Brochure Benefices - English

8/3/2019 Brochure Benefices - English

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11 billionreasons to say thank you

to barcodes


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Copyright GS1 France - Fotolia, Istockphoto. Printed 09/11


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INTRODUCTION

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On the importance of standards

A standard represents an agreement that structures companies activities. It can involve rules or recommendations

that everyone applies, and it can involve a method of measuring, describing or classifying products or services.GS1 standards are a set of rules on usage and a common language that enable the efficient management of supply

chains globally by identifying products uniquely, shipping units, sites and services and by making the exchange of

information between independent partners more reliable.

The international and multisector GS1 standards can thus help companies meet the challenges of a globalized supply

chain and make them more efficient and more profitable.


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GS1standards-benefittingcompanyperformance

Barcodes lead to 11 billion eurosin annual savings in France

Business processes that are too often based on manual

exchanges (paper, fax, telephone) are affecting the

performance of companies on increasingly competitive

markets. They generate additional costs due both to

dealing with paper, archiving data and managing

claims as well as to the lack of reliable information.

Thousands of documents throughout the supply chain are

exchanged daily between business partners to deal with the

design, production, distribution and sale of manufactured

products. From the product sheet to the notice of payment,

and including vital messages like orders, shipping notices

and invoices, the efficiency of the supply chain depends

on the smooth and secure flow of a great deal of reliable

information.


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uFrom the barcode

Manufacturers mark their products with a barcode and retailers equip

their stores with optical readers. Automatic product identification

thus facilitates the checkout process by reducing data entry

errors and waiting time. Use of the barcode is the basis for an

automatic resupply system and leads to an improvement of

the onshelf product availability.The use of barcodes is now

being extended to logistics and is helping optimize inventory and

stock management while ensuring product traceability.

u ... to EDI

Half of manufacturers and 100% of FMCG retailers automate the

exchange of data by using Electronic Data Interchange (EDI).

They electronically send and receive the documents forming the

basis of their transactions in a predefined format. This automation

has resulted, among other things, in the elimination of the

costs related to paper, in more reliable data and in the

reduction of manual inputting.

* 2010 survey conducted among members of GS1 France.

Savingsproved by30 yearsexperience

In France, 28 million orders are exchanged every yearin the commercial sector


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Annual savings of5.69% of annual retailrevenue through the use of barcodes

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u Savings achieved through the use of barcodes

Barcodes lead to an annual savings of 5.69% of retail revenue.*

The direct, concrete and quantifiable savings from the use of

barcodes 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 flows and the reduction of

unknown markdowns.

Economic impact of standards

on the supply chain

* According to the study 17 billion reasons to say thanks, PWC (Vineet Garg, Charles Jon es & Christopher Sheedy)


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EDI leads

794 millioneurosin annualsavingsin France

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Electronicmessages

Number % Savings in euros

Orders 24 352 003 87% 449 816 684

Shipping notices 10 318 303 37% 191 301 348

Electronic invoices 9 860 295 35% 139 030 159

Synchronizedproduct data sheets

320 000 10% 13 440 000

Savingsfor the members

793 588 191

Study methodology: The savings shown were calculated based on information gathered from manufacturers and

retailers and are totaled for the entire supply chain. The study was conducted among 98% of generalist retailerson their warehouse flows and on a sample that was representative - in terms of business sectors and sales - from

their suppliers (2009/2010).

uSavings due to the use of EDI

The implementation of EDI by retailers is considered

as strategic since all of them use EDI orders, representing

87%of all orders sent by this means.

Every year, 794 million euros in savings are realized

through the use of GS1 EDI standards for ordering, shipping

notices, invoices and product data sheets (see table below).

In all, about 1.56 billion euros could be savedif all current transaction messages (order -shipping notice - invoice) were dematerialized.


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EDI order: a savings of18.5 per message

The order is the message that initiates the business transaction. The reliability of this process

depends on the way it is handled: the administrative costs and the order-to-delivery period.

A manually processed order generates additional administrative costs and leads to more claims

than an order that is integrated directly into the information system of whoever receives it.

No need to send a fax Elimination of manual order entry Elimination of errors related to

automated shipments Fewer claims due to errors in manual input One day less of stock

needed

The integration of EDI adds real value to the companys business strategy and offers a

competitive advantage thanks to the simplification of the interaction between partners and

the greater capacity for flow management, and because a smaller team can now handle

a larger volume of business.

The savings transaction by transaction

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Savings for

everyone in thesupply chain

GS1s ROI Simulator

uHow are savings due to the use of GS1 standards calculated?

The savings matrix developed by GS1 France enables company managers

to calculate the return on investment (ROI) associated with the use of GS1

standards in the supply chain.

This new approach makes it possible, for each standard broken down by

process (product reference, resupply, shipping, reception, billing, etc.) to

identify the potential savings that could be realized if the standard were used.

uHow does the tool work?

