IT in supply chains

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IT in supply chains

  1. 1. IT in supply chains<br />…and the value added by standards<br />
  2. 2. Agenda<br /><ul><li>A fewwordsabout GS1
  3. 3. Information Requirements in SupplyChains
  4. 4. Master Data
  5. 5. Transaction Data
  6. 6. Event Data
  7. 7. GS1 Standards in SupplyChains
  8. 8. GS1 IdentificationKeys
  9. 9. Data Carriers
  10. 10. Data Exchange
  11. 11. How it all fitstogether</li></ul>2<br />
  12. 12. Staffan Olsson<br />1985-1989 Master of Science MechanicalEngineering, <br />Industrial Economics and Management, KTH<br />1989-2002 Consultant – Electronic Data Interchange<br /> and Electronic Commerce B2B<br /><ul><li>EDI-Gruppen
  13. 13. Frontec
  14. 14. Scandinavia Online
  15. 15. Atello</li></ul>2002- Head of Standards & Implementation, GS1 <br /> Sweden<br />3<br />
  16. 16. A fewwordsabout GS1<br />
  17. 17. GS1 in a nutshell<br />The global language of business<br />GS1 is a not-for-profit organisation that develops global standards for the identification of goods and services. <br />GS1's standards foster cooperation and encourage information-sharing worldwide.<br />GS1 helps businesses and organisations improve the efficiency of their supply and demand chains by adding useful information to any exchange of goods or services.<br />
  18. 18. Countries with a GS1 Member Organisation<br />Countries served on a direct basis from GS1 Global Office (Brussels)<br />108Member Organisations.<br />150 Countries served.<br />Local services, global reach.<br />GS1 Member Organisations<br />
  19. 19. GS1 in numbers<br />International organisation created in 1977(EAN International) <br /><ul><li>Over 30 years of experience
  20. 20. 108 member organisations spanning 5 continents
  21. 21. Over a million companies doing business across150 countries
  22. 22. Serving all points in the supply chain
  23. 23. Over 20 sectors (FMCG, healthcare, transport, defence…)
  24. 24. Over 5billion transactions daily</li></li></ul><li>GS1 Values<br /><ul><li>GS1 is a not-for-profit organisation
  25. 25. GS1 is neutral from our business partners
  26. 26. GS1 is user-driven and user-governed
  27. 27. GS1 serves all companies: from multinationals to SMEs
  28. 28. GS1 is a platform for collaborative agreement between partners</li></li></ul><li>Some key user companies<br />Healthcare & Life Sciences<br />Electronics & High Tech<br />Logistics & Transport<br />Consumer Goods<br />Food & Beverage<br />Retail<br />
  29. 29. Some key user companies<br />Aerospace & Defense<br />Footwear & Apparel<br />Chemical<br />Industrial<br />Automotive<br />
  30. 30. GS1 Sweden<br />“GS1 Sweden simplifies companies’ local and global trade” <br />Through cooperation,GS1 developssector-neutral standards and serviceswhich enable efficiency improvementsin the flow of information and goods<br />
  31. 31. Our development in Sweden<br /><ul><li>Started in Sweden in1977
  32. 32. Focus on supply chain
  33. 33. Formerly known as EAN Sweden
  34. 34. 10 000 customers (almost)
  35. 35. Owned by the Consumer Goods Retail Industry</li></li></ul><li>Some of our customers<br />
  36. 36. Information Requirements in SupplyChains<br />14<br />
  37. 37. Need for information in supplychains<br /><ul><li>Whatdo my customersneed from me?
  38. 38. Howmuchinventory is in stock?
  39. 39. Whenshould I ship this product?
  40. 40. What are the characteristics of this item?
  41. 41. Where are the shipmentsrelated to this purchase order?
