Eanucc System Brochure v3

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    The EAN UCC

    The Global Language of Business

    system

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    The primary objective of the EAN UCC system isto make possible the

    identification of all trade items, processes, services, shipments, assets, companiesandlocationsto facilitate communication, data collection and exchange of information

    in the interest of trading partners.

    EANUCC openness ensures worldwide product recognition

    Because the EANUCC system is a universal global standard,all users follow the same codingrules.As a result,EANUCC numbers and bar codes can be recognised by trading partnersanywhere in the world.

    Whats more,the numbers issued by EAN are completely unique,so no product can be

    confused for another. For example,a popular brand of cola drink is manufactured around theworld in a wide variety of sizes,shapes and container styles,yet each can be identified by itsunique EANUCC number.

    The EANUCC System is administered by EAN International,based in Brussels. With memberorganisations in over 100 countries,including USA,the integrity and compatibility of the systemworldwide is ensured.

    Where is the EANUCC system used?

    Nearly one million organisations in over 133 countries use the system.However,because it was

    first developed for the retail industry,EANUCC numbers and bar codes remain most visible on

    supermarket products.

    It is important to understand that the same system can be used in any sector of industry at alllevels of manufacturing and distribution. In Australia,major system adopters include the health,steel,hardware,electrical appliances,furniture,meat and telecommunications industries.The

    system is even used by fire brigades and electricity generators.

    The EANUCC

    system

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    WhatistheEANUCCsystem

    For all tradingpartners,benefitsinclude:

    >The ability to identify

    goods and shipmentsquickly and accurately

    > Faster delivery of goods

    > Fewer handling andshipping errors

    > Better inventory

    management and reducedinventory holdings

    > Reduction of order andreplenishment times

    For manufacturers,specific benefitsinclude:

    > Automated counting and

    sorting on theproduction line

    > Ability to track products

    through manufacturingand delivery

    > Ability to obtain realsales data from a retailerand use it to planproduction schedules

    which reflect actualconsumer demand

    > Ability to include attributeinformation such as batchnumbers,use-by dates and

    serial numbers in one barcode which can be read byall trading partners

    Wholesalers enjoy:

    >The ability to order,receive,pick anddespatch goods faster,with greater accuracy

    > Improved inventory andstocktaking

    > Significantly reducedinventory holdings

    > Support for applicationssuch as cross-docking

    and radio frequencywarehousing

    Retailers enjoy:

    > An accurate,efficientsource of sales data

    > Reduced inventoryholdings andadministration costs

    > Fewer products out of

    stock

    > Faster,more efficientservice at POS

    > Itemised receipts forcustomers

    > Greater efficiency in shelfspace and storemanagement

    What are the benefits of EANUCC?

    At Point of Sale (POS),retail systems can involve large numbers of scanning registers linked to a store management system that canperform functions including updating price files,printing shelf labels,deleting lines,ordering,stocktaking,reporting sales data andmanaging inventory,as well as payroll, labour scheduling and cash office functions.

    However,well before goods arrive at the retail outlet,EANUCC numbers will have delivered benefits to all parties involved in the

    supply chain.

    The EAN UCC system offersbenefits to all partiesin the trading cycle byreducing costs, saving time, and increasing accuracy and efficiency through

    management of the entire supply chain.

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    There are three distinct components of the EANUCC system:

    > Standard numbering structures for the identification of goods,services,shipments,assets and locations

    > Data carriers to represent the identification numbers in machine readable format

    > eMessaging standards to transmit the captured data between trading parties

    Of these three areas,the key component of the EANUCC system is the numbering structures used for identification.

