bar Coding a GTIN?

The GTIN should be represented by the appropriate GS1

Data Carrier determined by the intended use or application.

GS1 has an entire portfolio of Data Carriers: diff erent kinds

of media that can hold GS1 ID Keys and attribute data. The

same content can, in fact, be encoded into diff erent kinds of

carriers, depending on what use will be made of it.

EAN-13 (EAN/UPC) Bar Codes, which are typically used

on retail items, and ITF-14 Bar Codes, which are typically

used for corrugated materials, can encoding just the GTIN.

GS1-128, GS1 DataBar, or GS1 DataMatrix Bar Codes can be

used to encode just the GTIN as well as for encoding extra

information using the GS1 Application Identifi ers. These

bar codes are used in a variety of environments including

logistics sites, hospitals, and more.

Examples of GS1 Bar Codes encoding a GTIN can be found

on http://www.gs1.org/barcodes/technical/bar_code_types

For encoding the Electronic Product Code (EPC), companies

can use EPC RFID tags in a wide variety of environments.

Is there a check-list for GS1 Bar Code

applications?

As a general guide the following should be checked to

avoid common bar code problems: • Correct calculation of GS1 Check Digit Algorithm

• Sizes of Quiet Zone of the symbols (a white space to the

left and right of each bar code)

• Suffi cient contrast between bars and spaces (background)

• Correct colour application on spaces and bars

• Bar code construction

• Size of symbols, respecting the application characteristics

and recommendations of the GS1 General Specifi cations

• Bar code profi le - constant quality control/follow-up

• Bar code height - the reduction of bar height impairs

reading effi ciency

• Packaging - Wrapping preventing the access of the light

beam of the scanner (package welding, printed borders; etc)

• Deteriorated code (fl ecks, blots, wrinkling, etc.)

• Inadequate symbol positioning (mainly on cylindrical

packaging)

Bar Code Symbol Placement should be according to symbol

type and the logistics process of packaging, distribution,

storage and handling.

How are GS1 Application Identifi ers Bar

Coded?

The symbologies specifi ed for the representation of GS1

Application Identifi er (AI) data are GS1-128, GS1 DataMatrix

and GS1 DataBar. Indeed when using GS1-128, GS1

DataMatrix or GS1 DataBar it is mandatory to use the GS1

Application Identifi ers (AIs).

The exact choice of symbology, as well as the exact

combination of AIs, will be determined by the application.

For example Very Small Healthcare Items may use GS1

DataMatrix or GS1 DataBar while GS1-128 is recommended

for Outer Cases and Logistic Labels.

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What is the GS1 bar code commonly used for

trade item identifi cation?

The EAN-13 & UPC-A bar codes are the most widely used for

trade item identifi cation.

EAN-13 (example) UPC-A (example)

The encoded GTIN is composed by:

• GS1 Company Prefi x – issued by the GS1 Member

Organisations (these are established in over 100 countries,

but more cover than 140 countries directly)

to a user company.

• Item reference – assigned by the user company, without

introducing any classifi cation. Each item will receive a

diff erent item reference, according to the variations of

model, colour, size, fragrance, weight, presentation, etc.

• Check Digit – ensuring the integrity of the number, it is

calculated according to the GS1 Check Digit Algorithm.

Can the GS1 System be used to support

internal applications?

The main benefi t of the GS1 System for trade items is that it

provides a unique and unambiguous identifi cation number

for every trade item, which is applicable worldwide in open

environments. In addition, the system provides for other

number series that may be exclusively used for restricted

distribution (e.g., national use, company internal use).

Restricted distribution identifi cation numbers are available

to GS1 Member Organisations’ members to help them

develop solutions applicable within their territory. Contact a

GS1 Member Organisation for the detailed rules that apply

in your territory.

How are bar codes used on coupons (money

off vouchers)?

There is no international solution for the identifi cation of

coupons as:

1. Coupons are not used in all countries (indeed are 'illegal'

in some countries)

2. Coupons typically encode a monetary value (expressed in

local currency)

Hence each GS1 Member Organisation has to support a

local solution. Typically these local solutions allow a EAN-

13 or UPC-A Bar Code to be used to encode the value of

the promotional discount associated with a given product

or series of products. GS1 Global Offi ce has provide a range

of prefi xes (990-999) for these local solutions.

For more information on coupons it is necessary to contact

the relevant GS1 Member Organisation

What is an FNC1 (Function Code 1) and what

is it used for?

Function Code 1 (FNC1) has a dual purpose in GS1-128 Bar

Code symbols:

1) Just after the start character: This double start pattern

(start character + FNC1) is reserved for GS1 System

applications worldwide. This makes it possible to

distinguish GS1-128 bar code symbols from extraneous

non-standard bar code symbols. This FNC1 is translated in

the bar code as the Symbology Identifi er ]C1.

2) Function Code 1 (FNC1) separator when followed by

another element string in a single bar code symbol. An

FNC1 is not required at the end of the last element string

represented in a GS1-128 bar code symbol. This FNC1

corresponds to ASCII character 29.

To access the full list of GS1 Frequently Asked

Questions visit: http://www.gs1.org/helpdesk

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Glossary of terms

Here is a Glossary of terms extracted from the General Specifi cations that will provide you with the most important defi nitions

when it comes to Bar codes implementation.

2-Dimensional Symbology

Optically readable symbols that must be examined both

vertically and horizontally to read the entire message.

Two-dimensional symbols may be one of two types: matrix

symbols and multi-row symbols. Two dimensional symbols

have error detection and may include error correction

features.

bar code

A symbol that encodes data into a machine readable

pattern of adjacent, varying width, parallel, rectangular dark

bars and pale spaces.

Bar Code Verifi cation

The assessment of the printed quality of a bar code based

on ISO/IEC standards using ISO/IEC compliant bar code

verifi ers.

Bearer Bars

Bar abutting the tops and bottoms of the bars in a bar

code or a frame surrounding the entire symbol, intended to

equalize the pressure exerted by the printing plate over the

entire surface of the symbol and/or to prevent a short scan

by the bar code reader.

brand owner

The party that is responsible for allocating GS1 System

Identifi cation Keys. The administrator of a GS1 Company

Prefi x.

Check Digit

A fi nal digit calculated from the other digits of some GS1

Identifi cation Keys. This digit is used to check that the

data has been correctly composed. (See GS1 Check Digit

Calculation.)

EAN/UPC Symbology

A family of bar codes including EAN-8, EAN-13, UPC-A, and

UPC-E Bar Codes. Although UPC-E Bar Codes do not have

a separate symbology identifi er, they act like a separate

symbology through the scanning application software. See

also EAN-8 Bar Code, EAN-13 Bar Code, UPC-A Bar Code, and

UPC-E Bar Code.

EAN-13 Bar Code

A bar code of the EAN/UPC Symbology that encodes GTIN-

13, Coupon-13, RCN-13, and VMN-13.

EAN-8 Bar Code

A bar code of the EAN/UPC Symbology that encodes GTIN-8

or RCN-8.

General Distribution Scanning

Scanning environments that include bar coded trade items

packaged for transport, logistic units, assets, and location

tags.

General Retail Consumer Trade Item

A retail consumer trade item identifi ed with a GTIN-13, GTIN-

12 or GTIN-8 utilizing omnidirectional linear bar codes that

can be scanned by high-volume, omnidirectional scanners.

Global Location Number (GLN)

The GS1 Identifi cation Key used to identify physical locations

or parties. The key comprises a GS1 Company Prefi x,

Location Reference, and Check Digit.

Global Trade Item Number (GTIN)

The GS1 Identifi cation Key used to identify trade items. The

key comprises a GS1 Company Prefi x, an Item Reference and

Check Digit.

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GS1 Check Digit Calculation

An algorithm used by the GS1 System for the calculation

of a Check Digit to verify accuracy of data. (e.g. Modulo 10

check digit, Price check digit).

GS1 Company Prefi x

Part of the GS1 System identifi cation number consisting

of a GS1 Prefi x and a Company Number, both of which are

allocated by GS1 Member Organisations. See also U.P.C.

Company Prefi x. GS1 Member Organisations assign GS1

Company Prefi xes to entities that administer the allocation of

GS1 System identifi cation numbers. These entities may be, for

example, commercial companies, not for profi t organisations,

governmental agencies, and business units within

organisations. Criteria to qualify for the assignment of a GS1

Company Prefi x are set by the GS1 Member Organisations.

GS1 DataBar

A family of bar codes, including GS1 DataBar

Omnidirectional; GS1 DataBar Stacked Omnidirectional; GS1

DataBar Expanded; GS1 DataBar Expanded Stacked GS1

DataBar Truncated, GS1 DataBar Limited, and GS1 DataBar

Stacked symbols.

GS1

Based in Brussels, Belgium, and Princeton, USA, it is the

organisation that manages the GS1 System. Its members

are GS1 Member Organisations.

GS1 Member Organisation

A member of GS1 that is responsible for administering

the GS1 System in its country (or assigned area). This task

includes, but is not restricted to, ensuring brand owners

make correct use of the GS1 System, have access to

education, training, promotion and implementation support

and have access to play an active role in GSMP.

GS1-128 Symbology

A subset of Code 128 that is utilised exclusively for GS1

System data structures.

Interleaved 2 of 5 Symbology

Bar code symbology used for the ITF-14 Bar Code.

Magnifi cation

Diff erent sizes of bar codes based on a nominal size and

a fi xed aspect ratio; stated as a percentage or decimal

equivalent of a nominal size.

Omnidirectional Linear Bar Code

A linear bar code symbol designed to be omnidirectionally

read in segments by suitably programmed high-volume

Omnidirectional Point-of-Sale (POS) scanners.

