GS1 MobileCom
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GS1 MobileCom

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  • Hundred years ago, we started to have self-service format, in France with Le Bon Marché with Aristice Boucicaud in 1869, in the US with Clarence Saunders with his Piggly Wiggly in 1916, in Asia, everywhere… That meant choice, convenience and value. Brands and retailers spent years improving the supply chain in order to avoid OSA while reducing stocks, retailers have learnt how to design the stors to better meet shoppers needs and to drive sales.
  • Today a key innovation driver is in the relation with consumers and even between products and consumers, or what we call « Shopper Dialogue ». The information about the product is not only on the packaging or in the words of the store owner but available in many format and from many sources.
  • 4 billions mobile phones, more than TV etc… more SMS every day than people on the planet,
  • Anywhere, anytime Virtual world becomes closer to the physical world. You can have a personal assistant in the shop, a nutritional personal coach.
  • What does it mean for GS1 ?
  • Connecting with the marketing mix (all chanelles) and with the 360° vision of the consumer, with Awareness , trial, purchase, loyalty…
  • Feasibility to development : From all potential applications and white papers (research) to decision to focus (EP, coupon) and standards or solution development New community : different from others we know : users but different contact marketing, across department, mobile industry and providers. An emergin market, very competitie which is hard and fast with players likge Google and Microsoft (opportunities and challeneges). Organisations taking positions now; Roadmap : focus on what companies are saying / EP = from e to e 1D reading : 3 years ago, not possible, 2Y in labs, today in application;
  • Important (for US) to say : We would like to take this opportunity to inform CEOs especially about this newly Mobile in Retail White Paper. Your teams have been working on it since several months and we invite you to read it as you will probably find it very useful with external partners as well (or something like this). 2010 Objectives with the brand Become THE forum for developing “mobile commerce” Position GS1 Standards to enable “mobile commerce” solutions Communication and outreach Develop Business Opportunities
  • Mention GSMA Memorandum of Understanding
  • Explore additional barcode standards (2D)
  • Mention GSMA Memorandum of Understanding