  42. 42. Whatpartieshave handled this itembefore I received it? And why?</li></ul>15<br />
  43. 43. IT in supplychains<br />Information is crucial to supplychain performance<br />IT= Information Technology<br />The technology is the means to support the need for information<br />16<br />
  44. 44. Necessarycharacteristics<br />Information must be<br /><ul><li>Accurate
  45. 45. Accessible
  46. 46. Appropriate
  47. 47. Timely
  48. 48. Sharedwithin the supplychain</li></ul>17<br />
  49. 49. Supplychains<br />18<br />SupplierRelationship Management<br />InternalSupplyChain Management<br />CustomerRelationship Management<br />Customer<br />Supplier<br />Transaction Management Foundation<br />The Macro Process in a SupplyChain (Chopra/Meindl)<br />
  50. 50. Flow of products and money<br />19<br />SupplierRelationship Management<br />SupplierRelationship Management<br />SupplierRelationship Management<br />InternalSupplyChain Management<br />CustomerRelationship Management<br />InternalSupplyChain Management<br />CustomerRelationship Management<br />InternalSupplyChain Management<br />CustomerRelationship Management<br />Company A<br />Company C<br />Company B<br />Transaction Management Foundation<br />Transaction Management Foundation<br />Transaction Management Foundation<br />
  51. 51. 20<br />Information must be<br /><ul><li>Accessible
  52. 52. Accurate
  53. 53. Appropriate
  54. 54. Timely
  55. 55. Sharedwithin the supplychain</li></ul>SupplierRelationship Management<br />SupplierRelationship Management<br />InternalSupplyChain Management<br />CustomerRelationship Management<br />InternalSupplyChain Management<br />CustomerRelationship Management<br />Transaction Management Foundation<br />Transaction Management Foundation<br />IT systems need to be able to talk to eachother<br />And theyneed a language<br />
  56. 56. Whatwill IT systems talk about?<br />21<br />Master data<br />Event data<br />Transactional data<br />Contracts<br />Inventory reports<br />Prices<br />Movements of goods<br />Invoices<br />Trade items<br />Recalls<br />Traceability<br />Purchase orders<br />Parties and locations<br />Sales<br />Salesforecasts<br />Deliverynotes<br />Returns<br />
  57. 57. Information Exchange<br />Three maintypes of SupplyChain Data<br /><ul><li>Master Data
  58. 58. Foundational data that is fairlystable
  59. 59. Transactional Data
  60. 60. Instructions for whatwewant to happen
  61. 61. Event Data
  62. 62. Tracking of whatactuallyhappened</li></ul>22<br />
  63. 63. Master Data<br />static information describingproducts, locations, contracts<br />Parties / locations<br /><ul><li>Identifier of party/location
  64. 64. Name
  65. 65. Adress
  66. 66. Contact information
  67. 67. …</li></ul>Trade Items<br /><ul><li>Identifier of tradeitem
  68. 68. Productclass
  69. 69. Brand
  70. 70. Description
  71. 71. Measurements
  72. 72. Packagetype
  73. 73. Storagetemperature
  74. 74. …</li></ul>23<br />Price (Contract)<br /><ul><li>Identifier of tradeitem
  75. 75. Supplier
  76. 76. Buyer
  77. 77. Price
  78. 78. …</li></li></ul><li>Master Data – Trade Items<br />Organized in hierarchies<br />Base unit<br />Consumerunit<br />Case<br />Orderableunit<br />Pallet<br />Logisticsunit<br />Eachlevelidentified by a Trade ItemNumber<br />
  79. 79. Consumeritems<br /><ul><li>Shelfplanning
  80. 80. Temperaturezone
  81. 81. Till roll /receipt text
  82. 82. Shelflabels
  83. 83. Etc.</li></li></ul><li>Orderableunits<br /><ul><li>Optimizing store distribution
  84. 84. Optimal use of roll cages and trucks
  85. 85. Correctstorage (temperature / humidity)</li></li></ul><li>Logisticsunits<br /><ul><li>Find a suitablestoragelocation
  86. 86. Temperaturezone
  87. 87. Optimization of order quantities</li></li></ul><li>Transactional Data<br />instructions for whatwewant to happen<br />Invoice<br /><ul><li>Invoicenumber
  88. 88. Buyer
  89. 89. Seller
  90. 90. Trade Itemnumber
  91. 91. Quantity
  92. 92. Price
  93. 93. Amountdue
  94. 94. Due date
  95. 95. Reference to purchase order
  96. 96. …</li></ul>Purchaser Order<br /><ul><li>Purchase order number
  97. 97. Buyer
  98. 98. Seller
  99. 99. Trade itemnumber
  100. 100. Quantity
  101. 101. Delivery date
  102. 102. Reference to contract
  103. 103. …</li></ul>28<br />Transport booking<br /><ul><li>Transport bookingnumber