    Basics of the EAN UCC

    system

    EAN/UPC RSS

    UCC/EAN-128 RFID

    ITF-14

    SUPPLY

    CHAIN

    MANAGEMENT

    GTIN

    SSCC

    AI's

    GLN

    DATACARRIER

    eMESSAGING

    IDENTIFICATION

    EDI XML EANCOM EANUCC XML

    The 3 basic components of the EANUCC system

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    WhatistheEANUCCsystem

    Numbering structures for identificationThe main elements of the numbering system covered here are:

    Global Trade Item Number (GTIN)

    An identification number to identify a trade item which may be sold at retail POS which appears in a general distribution(warehouse) environment.

    Attribute Data

    A method of identifying information about a trade item over and above product identity,such as batch number,production date.

    Serial Shipping Container Code (SSCC)

    For the unique identification of logistic units.

    Data Carriers (Bar Codes)

    The numbers are represented in data carriers that enable automatic capture of the data. At present only the EAN/UPC bar codesymbology is used at retail POS.

    In the general distribution environment of a warehouse,all symbologies can be used,EAN/UPC,ITF-14 and UCC/EAN-128:

    > EAN/UPC bar codes are used for non retail trade items that may also cross retail POS

    > ITF-14 bar codes are robust and therefore better suited for direct printing onto corrugated cardboard

    > UCC/EAN-128 bar codes allow attribute data as well as product identification to be encoded

    In the future new symbologies or data carriers may be introduced as technology improves. In the near future reduced spacesymbology (RSS),composite symbologies and radio frequency identification (RFID) tags will be introduced for use as data carriers.

    eMessaging

    Business transactions,such as purchase orders and dispatch advices,may be transmitted electronically using standard messagingformats such as EANCOM and XML.

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    EAN Australia allocates a parcel of numbers to member companies.These

    numbers include a prefix to identify a company and a set number of digits to

    identify products (which members themselves allocate sequentially) , followed by acheck digit which is mathematically calculated to verify that the details of the

    EAN UCC number are correct.

    G T IN s & Bar Coding

    tradeitems

    A trade item is any item (product or service) for which there is aneed to retrieve pre-defined information that may be priced,ordered or invoiced for trade between participants at any point inthe supply chain.

    A trade item may be a single,non-breakable unit.It may also be a

    standard and stable grouping of a series of single items.Such aunit may be presented in a wide variety of physical forms:afibreboard carton,a covered or branded pallet,a film wrappedtray,a crate with bottles,etc.

    Trade items consisting of a single unit are identified with a uniqueGlobal Trade Item Number (GTIN). Standard groupings of identicalor different units are identified with a separate,unique GTIN.

    There are two main types of trade items dealt with in thisbrochure retail trade items and non-retail trade items.

    > A retail trade item is any item that is intended to be soldto the final consumer through retail POS

    > A non-retail trade item is any item that is tradedbetween companies and not primarily intended for sale toconsumers at retail POS

    The reason for this distinction is the differing requirements forretail and non-retail numbers and bar codes.

    Within the Australian retail industry,trade item numbers have

    historically been referred to as APNs and TUNs.Whilst thisterminology may still occasionally be encountered,the correct

    term for any trade item number is GTIN.

    Re-using numbers

    A deleted EANUCC number must not be re-used for aminimum of four years after the date a product was last issued

    into the marketplace.When re-issuing EANUCC numbers,giveconsideration to the product type and its possible life in themarket. It may be advisable for some GTIN's to never be reused.

    Introduction

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    GTINs&BarCodingtradeitems

    Any trade item that isintended to be sold to the final consumer through retail

    PO S ismore commonly known asa retail item or consumer unit.

    Any trade item that could be sold at the retail POS as well as traded through the distribution supply chain is numbered and

    the type of bar code selected according to the rules applicable to trade items sold at POS. However,the size and location ofthe bar codes on these trade items are determined by the rules applicable to trade items not sold at POS.

