1Order Reception

a. Receiving order from a Retailerb. Verify stock and availability of goods c. Confi rm order

Transporter3Transportation

In case a logistic service provider performs the expedition:a. Sort goods to be shippedb. Record traceability data and create GS1 logistic label for new assembled logistic unitsc. Load truck and record SSCCd. Send Despatch Advice message with SSCCe. Delivery to the Retailer

Retailer4Reception of goods at Retailer Warehouse

a. Reception of Despatch Advice message and record traceability datab. Scan SSCC and compare with Despatch Advice (control batch, expiry date & best before date)c. Transfer legal ownership (retailer becomes owner of delivered goods) d. Send Receiving Advice message

5Reception of the invoice issued by the Manufacturer

a. Reconciliation of invoice b. Issue paymentc. Send Remittance Advice

6Reception at Retail Store

a. Reception of goodsb. Place the goods on the shelfc. Sell goods to the consumer d. Sales report, Stock level control at POS

Manufacturer Manufacturer2Preparation of order and Shipment

a. Prepare shipment and record traceability data (if applicable) b. Create GS1 logistic labelc. Send Despatch Advice message with SSCCd. Goods ready to be shipped

What will you earn with GS1 standards?

Order-to-cash automation with GS1 standards gives companies a competitive advantage Cutting costs, eliminating errors and shortening delivery time Better customer satisfaction & reducing out of stock Speed and reliability of information and processes Eliminate disputes (decrease Litigation) Traceability throughout the supply chain Improved inventory management Facilitation of automatic replenishment process

GS1 Standards used:

GS1 identification KeysGTIN : The Global Trade Item NumberGLN : The Global Location Number SSCC: The Serial Shipping Container Code

EDI messages example Order Despatch Advice Invoice

GS1 Standards for the Paperless Supply Chain Saving time and money with GS1 Standards in Order to Cash Process

invoice N° 184 37 021despatch advice N°231order form N° 21 354 408

despatch advice N°231order form N° 21 354 408

order form N° 21 354 408

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Order to CashThis information fl ow aims at removing all paper documents from the order to the payment (cash) process. This is done by electronic data exchange between computer systems that are linked to the automatic capturing of the data on barcodes or RFID tags. The Order to Cash process is made up of six main process steps:

Paperless Supply ChainSaving time and money with GS1 Order to Cash Standards

1. Receiving the order:

Receiving the order electronically allows the supplier to automatically integrate all of its elements into their information system, check the avai-lability of the requested goods and transmit the information needed for the preparation of the despatch to the shipping department.

• Fast communication of data• Removing re-typing and the risk of errors• Automatic integration • Saving time• Minimising disputes

2. Preparing the despatch.

By scanning the barcodes on the pal-lets, cartons, consumer unit or storage area, the preparation is totally reliable as all data needed for the electronic despatch advice is automatically regis-tered matching the delivery.

• Removing preparation errors • Removing typing errors of the despatch documents• Increasing productivity• Minimising disputes

3. Despatching the goods.

The despatch advice with all the infor-mation on the contained merchan-dise, including traceability informa-tion such as batch number and best before date is sent automatically at the moment the doors of the truck are closed. A transport instruction is also sent in parallel to the transporter

• Ensuring the correctness of the despatch advice• Alignment of the despatch advice and the transport instruction• Ensuring that the truck is correctly loaded• Removing errors

GS1 System of Identifi cation keys:

The Global Trade Item Number (GTIN) is the GS1 Identifi ca-tion Key used to identify trade items.The GTIN is a unique identifi cation key that can be used glo-bally to identify the item. This could be at the checkout, in a warehouse or in an electronic catalogue. It may be produced as a GS1 bar code, or held in a GS1 EPC tag or used in a database or transmitted in an electronic message. The function of a GTIN is to provide an identifi cation point which can be used to retrieve information held in a database associated with the trade item the GTIN identifi es – this is known as master dataGTIN is comprised of a GS1 or U.P.C. Company Prefi x followed by an Item Reference Number and a Check Digit.

The Global Location Number (GLN) is the GS1 Identifi cation Key used to identify locations.The GLN identify locations with a unique number which is key to many business processes.This could be a physical location such as a warehouse or a le-gal entity such as a company or customer or a function that takes place within a legal entity. It can also be used to identify something as specifi c as a particular shelf in a store. The GLN is used in electronic messaging between customers and sup-pliers, where location advice is important.GLN is also used wit-hin companies to identify specifi c locations both electronically in a database or physically where the GLN can be produced in a barcode or GS1 EPC tag.GLN is comprised of a GS1 Company Prefi x, Location Reference, and Check Digit.

The Serial Shipping Container Code (SSCC) is the GS1 Iden-tifi cation Key used to identify individual logistic unit. The SSCC provides a unique number for the delivery; it can be utilized as a look-up number to provide not only detailed infor-mation regarding the contents of the load but also as part of the Despatch Advice. A logistic unit can be any combination of units put together in a case or on a pallet or truck where the specifi c unit load needs to be managed through the sup-ply chain. The SSCC enables this unit to be tracked individually which brings benefi ts for order and delivery tracking and auto-mated goods-receiving. SSCC is comprised of an Extension digit, GS1 Company Prefi x, Serial Reference, and Check Digit.

GTINGLN SSCC

More information: http://www.gs1.org/barcodes/technical/idkeys/gtin

More information: http://www.gs1.org/barcodes/technical/idkeys/gln

More information: http://www.gs1.org/sites/default/files/docs/idkeys/GS1_SSCC_Executive_Summary.pdf

4. Receiving the goods.

The receiver scans the logistics units and matches the goods with the des-patch advice. The retailer can hence automatically integrate the receiving and traceability information of the delivery. It updates automatically the inventory levels. The retailer may also in real time send a receiving advice to the supplier.

• Reducing time at reception• Update stock levels in real-time• Better availability of merchandise• Register traceability information• Minimising disputes at reception

5. Sending the invoice.

Once the supplier receives the recei-ving advice they send an electronic in-voice that matches exactly the goods delivered, which enables the retailer to automatically reconcile the invoice with the order and despatch advice. The retailer can then release the pay-ment.

• Automating reconciliation • Minimising disputes• Reducing time

6. Paying the supplier.

When the retailer has ordered their bank to carry out the payment, they send a remittance advice to the sup-plier who can automatically update their accounts receivable system.

• Improving accounts management• Automating payment fl ows

Blue TowerAvenue Louise 326, b10 B - 1050 BrusselsBelgiumT +32 2 788 7800F +32 2 788 7899contactus@gs1.org

www.gs1.org

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