Point-of Sale (POS)

Refers to the retail checkout where omnidirectional bar

codes must be used to enable very rapid scanning or low

volume checkout where linear or 2D matrix bar codes are

used with image-based scanners.

Quiet Zone

A clear space which precedes the Start Character of a bar

code and follows the Stop Character. Formerly referred to as

“Clear Area” or “Light Margin”.

Standard trade item grouping

A standard composition of trade item(s) that is not intended

for Point-of-Sale scanning. They are identifi ed with a GTIN-

14, GTIN-13, or GTIN-12.

Supplier

The party that produces, provides, or furnishes an item or service.

Symbol

The combination of symbol characters and features required

by a particular symbology, including Quiet Zone, Start

and Stop Characters, data characters, and other auxiliary

patterns, which together form a complete scannable entity;

an instance of a symbology and a data structure.

UPC-A Bar Code

A bar code of the EAN/UPC Symbology that encodes GTIN-

12, Coupon-12, RCN-12, and VMN-12.

6 Implementation

Tools 6 Im

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Implementation Tools

SummaryThe GS1 Community has developed valuable tools to support their users in their implementation. You can feel inspired by the examples and templates presented here.


• 10 Steps to Implementation

These steps take new bar code users through the basic

steps needed to begin using bar codes. These steps are

used throughout the GS1 Community and have been

translated into many languages.

• GS1 Starter Kit

You will fi nd in this section two technical leafl ets from a

group of leafl ets that Global Offi ce makes available to new

Member Organisations as part of its start-up support. New

Member Organisations may translate the leafl ets into their

own language for inclusion in their welcome package for

new members.

• How to choose the right scanner – GS1 UK

This guide from GS1 UK is a clear and concise document

that is given to users to help them choose scanners for

their bar code implementation. This kind of guide can be

very useful for users and ensure a better quality of the

implementation.

• Bar code survey template – GS1 India

This survey template is conducted by GS1 India to

evaluate the level of bar code Quality and see where

implementation can be improved.

• Bar code Image Validation Service – GS1 UK

This factsheet describes the bar code image validation

service that is conducted by GS1 UK. This shows you an

example of additional service that can be proposed to

your users. NB: If you want to reuse this document, you will

need to replace the printer referenced in the document

with the make and model you use locally.

• Bar code verifi cation report order form and guidelines

– GS1 New Zealand

This template is taken from the member’s interface of the

GS1 New Zealand website, called MyGS1. On this internal

platform, users can order bar code verifi cation reports

online. The guidelines show you the procedure to order the

verifi cation reports and provide the relevant information.

• Bar code Quality Checklist – GS1 UK and GS1 New

Zealand

Bar code Quality is at the core of a successful implementation.

This compiled checklist provides a quick overview of what

needs to be checked to avoid problems or mistakes.

• GEPIR Fact sheet

This document explains you how GEPIR works and what

added value it can have for your users. This is an additional

service you can off er your users to complete their

implementation.

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Ten Steps to Bar Code Implementation

Step 1: Get a GS1 Company Prefi x

Before a company can begin using bar codes, they must

create the numbers that go inside the bar code. These

numbers are called GS1 Identifi cation Keys. The fi rst step in

building a GS1 Key is to obtain a GS1 Company Prefi x from

a GS1 Member Organisation. GS1 Company Prefi xes are

used by over 1 million companies worldwide as the basis

for creating unique numbers to identify everything in the

supply chain. To obtain a GS1 Company Prefi x contact the

GS1 Member Organisation in your country.

Step 2: Assign Numbers

After receiving a GS1 Company Prefi x, a company is

ready to begin assigning identifi cation numbers to their

trade items (products or services), themselves (as a legal

entity), locations, logistic units, individual company assets,

returnable assets (returnable pallets, kegs, tubs), and service

relationships.

The process is fairly simple. You learn about how to

format each number then use the GS1 Company Prefi x in

combination with reference numbers you assign. Your local

GS1 Member Organisation can provide you with specifi c

information about how many numbers you can assign

based on the length of your GS1 Company Prefi x.

Step 3: Select a Bar Code Printing Company

To begin, you should decide what you are bar coding and

if the bar code will carry static or dynamic information

inside it. An example of static information would be simply

a product identifi cation number (GTIN) on a cereal box. An

example of dynamic information would be printing serial

numbers on product labels.

If your bar code has static information and you need a large

volume of labels then you will likely ask a printing company

to print your labels. If you need a small volume of labels or

need to print labels with dynamic information you will likely

need an on-demand printer like a laser printer in your offi ce

or thermal transfer printer in your warehouse.

Knowing how you will print your bar code is an important

question to answer in developing a good bar code

implementation plan. Again, your local GS1 Member

Organisation is there to assist you in making the right

selection and many Member Organisations can also help

you fi nd a printer in your local area.

Step 4: Select a "Primary" Scanning Environment

The specifi cations for bar code type, size, placement, and

quality all depend on where the bar code will be scanned.

There are four basic scanner environment scenarios for trade

items:

• Product package scanned at the retail point-of-sale (POS)

• Product package scanned in a general distribution

• Product package scanned at POS but also scanned in

distribution

• special environments like medical device marking

By knowing where your bar code will be scanned you

can establish the right specifi cations for its production.

For example, if a product package is scanned at Point-of-

Sale (POS) and in general distribution, you will need to

use an EAN/UPC symbol to accommodate POS but print

it in a larger size to accommodate distribution scanning

and ensure the placement meets automated distribution

scanning requirements.

You can fi nd more information on scanner environments

and for symbol placement in the GS1 General Specifi cations

(available from your local GS1 Member Organisation).

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Step 5: Select a Barcode

Selecting the right bar code is critical to the success of your bar

code implementation plan, but here are some high level tips:

• If you bar code a trade item that will be scanned at the

retail point-of-sale (POS), you must use an EAN/UPC

symbol.

• If you are printing a bar code with variable information like

serial numbers, expiry dates, or measures, then you will use

GS1-128, GS1 DataBar (RSS), or in special cases Composite

Component or GS1 DataMatrix symbols.

• If you just want to print a bar code carrying GTIN on a

corrugated carton, ITF-14 may be the choice for you.

There are other factors to consider so contact your local GS1

Member Organisation to see what implementation products

and services they off er.

Step 6: Pick a Bar Code Size

After the correct bar code symbol is specifi ed together with

the information to encode in it, the design stage begins.

The size of the symbol within the design will depend on the

symbol specifi ed, where the symbol will be used, and how

the symbol will be printed.

EAN/UPC Symbols

EAN/UPC Symbols diff er from ITF-14 and GS1-128 Symbols

because they are scanned by retail omni-directional

scanners. This means that EAN/UPC Symbols have a fi xed

relationship between symbol height and width. When one

dimension is modifi ed, the other dimension should be

altered by a proportional amount.

Because of this relationship, EAN/UPC Symbols have a

nominal height and width specifi ed. A range of allowable

sizes from 80% to 200% of the nominal size are also

specifi ed and a fi gure showing the range of dimensions

can be found in the GS1 General Specifi cations. This range

of sizes is often referred to as "magnifi cation factors" on

purchase orders specifying EAN/UPC Symbol sizes. The

minimum, nominal, and maximum magnifi cation for EAN/

UPC Symbols are shown in Figure 1.3.1-1.

EAN/UPC Magnifi cation

• Minimum (80%)

• Minimum EAN/UPC bar code size

• Nominal (100%)

• Nominal EAN/UPC bar code size

• Maximum (200%)

• Maximum EAN/UPC bar code size

In order to decrease the amount of space EAN/UPC Symbols

take up on a design, a decreased symbol height might be

specifi ed. This process, called truncation, is not permitted

within EAN/UPC Symbology specifi cations and should be

avoided. This is because of the negative impact it has on scan

rates for retail omni-directional scanners. For more information

on truncation, refer to the GS1 General Specifi cations


When EAN/UPC Symbols are used in logistics (shipping and

distribution) as well as at the Point-of-Sale (POS), the range

of magnifi cation allowed is limited to between 150% and

200%. An example of this would be the symbol on a carton

used for a large appliance (e.g. TV or microwave oven).

ITF-14 and GS1-128 Symbols

ITF-14 and GS1-128 Symbols also have a range of sizes specifi ed.

ITF-14 and GS1-128 Symbol sizes are often specifi ed by the

width of the X-Dimension instead of magnifi cation values.

You can fi nd information on the sizes for ITF-14 and GS1-128

Symbols based on the application where they are used or the

identifi cation number they carry in GS1 General Specifi cations


Consideration of the Printing Process

The fi nal major consideration for symbol size is the

capability of the selected printing process. The minimum

size (magnifi cation) and correct Bar Width Reduction (BWR)

for a symbol varies by printing process and even from press

to press. Printing companies should establish a minimum

symbol size (magnifi cation) and BWR to achieve acceptable

and repeatable quality results.

As always, be sure to contact your local GS1 Member

Organisation for additional implementation guidance.

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Step 7: Format the Bar Code Text

The text beneath a bar code is important because if the bar

code is damaged or of poor quality to begin with, then the

text is used as a back-up. Click here for some examples of

text formatting.

The best way to cover questions about the Human Readable

Interpretation for GS1 System Bar Code Symbols is to answer

some of the more frequently asked ones.

Does the Human Readable Interpretation need to be a

certain size?

The OCR-B font was originally specifi ed for use with EAN/

UPC Symbols, but GS1 System specifi cations now permit

any font as long as it is clearly legible. For detailed size

specifi cations for EAN/UPC Symbols, see GS1 General

Specifi cations (available from your local GS1 Member

Organisation).