    There are two types of GTINs for retail trade items that are not sold in North America:

    1. EAN/UCC-13 identification numbers represented in an EAN-13 bar code

    2. EAN/UCC-8 identification numbers represented in an EAN-8 bar code

    Example of an EAN/UCC-8 number

    represented in an EAN-8 bar code

    Examples of an EAN/UCC-13 number represented in an EAN-13 bar code

    Trade Items sold atRetail Point of Sale (PO S)

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    Compatibility with United States standards

    For historical reasons,the EANUCC system enables a one way compatibility with the UCC

    system that is used throughout USA and Canada,at retail Point of Sale (POS) only. This

    means that trade items carrying EAN numbers and bar codes may not be able to be scannedby all retailers in the USA and Canada. Trade items carrying UCC numbers and bar codes areable to be utilised anywhere in the world. It is therefore,unnecessary to carry both EAN andUCC numbers and bar codes if your products are exported to the USA and Canada.

    Retailers in the USA and Canada are gradually upgrading their systems and full compatibilitycan be expected by January 2005. In the meantime,companies exporting to the USA areadvised to ask their distributors if EANUCC numbers and bar codes are compatible withtheir retail customers systems.

    If you do need to number and bar code your retail items under the UCC system,you willhave to become a member of the UCC. EAN Australia members can obtain UCCmembership through EAN Australia.

    To apply for a UCC membership simply contact our Help Desk on 1300 366 033.

    EAN/UCC-13 identification number

    How you allocate your EAN/UCC-13 identification number willfirst depend on whether you have been assigned a nine-digit or aseven-digit company prefix.

    The nine-digit prefix was first issued by EAN Australia in 1996,toreduce the range of product numbers allocated to each companyand to conserve the total pool of numbers (most companies needonly a few hundred GTINs at most).

    Nine-Digit prefix:

    >EAN Australia allocates the first nine digits (the EANUCCcompany prefix) to you as a member company

    >You then allocate the next three digits (the item reference).It is recommended that you number sequentially starting from000 through to 999

    >The last digit is a mathematically calculated check digit thatensures the whole number is correct

    Seven-Digit prefix:

    >EAN Australia allocates the first seven digits (the EANUCCcompany prefix) to you as a member company

    >You then allocate the next five digits (the item reference).It is

    recommended that you number sequentially starting from00000 through to 99999

    >The last digit is a mathematically calculated check digit thatensures the whole number is correct

    Please note:EAN Australia may allocate company prefixes inlengths other than seven or nine digits in the future to furtherconserve numbers.

    A check digit calculator will automatically calculate the check digitfor you,can be obtained from the Download Centre on the EANAustralia website:www.ean.com.au

    EAN/UCC-8 Identification Number

    EAN Australia follows strict application guidelines when approvingand issuing EAN/UCC-8 identification numbers. You should applydirectly to EAN Australia for issue of an EAN/UCC-8identification number

    The following will also be needed:

    >Demonstration that all efforts have been made to incorporatean EAN/UCC-13 identification number and bar code onto

    product packaging

    >A sample of the complete product and either the actual sizelabel or the artwork

    >A complete list of every product requiring an EAN/UCC-8identification number

    >Written justification as to why the product should be allocatedan EAN/UCC-8 identification number

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    GTINs&BarCodingtradeitems

    M ore commonly referred to asnon-retail itemsor trade units, these trade items

    are any item or standard grouping of itemsmade up to facilitate the operations

    of handling, storing, order preparation, shipments, etc.

    Such a unit may be presented in a wide variety of physical forms: a fibreboard carton,a covered or banded pallet,a film wrappedtray,a crate with bottles,etc.

    NOTE:Each individual level of trade items must be uniquely identified with a different GTIN.

    Trade Items not sold atRetail Point of Sale (PO S)

    The options available for numbering and bar coding for trade items not sold at retailPOS are:

    1. Allocate a unique EAN/UCC-13 number represented in an EAN-13 bar code.Usedwhen trade item may be sold in it's entirety at retail POS

    2. Allocate a unique EAN/UCC-13 number with a filler zero (leading zero) represented in

    either the ITF-14 or UCC/EAN-128 bar code

    3. Allocate an EAN/UCC-14 number with an indicator (logistical variant,1-8) representedin either the ITF-14 or UCC/EAN-128 bar code

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    Creating a GTIN by Allocating an EAN/UCC-13 NumberFor trade items that are considered to be primarily trade units, but which may at some point cross retail POS, a unique EAN/UCC-13identification number represented in an EAN-13 bar code is the appropriate option.