  104. 104. Pick-uplocation
  105. 105. Deliverylocation
  106. 106. Quantity
  107. 107. Pick-up date/time
  108. 108. …</li></li></ul><li>Transactional data<br />Business transactionsorganized in Business processes like:<br /><ul><li>Order to cash
  109. 109. Transport management
  110. 110. Third party logistics
  111. 111. Payment management</li></ul>29<br />Business Process: Order to cash<br />Purchase Order<br />Order Response<br />DespatchAdvice<br />Invoice<br />Seller<br />Buyer<br />
  112. 112. Event data<br />tracking of whatactuallyhappened<br />Visibility of:<br /><ul><li>Movement of goods
  113. 113. Returns
  114. 114. Traceability
  115. 115. Sales</li></ul>An event (observation) consists of:<br /><ul><li>What? (ID of objectbeingobserved)
  116. 116. When? (timestamp)
  117. 117. Where? (ID of location)
  118. 118. Why? (business step)</li></ul>30<br />Accepting<br />Arriving<br />Assembling<br />Departing<br />Destroying<br />Installing<br />Loading<br />Packing<br />Shipping<br />Etc…<br />
  119. 119. 31<br />Supply Chain Visibility by Sharing Event Data<br />Tracking<br /> Following an item forward through the supply chain from source to destination.<br />Tracing<br /> Working backwards from an item’s current location and status to discover where it (and possibly its constituent parts) has been.<br />Pedigree<br />Who has handled or had ownership of this product?<br />Product Authentication<br />Is this product genuine or could it be a counterfeit?<br />
  120. 120. GS1 Standards in SupplyChains<br />32<br />
  121. 121. Whatabout GS1?<br />33<br />GS1 develops global standards <br /><ul><li>for the identification of goods and services
  122. 122. that foster cooperation and encourage information-sharing worldwide
  123. 123. that help improve the efficiency of supply and demand chains</li></li></ul><li>Numbers – the language everyone understands<br /><ul><li>Unique number ranges for labelling and identifying, for example</li></ul>Trade Items<br />Pallets<br />Locations<br />Companies<br />
  124. 124. GS1 IdentificationKeys<br />35<br />Example: Global LocationNumber<br />7310070364326<br />Check digit<br />Locationreference<br />GS1 Company Prefix<br />Each GS1 subscriber is allocated a GS1 Company Prefix <br />Each GS1 identification key is generated by the subscriberbased on their prefix<br />
  125. 125. Global numbers<br />All parties in the supply chain should use the same identifiers for the same things<br />Producer<br />Distributor<br />User<br />7310070364326<br />7310070364326<br />
  126. 126. Business relationship<br />Individual asset<br />Returnable asset<br />Product class<br />Shipping container<br />Location<br />Item number<br /> The GS1 System<br />Documenttype<br />EAN-13<br />ITF-14<br />Identification<br />Data Carrier<br />GS1-128<br />GS1 DATABAR<br />eCom<br />GS1 DATA<br />MATRIX<br />EAN-8<br />RFID/EPC<br />
  127. 127. EAN-13 and ITF-14<br />38<br />
  128. 128. Business relationship<br />Individual asset<br />Returnable asset<br />Product class<br />Shipping container<br />Location<br />Item number<br /> The GS1 System<br />Documenttype<br />EAN-13<br />ITF-14<br />Identification<br />Data Carrier<br />GS1-128<br />GS1 DATABAR<br />eCom<br />GS1 DATA<br />MATRIX<br />EAN-8<br />RFID/EPC<br />
  129. 129. Standard GS1-128 labels<br />40<br />Trade unitlabel<br />Pallet label<br />Transport label<br />
  130. 130. Business relationship<br />Individual asset<br />Returnable asset<br />Product class<br />Shipping container<br />Location<br />Item number<br /> The GS1 System<br />Documenttype<br />EAN-13<br />ITF-14<br />Identification<br />Data Carrier<br />GS1-128<br />GS1 DATABAR<br />eCom<br />GS1 DATA<br />MATRIX<br />EAN-8<br />RFID/EPC<br />
  131. 131. GS1 Databar<br />42<br />
  132. 132. Business relationship<br />Individual asset<br />Returnable asset<br />Product class<br />Shipping container<br />Location<br />Item number<br /> The GS1 System<br />Documenttype<br />EAN-13<br />ITF-14<br />Identification<br />Data Carrier<br />GS1-128<br />GS1 DATABAR<br />eCom<br />GS1 DATA<br />MATRIX<br />EAN-8<br />RFID/EPC<br />
  133. 133. GS1 DataMatrix<br />44<br />
