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Ecr korea improving food safety with gs1 data bar


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Ecr korea improving food safety with gs1 data bar

  1. 1. Improving Food Safety with GS1 DataBar Joint Project by Korea October 2010 Project Partner Part of Lotte Shopping and 3rd largest Hypermarket Chain in Korea LOTTE Established in 1998 Dept. Mart Sky Store Park LOTTE Food LOTTE Super Manufacturing Shopping LOTTE Krispy Kreme Cinema Doughnuts Toy’s R Us Lotte Shopping is 94th in WW Top 100 retailers. ( * only 1 company from Korea)
  2. 2. Project Partner Lotte Mart Globalization : 187 stores/4 countries, Sales 6.5B US Dollar Korea (86) China (78) Vietnam (2) Indonesia(21) Project Partner Global LOHAS company Since started as a small organic produce in 1984 Core Business • Market leader (M/S No.1) in Tofu, Sprout, Refrigerated Noodle in Korea B to B • Created synergy through core competence in sourcing, manufacturing & logistics Foodmerce • Net revenue was USD 1 billion in 2009 Mission & Values • Mission A Global company that loves both nature and humanity • Vision A company goal to reach sales of 5 trillion won (about USD 4.5 billion) at the Pulmuone Wildwood year 2015. B to C Monterey gourmet foods • Core values TISO (Trust, Integrity, Solidarity, Openness) Domestic Global
  3. 3. Project Partner Name of Company : Educational Foundation Konkuk Dairy Ham Industry ㆍ Sales(2009) : USD 1.04 Billion ㆍ Customers(2009) : 1 Million persons ㆍ Branch retail stores : 300 stores Our Vision & Mission ㆍ To contribute in Citizen health, education and become World best product line of food company History ㆍ 1960’s : Established “Konkuk Dairy Company(University Milk Product Lab.)(1964) ㆍ 1970’s : Production of Premium ham&sausage(department store) ㆍ 1980’s : Production of Carton Paper pack Milk ㆍ 1990’s : Completion of New factory ㆍ 2000’s : Unified Konkuk Dairy and Konkuk Ham Project Partner Korea GS1 is a not-for-profit organization that develops global standards for the identification of goods and services. (108 member organizations spanning 5 countries) Ever since becoming a member organization of GS1 in 1988, GS1 Korea has been active in promoting implementation of global standards to improve the supply and demand chain representing the interests of Korea As the GS1 DataBar solution provider, GS1 Korea is leading this project based on active cooperation with LotteMart and its suppliers
  4. 4. Background Increasing concerns over food safety around the globe, accordingly management of expiration date is becoming more important A month ago? WHEN Vitamin A or C? A year ago? ‘when was it produced?’ WHAT ‘ what is the ingredient of it?’ WHERE ‘where was it produced?’ HOW ‘ how was it In Korea or other countries ? produced?’ WHO Organic or Nonorganic? ‘ who produced it?’ A company or B company? “Improving Food Safety with GS1 DataBar” Korea Background Fresh Marketing among manufacturers is more accelerating # Example 1 : One of the leading milk companies in Korea is enjoying high popularity by providing production date in addition to expiration date “Improving Food Safety with GS1 DataBar” Korea
  5. 5. Background # Example 2 : Pulmuone built traceability system for tofu products by using private barcode and it lead to increased brand loyalty “Improving Food Safety with GS1 DataBar” Korea Background But current situation in the retail store is … “Expiration date is marked in a human “Expiration date is marked in a human readable format, that is, shelf- readable format, that is, shelf- life checking is done manually” life checking is done manually” “It sometimes causes “It sometimes causes expired products to be passed expired products to be passed through POS” through POS” “These all combined increase waste “These all combined increase waste and cost from expired food products and cost from expired food products and threaten consumer safety” and threaten consumer safety” “Improving Food Safety with GS1 DataBar” Korea
