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Gtin-Case-For-Streamlining-Supply-Chain.Pdf TABLE OF CONTENTS Table of Contents Executive Summary 3 Introduction 4 Current State of the GTIN in Produce 5 The Cost of NOT Implementing the GTIN 6 Expected Benefits of GTIN 7 Pilot Purpose / Objective 8 Pilot Scope 9 Format of Findings 9 Summary Table: Activity Titles within Workflow Phases 10 Phase 1: Assignment 11 1.1 Supplier Activities 11 1.1.1 Assign GTINs to Case Configurations 11 1.1.2 Link GTINs to Internal Supplier Codes 11 1.1.3 Create Permissible Substitutions 11 1.1.4 Update Customer Profiles with GTINs 12 1.2 Buyer Activities 12 1.2.1 Load Supplier GTINs into Buying System 12 1.2.2 Link GTINs to Internal SKUs 12 Phase 2: Identification 13 2.1 Procure Skeleton Case Labels from Label Supplier 13 2.2 Print Case GTIN onto Labels 13 2.3 Include Additional Label Information 14 2.4 Affix Label to Cases 14 Phase 3 Reference 15 3.1 Supplier 15 3.1.1 Include GTINs on Sales Materials 15 3.1.2 Use GTINs to Synchronize Data with Buyers 15 3.1.3 Receive Purchase Orders with GTINs 16 3.1.4 Advanced Ship Notice to Buyers 16 3.1.5 Use GTINs on Invoices to Buyers 16 3.1.6 Use GTINs on All Other Reference Documents 16 3.2 Buyer 17 3.2.1 Include GTINs on Purchase Orders 17 3.2.2 Ensure Third-Party Service Providers Can Receive GTINs 17 3.2.3 Process Invoices Using GTINs 17 3.2.4 Receiving Substituted Product 17 3.2.5 Synchronize Data with Sellers Using GTINs 18 3.2.6 Use GTINs on All Other Reference Documents 18 1 TABLE OF CONTENTS Enablement of Supply Chain Tools/Practices 18 Data Standards 18 Data Synchronization 18 Electronic Commerce 19 Barcoding 19 Reduced Space Symbology (RSS) 19 Radio Frequency Identification (RFID) 20 Traceability 20 About the Participants 20 Appendix A: GTIN Case Codes Assignment Strategy 22 Appendix B: Standardized Case Label 28 Appendix C: Glossary 29 2 SECTION ONE EXECUTIVE SUMMARY Executive Summary Produce companies and retail/foodservice providers have reached a crossroads in the way they conduct business. After years of consolidation and expansion, trading partners are now finding that they must increasingly rely on boosting the efficiency and effectiveness of their supply chains to help drive continued growth. New technologies are making dramatic improvements in process automation and collaboration. While many trading partners recognize the importance of such initiatives, many are uncertain how to proceed and where their efforts could be focused to achieve optimum benefit. One inescapable fact is that the produce industry has virtually stood still in its use of supply chain tools, while other industries have embraced their use and continue to benefit from their resulting efficiencies. The implementation of the Global Trade Item Number (GTIN) is a critical first step in solving many problems that have long plagued produce partners. The GTIN is the very foundation for electronic commerce and tools to automatically capture data (e.g. barcoding, RSS, and the much talked about RFID systems). GTINs provide an accurate, efficient, and economical means for controlling the flow of product and data using an all-numeric 14-digit identification system. The GTIN is unique in that it is a globally recognized protocol for assigning item numbers for executing all types of trade. It is used in at least 26 different industries in more than 100 countries. As such, the protocols of the GTIN will be recognized as goods are both imported and exported. It is important to understand the GTIN is not a single number that every company uses for a specific product. Rather, it is a standard protocol that, if followed correctly by each supplier, will allow each supplier to be able to uniquely identify their products and each buyer to take advantage of tracking these products by supplier. This is especially important for the purposes of tracing and tracking products, as well as evaluating product movement by supplier. Item information needs to be shared and synchronized accurately in order to maximize operations and effectively collaborate with partners. The adoption of the GTIN aids all segments of the supply chain by positioning the produce industry to begin using tools that the balance of the food industry has used for quite some time to help reduce errors and increase savings and efficiencies. Today’s produce partners share information through labor intensive and inconsistent methods. Critical informa- tion is often inefficiently managed and communicated between trading partners using incompatible media or formats. Improved and effective communication using the GTIN would significantly reduce time and errors and ultimately reduce long-term cost by positioning companies for additional technological improvements. To achieve these ends, the produce industry must adopt a global numbering system. The assignment strategy document discussed in Phase I below has been adopted during this pilot project as a “Best Practice” document. This guide was developed to assist suppliers in assigning GTINs. Used effectively, the assignment strategy document will allow you to control and manage the number of GTINs issued. In addition, this team also adopted a standardized case label to provide a guideline to follow when considering case label design. By endorsing this standardized label design, fewer errors will occur and the produce industry can rally around one case label standard, rather than numerous ones being suggested today. 