gs1 system academic overview

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Brief introduction on the GS1 system in supply chain management

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Australia GS1 Standards

An Introduction

2011

An introduction to

GS1 Numbering and

Bar Coding standards

© 2010 GS1

Australia

2

Disclaimer

All images and products used during this presentation

are for illustrative and education purposes and their use

does not imply endorsement nor any other purpose on

behalf of GS1 Australia

Australia

GS1

Australia

© 2010 GS1

Australia

4

1 - A not-for-profit organisation

2 - An international community of 108

national member organisations

3 - An industry driven

organisation with millions of

members across 24 industry

sectors 4 - A standards organisation

6 - Dedicated to continuous improvement

in supply chain „end to end‟ for industry 5 - The most widely used supply chain

standards system in the world

About us …

© 2010 GS1

Australia

5

Used by millions of companies

108 Member organisations

150 countries served

2,000 staff worldwide

Countries with a

GS1 Member

Organisation

Countries served on a

direct basis from GS1

Global Office (Brussels)

© 2010 GS1

Australia

6

A history lesson

EAN

European Article

Numbering

UCC

Uniform Code

Council

© 2010 GS1

Australia

7

Our mission

Leading global organisation dedicated to the

design and implementation of global

standards and solutions to improve the

efficiency and visibility of the supply and

demand chain.

Australia

Standards

Australia

© 2010 GS1

Australia

9

What are standards?

Standards are agreements that structure any

activity or any industry.

They may be rules or guidelines that

everyone applies.

They may be a way of measuring, or

describing, or classifying products or

services.

© 2010 GS1

Australia

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Standards of our lives

American Society for

Testing and Materials (ASTM)

© 2010 GS1

Australia

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Shoe sizes around the world

Australia

GS1 Australia

Australia

© 2010 GS1

Australia

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• Administer & maintain the GS1 System of supply chain standards in

Australia

• Current membership 16,500 companies across multi-industries

• In excess of 18 industry sectors

• Over 100 staff in Melbourne & Sydney

• http://www.gs1au.org

GS1 Australia Office at Mt Waverley, Melbourne GS1 Australia Office at Botany, Sydney

Who is GS1 Australia?

© 2010 GS1

Australia

14

GS1 Australia’s role

The implementation of the GS1 System by

Australian industry for the benefit of all users.

Our role is to:

• develop global, open, multi-sector standards;

• provide training, education and support

services on supply chain management; and

• promote and help implement the GS1

System to facilitate best business solutions.

© 2010 GS1

Australia

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All companies in all industries need to identify goods coming

in, passing through and leaving the…

Best Practice SCM is about capturing accurate data at the

least cost and effectively processing the information within

application systems, with total integration in mind.

The GS1 systems supports these objectives.

Best practice supply chain

management

© 2010 GS1

Australia

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The GS1 System

Australia

The GS1 System

Australia

© 2010 GS1

Australia

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Numbering and bar coding allows for the identification of

products, items, locations and services.

© 2010 GS1

Australia

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GS1 DataBar

GS1-128

EAN/UPC

ITF-14

Bar Codes are also called Data Carriers

Some GS1 Bar Codes

Bar Codes shown not to scale

© 2010 GS1

Australia

20

The transfer of structured data,

from one computer to another,

by electronic means

© 2010 GS1

Australia

Translation

software to

convert into

data exchange

standard

Translation

software to

convert data

for application

Business Trading via E-Messaging

A

EDI Message

B

Examples of Documents that can be transacted: Purchase Orders, Invoices, PO Changes, Despatch

Advices, RCTIs, Product Activity Data

© 2010 GS1

Australia

Business Trading via E-Messaging

A

B

Faster More accurate

No human interpretation

Less labour intensive

Greater security

Non-repudiation

No need for physical storage

Data can be easily used for analysis

EDI Message

© 2010 GS1

Australia

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The continuous and automated exchange of standardised

item master data within and between organisations

© 2010 GS1

Australia

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What is Product Data

• Description

• Product classification

• Measurements • Weight

• Height

• Diameter

• Packaging • Levels

• Pack size

• Construction

• Material

• Alcohol content

• Country of origin

• … and more

© 2010 GS1

Australia

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What is Data Synchronisation?

The continuous and

automated exchange

of standardised item

master data within

and between

organisations GS1net / NPC

© 2010 GS1

Australia

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Radio Frequency Identification allows the identification of tagged items without line of sight.

RFID tags contain a microchip and an antenna. Electronic Product Code is the numbering standard that is encoded in the RFID tag.

© 2010 GS1

Australia

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EPC / RFID

RFID microchips are

populated with the

Electronic Product

Code (EPC) data

which is a GS1

Standard

Australia

Trade Items Retail Level

Australia

© 2010 GS1

Australia

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A retail item is an item or a commodity sold in small

quantities directly to consumers / POS.

Definition of a retail item

© 2010 GS1

Australia

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• A bar code is a data carrier.

• The GS1 number is a key to the short hand description of a product.

• The GS1 data carrier is a representation of the GS1 number used to

automatically capture data and access information and data through

a database in the computer.

• Scanning drives price lookup.