GS1 MobileCom Presentation Transcript

  • 1. GS1 MobileCom Making B2C innovation happen Diane Taillard, GS1 GO Cameron Green, GS1 GO
  • 2. From more choice of products …
  • 3. … to more choice of information source
  • 4. Mobile phones are changing the landscape...
  • 5. ...of the shopping experience
  • 6. For 30 years, innovation focused on optimising the B2B Supply Chain Supplier Manufacturer Retailer Flow of goods Flow of information Consumer
  • 7. Today, brands and retailers want to bring innovation to the B2C relationship Supplier Manufacturer Retailer Flow of goods Consumer Flow of information
  • 8. B2B2C is not just about adding the consumer in the flow... Consumer Supplier Manufacturer Retailer
  • 9. GS1 and mobile commerce from 2007 to 2010
      • From feasibility to development phase
      • Growing a new community
      • Defining GS1 role and roadmap : Extended Packaging first
      • 1D (EAN/UPC) barcode adoption
  • 10. Concrete deliverables since 2009
    • Extended Packaging Pilot Handbook
    • 2009-2011 Roadmap
    • GS1 MO MobileCom Starter Kit
    • Mobile In Retail White Paper
    • MobileCom Brochure
    • GS1 MobileCom Logo and Branding guidelines
    GS1 MobileCom Brochure and Branding Feb 2010 Mobile in Retail White Paper Jan 2010 Member Organisation Starter Kit Feb 2010 Just released Just released Just released
  • 11. Growing GS1 MobileCom Community
    • A multi-stakeholder steering committee established
    Over 300 people and 180 organisations currently focus on adoption of open standards to support mobile commerce + 3 seats currently open to mobile industry and solution providers
  • 12. We’re in Demand!
    • Consumers like scanning product barcodes (1D/linear)
    • Red Laser in top ten iPhone paid apps
    • ShopSavvy in top ten of free Android market apps (1 million users, 4 million scans a day)
    • However…
    • People want more than great prices: Health, Environmental, Advice, Language, Religious
    • People expect quality information
  • 13. Next steps : Launch GS1 MobileCom
    • Leverage our existing:
      • Standards (GTIN, Master Data)
      • Services (GDSN, GEPIR, Barcode Quality)
    • Concretely :
      • GSMP Multiple Barcodes Group
      • Access to Trusted Data group to be formed
      • Coupon group to be formed
      • GS1 MobileCom Day - 15 June 2010
  • 14. Current MO involvement
    • Regional representatives in the steering committee
    GS1 Albania GS1 Australia GS1 Austria GS1 Belarus GS1 Belux GS1 Brasil GS1 Canada GS1 Chile GS1 China GS1 Colombia GS1 Costa Rica GS1 Croatia GS1 Czech Republic GS1 Denmark GS1 Finland GS1 France GS1 Germany GS1 Guatemala GS1 Poland GS1 Portugal GS1 Russia GS1 Saudi Arabia GS1 Serbia GS1 Singapore GS1 Slovakia GS1 Slovenia GS1 Spain GS1 Sweden GS1 Switzerland GS1 Taiwan GS1 Tunisia GS1 UK GS1 US GS1 Uzbekistan GS1 Hong Kong GS1 Hungary GS1 India GS1 Iran GS1 Ireland GS1 Italy GS1 Japan GS1 Korea GS1 Latvia GS1 Lithuania GS1 Lebanon GS1 Malaysia GS1 Malta GS1 Mexico GS1 Netherlands GS1 New Zealand GS1 Panama GS1 Poland Over 50 MOs active or interested today
  • 15. RFID
  • 16. ROI RFID Model Diagram RFID BENEFITS BUSINESS OBJECTIVES DRIVERS KEY FACTORS RFID IMPACT Automatic scanning Real time Information access Real time locations visibility Unique Serial Numbers Manual operations reduction and automation Lead times reduction Standards based Materials flow enhancement Detailed distribution routes Inventory level and location in real time Automatic and real time Scanning and Conciliations Distribution information Global Standards Operational Efficiency Track & Trace Low Costs Service Level Quality
  • 17. PHASE 1 Conceptual Model / Proof of software and scan equipment / Single delivery test Products and Information Dispatch Flow Quantity and ID Control with RFID entering the unit load. Product Identification Tag placement Products dispatch and data base update. Electronic Proof of purchase including serial numbers of each product in the unit load dispatched by the 3PL Point of Sale Client DC Logistics Provider Manufacturer Dispatch notification Picking 1 2 3 4 5 Consolidation Products without tags Retailer warehouse Production EAN 128 EAN 128 EAN 128 EAN 128
  • 18. PHASE 2 Infrastructure Implemented
    • For the pilot run:
      • Distribution Center – DINET.
      • Point of Sales – LG (EFE and Tiendas Peruanas (Oeschle).
      • Dinet’s transportation unit equipped with GPS of Wisetrack.
      • Wisetrack Track & Trace system.
      • 5,000 RFID Tags (UPM).
      • 1 RFID reader/antennas (Impinj – at dispatch)
      • 1 RFID mobile reader (Motorola – at destination).
  • 19. Results of Processes Optimization Picking Picking Quality Control Manual RF Serial Numbers Capture RF Load Verification by Carriers Manual Truck load in Manual Transport GPS-Wisetrack Unload Despatch GPS-Wisetrack Quantity Control in Destination Manual Proposed Process Rejection due to Errors in serial numbers Manual Load of order rejected Manual Transport of Order rejected GPS-Wisetrack Unload Order rejected Manual Quantity Control in Destination Manual
  • 20. Savings Estimate Methodology 1. Identification of processes to be optimized or eliminated. 2. Processes activities definition
  • 21. 3. Timing of activities and measurement of resources used. 4. Value estimation of activities and resources used Savings estimate Methodology
  • 22. 5. Savings. 6. Financial and Economical Evaluation. Savings estimate Methodology
  • 23. ROI
    • Investment for this Test Run:
      • $ 22,500 Initial (on RFID equipment)
    • Calculated Savings:
      • Aprox. $ 9,800 per month.
    • Recovery Period:
      • 3 months.
    • IRR:
      • 43%.
  • 24. Qualitative Benefits - Visibility and traceability of items (by serial number) for each Shipping Notice on route - Load goods confirmation on line - Reduce time cycles for Distribution and payment documents. - Control of transport units - Document visibility on real time, at each delivery point - Unload confirmation on line - Proof of Delivery online between systems - Increased quality on preparation of dispatch goods. - Eliminate Serial Number capture mistakes. Transport Quantity Control in Destination Picking Quality Control Serial Number Capture Load Verification by Carriers
  • 25. Quantitative Benefits - Return transport elimination due to customer rejects for serial number mistakes - Credit notes elimination due to customer rejects for serial number mistakes - Manipulation time elimination due to return logistics for serial number mistakes - Lost sales elimination due to customer rejects for serial number mistakes - Eliminate the need for space due to customer rejects for serial number capture. - Reduce time on serial number capture - Eliminate the need for warehouse space for serial number capture. Load Verification by Carriers - Elimination of this activity. Transport - Better transportation units disponibility on field Quantity Control in Destination - Product verification reduces times at destination Picking Quality Control Serial Number Capture
  • 26. Quantitative Benefits in LG terms - 100% recovery of lost sales due to serial number and product identification errors - Savings in administrative expenses for issuings of credit notes. - Increase of products preparation capacity by 25% - The client will receive its products in less time from the time the order is approved. Reduction of order cycle time. On Time Delivery - Reduction of late deliveries. Case Fill Rate Lead Time of Sale Order
  • 27. Conclusions
    • Project is 100% feasible in economic and qualitative terms.
    • We achieved the expected benefits of using RFID and GPS technology.
    • Simplicity and visibility of the operations along the supply chain using track & trace, GPS and standard RFID/EPC tools.
  • 28. Contact Details GS1 Global Office Avenue Louise 326, bte 10 B-1050 Brussels, Belgium T + 32 2 788 78 00 W www.gs1.org