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WHERE Do WE STAND on UPC IMPLEMENTATION

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WHERE Do WE STAND on UPC IMPLEMENTATION WHERE Do WE STAND ON UPC IMPLEMENTATION by Tom Wilson Vice President, McKinsey & Co. New York, New York I. Four topics will be discussed 2. Source symbol marking A. Status against program goals - Grocery manufacturers B. Public policy issues - Retailers (private - Price mark legislation label) - Labor union position 3. Availability of equipment c. Recent code council actions D. Open issues IV. Code conversion membership in UPCC II. Key dates in UPC development 1966 - Kroger Technology Conference 1975 Cumula- 1969 - IMS Test Installation to tive 1970 - AD HOC Committee formed 1972 1973 1974 Date Total (8/70) Manufac- 1971 - Code Selection Announced turers 209 578 1582 1284 3653 (5/71) 1972 - Code Council Formed (3/72) Retailers 84 62 58 24 228 First Number Issues (5/72) —— —— First U.S. Scanner Test 293 640 1640 1308 3881 (7/72) 1973 - Symbol Selection Announced (4/73) v. Source symbol marking Symbol Specifications Pub- A. Goal was to have 50 percent of lished (5/73) nonvariable weight items First UPC Scanner Announced source marked by year-end 1974, (10/73) 75 percent by year-end 1975. 1974 - First UPC Scanner Installed 1. Percentages are on all (6/74) commodity item movement 1975 - 50 Percent Source Symbol basis. Marking (5/75) 2. 50 percent source mark was First Price Mark Legislation economic break-even. (6/75) B. Progress by manufacturers judged sufficient to meet these III. Status against goals goals. A. Three basic measurers of UPC 1. Testing chains report 55-65 implementation percent level on shelf 1. Code conversion 2. Nielsen audit shows 58 - Membership in UGPCC percent in July - Use on shippers, paper work February 76/page 96 Journal of Food Distribution Researck VI, Percentage of items with UPC VIII. Availability of equipment source-marked symbol A. Automated checkstands with scanners announced by at least seven companies January March May June 1. Data General 1975 1975 1975 1975 2. ESIS (Bunker-Ramo) -percent- 3. National Semiconductor Carbonated 4. Sperry UNIVAC beverages 4 6 6 10 5. IBM 22 44 53 Regular coffee 30 6. NCR Ready-to-eat 7. SWEDA cereal 80 89 93 93 Margarine 40 49 60 64 IX. Stores currently testing automated Detergents 31 40 49 57 checkstand systems. Soluble Coffee 15 25 39 57 A. Associated Grocers Inc. Selected canned B. Berman’s vegetables 52 57 61 64 c. Brockton Public Markets Potato chips 42 54 58 67 D. Chatham Frozen fruit E. Dominicks juice cone. 13 38 47 53 F. Finast (2) Wet-type dog G. Foodarama (2) food 56 71 78 85 H. Gateway Foods Paper towels 56 62 71 74 I. Giant (2) Canned beans 28 36 46 52 J. Hedgedorn’s Foodliner Selected canned K. Kroger fruit 36 42 48 56 L. Lucky Stores Cleansing M. Marsh tissues 61 73 79 89 N. Piggly wiggly (2) Catsup 44 48 56 60 o. Ralph’s Roundy’s Inc. Average 39 47 53 58 ;: Steinberg’s (Canada) Source: A. C. Nielsen R. stop & Shop VII. Problem Packages s. Supermarkets General T. Tri-city Grocers u. Wegman’s Classification Number v. Weingarten’s (2) Insufficient color contrast 22 w. Woodman’s Food Markets Incorrect Modulo check digit 7 Incorrect labels 8 Poor placement of symbol 8 Label damage 3 Severe truncation 3 Printing quality 5 Excessive print gain 6 Insufficient margins 8 Miscellaneous 1 Total 71 rnal of Food Distribution Research February 76/page 97 o February 76/page 98 Journal of Food Distribution Reseal 1 I I ■ u ,., k * i February 76/page 99 renal of Food Distribution Research XII. AD HOC Committee - 1970 xv. Uniform Grocery Product Code A. Manufacturers Council, Inc. 1. R. Burt Gookin-H.J. Heinz A, Board of Governors (John Hayes) 1. Mr. John L. Strubbe (SMI) 2. James McFarland-General Chairman of UGPCC, The Mills (Thomas Nelson) Kroger Company 