The human-readable text for ITF-14 and GS1-128 Symbols

must be clearly legible and in a size proportional to the

symbol size as per GS1 General Specifi cations (available

from your local GS1 Member Organisation).

Is the Human Readable Interpretation supposed to be

above or below the symbol?

It depends on the symbol you are using. For EAN/

UPC Symbols, refer to the drawings in the GS1 General

Specifi cations. For ITF-14 and GS1-128 Symbols the text

can be printed above or below the symbol as per the

GS1 General Specifi cations (available from your local GS1

Member Organisation).

Is the layout of the human readable characters under

the bar code important?

Yes. For EAN/UPC Symbols the human readable characters

should be as the drawings referenced in the question above.

The spacing of Human Readable Interpretation characters

under ITF-14 and GS1-128 helps make the text easier to

read and key enter. While including spaces is perfectly

appropriate for the Human Readable Interpretation, the

spaces must not be encoded in GS1 symbols.

I see parentheses around the Application Identifi ers (AI) in

the GS1-128 Symbol. Are they supposed to be there and

are they encoded in the bars and spaces of the symbol?

All AIs must be enclosed in parentheses in the Human

Readable Interpretation, but the parentheses are not

encoded in the symbol per the GS1 General Specifi cations


How many digits do I print beneath the EAN/UPC

Symbol in the Human Readable text?

You must, absolutely and without exception, print 12 digits,

no more, no less, below the UPC-A Symbol.

You must, absolutely and without exception, print 13

digits, no more, no less, below the EAN-13 Symbol.

You must, absolutely and without exception, print eight

digits, no more, no less, below UPC-E and EAN-8 Symbols.

Step 8: Pick a Bar Code Color

The optimum color combination for a bar code symbol

is black bars with a white background (spaces and Quiet

Zones). If you want to use other colors, the following may

help you in choosing satisfactory ones:

• GS1 Bar Code Symbols require dark colors for bars (e.g.,

black, dark blue, dark brown, or dark green).

• The bars should always consist of a single line color and

should never be printed by multiple imaging tools (e.g.,

plate, screen, cylinder).

• GS1 Bar Code Symbols require light backgrounds for the

Quiet Zones and spaces (e.g., white).

• In addition to light backgrounds, ""reddish"" colors may

also be used. If you have ever been in a darkroom with

red lighting and tried to read red copy, you know it can

virtually disappear. This is also true of similar colors such

as orange, pink, peach, and light yellows. Given the fact

that most bar code scanners use a red light source, you

can quickly see why these colors may be suitable for

backgrounds, but should be avoided for bars.

• In many cases the symbol background is not printed. It

is the color of the substrate that is being printed. If the

symbol background is printed beneath the bars, the

background should be printed as solid line colors.

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• If you use multiple layers of ink to increase the background

opacity, each layer should be printed as a solid.

• If you use a fi ne screen to deliver more ink to the substrate,

be sure there are no voids in the print caused by the screen

not adequately fi lling in.

Again, by staying with black bars and white spaces, you

have selected the optimal combination, but other color

combinations can be used. Consult an experienced printer

recommended by your GS1 Member Organisation for

additional guidance.

Step 9: Pick the Bar Code Placement

When discussing symbol location we are referring to the

symbol placement on the design. When assigning symbol

placement the packaging process should be considered.

You should consult the packaging engineer to make sure

the symbol will not be obscured or damaged (e.g., over a

carton edge, beneath a carton fold, beneath a package fl ap,

or covered by another packaging layer). To determine the

proper location for GS1 bar codes, see the following sections

of the GS1 General Specifi cations (available from your local

GS1 Member Organisation):

• Logistics Label Design

• General Placement Principles

• General Placement Guidelines for the Retail Point of Sale

• Placement Guidelines for Specifi c Package Types

• Symbol Placement for Clothing and Fashion Accessories

• General Format Guidelines for Clothing and Fashion

Accessories Labels

• General Placement Guidelines for Symbol Placement on

Items used in Distribution

After determining the proper placement, the printing

company should be consulted before assigning the symbol

rotation. This is because many printing processes require

bar codes to be printed in a specifi c orientation to the feed

direction of the web or sheet.

If possible, when using fl exographic printing, the bars

should run parallel to the press web direction or in the

picket fence orientation. If the bars are required to run

perpendicular to the press direction or in the ladder

orientation, try to avoid distorting the symbol for the plate

roll circumference.

When using either silk screen or rotogravure printing

processes, the symbol should be aligned parallel to the cell

structure on the screen or gravure plate cylinder to provide

the smoothest bar edge possible.

For more information or to obtain a copy of the GS1 General

Specifi cations, contact your local GS1 Member Organisation.

Step 10: Build a Bar Code Quality Plan

ISO/IEC 15416 Bar Code Print Quality Test Specifi cations for

Linear Symbols describes a method for assessing the quality

of bar code symbols after they are printed. An ISO-based

verifi er looks at the symbol in the way a scanner does, but

goes further by grading the symbol's quality.

GS1 utilises the ISO/IEC method, but specifi es the minimum

grade necessary for every GS1 bar code based on which

symbol is used, where it is used, or what identifi cation

number it is carrying. In addition to the minimum

grade, GS1 also specifi es the verifi er aperture width and

wavelength.

Setting up diff erent minimum specifi cations is similar to a

university using a standardized test to determine whether

applicants qualify for admission. Several universities may

utilize the same standardized test, but each sets the

minimum score necessary for its applicants to be admitted.

The GS1 General Specifi cations (available from your local

GS1 Member Organisation) provides a quick reference list

of symbol quality specifi cations depending on the symbol

type, the application, or the identifi cation number the

symbol is carrying.

GS1 members may choose to perform their own quality

control of bar code production but today many GS1

Member Organisation off er bar code quality verifi cation

services.

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Bar Code Colour Guide

Always remember:

• Bars must always be darker than the spaces. A reversed bar

code will not scan.

• Warm colours such as yellow, red, orange and white are not

seen by the scanner and are good for background colours.

• Cold colours such as green, blue, violet, and black make

a good choice for bars, as they appear black under red

scanning light.

• The light margins around the bar codes are vital. They must

never be encroached.

• Metallic surfaces and inks refl ect light away from the

scanner, so scanning is extremely diffi cult. They should not

be used for bar code printing.

For more information see: www.gs1.org

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Common Mistakes to Avoid when Printing Bar Codes

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Some tips a for a successful printing

1. For printed bar code symbols it is recommended that you

avoid the following:

• High gloss substrates

• Transparent or semi-transparent backgrounds

• Transparent wrappers over printed bar code symbols

If it is necessary to print onto a highly refl ective

(fl exible) substrate, we recommend the following:

1. Increase the magnifi cation of the bar code symbol to

between 105% and 120%

2. Increase the amount of Bar Width reduction

3. Make the background of the symbol as dense and less

refl ective as possible. To do this you may try the following:

• If you are using wet inks, print two bar codes layers. This

may be two layers of the one colour, or you may use all

light colour in the print run (e.g. white and yellow)

• Use a less vicious ink that will provide maximum coverage

and density

2. When determining which orientation to print the bar

code, the print process involved should be taken into

account. For example, when using a fl exographic process,

it is essential to print the bar code in the print direction

because of the ink "spread" associated with this printing

process. If possible, the bars should run parallel to the

press web direction or in the picket fence orientation.

If the bars are required to run perpendicular to the

press direction or in the ladder orientation, try to avoid

distorting the symbol for the plate roll circumference

3. When using a lithography process, spread is usually

insignifi cant. The printer must carry out printability tests

to determine how far the ink spreads when it is printed

on your package or label, the bar width spread and the

size of the bar code (the magnifi cation factor).

4. When using either silk screen or rotogravure printing

processes, the symbol should be aligned parallel to the

cell structure on the screen or gravure plate cylinder to

provide the smoothest bar edge possible.

For more information see: www.gs1.org

How to choose the right scanner UK

The word ‘scanner’ describes a piece of equipment that is able to read bar codes, extract the encoded data and communicate/process the information between the relevant systems. Scanners are not the same as verifiers. Please see the section on ‘the importance of symbol quality to scanning’ for more details.

Why you need a scanner

If you want to use the GS1 product identification and bar coding system to improve the speed and accuracy of recording the movement of products in any supply chain, you will need a bar code scanner to read the bar codes. Scanners can be used at any point in the supply chain, including manufacturing, wholesaling as well as at retail points of sale. Capturing data automatically can take place at any point of use, including hospital bedsides, pharmaceutical dispensaries, goods inwards, despatch points, and so on.

Scanning systems are used to increase the speed of data capture, reduce errors in data collection, and so provide accurate data to be used as the basis for many functions and management processes. These include retailing, ordering and invoicing, track and trace systems, asset tracking, stock control, item recognition, returns and rotation.

Additional benefits can be found in combining automatic data capture with other software systems to achieve effective pallet consolidation, purchasing, warehouse management, electronic communications, catalogues, and track and trace systems.

How does a scanner work?

A scanner detects and measures the pattern of light and dark bars in a bar code, decodes this pattern, and sends the data to supporting systems.

Non-contact scanners can read bar codes at a distance but all scanner ranges will vary. Others, such as scanning pens or wands, must touch the bar code, and these are known as contact devices.

The scanner will always be connected to an operating system to enable speedy and efficient data transfer. Information relating to the data encoded in any bar code must be held on the computer (normally within a database).

Which bar codes can be scanned?

