The Supply Chain Visibility Opportunity

Debbie Bower – Dot Foods Ron Trauthwein-Coca-Cola

Ryan Richard – GS1 US

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If anyone has concerns about the propriety of a discussion, please inform a GS1 US representative as soon as possible.

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Why Visibility? • Benefits of an integrated traceability process

could represent approximately $3 billion in savings to the fresh foods industry as a whole

• A shared view of the product can help increase sales and customer loyalty by decreasing out-of-stocks by enabling on-shelf availability

• The Food Safety Modernization Act

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GS1 US

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The only way businesses big or small can move forward is to work together.

They need to be able to understand each other, anywhere in the world..

Business requires a common language, and we make that possible.

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GS1 US Solving Industry Needs

Industry Problem /

Opportunity Requirements Solutions Adoption

& Usage

GS1® helps industry identify a problem or opportunity and organize to solve it

GS1® helps industry define their needs /goals and create adoption plans

GS1 ® develops: • Standards • Guidelines • Tools • Readiness Programs • Education & Training

GS1 Standards

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GS1 US Retail Grocery Initiative: Supply Chain Visibility Workgroup

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Supply Chain Visibility

Industry guidance on increasing supply chain

visibility and key business processes

Immediate Deliverables: Traceability Use Case

analyzing business benefits, standards

needed, and impacts expected

Charter: The Supply Chain Visibility Workgroup is developing and deploying industry specific guidance and best practices for managing supply chain visibility and the key business processes, including inventory management, on-shelf availability, recall readiness and others, that depend on enhanced visibility.

• GTINs are created for each product and dispatch unit • Batch/Lot or Serial Numbers are captured for each unit of product

packed • GTINs and production data (Batch/Lot or Serial Number, Product

Dates, etc.) are printed on products (barcode and human readable) • SSCCs are created for each dispatch/logistics unit created • GDSN/Product data is defined, created and published • Brand Owner GLNs are assigned and shared as source of product • Transactional data is shared (EDI-PO, ASN, BOL, Invoice)

Benefits • The use of GTINs, SSCCs, barcodes and electronic data

• Reduce costs and time spent on manual processes • Improves order accuracy • Reduces delivery errors • Increases accuracy for electronic commerce/website information • Improves cash flow

• Unique product identification in barcodes (GTIN® & Batch/Lot or Serial Numbers) enhances product visibility to support safe handling processes (dwell time, temperature consistency, source location, etc.)

Supply Chain Role: Processor/Manufacturer

Barcodes

GLN GTIN

GDSN

EDI

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Benefits • GTINs, SSCCs, barcodes & Electronic Data

• Optimize receiving productivity • Increase receiving accuracy • Improve inventory management • Expedited put-away • Reduction in mis-picks & shorts

• GLNs identify warehouse locations and product source for traceability

• GDSN® data (synchronized product data) aligns

• Product dimensions • Product handling procedures

• Physical Event data capture enables • Inventory availability • Managing date coded product

• Better data thru GS1 Standards can enable labor planning and efficiencies

Supply Chain Role: Distributor/Wholesaler • GTINs, SSCCs and barcodes are used for

• Receipt verification • Product put away • Product pick

• GTINs, Batch/Lot or Serial Numbers & Product Dating are used for • Inventory rotation • Quality control processes/Recall Preparedness • Order management

• GTINs, SSCCs and GLNS are used in electronic data exchange of • (EDI) ASN, POs, BOLs, Invoices to customers • WMS updates (inventory and delivery data)

• GDSN® /product data is consumed & (can be) published with trading partners • GLNs are created by facility and can identify source and recipients of product

• Shipment creation • Physical Event data capture

Barcodes

GLN

GTIN

GDSN

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Benefits • GTINs, SSCCs, barcodes & Electronic Data

• Optimize receiving productivity • Increase receiving accuracy • Improve inventory management • Expedited put-away • Reduction in mis-picks & shorts

• GLNs identify warehouse locations and product source for traceability

• GDSN® data (synchronized product data) aligns • Product dimensions • Product handling procedures

• Physical Event data capture enables • Inventory availability • Managing date coded product

• Better data thru GS1 Standards can enable labor planning and efficiencies

Barcodes

GLN

GTIN

GDSN

Supply Chain Role: Distribution Center (Private or 3PL) • GTINs, SSCCs and barcodes are used for

• Receipt verification • Product put away • Product pick and/or Voicepick

• GTINs and Batch/Lot or Serial Numbers and Product Dating are used for • Inventory rotation • Quality control processes/Recall preparedness • Order management

• GTINs, SSCCs and GLNS are used in electronic data exchange of • (EDI) ASNs to customers • WMS updates (inventory and delivery data)

• GDSN® data is consumed • GLNs are created by facility and can identify source and recipients

of product

• Shipment creation • Physical Event data capture

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Benefits • GTINs, SSCCs, barcodes & Electronic Data

• Optimize receiving productivity • Increase receiving accuracy • Improve inventory management • Expedited put-away • Reduce shrink

