Johannesburg, 06 Sep 2013
GS1, the not-for-profit organisation present in 108 countries, plays a significant role in designing, implementing and advocating global standards for use in the supply chain, based on the vision of moving things and related information efficiently and securely for the benefit of businesses and consumers.
According to Tarryn Daniels, Automatic Identification and Data Capture Program Manager at GS1 South Africa, an important part of proliferating GS1 standards is ongoing engagement with local small to large enterprises, multinationals and solution providers.
"Our standards ensure effective exchanges between companies, and act as basic guidelines that facilitate interoperability and provide structure to many industries, bringing together companies representing all parts of the supply chain - manufacturers, distributors, retailers, hospitals, transporters, customs organisations, software developers, local and international regulatory authorities, and more."
Education is key to GS1 success
Education is critical in communicating the benefits and processes of GS1 compliance to businesses in the supply chain. According to Daniels, solution providers play a key role in assisting organisations by providing training workshops, consultation and other services.
Companies such as Zetes, a leading system integrator and provider of supply chain identification and mobility solutions, play a leading role in educating the marketplace about the benefits of GS1 compliance, as well as encouraging a collaborative and connected supply chain that thinks locally but complies globally with 100% traceability.
According to Zetes SA's Executive Head of Sales and Marketing, Karin Parker: "GS1 compliance is always core to our technology solution suites, and to this end, we frequently run focused workshops and training sessions to highlight industry risks, challenges and solutions, rules and regulations, supply chain standards, and the benefits of being compliant. Our GS1 workshops are very informative, as they accentuate GS1's vision and mission."
Daniels says GS1 standards are used by huge multinational chains and by small corner shops, world-famous brands and individual craftsmen.
Visibility and efficiency
GS1 collaborates with businesses, which may in fact have diverging business interests, but nevertheless work together under GS1 leadership to agree upon standards that make the supply chain faster, more efficient, less complex and less costly. "Without a neutral, not-for-profit and global organisation like GS1, such very diverse companies would probably not be able to agree on standards."
Originally created by manufacturers and retailers to improve the efficiency of the distribution of food and consumer goods to supermarkets, GS1 standards today are used by millions of companies in dozens of sectors, including healthcare, transportation and logistics, aeronautics, defence, chemicals, high tech and the retail supply chain.
GS1 bar codes are the most well-known and universally recognisable part of the GS1 system of standards, with more than five billion bar codes read. Ever since they were conceived over 30 years ago, GS1 has been building and managing bar code standards that enable businesses and organisations around the world to automatically identify products, pallets and places.
"GS1 bar codes enable businesses to manage the supply chain more efficiently, and in today's global economy, an efficient supply chain is critical," says Daniels. "As more businesses adopt global sourcing strategies, the management of supply chains has become more challenging - while at the same time even more important to a company's success."
Insufficient or inaccurate data travelling along the supply can damage brands if things go wrong. Improving data quality can result in an immediate benefit to profits. GS1 standards, such as bar codes, enable businesses to respond to the challenges of a globalised supply chain by increasing their efficiency and maximising profitability.
RFID, or radio frequency identification, is a technology using tags that contain electronically stored data. RFID technology is used in a selection of applications, from passports to ID badges, access control and the "fast lane" at toll booths on bridges or highways.
According to Parker, Zetes has also been at the forefront of driving the adoption of RFID in South Africa, which, although behind in the use of this technology compared to Europe and the USA, is slowly realising the benefits, with several large corporates now using this form of identification for niche applications in the supply chain. In line with educating the marketplace, Zetes has held many RFID workshops to showcase the appropriate usage.
RFID can help manage shipments, inventories and assets, reduce counterfeiting and medical errors, fight theft, and in numerous other applications. But because RFID is so complex and multifaceted, standards are vitally important.
"GS1's EPCglobal standards put RFID technology to work for businesses and for people," explains Daniels. "When the GS1 standards encoded onto RFID tags are read, warehouse workers and store employees can know not only what an item is, but also where it is now and where it has been before. This results in more effective and streamlined processes in a number of different sectors."
As globalisation drives the supply chain, so does the need for a standard for the sharing of data become more pressing. GS1's Global Data Synchronisation Network, or GDSN, enables supply chain partners to continuously synchronise information, thereby improving efficiency in their supply chains to provide better service to the consumer.
Enhanced security and safety
According to Daniels, the medical sector is an extremely complex environment in which people, drugs and medical devices need to be permanently traced to ensure that the right drug is administrated to the right patient, at the right time, in the right dosage.
Parker says EUR6 billion is the amount lost by French companies each year due to counterfeiting. Worldwide, estimated losses from counterfeiting amount to between EUR200 billion and EUR500 billion. For governments, the losses are heavy too - EUR8 billion shaved off global GDP and EUR16 million of tax revenues are lost - according to a study by the Centre for Economics and Business Research, which began in 2000.
"Challenges such as counterfeiting in the pharmaceutical industry is a serious problem, and GS1 standards are already playing a key role in the fight against counterfeiting. Our experience in this sector puts us in an excellent position to assist other industries whose products are also frequently counterfeited, such as cosmetics, electronics and automobile parts," says Daniels.
Traceability is key to efficiency
As the food chain becomes more complex and global, GS1 standards play a vital role in product traceability and recall in order to protect both the supply chain partners and the consumer.
Parker says: "Our clients, both in South Africa and overseas, in the food and beverage sectors are under constant pressure. Retailers require a high level of accuracy for deliveries, which is subject to fines if unmet. The complexity is growing with mixed products on a single pallet and products with short shelf lives."
With globalisation driving business, the importance of communicating efficiently between suppliers, logistics companies and every facet of the supply chain, and sharing of accurate data, plays a key role.
GS1 e-commerce standards provide clear guidelines for creating electronic versions of business documents and enable trading partners to smoothly exchange information electronically, regardless of hardware, software or language differences.
GS1 provides solutions to match the nature of each enterprise, from entry-level bar codes to sophisticated supply chain solutions. With the help of companies that are custodians of GS1 standards, such as Zetes, which trusts and believes in the excellence of these standards, communities are enabled to develop and implement global standards in an increasingly complex and global supply chain environment.
"GS1's supply chain concepts are important to entities. The more companies that are GS1 compliant, the more secure and efficient the supply chain will be for every consumer and enterprise in the supply chain. We encourage companies like Zetes to assist us to drive these standards for the benefit of all stakeholders," concludes Daniels.
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