Any of the scanners mentioned here is able to read the following bar codes: EAN-13, EAN-8, UPC-A, UPC-E, GS1 DataBar, ITF-14 and GS1-128. Scanners will be able to read other symbols that are outside the GS1 system. As the ITF-14 and GS1-128 bar codes were introduced for use on outer cases (traded units or trade item groupings), some retail point of sale scanning systems will not be programmed to read these symbols. Any other point of sale system should be able to scan all of these bar codes.

GS1 DataBar symbols are being introduced for use on all trade items on 1 January 2010. (GS1 DataBar Stacked Composite symbols have been usable on very small healthcare items since 2002 and many existing scanner installations will be unable to read them.)

New equipment should be able to read GS1 DataBar symbols, which are being introduced to co-exist with the present GS1 bar codes.

Many existing laser scanners can read the GS1 DataBar composite bar codes used on very small healthcare items after suitable upgrading. Whether any particular scanner can be upgraded to read the composite codes depends on the decoder's available processing power, memory, and ability to be reprogrammed.

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Which scanner should I use?

The choice of reader is not so much limited by the types of codes to be read, but more by the environment and purpose for which they will be used.

Type Technology Application Pen/wand

Scanners1HandHeld/Portable

Fixedposition

Laser –Single line

Laser -Raster

Laser – Omni-Directional

CCD Oscillating Mirror

Camera*

Approximate cost **

£50-£160

£50 - £3,000

£90-£30,000

Point of sale Y Y Y Y Y Y Warehouse management Stock picking Y Y Y Y Y Inventory control/stock audit

Y Y Y Y Y

Goods in Y Y Y Y Y Y Y Y Goods out Y Y Y Y Y Y Y Y On-linescanning (e.g. Scanning items on a conveyor belt within for example a production, distribution or warehouse environment).

Y Y Y Y Y Y*

Mobile scanning (e.g. mobile unit on a lorry/van scanning items delivered; located on a trolley administering foods/drugs, shelf edge scanning etc)

Y Y Y Y Y Y Y

* Particularly suitable for high speed conveyor belt operations ** In most installations more than one scanner will be required, for example single sided or multi-sided in fixed scanning locations.

Mobile or fixed position scanning?

If the bar code scanning is required at a fixed point, such as at good inwards, or a point of sale, a fixed position scanner may be required. The scanner’s power supply will be fixed, and the scanner will be able to send data in real time to the host computer.

Portable scanners will be necessary if mobile scanning is necessary, for example to scan products for stock taking purposes. All portable units (except those communicating to the host computer using wireless communications) will store the scanned data until it can be downloaded.

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Portable scanners may be installed on a mobile unit (for example, fork lift truck, lorry, trolley, hand held data terminal/handbook) and some applications will use wireless communications to update portable data terminals or the central system.

All scanners require a power source, provided by either batteries or the main power supply.

Which types of scanner are available?

A wide range of scanning equipment is available with various prices and performances. The scanning technology industry is continuously developing and releasing new forms of scanners. There are contact and non-contact scanners.

There are basically four types of scanner.

Pens/wands

Pens/wands require direct contact with the symbol throughout the scanning process. The pen is placed at one end of the symbol and is moved briskly across the code at a constant speed. As direct contact is required, pens and wands can damage the bar code and reduce its quality.

Laser scanners

Laser scanners project a scanning beam of light onto the bar code. The maximum width of the bar code to be read is limited by the pattern of the laser beam being projected. There are four different ways of projecting the beam of light as explained below:

Single line – a single line is projected onto a specific area of the symbol either by hand or using an automated system in a fixed position.

Hand held laser scanners can read bar codes at a distance and can be directed at a certain area of the symbol that is visible or undamaged. The maximum width of the bar code to be read is limited by the width of the laser beam being projected.

Raster – a pattern of parallel or grid lines is projected onto the bar code.

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Oscillating Mirror – a single laser beam using a moving/oscillating mirror to sweep up and down in order to locate a picket fence bar code.

Omnidirectional – patterns of lines at different angles are projected across the bar code. EAN/UPC and the major GS1 DataBar symbols have been designed to be read in any position in front of this type of scanner. Omnidirectional scanners have generally been fixed position scanners, but omni-directional hand held scanners are now available.

CCD (Charge couple device) scanners

CCD and imaging scanners illuminate the bar code and in effect take a one-dimensional and in some cases a two-dimensional picture of a complete cross section of the bar code, which is then decoded. There are contact and non-contact versions available.

Camera Scanners (fixed mount scanners)

Camera scanners capture a two dimensional image of the product. The image is processed in real time; the camera searches for and decodes conventional bar codes, and may decode other identifying marks such as text.

Camera scanners can offer increased speed of data capture and a higher read rate due to their ability to decode poorer quality symbols than other scanning technologies.

Camera scanners typically require a higher system investment than other scanning technologies, however the running costs may be much lower due to increased performance and speed2.

2 High speed can be defined as a transport conveyor speed up to 2.0 metres/second.

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The importance of bar code quality to symbol scanning

A scanner will successfully scan a GS1 bar code if the symbol meets the requirements of the GS1 General Specifications. A verifier can determine if the bar code complies with the GS1 standards (please refer to GS1 UK for a copy of the verification document).

Bar code scanning and verification are not the same thing – scanning a symbol only indicates whether the symbol will or will not scan. It does not provide an indication of the quality of the symbol or identify potential faults. Verification provides a detailed analysis of the bar code and will determine whether the bar code meets the relevant standards. A symbol with a high grade is more likely to be read than a symbol with a lower grade.

The following can affect the quality of the bar code:

Obscuring the bar code with labels, tape, folds or seams from shrink wrapping

Poor print quality

Insufficient quiet zones

Wrong choice of colour for light and dark bars resulting in poor contrast

Insufficient bar code height

Incorrectly encoded data, etc

Scanner requirements

The answers to the following questions should form the basis of your requirements list that can be used to help source an appropriate scanning solution.

1. Where will the scanners be used? For example:

on a production line in a warehouse at a retail or other point of sale outdoors or indoors for stock picking at goods inward at despatch for dispensing pharmaceutical and medical products

2. Will the scanners be in a fixed location or do they need to be mobile? Will the scanner need to be hand held or kept in a fixed position?

3. What distance will the bar code need to be read at?

Camera view

Camera analysis

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This newsletter was written and produced by GS1 UK e-mail [email protected] team 0808 178 8799 All texts, images and graphs © GS1 UK 2008. www.gs1uk.org

4. What is the scanning environment? Is it dusty, is there vibration, and is it at ambient or freezing temperatures?

5. Which bar codes will need to be scanned? Will any non-GS1 bar codes be scanned?

6. How will the scanner be used? Will it be used by trained staff or used occasionally by inexperienced users?

7. How many scanners will be required and in which position? Hand held scanners may suit some points of sale, but several fixed scanners may be required to scan goods passing on a conveyor belt within a warehouse.

8. What type of products will be scanned? Consumer units, traded units, or logistics units?

9. System considerations. Will the scanning software be compatible with your existing system and will the combination provide sufficient functionality to meet the expected benefits of installing the system?

10. What is the budget for the scanning installation and any service and training costs?

Further information

Visit the Solution Provider Finder available on GS1 UK’s website, at www.gs1uk.org

See the Association for Automatic Identification and Mobility’s website at www.aimglobal.org for further details on automatic identification and data capture technology and for global lists of equipment suppliers.

The global language of business.

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S. No Nature of query Questions & Responses

1 GENERIC

Retail Stores nationally

Retail formats

SKU’s (product types)

Product groups/categories

labels applied each day/ month

Bar coded labels to vendor/month

Cost of couriering each month

2PRIMARY

PROBING

Is bar code scanning at Point-of-Sale(POS) a problem? Yes No

If yes, how frequently?

Bar coded labels sent to vendors for affi xing on supplies? Yes No

Multiple bar codes applied on your products? Yes No

If yes, reasons ?

SKU’s bar code labeled/relabeled at your end? Yes No

If yes reasons ?

At store level or in Distribution Centre (DC)?

Delays in barcode labeling impact product

replenishment time? Yes No

If yes, by how much?

Do you exchange information on SKU’s, dispatches,

product attributes electronically with your vendors/

retailers?

Yes No

Do you experience stockouts at Stores due to delay in

barcode labeling at POS/DC? Yes No

If yes, how frequently?

Would bar coded cartons help in managing your

supplies better? Yes No

If yes, please elaborate how?

Do you follow First in First Out (FIFO) at retail stores and

in DC?Yes No

Do you follow GS1 bar coding specs for promotional

items coding?Yes No

Do you scan bar codes at carton level at your DC? Yes No

Name of the Retailer

Contact Person

Email

Mobile #

GS1 India Bar Code Quality Survey Template

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S. No Nature of query Questions & Responses

3 ANALYTIC

Cost of each person/month for labeling and total no. of

persons deployed across organisation–

Cost per bar coded label and total cost of labels/each

month

Extent of errors in labeling and cost of rework/month %

Extent of wrong labels applied by vendors and cost of

rework/month%

Shipments returned due to bar-coding errors by

vendors%

Time taken in bar code labeling in preparation of shelf-

ready merchandise

S. No Descriptive

I

Current problems faced in item master management?

II

Would it help if vendors provided information on products, new product introductions and changes in product

attributes electronically without requiring any manual intervention?

III

Do you sometimes face requirements for product withdrawals. If so, what are the challenges you face?

IV

How do you track batches ?

V

Would supplies visibility and track and trace through multiple trading partners help you and how ?

VI

How do you handle multiple Material Requirements Planning (MRP) on the bar codes?

GS1 UK bar code imagevalidation serviceUK

Improve the quality of your bar codes The accurate printing of bar codes is fundamental for effective supply chain management as the rapid and accurate scanning in of GS1 data provides the basis for all the electronic business transactions that follow.