Based on its profile as a manufacturer or retailer, the user enters its data into

a matrix (number of pallets shipped or received, number of product sheets,

pay of an operator, etc.) and the ROI Simulator then computes the potential

gains for each stage in the supply chain.

The ROI Simulator is a powerful tool for making decisions about the use of

standards and is available by request by emailing:

[email protected]


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The electronic shipping notice and the shipping label: a savings of0.5 per pallet

The joint use of the electronic shipping notice and the marking of shipping units using the

GS1-128 shipping label helps optimize logistics operations throughout the supply chain: goods

receipt, order preparation and the stocking and shipping of the goods. The automatic capture

of information on the packages / pallets together with the electronic submission of additional

information relating to these packages / pallets improves the reliability of the operations and

leads to significant productivity gains. It also guarantees control over product traceability.

Elimination of the cost of printing and attaching storage labels Better circulation of trucks

Automating the logistics processes has led to greater reliability with respect to order

preparation, shipping and billing, and it has also improved logistics productivity, accelerated

the reception process, and reduced the number of claims. The resulting improvements in

traceability, quality and security all go to the benefit of the consumer.

Logistics excellence: a savings of1 per pallet

Simplified reception is a process that helps expedite reception by reducing checks on quantity

and quality while improving the reliability of information concerning reception. It is the result of

collaboration between the manufacturer and retailer based on mutual trust and on the successful

use of the electronic shipping notice and the shipping label.

Elimination of the cost of printing and attaching storage labels Better circulation of trucks

Reduction of time for checks upon reception Elimination of claims about reception Fewer

staff needed on the unloading dock Elimination of quality checks Elimination of claims

about reception

The GS1 standards allow to reduce the time spent receiving products by more than 50%.

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Savings for

everyone in the

supply chain

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Savings for

everyone in the

supply chain


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A savings of14per electronic invoice and of42 per product data sheet

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The electronic invoice: a savings of14 per message

The invoice is a fundamental element in the business relationship. Whether an accounting record

or evidence for legal purposes, the speed and quality with which it is processed are crucial for

triggering payment. The dematerialization of the invoice consists in eliminating the sending of

the paper invoice and involves the computer-to-computer exchange of invoices using EDI or an

electronic signature.

Elimination of mail handling costs Reduction of sending costs Reduction of costs for checks

Reduction of accounts reconciliation Elimination of inputting costs Reduction of data

storage costs Reduction of the time to process claims

This has a number of advantages in terms of reducing administrative costs and storage

costs as well as automating and streamlining processes (processing speed, data integration,

accounts reconciliation, etc.). The result is better access to information and a better business

relationship.

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Savings for

everyone in the

supply chain


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2 200suppliers of retail productsdematerialize their product datasheets

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The synchronization of product information: a savings of42per product data sheet

The electronic catalog is indispensable for the supplier to provide reliable and up-to-date product

information to its various partners. The partners can thus be informed in real time, without

technology being a barrier. The synchronization of product information thus ensures that the

manufacturer (who holds the information) and the retailer (who receives the information) have

mirror images of the product information in their systems.

Reduction in the time to input information in the product reference Better productivity in

the management of product data sheets Fewer disputes with suppliers Acceleration of the

introduction of new products Increased productivity in order processing

Administrative costs are lower due to the elimination of re-entries of product data sheets,

to the use of a single exchange format and to a fall in commercial claims. Logistics and

shipping operations are optimized; the trucks are fuller; warehouse deliveries are faster and

more accurate, with as a result a decrease in logistics disputes. The shelving of new products

is speeded up.

Finally, the availability of products on the shelves is improved (less stockout, greater product

range, fresher products).

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Savings for

everyone in the

supply chain


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uAn annual study conducted by the Consumer Goods Forumhas established

a link between the use of GS1 standards and improvements in business

performance.

Achieve operational excellence with

GS1 standards

Difference- 52%

Difference- 44%

7,8%

8,9%

3,8%

5%

No use of SSCC

and of ORDERS messages

Use of GDSN

1 - 50%

Use of SSCC

and of ORDERS messages

Use of GDSN

> 50%

Reduction in the out-of-stock percentage due to the use of SSCC and EDI order transmission

Reduction of distribution costs due to the use of GDSN


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The tables are taken from the publication, Improving business performance and competitive advantage through theimplementation of standards (Findings of the Consumer Goods Forum Global Compliance Survey - January 2011).

More competitive

Efficiency Customersatisfaction

Qualityenhancement

Sustainability

business relations

relations

satisfaction

information

invoicing

Level of supplier service 8 Out-of-stock level 7 Quality of invoicing 8 Distribution costs 7

crates

(for the suppliers)

data by GDSN

Level of store service 8Duration of order

--> delivery cycle 7

Annual growth rate of sales 8

standards (E401)

#

IBMG lobalT echnolo gySe rvices 9

A sseen inF igure 6,the top-r ightq uad rantre prese ntsorg aniza tion swith 6-10 stan dardsi mple men tedth athav ean avera gem inim umim plem entat ionle velo f51p ercen t.C ompan iesin this grou prep orted lower dist ributi onco stsin com pariso nto their peersw ith fewer stan dardsa dop tedan dlow erave rage imp lemen tatio nlevel s.In dustry lead ers(co mpan iesth ath aveim plem ented atle astsi xstan dard satan avera geim plem entat ionle velo fabo ve50 perce ntm anufac turer asw ellasr etail eran dwh olesal er)p rofitfr omred uced distr ibutio nco sts.