  134. 134. Business relationship<br />Individual asset<br />Returnable asset<br />Product class<br />Shipping container<br />Location<br />Item number<br /> The GS1 System<br />Documenttype<br />EAN-13<br />ITF-14<br />Identification<br />Data Carrier<br />GS1-128<br />GS1 DATABAR<br />eCom<br />GS1 DATA<br />MATRIX<br />EAN-8<br />RFID/EPC<br />
  135. 135. RFID / EPC<br />46<br />You can’tsee the RFID tag. But an RFID readercan.<br />
  136. 136. Business relationship<br />Individual asset<br />Returnable asset<br />Product class<br />Shipping container<br />Location<br />Item number<br /> The GS1 System<br />Documenttype<br />EAN-13<br />ITF-14<br />Identification<br />Data Carrier<br />GS1-128<br />GS1 DATABAR<br />eCom<br />GS1 DATA<br />MATRIX<br />EAN-8<br />RFID/EPC<br />
  137. 137. Standards for data exchange<br />48<br />Master data<br />Transaction data<br />
  138. 138. Synchronizing Master Data<br />49<br />Enablestrading partners to synchronize master data<br />
  139. 139. Implementation of GDSN<br /><ul><li>28 Certified Data Pools
  140. 140. 96 Countries
  141. 141. 6 000 000 Trade Items
  142. 142. 25 000 Trading Partners</li></ul>50<br />
  143. 143. GDSN certified data pools<br />1SYNC<br />Big Hammer Data<br />Commport<br />FSE<br />iTradeNetwork<br />GHX<br />GS1 Argentina<br />GS1 Australia<br />GS1 Belgium & Luxembourg<br />GS1 Canada<br />GS1 China<br />GS1 Colombia<br />GS1 Croatia<br />GS1 Denmark<br />GS1 France<br />GS1 Hong Kong<br />GS1 Hungary<br />GS1 Italy<br />GS1 Malta<br />GS1 Mexico<br />GS1 Netherlands<br />GS1 Slovakia<br />GS1 Spain<br />GS1 Sweden<br />GS1 Taiwan<br />GS1 UK<br />GXS<br />SA2 Worldsync<br />51<br />
  144. 144. Standards for data exchange<br />52<br />Master data<br />Transaction data<br />
  145. 145. Business Process Interaction<br />Supplier<br />Salesman<br />Order recipient<br />Deliveryplanner<br />Invoiceissuer<br />CustomerRelationship Management<br />Contract<br />Receive order<br />Advise<br />delivery<br />Request<br />payment<br />Price<br />list<br />Order<br />response<br />Party<br />information<br />Invoice<br />Despatch<br />Advice<br />Pallet label<br />Trade Item<br />Declaration<br />Order<br />SupplierRelationship Management<br />Contract<br />Order<br />Receive<br />delivery<br />Receiveinvoice<br />Buyer<br />Purchasing officer<br />Order issuer<br />Good recipient<br />Invoice administrator<br />
  146. 146. Event Data<br /><ul><li>When? – timestamp of this event
  147. 147. What? – a list of identities for the entities observed
  148. 148. Where? – the read point or business location of this entity after the event
  149. 149. Why? – the business step that this event is part of</li></ul>54<br />
  150. 150. EPC components<br />4. Sends the event data to an application using an EPCIS interface<br />55<br />EPCIS Interface<br />(localapplication)<br />EPCIS Interface<br />(remoteapplication)<br />EPCIS Repository<br />3. Stores the result in a database<br />Applies business intelligence to create EPCIS events <br /><ul><li>when?
  151. 151. what?
  152. 152. where?
  153. 153. why?</li></ul>EPCIS Capture Interface<br />EPCIS CapturingApplication<br />Acquires events from RFID or barcode readers<br />
  154. 154. Event data sharing<br />56<br />EPCIS Interface<br />EPCIS Interface<br />EPCIS Interface<br />SupplierRelationship Management<br />InternalSupplyChain Management<br />CustomerRelationship Management<br />SupplierRelationship Management<br />InternalSupplyChain Management<br />CustomerRelationship Management<br />SupplierRelationship Management<br />InternalSupplyChain Management<br />CustomerRelationship Management<br />EPCIS Repository<br />EPCIS Repository<br />EPCIS Repository<br />Transaction Management Foundation<br />Transaction Management Foundation<br />Transaction Management Foundation<br />EPCIS Capture Interface<br />EPCIS Capture Interface<br />EPCIS Capture Interface<br />EPCIS CapturingApplication<br />EPCIS CapturingApplication<br />EPCIS CapturingApplication<br />
  155. 155. Finding EPCIS Data<br />How do you find other parties who have data of interest? Three options:<br />Pre-arrangement<br />with your known trading partners<br />Object Name Service (ONS)<br />a registry of all EPCIS instances<br />finds the EPCIS of the party that created a given identification key<br />Discovery Services<br />Potentially finds all data resources in the supply chain<br />