Bar codes that do not scan properly result in wasted time and money for retailers and suppliers and can even result in products being rejected. As a result, retailers have become increasingly intolerant of products that cause bar code scanning errors with some even making it mandatory for all items to be verified before they will stock them.

The GS1 UK bar code image validation service helps you to understand the issues involved in producing bar codes and checks the likely scanning performance of your bar codes by checking against certain criteria, including:

The GTIN (Global Trade Item Number) is encoded correctly, including the correct use of the company prefix and a valid check digit The light margins around the bar code symbol are large enough Appropriate colours are used The bar code is within the allowable range of sizes and proportions (note, the final size will depend upon print quality tests) The bar code is positioned correctly on the product

It is important to understand that full verification of bar codes can only be carried out on final product samples as bar code quality depends on the printing process and packaging material. GS1 UK recommends that a full verification service is used to check actual bar codes as they are printed on final product samples.

A number of GS1 UK Solution Providers offer full verification services and they can be found using the GS1 UK Solution Provider Finder at www.gs1uk.orf/spf.

The image that you submit for testing will be checked using a bar code verifier that meets the latest international standards – ISO/IEC 15426. GS1 UK will validate the image using a process based on the ISO/IEC 15416 verification method.

The report you will receive from us will indicate the likely compliance of your bar code when it is printed onto your product packaging. If it is necessary we will suggest where you may need to make changes to meet GS1 and industry specifications and include a guide to the terms we use.

The GS1 UK bar code image validation service can currently validate the following GS1 bar codes and labels:

“I would like to thank GS1 UK for their excellent service. The added-value activities have benefited me tremendously, particularly the bar code image validation service which has helped me to understand how to create bar codes and has given me confidence that my trading partners will scan them successfully – first time and every time. The responsiveness and advice given by the Service Team were second to none.”Peter Murray, Alta Systems

EAN-13 or EAN-8 bar codes on consumer units EAN-13, GS1-128 or ITF-14 bar codes on traded (outer-case) units GS1 logistics label for pallets and other transport items

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Service availability and costs Costs are as follows:

New GS1 UK member GS1 UK member non-GS1 UK member Each submission

First submission free £40 thereafter £40 £80

1. A single submission to the service can include up to three bar codes or labels.

2. All new GS1 UK members can make one submission free-of-charge within the first 12 months of joining.

3. All subsequent submissions cost £40.00 (plus VAT) per submission.

4. Each submission from a GS1 UK member who has been a member for more than 12 months costs £40.00 (plus VAT).

5. Each submission for non GS1 UK members cost £80.00 (plus VAT).

6. If any or all of the submitted bar codes/labels fail the validation checks, i.e. errors are found against the set validation criteria, then all of the failed bar codes/labels may be re-submitted for validation one more time only at no extra cost. If the submitted bar codes/labels fail the second validation then to be re-validated a new submission will have to be made at a cost of £40.00 (plus VAT).

If you are unsure about your membership status then please contact us for clarification.

Service checklist1. Bar code images or labels should be submitted either via:

Email: All emailed images should be attached as a PDF (Adobe Portable Document Format) file only. Other formats are not accepted. Please note that these emailed submissions are printed by GS1 UK using a Canon CLC 3220 colour copier/printer and the validation report is only based upon the quality of this print out Post: Printed images can be submitted as laser prints, bromides, mock-ups and proofs. Please note the validation report is only based upon the quality of these images. If a printed image sent by post is to be returned, this must be specified on the submission form and an addressed envelope included, otherwise samples are disposed of seven days after testing

2. If you are submitting an EAN-13 or EAN-8 bar code symbol for use on consumer units then please send a copy of the complete packaging artwork with the bar code in position. This will help us to validate it correctly.

3. Please complete the attached form for all submissions.

4. GS1 UK will check the submission and send a validation report to the nominated contact within 48 hours of receipt.

For more information For more information about the GS1 UK bar code image validation service, please contact the GS1 UK Service Team on freephone 0808 178 8799 or by email at [email protected].

The global language of business

3. Please complete the attached form for all submissions.

4. GS1 UK will check the submission and send a validation report to the nominated contact within 48 hours of receipt.

For more informationFor more information about the GS1 UK bar code image validation service, please contactUK Service Team on freephone 0808 178 8799 or by email at [email protected].

The global language of bu

tact the GS1

f business

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Order a barcode verification report

No barcodes entered.

GTIN Trade Item Description Supplier SKU Variant Net Content Net UOM

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GS1 New Zealand Bar Code Verifi cation Report TemplateThis template is taken from the members' interface of the GS1 New Zealand Website MyGS1

Select “Omnidirectional.”

The sample will also be

assessed for hand scanning

You need not make a selection

at this stage. The sample will be

assessed for hand scanning

Is the product a carton (shipper)?Will the product go through an

automated warehouse or automated

cross-docking point? (See note below)

No further decision about

scanning requiredNo further decision about

scanning required

Also select “Automated

Scanning” on the

application form

YES NO

Is the product a retail item?

NO NO YES DON’T KNOW

Please go to the next page

GS1 New ZealandBarcode Testing Service - Submitting Products

1. The Scanning Environment

The GS1 Bar Code Verification Service offers a range of options for obtaining the reports you need.

The first thing you should know is the scanning environment/s your product may enter i.e. where it will be

scanned and with what equipment. This will influence the technical requirements the bar code must fulfil.

You will be asked to indicate ‘scanning environment’ when you complete the Verification Application.

YES

What are the "scanning environments"?

Omni directional - scanning with the type of scanner used in supermarkets, service stations and a

growing number of other outlets. Applies only to retail outlets.

Hand Scanning - scanning with a hand scanner. Can apply to retail or distribution settings.

Automated - scanned in automated situations that require the bar code to meet specific size and

location requirements. Applies only to distribution.

NOTE: This question refers to the shipper not the inner. Where a carton containing inners goes through an

automated site only the carton is scanned. In such a case “no” is the appropriate answer for the inner.

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See Note 3

2. Submitting samples for testing.The flow chart below and the accompanying advice notes will help you to decide which option is best for your circumstances.

Is the product ready for market?

Are the bar codes on swing tags?

Are there several physically identical

products (e.g. same size, shape,

different flavours) in containers/

packs that are not transparent?

Is the product physically identical to one

that has been tested by GS1 NZ within

the last 12 months and not contained in

a transparent container/pack?

Is a sample of the product available?

Send one complete sample

and tags for the

other variants

Agreement of GS1 required

for these options.

EITHER:

Use the Mobile

Verification Service.

OR

Send labels or

empty packaging

Use the Mobile

Verification Service

Send one complete sample and labels

or empty packaging for the other

variants.

Send labels or

empty packaging

Send sample/s of the product/s to GS1

complete as for entry to the market.

Carton/s (shippers) may be sent empty

and folded flat.

Is the product

confidential?

Confidentiality

maintained by GS1

Product/s returned

at your costDo you want it/

them returned?

GS1 will dispose of product/s

YES

NO

NO

NO

NO

NO

NO

Send GS1 NZ your artwork or

mock-up for an

Interim Report.

Interim Report issued. May be used in

lieu of a final report until

actual product

available for testing.

Is the product too large, heavy,

dangerous etc.

to send to GS1?

Are there too

many to send?

YES

YES

YES

YES

YES

YES

(CONSIDER)

NO

NO

Note

Members;

10 free tests/year (except

mobile tests

each test thereafter.

Non-members;

$ 5 + GST test.

Mobile verifications: negotiable by time, number

required, travel etc.

Report Validity Periods: see Note 5

Return of Sample/s: see Note 6

Confidentiality: see Note 7

If you have any questions

about this guideline please

phone 0800 10 23 56 or

email [email protected].

NO

YES TELL GS1

YES TELL GS1

See Note 3

for criteria

See Note 3

for criteria

See Note 1 & 4

See Note 5

See Note 6

See Note 7

See Note 1 & 5

See Note 1 & 2

See Note 1 & 2

See Note 1 & 2

See Note 1 & 2

See Note 3

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3. Notes

1 Application & Sending To GS1 NZ Testing Lab

GS1 members go to My GS1 at http://www.gs1nz.org and log on

1050 for assistance

at left of the My GS1 home page select Verify Your Bar Code Scans, then Order a Verification Report

- Whether you want the sample/s returned (see 6 below)

- Whether the sample/s is/are/ confidential (see 7 below)

- The scanning environment you expect your product/s will enter (see the decision tree on page 1)

press it to send the form to GS1

shown on the application form

Non-members of GS1, go to http://www.gs1nz.org/get_a_verification_report.php

Non-Members GS1 Bar Code Verification Report Application Form

- Whether you want the sample/s returned (see 6 below)

- Whether the sample/s is/are confidential (see 7 below)

- The scanning environment you expect your product/s will enter (see the decision tree on page 1)

arrange payment in advance for the tests: this is usually made by credit card

shown on the application form

2. Testing Labels, Swing Tags, or Empty Packaging

transparent material, including glass, whether tinted or clear

empty packaging) or 1c (for product/s identical to ones previously

[email protected]

empty packing to GS1 Wellington for testing. See Note 1 “Application and Sending To GS1 NZ” above

examples of the product/s (except filled pallets). Without an image GS1cannot assess bar code location and the location report will be endorsed ‘not assessed’. This omission may influence your trading partners’ willingness to accept the verification report. Images:

- May be hard copy or electronic

- Must include a scale or ruler laid near the bar code to illustrate size

- Must illustrate location of bar code on complete unit

- More than one image of the same product/s may be required

- Electronic images should have the GTIN within the file name

3. Mobile Verification Service

- + 20 product/s in AK/WN areas, + 75 elsewhere

- +5kg or bigger than 0.125m3

- Haz Mat class creates difficulties of transport or storage

Wellington metropolitan areas

proposal will be prepared and sent to you

health and safety aspects of their visit to your site and supplying any necessary clothing or equipment

Discuss with GS1 NZ before ordering mobile verification

4 Interim Reports

including the bar code

black and white electronic image

dimensions to be accurately represented

finished product/s as soon as possible

Warning: because of the different materials, processes and possibly colours involved the final form of a printed bar code may provide different test results than those obtained from the artwork

The GS1Verification Report that you will receive will have a report number preceded by ‘INT’ and will not contain data on some attributes of the bar code that can only be assessed from an example of the finished job. If the final location of the bar code is not clear it may be reported as “not assessed” for location. The report will contain a comment warning that properties of the bar code may change with the final printing process.

