bonnie ryan, gs1 australia - enabling productivity of the supply chain – a case for global...
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Bonnie Ryan, Industry Manager – Trade & Transport, GS1 Australia presented "Enabling productivity of the supply chain – a case for global standards" at Ausintermodal 2013. This annual conference discusses the most up-to-date industry news on intermodal transport in Australia, and look at the latest initiatives to advance the efficient movement of containerised freight for rail, road and sea. For more information, please visit the conference website: http://www.informa.com.au/ausintermodal2013TRANSCRIPT
© 2008 GS1
Australia
1
Enabling Productivity of the supply chain – a case for standards…
Bonnie Ryan, Industry Manager Trade & Transport
Ausintermodal Conference 2013
© 2008 GS1
Australia
Agenda
• What’s the problem
• Visibility & Interoperability
• Impediments to adoption
• What we are doing
• Overview of GS1
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© 2008 GS1
Australia
WHAT’S THE PROBLEM
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Australia
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Growing Freight Task
© 2008 GS1
Australia
Freight is Big Business
• The sector contributes around $150 billion to Australia’s
Gross Domestic Product (2011)
• Represents up to 15 percent of the economy when
indirect and related activity in other sectors is taken into
account
© 2008 GS1
Australia
Productivity Challenge
Achieving improved productivity through use of
technologies, better information flow, greater
collaboration and adopting best practice.
© 2008 GS1
Australia
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Australia
VISIBILITY IN A DYNAMIC
LOGISTICS CHAIN
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© 2008 GS1
Australia
What does that mean and why do I care?
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© 2008 GS1
Australia
Visibility and Interoperability
defined
Supply chain visibility
“the awareness of, and control over,
specific information related to product
orders and physical shipments,
including transport and logistics
activities and the statuses of events
and milestones that occur prior to and
in-transit”
Interoperability
Many organizations find it useful to categorize interoperability as follows:
Operational or Business Interoperability defines how business processes
are to be shared.
Information Interoperability defines how information is to be shared.
Technical Interoperability defines how technical services are to be shared or
at least connect to one another.
© 2008 GS1
Australia
#1
Improve Productivity
in Transport and Logistics
© 2008 GS1
Australia
#2
“Track and Trace”
has issues
© 2008 GS1
Australia
A business need…
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Shippers and Logistic Service Providers need to know
exactly where their shipments are at any given time
© 2008 GS1
Australia
Meeting the challenges of all
actors, from one end of the SC to
the other
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With access to real-time information about the flow of
products and transactions in their supply chains,
companies and their logistics service providers can make
decisions that drive business value and reduce cost.
© 2008 GS1
Australia
Supply Chain Visibility and T&L
T&L milestones need to be included and T&L Parties need to think End-to-end supply chain Parties need to speak the same language and use the same ID keys
To achieve full supply chain visibility
Manufacturer Visibility
inbound
Manufacturer Visibility
outbound
Retailer Visibility inbound Retailer Visibility outbound
© 2008 GS1
Australia
What do customers say?
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Leaders: Top 20% Performers Followers: Bottom 80%
Only 1 in 25 (4%) IN ERROR on outbound Deliveries to Customers
Every 1 in 9 (11%) IN ERROR on outbound deliveries to Customers.
Only 1 in 17 (6%) IN ERROR on inbound Orders received from Suppliers
Every 1 in 8 (13%) IN ERROR on inbound Orders received from Suppliers.
1 in 3 (33%) has reduced year-on-year landed per unit cost in 2012
Less than 1 in 5 (18%) has decreased total landed per unit cost in 2012
1 in 2 (50%) work with five or more LSP. Only 1 in 4 (25%) work with five or more LSP
Only 1 in 5 (20%) does NOT manage to find, within reasonable time, and access OUTBOUND supply chain data needed for decision making.
More than 1 in 2 (57%) does NOT manage to find, within reasonable time, and access OUTBOUND supply chain data needed for decision making.
Only 1 in 15 (7%) does NOT have online visibility into INBOUND in-transit shipment status.
1 in 3 (69%) does NOT have online visibility into INBOUND in-transit shipment status.
ALL LEADERS (100%) are compliant to GS1 standards and track at the item level.
Only 1 in 4 (25%) are both compliant to GS1 standards and track at the item level.
6 in 7 (85%) of survey respondents plan to increase their current level of end-to-end Supply Chain Visibility.
Source: Aberdeen Group Study May 2013
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Australia
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By interfacing with these providers & our legacy
systems we want to:
• Have a more accurate profile of order status
& inbounds
• Provide a one-stop shop for our customers
• Backed up with a full B2B message suite
• Have control & visibility of our supply
chain
Source: David McNeil
Market Execution Manager
Onesteel
© 2008 GS1
Australia
Organisation Deals With Retailer Transport Provider T5
Transport Provider T5 Transport Provider T1
Transport Provider T5 Packer P1
Packer P1 Transport Provider T2
etc
Transportation Chain
© 2008 GS1
Australia
Transportation Chain
members are not all
“Trading Partners” but
form a chain of “Trading
Partners.”
They want “Integration” with
companies
that they do not trade with
(and actually do not even know)
© 2008 GS1
Australia
Integration is expensive,
technical and normally a…
I’ll have “My people” talk to
“Your People” experience!
© 2008 GS1
Australia
So how do you do it when
you don’t know
who they are?
© 2008 GS1
Australia
Soft Infrastructure Solutions
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Australia
IMPEDIMENTS
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Australia
Common myths about standards
adoption by LSPs
“My proprietary interface/system offers my company a
competitive advantage by ‘locking in’ my customers. It
makes it difficult for them to leave.”
“In today’s challenging
market, we need a logistics provider that is
equipped to deliver operational excellence
– a partner that can give us,
at a moment’s notice, visibility into our shipments.”
David McNeil, Market Offer Execution Manager,
Onesteel
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© 2008 GS1
Australia
“My customers do not mandate that I use open
standards yet… and I am winning new customers even
with a proprietary interface.”
“When considering a logistics provider,
we prefer to work with companies that are using
GS1 Standards since they can provide us
with the needed supply chain visibility to meet
our required performance expectations.”
Marc Cox, Senior Business Analyst,
Warehousing / Logistics / MIS, Philips International B.V.
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© 2008 GS1
Australia
“My competitors are not changing to standards-based
systems, so I will wait.”
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“In many areas, DHL is now among the front runners
in the deployment of and compliance with the
international open System of Standards that are well-
known and also widely adopted by many DHL
clients.”
Jaco Voorspuij,
IT Business Development Lead in EMEA, DHL
© 2008 GS1
Australia
INDUSTRY ENGAGEMENT
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© 2008 GS1
Australia
Industry Working Group
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ALC Supply Chain
Standards Industry
User Group Leadership
Team
GS1 Australia
T&L
Industry Support
Industry Work
Group Inter-modal
interoperability
Industry Work
Group
Logistics Labelling
“We are encouraging
companies to build
frameworks that use open
GS1 Standards for better
interoperability throughout
Australia and the world.”
Michael Kilgariff, CEO,
Australian Logistics Council
© 2008 GS1
Australia
Participants include…
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© 2008 GS1
Australia
Learn more!
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Download our brochures and case studies featuring
real-world implementations of GS1 Standards providing
visibility into the T&L processes of Tesco, Unilever, DHL
Supply Chain, Stena Line, the U.S. International Trade Data
System Product Information Committee, Kibun Japan…