9 3 1 2 3 4 5 0 0 0 0 0 59312345000005

Number vs. bar code

© 2010 GS1

Australia

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GS1 numbering system

• A single, open unified numbering system for every

item or service traded world-wide.

• A common link when communicating about product

or service information between trading partners.

• The GS1 numbering system is applied to six areas

of applications: trade items; logistic units; assets;

locations; service relationships and special

applications (e.g. documents,…).

• Reduces cost of operating the supply chain and

improves global business productivity and efficiency.

© 2010 GS1

Australia

• Accesses all industry sectors

• Can expand with growth

• Communicates worldwide

• Easy to implement

• Cost-efficiencies

• Hardware

• Software

• Easier support

32

Advantages of an open system

Australia

The number

Australia

© 2010 GS1

Australia

34

GTIN

Global Trade Item Number

New harmonised & global terminology

240

8080242

162

80 242

492332

254

80

8080

80

For all levels of packaging

© 2010 GS1

Australia

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Basic Numbering Rules

• Unique: every variant of an item is

allocated a separate unique sequential

number

• Non-significant: they identify an item but

contain no information about it

• International: GTINs are unique across all

countries and all sectors

• Secure: GTINs are fixed length, numeric

and include a standard Check Digit

© 2010 GS1

Australia

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9312345 00

GS1 COMPANY PREFIX

The first seven or nine digits are allocated by GS1 Australia to the member company

ITEM REFERENCE

The next five or three digits are allocated to a specific product by the

member company

000

CHECK DIGIT

Checks the validity of the entire number by a

mathematical formula

5

GTIN-13

© 2010 GS1

Australia

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Check Digit

© 2010 GS1

Australia

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Check Digit – Method 1

1. Enter 12 first digits here 2. Click here 3. Get the Check Digit here

© 2010 GS1

Australia

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Check Digit – Method 2

1. Enter the range of numbers

2. Click here

3. GTINs with the Check Digit

4. Type in the description of your products

© 2010 GS1

Australia

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Product 500ml 9312345000005

Product 1lt 9312345000012

Product 2lt 9312345000029

For every different variant of a trade item

a unique GTIN should be allocated.

Unique GTIN-13

© 2010 GS1

Australia

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Identification to the lowest level

Colour Size

S

M

L

XL

S

L

9313579000007

9313579000014

9313579000021

9313579000038

9313579000045

9313579000052

© 2010 GS1

Australia

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KOALA Brand

One trade item = one GTIN

9312345000005

9312540122113

3325678952008

X

X

© 2010 GS1

Australia

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X

One GTIN = one trade item

9312345000005

X

© 2010 GS1

Australia

Brand Ownership

44

The Brand Owner allocates the GTINs

© 2010 GS1

Australia

45

The country prefix (examples)

400 – 440 GS1 Germany

754 – 755 GS1 Canada

930 – 939 GS1 Australia

000 – 019

030 – 039 GS1 US

060 – 139

616 GS1 Kenya

893 GS1 Vietnam

© 2010 GS1

Australia

46

General rule is:

“Where there is a change in the consumer

declaration of a trade item then the GTIN

should change”

Visit www.gs1au.org for GTIN Allocation

Rules

When to change a GTIN?

© 2010 GS1

Australia

47

Example 1

Changes in the net weight or declared units.

© 2010 GS1

Australia

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Example 2

Minor (not declared) change in net weight / count / volume (e.g. changes in

manufacturing tolerances do not impact the declaration to the consumer).

Actual weight: 1.150kg Actual weight: 1.010kg

Sold to consumer at nominated weight: 1 kg

© 2010 GS1

Australia

49

Example 3

Any dimensional change of more than 20% in the item packaging.

© 2010 GS1

Australia

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Example 4

Formulation change, expecting that the consumer distinguishes the new

trade item from the old.

© 2010 GS1

Australia

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4 years minimum

9312345000005

• In case of garments, minimum period is 30 months

• Healthcare re-use of GTINs is not allowed at all

• Consideration for re-issue should be given to product type and possible life in market

Re-use of a GTIN

9312345000005

© 2010 GS1

Australia

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• For small products

• For products sold on the North American

market

• For books

• For serial and magazines

• For variable measure items

Other kinds of GTIN

TR

© 2010 GS1

Australia

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GTIN-8 are individually assigned

by GS1 Australia

93

GS1 PREFIX

Identifies the GS1 Member Organisation

issuing the number

(93 = Australia)

COMPANY / ITEM REFERENCE

These 5 digits are allocated by GS1 Australia to suppliers for use

on products with very small printable area

12345

CHECK DIGIT

Checks the validity of the entire number by a

mathematical formula

7

GTIN-8: for Small Products

© 2010 GS1

Australia

54

U.P.C COMPANY PREFIX

The first six or eight digits are allocated by GS1 US

to the member company

88 596783

CHECK DIGIT

Checks the validity of the entire number by a

mathematical formula

7

If you are exporting products to the North

American market, contact GS1 Australia

050

ITEM REFERENCE

The next five or three digits are allocated to a specific product by the

member company

For North American market –

GTIN 12?