5 Report Validity Period

Final Report: 12 months but obtaining reports more often is best practice.

Interim Report: Should be replaced by a final report at the first available opportunity and in no event longer than 12 months.

6 Return of Samples

Unless return is requested GS1 will dispose of non-confidential samples by donation to appropriate bodies such as the City Mission.

Where return is required please enclose a pre-paid courier ticket or envelope for the purpose.

7. Confidential Samples

the number of staff who deal with the product/s and will store it/them out of sight at their premises

as testing is complete: please enclose a pre-paid courier ticket or envelope for this purpose

be contacted immediately and the reasons explained so that the sample/s may be sent back immediately

sent to the designated contact. If you wish your personal or company details to be left blank on the verification report please contact GS1 directly to discuss this requirement

8. Understanding the report

For help in understanding the verification report http://www.gs1nz.org/verification_failures.php

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Bar code quality checklist

✔ Check that the GTIN is the one assigned to the

product.

✔ Ensure that the check digit is correct.

✔ Ensure that the correct symbol is used for the relevant

product, application and scanning environment - retail,

distribution, retail and distribution, or logistics.

✔ Check the size of the symbol, both the X-dimension and

the bar height.

✔ Check the position of the symbol on the fi nal, made-up

product.

✔ Ensure that there are adequate Quiet Zones (light

margins) and that any optional Quiet Zone Indicators are

correctly placed.

✔ Check that the contrast between the bars and the

background is adequate and that the colours chosen will

scan. Make sure that the colour of the contents of the

packaging will not unduly aff ect the contrast between

the bars and spaces.

✔ Check with a verifi er or an ordinary scanner that the

number you intend to use is the one encoded in the

symbol.

✔ Throughout the printing process use a verifi er – not

a scanner – to verify symbol quality. Ensure that the

contents of the packaging will not aff ect the contrast

between the bars and spaces.

✔ Check that the bar code will remain readable in the

environment in which the product will be stored,

handled and distributed.

✔ Ensure that you have complied with any industry or

trading partner requirements as to the size or number of

bar codes on your products.

✔ Ensure that no shrink-wrap, tape or other printing will

obscure the bar code on the fi nished product.

✔ Ensure that no other bar code will show through from

the inside of the pack.

✔ Check that the shape of the product inside the package

does not distort or otherwise aff ect the barcode.

✔ Keep records of verifi cation for the shelf life of the product.

✔ Notify trading partners of the GTINs and the products

they identify in good time.

✔ Keep a record of the GTIN and the product to which it is

assigned.

This checklist has been taken from two manuals that are available in the online version of this Kit as PDF documents:

• Bar codes, Getting it right – GS1 UK

• Basic User Guide – GS1 New Zealand

GS1 GEPIR Factsheet

what you need to know

GEPIR (Global Electronic Party Information Registry) is a unique,

internet-based service that gives access to basic contact information

for companies that are members of GS1.

These member companies use GS1’s globally unique numbering system

to identify their products, physical locations, or shipments.

By simply typing a product bar code number into GEPIR, anyone can

find the owner of that barcode’s contact information. Physical location

numbers and Shipment numbers can also be used as search criteria.

Visit http://gepir.gs1.org to see GEPIR in action.

GEPIR supports many different types of usage. The goal of the example below is to show you the main functions of GEPIR.

What is GEPIR?

When a company joins GS1 it is normally given a number called a Global Company Prefix (GCP). A GCP is a unique

number that can then be used as a base by the company to generate unique identification numbers for products

(GTIN), shipments (SSCC), locations (GLN) and more.

How does GEPIR work?

5 The MO that maintains the

information uses the GEPIR network

to return the contact information

about Widgets Inc. to the user.

4 GEPIR uses the GCP part of the

bar code number as the reference to

find the correct MO to request the

contact information.

2 The GS1 Member Organisation

stores basic contact information for

Widgets Inc. and makes this available

via GEPIR.

3 A person finds a product made by

Widgets Inc. and is interested to have

company contact information. The

person types the bar code number of

the product into GEPIR.

1 Widgets Inc. joins GS1, through

its local GS1 Member Organisation

and is given a number called a Global

Company Prefix (GCP).

register

receive GCPWIDGETS INC

Queries can be sub-

mitted using a com-

puter or a mobile

phone as well as by a machine-

to-machine connection.

Network of local

GS1 servers

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Did you know?

• GEPIR gives access to contact details for over 1 million

companies in over 100 countries.

• GEPIR is a network that connects data from GS1 Mem-

ber Organisations who represent GS1 at the country

level.

• GEPIR only gives information about the company who

owns the barcode number and the brand under which

the product is sold. This company may manufacture

their products anywhere in the world.

• A number of organisations, including GS1 Member

Organisations have developed mobile applications

on various platforms that interface with the GEPIR

network.

Who uses GEPIR?GEPIR supports a wide range of different uses.

Find out more. You can experience GEPIR directly at http://gepir.gs1.org

For more information, contact a GS1 office via www.gs1.org/contact

Application providers

confirming who owns

a bar code number.

Buyers in supermarkets find-

ing contact information when

sourcing new products

Consumers looking for more

contact information than print-

ed on the packaging

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7 Reference

Documents

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Executive Brief

IBM Global Business Services

Make your supply chain more efficient by using GS1 Global Standards Findings of the 2011 Consumer Goods Forum Compliance Survey

In collaboration with the Consumer Goods Forum

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2 Make your supply chain more efficient by using GS1 Global Standards

Executive SummaryChanging global market conditions and customer needs have

made collaborative working a necessity. The adoption of

standards and guidelines is critical for companies seeking to

improve collaboration and coordination. Many recent

documents from multiple organizations have highlighted the

importance of collaborative working. For example:

New rules for a new decade – a smarter supply chain,

published by IBM1

2020 Future Value Chain Agenda, published by

The Consumer Goods Forum – TCGF2

A case study of L’Oréal3

Additionally, you can find the analysis of the Global Scorecard

2011 survey with the latest insights into the consumer product

industry in the present executive brief.

This executive brief outlines several benefits of standards

implementation, including:

Improvements to the business measures by using standards

can be observed throughout the entire supply chain, such as

reduced distribution costs, lower out-of-stock rates and better

inventory cover.

The panel sample (companies having participated in the 2006

and 2010/11 surveys) shows an increase of implementation

levels and improved business measures over the four-year

span.

Additional efficiencies are evident in the supply chains of

companies with higher implementation levels.

The analysis has identified several drivers of the standards.

As retailers and wholesalers have more business partners to

collaborate with, rendering standards is extremely essential for

them. In addition, for fast-moving consumer goods companies,

logistics are time critical and standards help to shorten and

improve the lead time. Furthermore, The Consumer Goods

Forum members tend to be better informed, and therefore

have a greater understanding of the value of global standards,

collaboration and integration with their trading partners.

The brief also addresses benefits of the Global Scorecard Tool

for the consumer goods industry, such as:

The data contained in the Global Scorecard can help you as

an individual company, collaborate with your trading partners

or even your entire industry to better understand

implementation costs and benefits and to make better choices.

Procter and Gamble (P&G) uses the Global Scorecard Tool

on a regular basis for defining its business strategy and to set

priorities accordingly

L’Oréal recently implemented electronic data interchange

(EDI) for most of their products and the company discovered

that it helped to reduce their out of stock rates in storage areas

and shops

We can achieve collectively what none of us can

achieve alone.

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3

The industry challengesThe continued volatility and uncertainty of today’s economic

environment and the complexities of an increasingly global

supply chain are demanding enhanced supply chain visibility

and more widespread adoption of standards and guidelines to

help improve collaboration and coordination. Changing global

market conditions (such as commodity price swings) and

customer needs (for example, increasing numbers of new

product introductions) require optimal supply chain

configurations to synchronize supply and demand. But a lack

of visibility into the innumerable information sources hinders

supply chain response to these unpredictable swings.

Outperformers in this environment tend to be those that adopt

new guidelines to help enhance visibility, reduce volatility and

create value and use GS1 standards—the most widely-used

supply-chain standards system in the world—as a common

language.4 By adopting GS1 standards, companies can enhance

their ability to collaborate with supply chain partners.

The “New rules for a new decade” publication, which is part

of the IBM Smarter Commerce Initiative, illustrates how to

optimize your supply chain performance. Overcoming the

obstacles of supply chain complexity and uncertainty requires

that companies adhere to three new rules:

Know the customer as well as yourself. Reduce volatility

with anticipated demand.

See what others do not. Create visibility with collaborative

insights.

Exploit global efficiencies. Enhance value with dynamic

optimization.