3. Gordon Ellis-Fairmont Foods 2. Stephen Barlow (NARGUS) (C.D. Satterfield) Barlow Food 4. Arthur Larkin-General Foods 3. Mr. Fritz Biermeier (NAFC) (Robert Stringer) Supermarkets General Cor- 5. Gavin MacBain-Bristol-Myers poration (Frederick Butler) 4. Mr. K. Marvin Eberts,Jr. B. Retailers (GMA) Stokely-Van Camp, 1. Robert Aders-Kroger Inc. (Jack Strubbe) 5. Mr. R. Burt Gookin (GMA) 2. William Kane-A&P H. J. Heinz Co. (Dean Potts) 6. Mr. Alan Haberman (NAFC) 3. Donald Lloyd-Associated First National Stores, Inc. Stores 7. Mr. Arthur D. Juceam (GMA) 4. Earl Madsen-Madsen’s Lehn & Fink Products Co. 5. James Wyman-Super Valu 8. Mr. Robert R. Koenig (NAwGA) Super Valu Stores XIII. AD HOC Committee - 1975 9. Mr. Robert F. Lee (GMA) A. Manufacturers Johnson & Johnson 1. R. Burt Gookin-H.J. Heinz 10. Mr. Donald P. Lloyd (CFDA) 2. James Ferguson-General Associated Food Stores Foods 11. Mr. Richard J. Mindlin 3. James McFarland-General (CBEMA) National Cash Mills Register Company 4. Gavin MacBain-Bristol-Myers 12. Mr. William E. Oddy (SMI) 5. John Suerth-Gerber Jewel Food Stores 13. Mr. James F. Porter (STAC) XIV. AD HOC Committee - 1975 Chase Bag Company A. Retailers 14● Mr. Robert Schaeberle (GMA) 1. Jack Strubbe-Kroger Nabisco 2. Donald Lloyd-Merchants 15, Mr. Robert A. Stringer (GMA) 3. Raymond Wolfe-Oshawa Group General Foods Corporation 4. Robert Wegman-Wegman’s 5. Jack Crocker-Super Valu 6. Alan Haberman-Finast 7. Bert Thomas-Winn-Dixie 8. Joe Danzansky-Giant Foods 9. Ed Schnuck-Schnuck’s 10. Steve Barlow-Barlow Foods February 76/page 100 Journal of Food Distribution Researt XVI. STAC SUBCOMMITTEES CHAIRMEN , PRINTABILITY GAGE AND FILM EVER ETTSMITH, JR. MASTER PRODUCTION REYNOLDS METALS CO. JOSEPH W. FEENEY 2 CONVERTER PRINTING PROCESSAND QUALITY CONTROL INTERNATIONAL PAPER CO. 1 1 3 SCANNING,COMPUTER AND FRANCISX. BECK,JR. RELATED EQUIPMENT SPERRY UNIVAC 4 IN-STORE EQUIPMENT OTHER THAN DAVIOC.ALLAIS SCANNER AND COMPUTER INTERFACE MECHANISMS, INC. 5 PROBLEM SUBSTRATES AND COLOR, INKANDMEASUREMENT MAXM. LOMONT 6 GRAPHICSANOSYMBOL LOCATION QUAKEROATSCOMPANY XVII. Public Policy Subcommittee 2. Richard Bragaw A. Robert B. Wegman, Chairman SMI Wegman’s Food Markets 3. Thomas Wheeler B. Principals GMA 1. Joseph Danzansky 4. Gerald Peck Giant Food, Inc. NAWGA 2. Donald P. Lloyd 5. Earle Mason Merchants, Inc. CFDA 3. Alan Haberman 6. Thomas Wenning First National Stores NARGUS ‘ 4.. R. Burt Gookin E. Staff support H. J. Heinz Co. 1. McKinsey & Co. 5. Jack L. Strubbe The Kroger Co. XVIII. The subcommittee’s responsibilities c. Public Members on UPC. 1. James Turner A. Providing information on Consumer Action, Inc. public policy issues to the 2. Wayne Horvitz industry. Joint Labor-Management B. Coordinating the industry’s Counci1 response to the public. D. Trade Associations c. Sponsoring research and 1. Thomas Zaucha educational programs as needed. NAFC February 76/page 101 ournal of Food Distribution Research D. Expanding dialogue with con- Xx. Open issues sumerists, labor, and A. Productivity improvement regulatory agencies. B. Capital availability E. Organizing legislative efforts co European compatibility at the national and state D. Soft savings levels. XIX. The status of item pricing legislation in the states. A. Legislation passed 1. Connecticut 2. Rhode Island 3. California B. Legislation still possible 1. District of Columbia* 2. Massachusetts 3. Michigan 4. New Jersey 5. New York 6. Ohio$: 7. Pennsylvania 8. Wisconsin c. Legislation defeated/carried over 10 Alaska 2. Arkansas 3. Colorado 4. Delaware 5. Georgia 6. Illinois 7. Iowa 8. Maine 90 Maryland 10. Minnesota 110 Nevada 12. New Mexico 13● Oregon 14. South Dakota 15. Texas 16. Tennessee 17. Washington >+Significantchance of action. February 76/page 102 Journal of Food Distribution Resear.
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