Retailers stand to save hundreds of millions of rands every year in productivity if suppliers of goods to them were to ensure compliance with bar code standards.
“Compliance with the specifications for bar codes is a global problem and costs the retail sector in the order of billions of dollars in lost productivity,” says Steven Makepeace, technical director at Spec Systems, a turnkey provider of bar code printing, management and consulting services. “The most disturbing fact is that complying with the standards is not rocket science, although it does require doing the basics correctly from the beginning of the process right through the supply chain to the point of sale.”
Makepeace has been intimately involved in the auto ID industry for 20 years, and has been working closely with retailers to understand their frustrations and where suppliers could improve the readability of bar codes.
“The specifications for the different types and applications of bar codes are very specific, with explicit guidelines provided by GS1, the world body that manages and assigns bar code numbers. A large proportion of the non-compliance issues stem from the printing of the bar codes, as they have to be produced to the highest standards, despite being a relatively small print area.
“This problem is most prevalent in outer case codes for pallets and trays on which the products are delivered to retailers' distribution centres, largely due to the lack of attention to detail. It may be that suppliers don't understand the implications and view these larger items as less critical in their delivery.”
Nothing could be further from the truth, though.
Glyn Fogell, project leader for bar code quality and AIDC (Auto ID Data Capture) at Shoprite, says research he conducted showed that upward of 75% of the items delivered to the retailer's distribution centre at Brackenfell in the Western Cape did not meet GS1 specifications.
He estimates that Shoprite could save up to R300 million a year in productivity costs across the supply chain, if all bar codes complied with these standards.
“There is a general lack of focus by customers, and the truth is that if they don't feel any pain because of non-compliance they don't feel the need to fix it,” explains Fogell. ”There has been talk by retailers of imposing penalties for bar codes that don't scan, with Spar in particular penalising suppliers R10 per case.
“We have not gone the same route, tending to work with suppliers who are not compliant. When it comes to my attention, for example, that a particular product is not scanning correctly, I will investigate and analyse the bar codes according to the GS1 specifications, and then recommend to the supplier how to remedy it. In the worst case scenarios, we de-list the product if the supplier is unable to get it right.”
Fogell relates that this problem is not restricted to the local market, with UK retailer Tesco no longer accepting stock at its distribution centres that cannot be scanned. In such cases, the supplier is penalised to the tune of up to £40 000 when deliveries are returned.
Spec Systems' Makepeace says it is by understanding these challenges that the company is able to provide value-added services to help clients meet the required standards.
“We undertake extensive education campaigns to help them reach the same level of understanding regarding these standards, the effect that various surfaces have on printing output and how to improve the quality of their bar codes,” he explains.
“Obviously for bar codes that are affixed to pallets and cases, a lot of this depends on the quality of the printer used to generate that bar code, and we have the expertise and product line-up to meet a wide range of needs.”
Spec Systems is the only premier partner for Zebra Technologies in South Africa, this supported by a local manufacturing facility for both Label and Ribbon materials, as well being certified as a Zebra Authorised Service Provider (ZASP), ensures we offer our clients the best solutions possible for their requirements. Zebra is globally recognised as one of the world's leading vendors with the widest range of bar code printers and systems.
“For something that is printed as small and discreetly as it is, the bar code can be a logistics manager's greatest nightmare, but needn't be.
“A little education, lots of attention to detail and making use of the best technology available will go a long way to having companies comply with these exacting specifications,” he says.
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