Transcript No Slide Title

ECRx BARCODING
IMPLEMENTATION
Frank Goodman
Sept. 24, 1998
Frank H. Goodman & Assoc. Ltd.
COMMITTEE STRUCTURE
ECR Steering
Committee
ECRx Stakeholder
Committee
ECRx Enabler
Working Committee
Bar code
Subcommittee
Sept. 24, 1998
EDI
Subcommittee
Scorecard
Subcommittee
Frank H. Goodman & Assoc. Ltd.
Industry Catalogue
Subcommittee
Barcoding Subcommittee
Members
Frank Goodman (Chair)
 Maryann Crofoot - AltiMed Pharmaceutical
 Alicia Duval - CACDS
 Ratna Jani - ECCC
 Andree Soucy - Jean Coutu
 Heather Smeall - Procter & Gamble
 Roman Coba - Wal-Mart
 Selim Toutounji - Wyeth-Ayerst

Sept. 24, 1998
Frank H. Goodman & Assoc. Ltd.
Committee Mandate
Build on work done by the ECR Committee,
applying the concepts to Rx, OTC and
cosmetics
 Agree on standards for UPC and barcodes
for item and case coding
 Agree on target timelines for the drug
channel
 Suggest use of UPC number universally catalogues, price lists, tender documents,
etc.

Sept. 24, 1998
Frank H. Goodman & Assoc. Ltd.
Progress in drug channel (UPC’s)

 Sold
in mass market and
food channels

Rx - progress is being
made
Sept. 24, 1998
Sep-98
Apr-98
 Compliance
Nov-97
82
80
78
76
74
72
70
68
66
64
OTC’s and cosmetics are
largely compliant
is improving
 Over 87% of
manufacturers are at least
40% compliant
 Product is working its
way through the supply
chain
Frank H. Goodman & Assoc. Ltd.
Sept. 24, 1998
Frank H. Goodman & Assoc. Ltd.
Panel Members

Ratna Jani
 Director,
Industry Relations and Administration
 Electronic Commerce Council of Canada

Heather Smeall
 Efficient
Consumer Response Manager
 Procter & Gamble Inc.

Bill McDowell
 Director,
Supply Chain Technology
 Loblaw Companies Ltd.
Sept. 24, 1998
Frank H. Goodman & Assoc. Ltd.
ECR Barcoding Implementation
A grocery perspective
Bill McDowell
September 1998
10
Grocery ECR Today
ECR CANADA
The CEO Steering Committee was formed 5 years ago.
This committee identified five Enablers that would help
companies resolve inefficient business practices.
• Scan data Integrity
• Electronic Data Interchange (EDI)
• Continuous Replenishment
• Value Chain Analysis (VCA) and Activity-Based Costing
(ABC)
• Category Management
11
Grocery ECR Today
Progress
We at Loblaws have taken up the challenge and are moving
forward. Some issues require an industry direction, and
this has happened in several areas.
• Scan data Integrity
•Item barcodes are mandatory, and new items must be
certified as scannable.
•Case barcodes are required and are being implemented.
•UPC’s are mandatory.
• Electronic Data Interchange (EDI)
•The industry has adopted the VICS 4010 standard.
12
ECR in Pharmacy
Progress
As a result, we have achieved efficiencies in inventory
management and replenishment for grocery and most
Health and Beauty products. It is also true for OTC
products such as generic drugs, vitamins and so on.
Benefits:




Automated ordering and inventory management
Automated dated product management
Simpler distribution handling processes, less labour and
higher accuracy, reduced distribution costs.
Reduced retail labour for receiving, handling, sales.
13
ECR in Pharmacy
Implications for Pharmacy
#1 Case barcodes
Because of grocery industry efforts, case barcodes are
becoming common, including expiry date on perishable
products.
Therefore:
 There is an opportunity for the drug industry to gain
distribution efficiencies by adopting case barcodes.
 There is a similar opportunity at retail on case sales (e.g.
infant formula).
N.B. The largest issue here is the quality of the barcode printing.
14
ECR in Pharmacy
Implications for Pharmacy
#2 Unit barcodes
In the grocery industry, new products are now expected to
have a certificate of scanability before being listed. This
means the barcode has been reviewed for clarity, contrast
and dimensions.
Therefore:


Front-end scanning accuracy is 99%+.
Data integrity is greatly increased while front-end labour
has been reduced.
15
ECR in Pharmacy
Implications for Pharmacy
#3 UPC codes
Every manufacturer has an internal product numbering
system. Such numbers cannot be used by your customers
for automated inventory management or ordering.
Duplicate numbers will occur.
Therefore:

As retailers move to automated inventory systems,
products which are easy to handle and order will be
preferred over competitive products.
16
ECR in Pharmacy
Retail directions for barcodes
By having UPC’s, unit and case barcodes, the retailer gains
several opportunities.