3 SECTION ONE EXECUTIVE SUMMARY Buyers and sellers need to start building improved data collection and synchronization methods, all of which start with the use of a standardized number: the GTIN. Current industry practices in the produce industry are akin to a Board meeting taking place whereby every Board member speaks a different language. It would be extremely laborious, error-prone, and confusing to attempt to communi- cate with other members. So, too, is the produce industry’s practice of assigning a non-standard, proprietary number to an item. To address this, the grocery retail community has already adopted the GTIN standards for its packaged goods segment and is now looking to begin using these same standards in the remainder of its business. The movement to incorporate the GTIN is also occurring in floral, meat, dairy/deli, turkey, pork, beef, fish, and other segments. In this document you will learn what the current state of the industry is with regards to using a standard number for identifying products, what the benefits are, what roadblocks were encountered, the areas of impact, and a recommended methodology to help supply chain participants use the GTIN. As this important standard will be the number used to order and invoice produce (and all related business transactions), as well as being the “ante” for participating in supply chain efficiencies and technologies, it is important that the information to follow is well understood. Simply put, the produce industry cannot effectively participate in supply chain technologies such as electronic commerce, barcoding, reduced space symbology (RSS), radio frequency identification (RFID), and data synchronization without adopting the GTIN. This document shows that the produce industry can adopt the GTIN. It is not without its challenges, but there is an answer for every challenge present- ed. Now is the time to address the wide gap that separates the produce supply chain from the pack- aged goods supply chain. The longer we wait, the wider the gap gets, the more costly and undesirable it becomes to do business in the produce industry. 4 SECTION TWO INTRODUCTION Introduction The Global Trade Item Number (GTIN) is an umbrella term to identify all products at all levels in the supply and demand cycle via the GS1 system (formerly the EAN.UCC System) of worldwide data struc- tures. There are unique GTIN numbers for individual suppliers’ selling units, brands, case levels, inner pack levels, and pallets. Each requires a unique GTIN to correctly identify product on its way to market. The GTIN itself is not a new standard. This study concerns itself specifically with the case-level issues surrounding the implementation and deployment of GTINs at the case level in the produce industry. The produce industry is poised for industry-wide change. This growth will come from continued consoli- dation of retailers and the explosion of consumer markets in the area of organics and specialty goods. Government concerns about terrorism and tainted food supplies increase the likelihood of change. In addition, the cost of labor continues to rise throughout the food chain. This prompted leading retailers to initiate projects such as RFID, data synchronization, RSS, electronic commerce, and barcoding in an attempt to drive costs out of the supply chain. Adopting the GTIN is one of the first steps to using all of these supply chain tools. The Produce Marketing Association (PMA) engaged RCM Technologies to help guide a group of pro- duce-industry professionals in a pilot project to test the viability of using the GTIN at the case level. Time was supplied by participant companies who also extended the use of their existing supply chain infrastructure to help provide proof of concept in the adoption of this important standard. Participating companies O Produce Marketing Association (PMA) - Gary Fleming, Alicia Calhoun and Amy Schillat O Food Marketing Institute (FMI) - Pat Walsh O International Foodservice Distributors Association (IFDA) – Steve Potter O GS1 US - Greg Rowe O Tanimura & Antle - Tom Casas and Mikelea Hailstone O BJ’s Wholesale Club - Jeff Patterson, Linda Kuchta, Susan Fancy, Jan Polivka, Cindy Paul, Mark Daniels, and Patrick Morris O Duda Farm Fresh Foods - Alan Newton, David Best and Bill Nunziatti O L&M Companies, Inc - Mike McGee and Sandy Kabat O Giumarra Companies - Chris Pisano, Tim Riley and Celina Perez O The Oppenheimer Group - Doug Grant, Steve Roosdahl, Harvey Lim, and Gary Tucker O Wal-Mart Stores, Inc - Michael Agostini O SuperValu - Greg Zwanziger O FreshPoint, Sysco Inc.
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