See what others do not – unveiled visibility with collaborative insight

These rules are based on the findings of an IBM research

survey of 664 supply chain executives. Among those supply

chain executives who participated in the survey, there was a

selective group of visionaries who outperformed the others. As

a result, IBM researched what they were doing differently in

order to stay at the cutting edge.

Industry executives are at different points in the process of

building smarter collaborative visibility capabilities. Operators

are still struggling with transactional level exchanges and

breaking down the silos among supply chain functions within

the enterprise. For example, when sharing information with

their supply chain partners, they rely on EDI and are working

through standardization and data management approaches in

order to comprehend the information.

These visionary leaders stand apart from their peers in their

effective collaboration with network partners leveraging

business intelligence to make faster collective decisions.

We can achieve collectively what none of us can achieve alone.

At the same time, in their 2020 Future Value Chain Agenda

publication, The Consumer Goods Forum determined not

only that things need to be done differently, but that they also

need to be done collaboratively. Working together, we can

achieve collectively what none of us can achieve alone.7

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So, what do you want to achieve in 2020? Are you focused on

making your business more sustainable, optimizing a new

shared supply chain or engaging with technology-enabled

customers? Do you expect to achieve all of this alone, or will

you look for collaboration with your business partners?

Benchmark your company versus your peers regarding the adoption of supply chain technology by using the Global Scorecard Tool

What are you doing versus what other consumer product

companies in a comparable situation are doing? The Global

Scorecard is a benchmarking and planning tool that allows you

to track and follow improvements regarding the status of the

work in progress. The report-building tool allows you to run

various benchmark reports by selecting criteria such as revenue

groups, regions, industries and so forth.

Designed 10 years ago, the Global Scorecard is a Capability

Assessment Tool that is designed to provide a detailed

understanding of your Efficient Consumer Response (ECR)

capabilities each year while also highlighting specific

improvement opportunities for your company. This enables

you to compare your company with peers in your industry. In

addition, the Global Scorecard tool helps to drive profitable

growth, deliver targeted promotions and synchronize

inventory and brand experience.

The scorecard tool uses a common language and measurement

system to enable companies internally, trading partners

collaboratively and the industry collectively. It also helps your

company to understand how well you are doing relative to the

capabilities that have been built and the benefits you expect

those capabilities to deliver.

Key messages of the annual Global Scorecard SurveyData from the individual companies is collected and analyzed

annually, and the results are then published in the Global

Scorecard executive brief. For this year’s 2011 survey, the data

collected for the period ranges from May 1, 2010, to June 30,

2011; therefore it mainly reflects the 2010 data. In this year’s

survey, approximately 10,000 companies from 62 countries

worldwide shared their insights and utilization of standards as

well as their business measures. The details of the sample are:

9,099 key performance indicator (KPI) scorecards

8,790 companies

62 countries worldwide

Leading edge companies: 23 out of 2011 Fortune 500

companies5

Total revenue: US$2.25 trillion

290 The Consumer Goods Forum members

The number of submitted key performance indicators scorecards is increasing every year and represents an enormous value from industries and business types.

Scorecards

Number ofscorecards

10,000

20050

2,000

4,000

6,000

8,000

2004 2006 2007 2008 2009 2010

Inc

rea

se

Figure 1. The number of KPI scorecards submitted

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5

Raw MaterialSupplier

Manufacturer

Warehouse

Distribution

Retailer

Satisfied

customers

51% less

inventory cover2% higher

supplier

service level 3.5% higher

invoice accuracy

21% shorter

lead time

42% lower

distribution

costs35% less retail

distribution center

inventory cover

32% less out

of stocks

Figure 2. Efficiencies throughout the whole supply

Raw material inventory coverand boosting the SSCC level rate

level35 days

17 days

Raw material inventory cover

and boosting the SSCC level rate

SSCC implementation level <75%

SSCC implementation level >75%

35 days

17days

51%less

Figure 3. Boosting the implementation levels and usage of standards

The total industry value represented in this survey is US$2.25

trillion and includes 23 out of 2011 Fortune 500 companies.

In 2010-2011, we examined several thousand key performance

indicator scorecards submitted by consumer product

companies and observed several positive relationships between

the adoption of the GS1 standards and technology and business

results. Companies utilizing standards show several enhanced

efficiencies in their business measures, such as in inventory

cover, invoice accuracy, distribution costs, etc.

Looking at different implementation levels of Serial Shipping

Container Code (SSCC), we can actually see that those

companies that have implemented SSCC on a higher level

show a much better raw material inventory cover. Companies

using EDI receiving advice on a higher level show also a lower

out-of-stock rate.

Out-of-stock rate and using a Receiving Advice via EDI (Manufacturers)

a 3.5%

5.2% 32%less

Out-of-stock rate and using a receiving

advice via EDI (Manufactures)

Using no receiving advice via EDI

Using a receiving advice via EDI

3.5%

5.2%

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Relevance for the industry

L’Oréal case study: How the industry realizes benefits

L’Oréal France, a global cosmetic company, already works with

EDI for most of its global brands in 130 countries. L’Oréal

benefited from reduced out-of-stock rates in storage areas and

shops, improved anticipation of merchandise flow (production,

logistics) and optimized truck loads.

With use of EDI ‘order-to-cash’ messages in mind, L’Oréal

started the exchange of product master data synchronized

via the Global Data Synchronization Network (GDSN).

The synchronized database management system enables a

standardized and security-rich process for data distribution,

which aims at ‘data alignment’. This process has increased the

capacity of commercial units to distribute more reliable, quality

product information and has considerably accelerated the

information flow, allowing L’Oréal in France to react faster.

Today at L’Oréal

Presently, EDI exchanges are deployed for:

87 percent of sales from orders placed electronically with EDI

78 percent of sales are accompanied by electronic dispatch

advices

47 percent of sales are accompanied by electronic invoices

Procter & Gamble case study: How to use the Global Scorecard Tool

Benchmarking encourages a company to become open to new

methods, ideas, processes and practices to help improve

effectiveness, efficiency and performance.

Procter & Gamble is using the benchmarking data of the

Global Scorecard Tool to help define their supply chain

strategy and what supply chain technology they should focus

on. The information derived from the benchmarking results

can be leveraged to help build up the right strategy. Procter

& Gamble interprets its results by following logic, as

benchmarking can help companies understand the cost

and complexity of implementation:

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7

Annual growth rate

Supplier Service Level / Unit fill rate to customer distribution centre

Store service level / Unit fill rate

On-time delivery

Manufacturer/Supplier's finished goods inventory cover

Retail distribution centre inventory cover

Retail store inventory cover

On-Shelf/Point-of-sale out-of-stocks

Lead Time

Distribution costs (% of sales value)

Invoice accuracy

% of consumer units allocated Global Trade Item Number (GTIN)

% of cases/cartons/inners allocated a Global Trade Item Number (GTIN)

% of pallets/unit loads labeled with Serial Shipping Container Code (SSCC)

% of shipping or receiving locations that have been allocated a Global Location Number (GLN)

% of orders transacted via EDI

% of invoices transacted via EDI

% of shipments for which a despatch advice was transmitted via EDI

% of sales with synchronized master data between trading partners via the GS1 global data synchronization network (GDSN)

% of sales with master data loaded into a GS1-certified data pool

% of GTINs that are catalogued consistently with a GS1 Global ProductClassification brick code (not using 9999 designation)


Units

Business Measures % % % %

days days

% hours

% %

Implementation Measures % % % %

% % % % %

% %

# Records

Sample total

revenue US$m

SampleWeighted

Avg My Weighted

Avg

204 252980 5.4 7.9 190 263143 95.1 97.5 80 129424 96.0 98.1

232 274084 91.9 92.8 181 262620 20.5 34.9 97 153450 14.2 21.4 83 153823 14.7 24.1

100 199521 5.1 4.3 243 276275 85.5 87.5 210 220568 7.7 5.9 154 151337 94.0 94.5

1,713 629408 97.4 100.0 1,794 629729 76.4 100.0 1,859 654475 42.2 73.0 1,830 642151 42.8 80.2

1,828 644860 96.0 79.6 1,839 632739 45.7 44.9 1,810 590390 20.7 31.7 1,823 584982 6.5 14.4 1,778 598681 15.8 25.3

1,632 600879 41.4 71.3

989 570433 41.6 85.0

KPI regional bench marketing results for your company

My inventory levels are way

out of line with the market

averages

If I choose to drive EDI for

orders, I know there are a lot

of other practitioners

On the other hand, no oneis driving EDI for invoicing,

my investment costs will be

high

days

If your capability is low, but the market capability is high,

the cost and complexity of implementations are low because

there are established users in the market and best practices

in place.

If your capability is low, and the market is also low, then

the implementation cost and complexity tend to be high

(as can be observed in Figure 4).

Figure 4. Benchmarking overview for an individual company (figures are illustrative examples)

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Development of standards over timeWe have analyzed those companies who participated in the

2006 and 2010-2011surveys and have observed improvement

for almost all standards, as shown in Figure 5.

2006 Survey

2010/2011 Survey

97,1

85,093,0

98,6

80,448,0

45,1

48,6

60,7

55,9

47,7 47,7

32,046,3

9,3 26,0

25,312,5

4,8 12,2

% of consumer units allocated a Global Trade Item Number (GTIN)

% of cases/cartons/inners allocated a Global Trade Item Number (GTIN)

% of GTINs that are catalogued consistently with a GS1 Global Product Classification brick code

% of shipping or receiving locations that have been allocated a Global Location Number (GLN)

% of pallets/unit loads labelled with Serial Shipping Container Code (SSCC)

% of invoices transacted via EDI

% of sales with synchronized master data between trading partners (GDSN)


% of shipments for which a receiving advice was transacted via EDI

% of orders transacted via EDI

Increase

Increase

0% 20% 40% 60% 80% 100%

Figure 5. Results for standards for 2006 and 2010/2011

This analysis implies that companies did see advantages when

utilizing the standards, and that they therefore invested in the

expansion of standards.

