The Supply Chain Visibility Opportunity
Debbie Bower – Dot Foods Ron Trauthwein-Coca-Cola
Ryan Richard – GS1 US
1
Antitrust Caution GS1 US is committed to complying fully with antitrust laws.
We ask and expect everyone to refrain from discussing prices, margins, discounts, suppliers, the timing of price changes, marketing or product plans, or other competitively sensitive topics.
If anyone has concerns about the propriety of a discussion, please inform a GS1 US representative as soon as possible.
Please remember to make your own business decisions and that all GS1 standards are voluntary and not mandatory.
Please review the complete GS1 US antitrust policy at: http://www.gs1us.org/gs1-us-antitrust-compliance-policy
2
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
3
GS1 US
4
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.
5
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
6
GS1 US Retail Grocery Initiative: Supply Chain Visibility Workgroup
7
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
8
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
9
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
10
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
11
Coca-Cola at a glance
12
Coca-Cola production environment
13
98 PLANTS
336 PRODUCTION LINES
1,500+ SKU’s
PRODUCT SUPPY SYSTEM North America
1.9B cases annually
Products span across 5 platforms
14
Coca-Cola Customer Distribution
15
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
16
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
17
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
18
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
2
1
3
• 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
26
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
27
Pallet SSCC vs. Case Receiving
28
29
Barcode Receiving Demo
Lot Code Examples
30
Without ASN With ASN
Common Issues With ASN Method
31
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
32
100% of DC’s utilizing – Q1 2016
ASN’s Received in 2015 146,318
% of Cases on Palletized ASN (pd 13) 65.7%
33
Speaker Questions ?