    Creating a GTIN by Allocating an EAN/UCC-13 Number with a Filler Zero (Leading Zero)

    An EAN/UCC-13 number with a filler zero (leading zero) is created by allocating a unique EAN/UCC-13 number,which is thenpreceded with a filler zero. When a GTIN is formed with a filler zero (leading zero), the 13 characters must be unique,that is,youmust not repeat the GTIN allocated to any other trade item.

    This number can then be represented in either a UCC/EAN-128 or ITF-14 bar code.

    Examples of EAN/UCC-13 with filler zero represented by UCC/EAN-128 or ITF-14 bar code

    Creating a GTIN by allocating an EAN/UCC-14 Number using the indicator(logistical variant) method

    The EAN/UCC-14 number is created by prefixing the existing GTIN of the retail/consumer trade item with an indicator (logisticalvariant) and recalculating the check digit. An indicator is a number between 1 and 8. Different indicators are used to identify differentlevels of trade items not sold at retail POS.Indicators should be non meaningful and are used only to create additional unique 14 digitEAN/UCC numbers. The indicator of 9 may only be used on variable measure trade items and identification must be completed withthe measure or quantity information.

    >This option is only applicable for trade items containing identical consumer units

    >This number can then be represented in either a UCC/EAN-128 or ITF-14 bar code

    Examples of EAN/UCC-14 number represented by UCC/EAN-128 or ITF-14 bar code

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    GTINs&BarCodingtradeitems

    Common Application Identifiers seen inan UCC/EAN-128 include:

    01: To indicate the following digitsform a 14 digit non-retail GTIN

    10: Batch number15: Best Before Date310n: Weight in Kilograms410: Ship to Location

    An Application Identifier can encode upto 100 kinds of information about itemsand shipments into a standard format,which leads to more efficient processes

    for trading partners participating in thetransport and distribution chain.

    All parties handling those goods at anystage of the supply chain can accessinformation about goods from the same

    bar code,eliminating the need to re-labelgoods or separately transmit information.Please refer to User Manual for the

    complete Application Identifiers list.

    Attribute information isany variable information that must be added to a bar

    code over and above the product identification number, and can include Use By

    D ates, Batch N umbersand Serial N umbers. This information isshown using

    EAN UCC Application Identifiers in a UCC/EAN -128 bar code which convey a

    wide range of product, logistical and attribute information.

    Structure of ApplicationIdentifiers (AIs)

    Application Identifiers are between twoto four digits long and precede theaccompanying data.Due to the dynamicnature of the Application Identifierinformation,bar codes usually cannot bepre-printed,but must be applied live or

    on-line at the production site orwarehouse.

    The option ofconcatenation

    Application Identifiers allow bar codeConcatenation,which literally meanslinking together. In this process severalbar codes can be linked into a single barcode,while allowing each individual datagroup to remain identified by its

    Application Identifier.

    The process saves space,while allowingorganisations to fulfil their requirementsfor displaying specific kinds of informationabout the item for automatic data capture.

    International compatibility

    Application Identifier numbers andUCC/EAN-128 bar codes areinternationally compatible in the

    jurisdictions of both EAN Internationaland the UCC. As a result, they cancommunicate information within a singlecompany,between companies within an

    industry and across the globe.

    Examples of concatenation

    Applying AttributeInformation to Trade Items

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    At various points on the way from sender to final recipient, thebar code can be scanned to identify the shipment.The uniquenumber will also be used in electronic messages regarding theshipments progress,allowing all participants in the transport anddistribution chain to access the information.