  6. 6. What is GS1 DataBar ? Linear Barcode Symbology International Standards (ISO/IEC 24724) Capable of encoding additional information such as expiration date, lot number and price Can be used without changing existing scanning equipment (01)08801043004022 (15)030320 (10)7887300 (3202)000105 … GTIN Expiration Lot Number Price … Date “Improving Food Safety with GS1 DataBar” Korea Objective Short term Long term To manage shelf-life To provide traceability data automatically information through Smart Phone To block expired products’ passing through POS To provide mobile coupons To capture markdown through Smart Phone pricing automatically Creating Shopping Value “Improving Food Safety with GS1 DataBar” Korea
  7. 7. Target Product Target Product : Tofu, Milk - Perishables & Fast Moving Consumer Goods “Highly needed for expiration data management” Tofu Milk “Improving Food Safety with GS1 DataBar” Korea Issues 1 Scanner Scanner - Most scanners are GS1 DataBar capable but Readiness Readiness need upgrade process 2 - As most SMEs don’t have GS1 DataBar capable scanners, Dual Symbol Dual Symbol manufacturers should use dual symbol for quite some time Use Use - Manufacturers are reluctant to use dual symbol due to (EAN/UPC AND the increased space need for both symbols (EAN/UPC AND GS1 DataBar) - Retailers need capturing only DataBar to check GS1 DataBar) expiration date at pos 3 Single Symbol Single Symbol Use - Manufacturers will have some burden to manage inventory Use dually due to single symbol use (EAN/UPC OR (EAN/UPC OR GS1 DataBar) GS1 DataBar) “Improving Food Safety with GS1 DataBar” Korea
  8. 8. Issues 4 Printing - To print variable information in bar codes in high-speed Printing printing and packaging lines is required Efficiency & Efficiency& Environment - Unstable printing environment such as wet process, Environment vibrant conveyor belt is one of the biggest hurdles 5 System System - Technology upgrades for systems such as ERP and POS Development Development to process GS1 DataBar as valid data for New Data for New Data 6 - Education about what the adoption of GS1 DataBar means for retailers and manufacturers is needed Education Education - Education for handling DataBar attached products at POS is required especially for staffs in retail stores “Improving Food Safety with GS1 DataBar” Korea Solutions Issues Solutions 1 Scanner Readiness Scanner Readiness DataBar Printing DataBar Printing 2 Solution Solution Single Symbol Use Single Symbol Use (EAN/UPC OR GS1 DataBar) (EAN/UPC OR GS1 DataBar) 3 Dual Symbol Use Dual Symbol Use (EAN/UPC AND GS1 DataBar) (EAN/UPC AND GS1 DataBar) New POS System New POS System 4 Printing Efficiency & Development Development Printing Efficiency & Environment Environment 5 System Development for System Development for New Data New Data Collaboration Collaboration 6 Education Education “Improving Food Safety with GS1 DataBar” Korea
  9. 9. Solutions – DataBar Printing Attach after printing DataBar on film “Improving Food Safety with GS1 DataBar” Korea Solutions – DataBar Printing Attach after printing DataBar on label “Improving Food Safety with GS1 DataBar” Korea
  10. 10. Solutions – DataBar Printing Seal after printing DataBar on package “Improving Food Safety with GS1 DataBar” Korea Expected Benefits Improved consumer shopping experience leads to Creating Shopping Value Increased satisfaction for food safety Consumer Improved shopping experience with more efficient bar codes Create “Shopping Value” Better control over Better control over expiry dates expiry dates Decrease waste and Decrease waste and cost Retailer Supplier cost Better control of Better control of inventories, shrinkage inventories, shrinkage and product recalls and product recalls “Improving Food Safety with GS1 DataBar” Korea
  11. 11. Progress & Next Step Results & Pre- Pre-Launch Launch Expansion Learnings • initiated by LOTTE Mart • implementing • expansion to field test in • choice of other product one store • ROI analysis products for pilot categories • public • improving • making announcement • expansion to technical stability other retailers & action plan • expansion to manufacturers • checking the all stores technical stability Jan - Sep 2010 Oct – Dec 2011 - “Improving Food Safety with GS1 DataBar” Korea Thank You ! “Improving Food Safety with GS1 DataBar” Korea