  156. 156. Traceability / VisibilityEventData Sharing with known partners<br />I saw it at my receiving door at 3:00pm on Monday <br />Contract <br />Manufacturer<br />Raw Material<br />Supplier<br />Manufacturer<br />Wholesaler<br />Pharmacy<br />Wholesaler<br />Hey partner, what do you know about object 123? <br />Hey partner, what do you know about object 789? <br />Hey partner, what do you know about object 456? <br />I shipped this at 6:02 Friday. It is in-transit<br />I saw it in pharmacy bin 123 and it is available for sale<br />58<br />
  157. 157. Traceability / VisibilityFinding the origin of the object identifyer<br />OBJECT NAME SERVICE<br />All identifiers starting with 123 have their origin EPCIS at Internet address ABC<br />All identifiers starting with 456 have their origin EPCIS at Internet address BCD<br />All identifiers starting with 789 have their origin EPCIS at Internet address DEF<br />Contract <br />Manufacturer<br />Raw Material<br />Supplier<br />The origin EPCIS for this item is located at Internet address ABC<br />Manufacturer<br />Wholesaler<br />Pharmacy<br />Wholesaler<br />Who can I ask for more information about object 123456? <br />59<br />
  158. 158. Traceability / VisibilityFinding the origin of the object identifyer<br />OBJECT NAME SERVICE<br />All identifiers starting with 123 have their origin EPCIS at Internet address ABC<br />All identifiers starting with 456 have their origin EPCIS at Internet address BCD<br />All identifiers starting with 789 have their origin EPCIS at Internet address DEF<br />Contract <br />Manufacturer<br />Raw Material<br />Supplier<br />Manufacturer<br />Wholesaler<br />Pharmacy<br />Wholesaler<br />I shipped it at 3:00 pm on Monday <br />Hey you, what can you tell me about object 123456? <br />60<br />
  159. 159. Traceability / VisibilityEventData Sharing in a complex supply chain<br />Contract <br />Manufacturer<br />Raw Material<br />Supplier<br />Lots of people with information……...<br />But how do I find all of these people so I can ask them a question? <br />Manufacturer<br />Wholesaler<br />Pharmacy<br />Wholesaler<br />61<br />
  160. 160. DISCOVERY SERVICE<br />Company A has Item X, shipment Y. Here is Internet address for more info<br />Company B has Item Y, Here is Internet address for more info<br />Company C has Item Z , Here is Internet address for more info<br />Contract <br />Manufacturer<br />Raw Material<br />Supplier<br />Manufacturer<br />Wholesaler<br />Pharmacy<br />Wholesaler<br />62<br />
  161. 161. DISCOVERY SERVICE<br />Company A has Item X, shipment Y. Here is Internet address for more info<br />Company B has Y, EPCIS URL for more info<br />Companies A, B, C have EPC Z , EPCIS URL for more info<br />DISCOVERY SERVICE<br />Company A has Item X, shipment Y. Here is Internet address for more info<br />Company B has Item Y, Here is Internet address for more info<br />Company C has Item Z , Here is Internet address for more info<br />Contract <br />Manufacturer<br />Raw Material<br />Supplier<br />Company A has info, this is their EPCIS address. <br />Company B has info, this is their EPCIS addres<br />Manufacturer<br />Wholesaler<br />Pharmacy<br />Wholesaler<br />Are you who you say you are? <br />Are you allowed <br />to see everyone who has information on Item X, Shipment Y<br />Who has information on Item X, Shipment Y<br />63<br />
  162. 162. 64<br />Discovery – Still Under Development<br />Includes use cases from <br /><ul><li>Meat Traceability
  163. 163. Tire Traceability
  164. 164. Airplane Part Tracking
  165. 165. Product Recall
  166. 166. Chain of Custody/Authentication of a product</li></li></ul><li>Business relationship<br />Individual asset<br />Returnable asset<br />Product class<br />Shipping container<br />Location<br />Item number<br /> The GS1 System<br />Documenttype<br />EAN-13<br />ITF-14<br />Identification<br />Data Carrier<br />GS1-128<br />GS1 DATABAR<br />eCom<br />GS1 DATA<br />MATRIX<br />EAN-8<br />RFID/EPC<br />Master data<br />Event data<br />Transaction data<br />
  167. 167. How it all fitstogether<br />… as illustrated in the ValueChainmovie<br />66<br />
  168. 168. Staffan Olsson<br />GS1 Sweden<br />Box 1178<br />SE-111 91 Stockholm<br />Tel +46 8 50 10 10 00<br />staffan.olsson@gs1.se<br />www.gs1.se<br />

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