© 2010 GS1

Australia

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Australia

The bar code

Australia

© 2010 GS1

Australia

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• A bar code is a type of font

• Bar codes represent characters

• Alpha

• Numeric

• Alpha/numeric

• Bar codes enable automatic

data capture by a scanning device A70X465Q

Font in Arial

A70X465Q

Font in Wingding

Bar code

is a type of font

What is a bar code?

© 2010 GS1

Australia

58

EAN-8

UPC-A

• Must be used for any retail

trade items scanned at the

Point-of- Sale

• Can be used throughout the

entire supply chain

Bar codes scanned at Point-of-Sale

GTIN-8

GTIN-12

EAN-13

GTIN-13

© 2010 GS1

Australia

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Reading bar codes

Australia

GS1 DataBar and GS1 DataMatrix

Australia

© 2010 GS1

Australia

61

GS1 DataBar: Business needs

To provide better ways to automatically identify:

• Very small items (e.g. syringes, vials, and

telecommunications circuit boards)

• Variable measure retail items utilising full product

identification (e.g. meat, poultry, and bagged produce)

• Individual produce items (e.g. apples and oranges)

• Sunrise date: 2014 for GS1 DataBar to be accepted in all

scanning environments

© 2010 GS1

Australia

62

GS1 DataBar: Small items

© 2010 GS1

Australia

63

GS1 DataBar: Fresh produce

© 2010 GS1

Australia

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GS1 DataBar: Meat and other variable

measure products

© 2010 GS1

Australia

Data Matrix key points

65

• Not suitable for all commercial applications

• Not for general use for POS

• Requires 2D imaging scanner (cannot be read by

conventional scanners)

• Adheres to specific guidelines

© 2010 GS1

Australia

66

GS1 DataMatrix

Australia

Bar Code Quality

Australia

© 2010 GS1

Australia

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Key steps to consider

1. Colour – Print contrast

2. Bar code width – Magnification

3. Bar code height – Truncation

4. Quiet Zones

5. Print quality

6. Location

Australia

Colour –

Print contrast

Australia

© 2010 GS1

Australia

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• Light background, ideally white

• Dark bars, ideally black

• Solid colours

• Avoid reflective colours

• A gloss coat can reduce print contrast

• Transparent wrapping diminishes contrast

X X

Colour - Print contrast

Australia

Bar code

magnification

Australia

© 2010 GS1

Australia

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• Different magnifications required for all GS1 Bar

Codes

• Dependent on print method

• Determine where bar code will be scanned

• Consider industry requirements

Bar code width - Magnification

© 2010 GS1

Australia

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80% 100%

150% Minimum for conveyorised scanning 200%

EAN-13

Bar code width - Magnification

Australia

Bar code height –

Truncation

Australia

© 2010 GS1

Australia

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• EAN/UPC Symbols have a nominal (target) size

• Nominal bar codes have a fixed relationship

between the width and height to enable omni-

directional scanning

50

0 51 2 3 4 5 6 7 8 9 0

Nominal bar code Truncated bar code

0 51 2 3 4 5 6 7 8 9 0

Scanner beam fails to read bars

Bar code height

EAN-13

Australia

Quiet Zones

Australia

© 2010 GS1

Australia

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• Area to the left and right of all bar codes

• Enable scanner to determine start and end of

the bar code

• Must keep all graphics, dark colours clear of

these areas

Quiet Zones

© 2010 GS1

Australia

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X

Quiet Zones

© 2010 GS1

Australia

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Quiet Zones

Australia

Print quality

Australia

© 2010 GS1

Australia

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• Clear crisp well defined bars

• Watch for voids and smudging

• Print quality requires regular ongoing checks

• There must be enough contrast between the

dark bars and the light spaces for a scanner

to be able to read the bar code

Print quality

© 2010 GS1

Australia

82 Substrate (packaging material) needs to be taken into consideration

Australia

Location

Australia

© 2010 GS1

Australia

84

• General recommendation for location is

towards the lower right of the back of the

product.

Location - Retail trade items

• Lower right of another face is acceptable

where the back of the product is unavailable.

• Base of a product will continue to be

acceptable but is NOT preferred.

© 2010 GS1

Australia

85

6

9

1 4 1 4 1 0 0 0 8 6

Avoid package

seams or seals

6 91 4 1 4 1 0 0 0 8 6Bar codes do NOT

scan around corners

Ask the package designer first

© 2010 GS1

Australia

86 Bar code quality

X

© 2010 GS1

Australia

87

Ladder Orientation

• On curved surfaces, recommended placement for

the bar code is in a ladder orientation when the item

stands on end. This is because the bars may be

distorted by the curved surface.

X

Picket fence

orientation

Ladder

orientation

Australia

Questions?

Australia

© 2010 GS1

Australia

89

Australia

Consulting /

Implementation

Services

Member

Assistance

Resources

Alliance

Partners

Education

and Training

Quality

Support

GS1 Australia Services and Support

Australia

Contact Details

GS1 Australia

Unit 100/45 Gilby Road

Mt Waverley VIC 3149

T + 61 3 9558 9559

W www.gs1au.org

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