F igure6 .Distr ibutio ncosts and theus ageof standa rdsF igure 7illu strates that there are manyb enefi cialr elati onsh ipsbet ween theu sageo fsta ndar dsan dbu sinessm easu res.

Effic iencyCus tomersatis faction I mproved quality S ustain abilityCo mpeti tivea dvanta ge

TimesavingCo streductionImprovedsupplyc hainoperationsImprovedvisibilityInc reasedundersta ndingofretaile rsne edsandbecomepreferredco llaborationpartn erInc reasedsales

Imp rovedclientrela tionshipImp rovedcustome rsatisfactionBe tterinformation availability Improveddataqu alityewerinvoice-dis putes Impro vedImage&Bra ndLessWasteOptimizedusageofre sourcesBetter overviewofinv entory

SupplierServ iceLevelGTINoncon sumerunitsGTINoncas es/cartons/inne rs StoreServic eLevel

SSCCEDIfororde rsEDIdespatc hadviseSaleswiths ynmasterdata AnnualReve nueGrowth RateRolloutand fullimplementa tionofTradingp artnerperforma ncestandards(E 40 1)

Outofstoc ksGTINonc ases/cartons/in nersSSCCEDIforord ersEDIforde spatchadvice

Invoiceaccu racyEDIforinvo ices(manufactu rers)

Distribution costsGTINoncon sumerunitsGTINoncas es/ca/s/rtons/inne rsEDIfororde rsSaleswiths ynchronizedma sterdataviaGD SN

rdertdeli veryrercycleti meGTINoncon sumerunitsGTIoncas es/ca/rtons/inne rs

100% In ustry lea ersd ustry lea der

1 5 6 1 0 Numbero fstand ardsimp lemente d1%

50%51%

Averageimplementationlevelof

standardsimplemented

Distrib utionco sts:11.4%11.4%

Dis tribution costs:6.5%-3% F igu re7

.Competitiv eadva ntage chart

A ss how ninF igure 8,th eou t-of-st ockra te(th eext enttowh ichth epro ducti savai lable when the consu mer wants tob uyit)i smu chlo weram ong com panies who have imp lemen tedth eSer ialS hippin gCo ntain erCo de(S SCC )stan dard oruse dED Ifor order s.Bo thact ionsc ould lead tobet terse rve consu merswh oben efitfr omfe wer out-o f-sto cksan dearl ierac cesst onewpro ducts .Itis essen tialt hatco nsum erva luean dsat isfact ionar emet tom ainta insh opper loyal ty,n oton lyfor theb rand s,butalso toth eretai lstore inord erto increa sesale sand catego rypro fitab ility.

F igu re8 .Low erout- of-sto ckrate with theus eofSS CC

On-She lf/POSout-of- stocks withth euse ofSSCC

3,8 %

7,8%

Implementa tionofS SCC

N oImple mentatio nofS SCCDiffe rence:-52%

The completion of the order - shippingnotice - acknowledgment of receipt of goods- payment notice flows using GS1 standardsleads to a savings of 50 per order


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Since its inception, the mission of GS1 has been to facilitate commercial exchanges between

businesses by developing multisector communication standards.

GS1 has a vision of a world where objects and the information related to them circulate

efficiently and safely. We do this for the benefit of companies and to improve the daily lives

of everyone.

Our mission is to be a neutral leader that enables communities of users to develop and

implement international standards by providing the tools and building the confidence

needed to achieve our vision.

Identify, capture, share the 3 key stages in GS1 standards

The GS1 system is built around two main elements: automatic identification standards

and communication standards.

The automatic identification standards are based on identifiers (e.g. a product reference,

a use-by date, a batch number, etc.) and bar codes and / or RFID chips that can carry these

identifiers and capture them automatically at any point in the supply chain.

The communication standards are used to exchange data about transactions (order, invoice,

shipping notice), stable master data (product sheet data) and visibility data (related to

events).

GS1 standards are a component of the companys Social and Environmental

Responsibility

86% of companies continue to send and receive paper documents or use their phones

to conduct their daily transactions.

At a time when companies are all making commitments to sustainable development,

this figure raises questions.

The implementation of GS1 standards is part of a responsible development policy.

Eliminating paper shipments through the dematerialization of flows and optimizing the

filling of trucks through the improved synchronization of product information are some

examples of ways that GS1 standards contribute to a better environment.

GS1 France is contributing tocompanies digital development


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T +33 (0)1 40 95 54 10F +33 (0)1 40 95 54 49E [email protected]

www.gs1.fr

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Brochure Benefices - English