    An SSCC is a unique 18 digit number with the following structure:

    >Application Identifier:(00)

    >Extension Digit:Single digit used to increase the capacity of theSerial Reference within the SSCC

    >Country Prefix:Two digits to identify the nationality of theissued number

    >Company prefix: Five or seven digit number to identify thecompany issuing the number

    >Serial Reference:Uniquely identifies a shipping unit and is issuedsequentially by the shipping company. The number must not be

    re-used for at least 12 months

    >Check Digit:Mathematically verifies the validity of the

    whole number

    An SSCC is allocated by a sender to a shipping unit once the unitis packed.

    If multiple shipments are received from multiple senders to a

    single consolidating centre,and if they are able to be consolidatedinto one shipment,then the consolidators will be required toallocate their SSCC to the final shipment.

    When coupled with the electronic delivery device,the value of theSSCC comes from its ability to identify a shipment regardless of itscontents. For example,some shipments may consist of pallets or

    containers of the one product while others could be shipments ofmixed products or single products.In each case,the shipmentreceives a unique number and this SSCC identifies that shipmentfor its lifetime within the transport and distribution chain.

    Example of Serial Shipping Container Code (SSCC)

    A logistic unit isan item of any composition established for transport and/or storage,

    which needsto be managed through the supply chain, and may include cartonsandpallets. The Serial Shipping Container Code (SSCC) isa standard identification

    number, used for the unique identification of logistic (transport and/or storage) units.

    How to N umber and Bar Code

    Logistic Units

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    Logisticsnumbering&barcoding

    The EANUCC Logistics Label FormatAn EANUCC Logistics Label is an internationally recognisedstandard label format that can be used on any transport unit,such as a carton,shipper or pallet, to identify goods beingtransported.

    The minimum requirement is that the label carries theshipments SSCC. It may also carry any other desiredinformation,including product GTINs,shipping details andbar codes.

    The label eliminates any need for shipments to be re-labelled atdifferent stages of the supply chain,saving both time and

    money. This is particularly important given that transport anddistribution costs can represent 25%to 45%of final productcost (will provide details of source estimate by the LogisticsManagement Association of Australia).

    The label can be used by all participants in the supply chain:manufacturers,distributors,warehouse operators,transportcompanies and retailers.

    Bar codes

    The UCC/EAN-128 bar code shall be used for all information

    on the EANUCC logistics label.

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    Example of EANUCC Logistics Label

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    Scannable Bar codes Non-Scannable Bar codes

    D emonstration of both scannable and non-scannable bar codes

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    Black bar code on white back ground

    Dark green code on orange background

    Dark blue bar code on yellow back ground

    Dark blue bar code on red back ground

    White bar code on black background

    Red bar code on yellow background

    Red bar code on white back ground

    Yellow bar code on dark blue back ground.

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    Applyingthebarcode

    Applying the

    barcodeBar codes can be applied to a product in three ways:

    >By the packaging printer

    >By a label printing service

    >In-house (eg:self adhesive label)

    A bar code to be pre-printed on packaging will require a filmmaster,a film of the bar code needed by the printer to placethe bar code layout onto the packaging printing plate.

    Film masters can be ordered by you or the printer from aspecialist film master supplier (locate a supplier from the EANAustralia Resource Directory, also available on the web atwww.ean.com.au).

    Checking the bar code for sizeSize or magnification of bar codes may only vary within certainlimits (eg between 80%- 200%for an EAN-13 bar code).Outside these limits,a bar codes scanning capabilities may bereduced (refer to EAN Australia User Manual Numbering andBar Coding).

    When printing labels in-house,your software will give you a rangeof size choices. Adherence to EANUCC specifications is crucial.

    When pre-printing bar codes on packaging,minimum size willdepend on the printing process and substrate on which the barcode is printed.Your printer can guide you on sizing using

    EAN printability gauges (instructions for use can be found inthe relevant EAN Australia Technical Information Manual).