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9

In the same time span, the business measures for the panel

companies have improved as well. For example, the on-time

Figure 6. Improved business measures during 2006 and 2010/11

2006

201096%

93.5%3%more

4.9%

5.2%6%less

2006

2010

93.5%

4.9%

5.2%

On-time delivery 2006-2010/11 Distribution costs 2006-2010/11

69.771.047.2IM13 % of GTINs that are catalogued consistently with a GS1 Global Product

Classification brick code

15.426.57.0IM12 % of active SKUs where the master data has been synchronized

using the GS1 Global Data Synchronization Network

73.6**41.6IM11 % of sales with master data loaded into a GS1-certified data pool (%)

15.142.417.022.224.419.0IM10 % of sales with synchronized master data between trading partners

via the GS1 Global Data Synchronization Network

62.458.413.922.316.012.0IM09 % of shipments for which a receiving advice was transacted via EDI

59.458.722.430.135.527.6IM08 % of shipments for which a dispatch advice was transmitted via EDI

79.978.667.140.545.647.7IM07 % of invoices transacted via EDI

81.375.870.451.547.051.7IM06 % of orders transacted via EDI

78.487.574.555.351.141.2IM05 % of shipping or receiving locations that have been allocated a GLN

66.671.649.457.167.249.4IM04 % of pallets/unit loads labeled with SSCC

90.387.082.673.486.687.6IM02 % of cases/cartons/inners allocated a GTIN

96.996.697.389.992.096.8IM01 % of consumer units allocated a GTIN

201020092008201020092008

Retailers & WholesalersManufacturers

69.771.047.2IM13 % of GTINs that are catalogued consistently with a GS1

Global Product Classification brick code

73.6**41.6IM11 % of sales with master data loaded into a GS1-certified data pool%

62.458.413.922.316.012.0IM09 % of shipments for which a receiving advice was transacted via EDI

79.978.667.140.545.647.7IM07 % of invoices transacted via EDI

78.487.574.555.351.141.2IM05 % of shipping or receiving locations that have been allocated a GLN

90.387.082.673.486.687.6IM02 % of cases/cartons/inners allocated a GTIN

201020092008201020092008

Retailers & WholesalersManufacturers

Figure 7. CP manufacturers, retailers and wholesalers and their implementation level of standards over the last three years worldwide

delivery and distribution costs show better values in 2010-2011

than in 2006 for the panel sample.

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Companies focusing on the global standardsFurthermore, we examined which companies drive the

implementation of the standards.

1. Retailers and wholesalers

In general, consumer product retailers and wholesalers display

implementation rates that, on average, are higher than those of

their manufacturer counterparts (worldwide). By interacting

with more parties, retailers and wholesalers are more likely to

adopt standards, thus making an efficient supply chain even

more important.

2. The Consumer Goods Forum (TCGF) members

TCGF manufacturers are ahead of the nonTCGF members in

implementing standards. This is because the members are

increasingly aware of the importance and benefits of the

measures. In addition, the companies involved are often very

large. In most cases, they have to interact with many business

partners and clients and need to implement standards in order

to communicate more efficiently

3. Fast-moving consumer goods companies

The fast-moving consumer goods (FMCG) industry takes the

lead in implementing measures. An efficient supply chain is

essential for the FMCG industry, as they rely on time and

money. The print and digital industry has also, at the same

time, many standards at an average implementation level of

75 percent since journals must be delivered on time (weighted

averages).

How companies implement standardsIn general, companies tend to implement the standards they

use at a high level, even higher than we observed in the

2009 survey.

Figure 9 demonstrates another view of how companies

implement levels by representing four different groups.

The top-right quadrant represents organizations with

6 to 10 different standards implemented with an average

implementation level of 51 percent and above. Those

companies, called industry leaders, as they drive the utilization

of standards, reported better business results in comparison

to their peers, who had fewer standards adopted and lower

average implementation levels.

1 2 3 4 5 6 7 8 90

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Number of measures implemented

Avera

ge im

ple

menta

tio

n levels

of

all

IM

imp

lem

ente

d NEWS

Electrical Goods

Books, Journals,

Music, Video

Textile

Home Improvement

Dry Grocery,

non food

Fresh /

Frozen Food

Dry Grocery,

food

Heath and Beauty

Figure 8. Average implementation levels and numbers of measures implemented by product category

Figure 9. Implementation levels and number of standards implemented

Industry leaders

1 5 6 10

Number of standards implemented

1%

50%

51%

100%

Avera

ge im

ple

menta

tio

n level o

f sta

nd

ard

s im

ple

mente

d

2009: 16%2009: 52%

2009: 28% 2009: 4%2010: 26%

2010: 59% 2010: 12%

2010: 3%

Industry leaders

2009: 16%2009: 52%

2009: 28% 2009: 4%

2010: 26%

2010: 59% 2010: 12 %

2010: 3%

Companies having more than

6 Implementation Measure

Measuress at anaverage level

of above 51% implemented

Compared to the global results (total sample), the industry

leaders show higher results and better business measures than

the global average. When comparing the industry leaders

versus the total sample, we see that the industry leaders, for

example, profit from a reduced order-to-delivery cycle time.

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11

SummaryWe have observed a positive upward trend in almost all of the

standards surveyed (as depicted in Figure 7). While it would

appear that some of the implementation measures have

declined from 2008 to 2010, keep in mind that 2010-2011

represents a significantly increased sample base, including

many small and medium enterprises that have more recently

begun adopting the GS1 standards. This expanded sample set

of smaller companies skews overall results downward.

Companies are continuously improving their standard

implementation levels, indicating that they can see the benefits.

These findings can be supported by the fact that a “panel

sub-sample” (companies who have participated in 2006 and

2011 surveys) showed a reasonable increase trend over the past

several years.

The global scorecard allows your company to measure its

current performance and capabilities using a global set of

standards so that it can compare itself to other groups within

the same geography, distribution channel or product category.

Companies that have implemented standards have exhibited

higher performance results compared to those that have not

done so. Boosting implementation levels on a greater scale has

demonstrated greater results than lower-level implementations.

Continuing to implement standards can result in ongoing

improvement.

Figure 10. Order-to-delivery-cycle time for global and industry leaders

Order-to-delivery cycle time (hours)retailer and wholesaler

6%less

44.8 hours

42.2 hours

Order-to-delivery cycle time (hours)retailer and wholesaler

Global

42.2 hours

44.8 hours

Industry leader

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© Copyright IBM Corporation 2012

IBM Corporation

IBM Global Services

Route 100

Somers, NY 10589

U.S.A.

Produced in the United States of America

January 2012

All Rights Reserved

IBM, the IBM logo and ibm.com are trademarks or registered trademarks of

International Business Machines Corporation in the United States, other

countries, or both. If these and other IBM trademarked terms are marked on

their first occurrence in this information with a trademark symbol

(® or ™), these symbols indicate U.S. registered or common law trademarks

owned by IBM at the time this information was published.

Such trademarks may also be registered or common law trademarks in other

countries. A current list of IBM trademarks is available on the web

at “Copyright and trademark information” at

ibm.com/legal/copytrade.shtml

Other company, product or service names may be trademarks or service

marks of others. References in this publication to IBM products or services

do not imply that IBM intends to make them available in all countries in

which IBM operates.

1 http://www.ibm.com/services/us/gbs/thoughtleadership/ibv-new-rules-

new-decade.html

2 http://www.theconsumergoodsforum.com/pfiles/programmes/

futurevaluechain/2020-Future-Value-Chain-Report.pdf

3 Information provided by L’Oréal France.

4 http://www.gs1.org/docs/patient_safety/GS1_Standards_in_Healthcare.pdf

5 http://money.cnn.com/magazines/fortune/fortune500/2011/full_list/

Please Recycle

GBW-03166-USEN-00

For more information For additional insights about the global scorecard, visit

globalscorecard.net where you can view case studies,

conference presentations and reports and detailed results of

the CGF 2011 Compliance Survey:

globalscorecard.net/live/download/ecr_related.asp

For further information please contact

Rüdiger Hagedorn from The Consumer Goods Forum

([email protected]) or

David McCarty from IBM ([email protected]).

IBM welcomes the opportunity to discuss your specific

standards implementation needs. Leveraging extensive

experience in the consumer goods industry, IBM Global

Business Services provides consulting services to the Consumer

Goods Forum on the subject of developing and using

capability scorecards. Please contact your IBM marketing

representative, or visit the following website:

ibm.com/services/us/gbs/consulting

About the Consumer Goods Forum

The Consumer Goods Forum is a global, parity-based industry

network, driven by its members. It brings together the CEOs

and senior management of over 650 retailers, manufacturers,

service providers and other stakeholders across 70 countries

and reflects the diversity of the industry in geography, size,

product category and format. Forum member companies have

combined sales of EUR 2.1 trillion.

The Forum was created in June 2009 by the merger of CIES

- The Food Business Forum, the Global Commerce Initiative

(GCI) and the Global CEO Forum. The Consumer Goods

Forum is governed by its Board of Directors, which includes

50 manufacturer and retailer CEOs and chairmen.

The Forum provides a unique global platform for knowledge

exchange and initiatives around five strategic priorities—

emerging trends, sustainability, safety and health, operational

excellence and Knowledge Sharing and people development

—that are central to the advancement of today’s consumer

goods industry.

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