• GTINs and barcodes enable • Quick and accurate POS • Loyalty & membership cards linked to Consumer

purchases

• GLNs identify store locations of receipt and product source for traceability

• GDSN data (synchronized product data) provides • Planogram for shelf fit • Creation of shelf tags • Increases accuracy for electronic commerce/website

information • Nutrient & allergen information for consumers

• Physical Event data capture enables • Inventory availability • Managing date coded product • Country of Origin

Supply Chain Role: Point of Consumption: Retail Store • GTINs, SSCCs and barcodes are used for

• Receipt verification • Product put away • Inventory replenishment – Backroom, On shelf, • Efficient POS process (UPC-A/GS1 Databar) • Physical Event data capture

• GTINs and Batch/Lot or Serial Numbers and Product Dating are used for • Inventory rotation • Quality control processes

• GDSN data is consumed • GLNs are created by facility and verified as source & recipient of product • GTINs, SSCCs and GLNS are used in electronic data processes:

• ASNs, POs, BOL, Invoices (EDI) • On-shelf availability • ERP systems updates

• Sales recording • Recall preparedness

• Trigger for auto alerts of recalled products

Barcodes

GTIN

GDSN

GLN

EDI

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Coca-Cola at a glance

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Coca-Cola production environment

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98 PLANTS

336 PRODUCTION LINES

1,500+ SKU’s

PRODUCT SUPPY SYSTEM North America

1.9B cases annually

Products span across 5 platforms

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Coca-Cola Customer Distribution

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10,000 HEAVY DUTY

4,000 LIGHT DUTY

22MM DELIVERIES/YR

1MM LOCATIONS

Retail - DSD

Foodservice - Distributors 400

Distributors

389 DIST. FACILITIES

1,600+ DC’s 474,000 Outlets

1,700 Chain Customers

Product Identification is a vital component for Traceability… Coca-Cola has evolved as the industry landscape has changed.

Our Packaging identification journey

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GTIN UPC SSCC ITF-14

ITF-14 enabled supply chain efficiencies across Coca-Cola and our customers supply chain but lacks fully integrated track & trace…

ITF-14 Case identification

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2010 – 2011 • Print & Apply Labels • Warehouse Juice & Still

products

2012 – 2013 • Direct Inkjet Print • High speed lines • Expanded # products

2014 - 2015 • Reassess Strategy • Prioritize products • Focus GS1-128

2016 & beyond

• Pilot GS1-128 on Syrup & Hotfill lines • Gain Capital Funding Approval • Multi $MM investment & Multi-year implementation

From ITF-14 to GS1-128

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Implementing GS1-128 case labeling is a significant

investment to protect our company brands

GS1-128 provides:

System and customer integrated identification

Warehouse Inventory

Management Traceability

Delivery Efficiencies

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• Integrated with Master Data & Industry Topics

• Aligned to platform and customer utilization

• Foodservice products high priority

Multi-year GS1-128 Strategy

19 Schedule subject to change and annual capital funding approval

Dot Foods

Who Is Dot Foods?

Founded in 1960

Privately Owned $6 Billion in Sales

5,200 Employees

FOODSERVICE

1975 VENDING

1995 GROCERY

1998

MASS

2009 DOLLAR

2013

FOOD MANUFACTURERS

1960

Dot Channel Expansion

CONVENIENCE

2001 DRUG CHAINS & DRUG

WHOLESALERS

2008

Dot Foods Numbers

Customers:

4,200 Manufacturers:

800 Products:

112,000 40,000 STOCKED

Dot’s Fleet

1,700 Multi-Temp Trailers

94% On-time Customer Delivery

Within 15 minutes of scheduled time

1,100 Tractors

Dot Foods Coverage

Modesto, CA 150,000 sq. ft.

Ardmore, OK 167,000 sq. ft.

Dyersburg, TN 129,000 sq. ft.

Vidalia, GA 221,000 sq. ft.

Williamsport, MD 285,000 sq. ft.

Liverpool, NY 306,000 sq. ft.

Cambridge City, IN 132,000 sq. ft.

Mt. Sterling, IL (Headquarters) 1,508,000 sq. ft.

Burley, ID 120,000 sq. ft.

3 MILLION SQUARE FEET

Audits for Accuracy • ASN Audits

– Compare ASN data to the actual load for the following:

• GTIN • Quantities • Production and Expiration

Dates (if applicable) • SSCC

• Barcode Audits – Proactive Scan/Cubiscan

• Top Suppliers - Data Accuracy Scorecard

• New Suppliers

– During Receiving • Receivers select reason

not able to use bar code

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Reason Code Reason ID Description

1 No Barcode No barcode on product

2 No Scan Barcode did not scan

3 No Item Scan did not return an item

4 Wrong Item Scan returned wrong item

Data Accuracy Scorecard

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Pallet SSCC vs. Case Receiving

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Barcode Receiving Demo

Lot Code Examples

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Without ASN With ASN

Common Issues With ASN Method

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Late ASN’s • 2015 had 10% of ASN’s

arrive late.

No ASN Sent • In 2015 we had NO ASN for

18.17% of our PO’s.

Barcode does not Match what is Published via

GDSN • Receivers have to take time to do

a manual search.

ASN Receiving Stats

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100% of DC’s utilizing – Q1 2016

ASN’s Received in 2015 146,318

% of Cases on Palletized ASN (pd 13) 65.7%

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Speaker Questions ?