Automated systems for inventory and ordering.
Efficient receiving and handling of units and cases.
Dated product management.
Better data for category management.
17
ECR in Pharmacy
Current Challenges
However, there are some issues with some prescription
drug products and manufacturers.
The lack of UPC’s and barcodes.
The solution:
A
unified Industry position
 Consistent,
unified industry pressure.
18
ECRx
BAR CODING
IMPLEMENTATION
MANUFACTURER’S PERSPECTIVE
PROCTER & GAMBLE
Sept. 24/98
ECRx Bar Coding Implementation
Costs and benefits
 Usage in the supply chain
 Database management and UPC set up
 Challenges and opportunities

ECRx Bar Coding Implementation
Usage in the Supply Chain
Standardized data management and
business analysis
 Category Management/Efficient Assortment
 EDI Ordering and Invoicing
 ASN/UCC128 and cross docking/flow-thru
 Warehouse handling; real time RF processes

ECRx Bar Coding Implementation
Costs
Vendor code
 Packaging artwork changes
 Application of UPC, case and pallet codes
 Codes administration
 Validation certificates
 Integration of bar code scanning capability
throughout the supply chain

ECRx Bar Coding Implementation
Benefits
when fully integrated
Inventory accuracy improvements
 Reduced inventory
 Productivity improvements
 Enables ASN/UCC128 which results in
reduced unloading times, reduced
deductions/ refusals, internal cross dock
 Leads to reduced damage levels

ECRx Bar Coding Implementation
Database Management and Set up
Purchase a vendor code purchase
 Assign a central administrator
 Define the process for requesting and
assigning UPC codes
 Expand product data base to include UPC
code (including vendor code)
 Randomly assign codes as requested
 Follow ECCC UPC guidelines

ECRx Bar Coding Implementation
Challenges and Opportunities
small items
 zero suppressed codes
 scan accuracy
 lack of use/critical mass
 change management

ECRx ~ Standards for Product
Identification and Barcoding
Ratna Jani
Director, Industry Relations & Admin
ECCC
Agenda At-A-Glance
 About
ECCC
 Globalization of Product I.D
 Standardization Issues
 Future trends
 Available resources
Electronic Commerce Council
Mission Statement
The Mission of ECCC is to take a Leadership Role
in Establishing and Promoting Multi-Industry
Standards for Product Identification and related
Electronic Commerce Communications
ECCC’s Role in Product Identification

Accurate assignment of U.P.C. Manufacturer
I.D. numbers
 Maintain

data base of assigned numbers
Provide education on standards to all
industries
 Industry
Specific Workshops
 Customized Sessions to meet individual needs

Developing an Electronic Product Catalogue
 ECCC
Net
Developing Global partnership through
Global Policy Committee
The UCC /EAN System Provides an Integrated Suite
of Standardized Tools that Enable Effective
Management of Supply Chains
•In Any Company
•In Any Industry
•Anywhere in the
World
SUPPLY
CHAIN
MANAGEMENT
ELECTRONIC DATA INTERCHANGE
U.P.C. standards are globally
compatible and harmonized



Uniform Code Council (UCC)
and International Article
Numbering Association (EAN)
establish the standards jointly
Canada adopts the established
standards
The standards are endorsed by
ISO and IEC
Standards vs Guidelines
Standards are established by the American
National Standards in the U.S. and adopted
by the UCC and ECCC
 Standards undergo a six year review process
and cannot be changed.
 Guidelines are established based on the
business needs and within the confines of
the standards.

Inconsistencies identified in standards
application
Lack of understanding the standards
 Ignorance to compliance factors
 Poor quality compliance
 Technology unable to meet the symbol
quality demands
 Internal resources lacked expertise
 Lack of information integrity
 Data unusable to monitor industry
performance

Product identification codes
serve as keys to information

Unlock information about the manufacturer,
item, description, price
 This
supports the many-to-many relationship
between buyers and suppliers
 Ability to track products from manufacturing to
delivery in any industry, market sector, or
geographic region
Why Standard Product Identification?
One number used to reference the item by
all members of the supply chain
 No more storing proprietary numbers
 No more cross referencing
 What you see is what you get

BROKER
MFCTR
Same #
DIST.
RTLR
Global migration to an expanded
number structure
Need identified to increase number capacity
to fulfill rate of growth
 New industry sectors coming on board
 Unlimited use of application:

 Returnable
asset number
 Individual asset number
 Location number
 Service relation number
14 Digit Global Structure & Data base
alignment
14 13 12 11 10
9
8
7
6
5
4
3
2
1
0 N2 N3 N4 N5 N6 N7 N8 N9 N10 N11 N12 C
U.P.C.
0
EAN-13
0 N1 N2 N3 N4 N5 N6 N7 N8 N9 N10 N11 N12 C
SCC-14 PI N1 N2 N3 N4 N5 N6 N7 N8 N9 N10 N11 N12 C
U.P.C. Version A is a 12-Digit
number
ASSIGNED BY ECCC
7
71234
NUMBER MANUFACTURER
SYSTEM
ID NUMBER
CHARACTER
CONTROLLED BY
MANUFACTURER
10001
ITEM
NUMBER
8
CHECK
DIGIT
Number System Characters
0,6,7 Regular U.P.C. coded products
2
Random weight products (meat, produce,
cheese, fish)
3
National Drug Codes or National Health
Related Items (US only)
4
Used for in-store marking
5
For use on Coupons
1,8,9 Reserved for future assignment by UCC
Manufacturer Identification Code

Normally one Manufacturer ID number is
assigned per company
 Company
may request separate IDs for
divisions
 Company may request more than one ID if
company manufacturers more than 100,000
products
Item Numbering
Item code is a 5 digit number
 100,000 item numbers allowed ranging
from 00000 to 99999 per Manufacturer ID
 Each product variation must have its own
unique item code (flavor, weight, quantity)
 Maintain a record of all the item numbers
to avoid duplication

U.P.C. Item Number Changes
Guideline # 27




A weight or count change in a product requires
a new U.P.C. item number
Minor formulation, packaging or graphics changes
replacing an existing product do not require
change in item number
Provide a minimum of 30 day advance notice to
your trading partner
A U.P.C. should not be reused for 4 years after the
last shipment
Maintaining Print Quality

U.P.C. Symbol must be tested and verified
at each stage of production
 Design
 Artwork


and film production
Print
Final filled package must be submitted to a
3rd party validation company to provide a
conformity report
Overall improvement in Quality
compliance per 1000 evaluations
May 1996
 Overall Pass 659
 Overall Fail 341
 OVERALL POS
1st pass scan rate
91.1%
January 1998
 Overall Pass 791
 Overall Fail 209
test
OVERALL POS test
1st pass scan rate
98.8%
Reasons for failures
Overall Fails out of 1000








Truncation
ANSI grade
Location
Modulo check
Margins
Encodation
Database
Magnification
May 1996
January 1998
22%
16%
1.3%
2.6%
9.3%
2.7%
0.8%
6.0%
13.1%
8.5%
0.2%
1.8%
1.7%
0.6%
1.6%
2.1%
Truncation Reduces The
Scannability of a U.P.C
LASER BEAM
LASER BEAM
Example of a truncated symbol
Truncation is prohibited except for
small items

Small packaging exemptions apply to:
Products that contain too much regulatory
requirements
 Products that do not have a panel for an 80%
full height symbol
 Uniquely shaped products

Exemption applies to small packaging
Exemption applies to small packaging
Exemption applies to small packaging
U.P.C. symbol quality plays a significant
role in item management
 Goal
is to maintain a 99% accuracy
scan rate.
 Scan rate allows the monitoring of
product movement and category
management
 Validate the U.P.C. Symbol for quality
compliance
SCC-14 is created from the item
ITEM
U.P.C.
SCC-14
PACKAGING
INDICATOR
012345
P 0 012345
FILLER
ZERO
SUPPLIER
ID. #
67890 C
67890 C
ITEM
#
CHECK
DIGIT
SYMBOL LOCATION
0.75”
1.25”
1.25”
(NOT TO SCALE)
Two adjacent sides preferred
PALLET LEVEL
SSCC-18 with ASN
CARTON LEVEL
SCC-14
CASE LEVEL
U.P.C/SCC-14
ITEM U.P.C
OR EAN
Macro view of Industry Trends
and Impact
UCC developed a new solution for small
packaging

Solution will:
 allow identification of extremely difficult to handle products ~
of vials, syringes, blister packs and ampoules
 supplement the current barcode symbology
 be scannable with current equipment available and printable
 be globally compatible
 allows encodation of primary and secondary data
 Allows encodation of 56 - 200 characters within an inch
square
 meet the needs for Random weight products, Electronic,
Healthcare
New terms for the solutions are…

The Reduced Space Symbol (RSS)

The Composite Symbol
Reduced space symbology (RSS)





Composite symbol
Variant of Micro PDF417
EAN-13 symbol encoding
expiration date and lot
number
(17)971028
(10)1234567890ABCD1234
56
New Composite Symbol
2D
RSS-14 +
.95” long
RSS-14 Limited +
.74” long
LINEAR
RSS-14 Stacked +
.57” long
1 inch
Small item marking solution
Keeping abreast on trends:

Standards manuals
 U.P.C.
Implementation guideline
 Application standards for shipping containers

Through ECCC knowledge network
 EDI
and Product ID Standards
 Education Programs
 Industry Supply Chain Updates
 UCC/EAN Activities
ECCC Can be reached at:
Call 1-800-567-7084
 Web site address: www.eccc.org

 ECRx

site:
www.eccc.org/ecrx/
E-mail [email protected]