    Checking the bar code for height

    The height of a bar code must be proportional to its width,soonce the size of a bar code is determined,reducing its heightcould affect its ability to be scanned.

    Choosing bar code colours for printing

    Because a scanner reads a bar code using red light, it seesdifferently to the human eye. As a result,some colourcombinations are unsuitable for scanning,because they dontprovide sufficient contrast for the scanner between the darkbars and light background.

    Black bars on a white background are ideal,but other colourcombinations are also acceptable.Most light colours (yellow,orange and red) are suitable for the background and light

    margins,while dark colours (black,blue and green) are suitablefor the bars.

    Allow a light margin around the bar code

    The light margin (or quiet zone) is a solid light area to the leftand right of the bar code, usually the same colour as the barcode background.It enables the scanner to recognise wherethe bar code begins and ends.The width of the light marginvaries with the size of the bar code.

    Determine the location of the bar codeWhen choosing the position of the bar code on packaging,always consider the packaging in its final form,and allow forplastic wraps and other packaging elements that could obscurethe bar code.Position bar codes according to location guidelinesin the relevant EAN Australia Technical Information Manual.

    Check bar code print quality and bar width

    Always ensure that the print quality of a bar code is of a highstandard and bar widths are correctly maintained throughout

    the printing process.

    Use EAN Australias bar codeverification service

    To ensure that bar codes scan correctly first time every time,EAN Australia offers a Bar Code Verification Service tomembers.Printed EANUCC bar codes are tested forscannability and adherence to EANUCC specifications.A resulting ISO compliant Bar Code Verification Reportstates whether the bar code is in specification,as well as itsscanning rate.

    Complete items presented for bar code verification may,uponrequest,be imaged for the EANnet on-line catalogue.

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    Today,the majority of data in commercial paper documents isgenerated from existing computer applications.These paperdocuments are printed and copied before the information they

    contain is finally communicated by mail or fax. In turn,thebusiness partner re-keys all this information into anothercomputer application for further processing. An increasingnumber of companies have found this process extremely slow,costly and unreliable. The need for a faster,cheaper and more

    accurate solution for exchanging commercial data has become asignificant priority for many companies and organisations.

    In the traditional sense,Electronic Data Interchange (EDI) can beconceptualised as paperless trading. A common and usefuldefinition for EDI is:

    The transfer of structured data,by

    agreed message standards, from onecomputer application to another byelectronic means and with minimalhuman intervention.

    The structuring of data by agreed message standards impliesthat the data or information to be exchanged is recognisable, incontent,meaning and format,allowing it to be processedautomatically and unambiguously by computers. Two companiesdeciding to implement EDI are by definition agreeing on thetype of data they will exchange,and how the data will be

    presented. The implementation of EDI demands a much greaterdegree of co-operation,collaboration and sharing ofinformation between business partners,effectively buildingtrading partner relationships.

    The electronic exchange of data (or eMessaging) provides tradingpartners with an efficient business tool for the automatictransmission of business data.Companies do not need to worry

    about different and/or incompatible computer systems.

    Through the use of EAN Australias traditional eMessaging

    guidelines,EANCOM,based on the international UN/EDIFACTstandard,and EANUCCs emerging eMessagingstandardEANUCC XML,created specifically for data exchange over theInternet,data may be communicated quickly,efficiently andaccurately,irrespective of users internal hardware andsoftware types.

    EAN International does not see XML replacing traditional EDIsyntaxes such as UN/EDIFACT. At their lowest levels,XML andUN/EDIFACT are simply data exchange syntaxes,both of whichhave strengths and significant weaknesses.

    EAN Australias offerings of EANCOM and EANUCC XML,ascomplementing each other,provide opportunities for users toselect the appropriate syntax for their eMessagingbusiness needs.

    The termselectronic data exchange (ED I) and eMessaging, used within thecontext of thisdocument, apply to the varioussyntax-based standards

    available to transact commercial documentselectronically.

    eM essaging

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    Implementation

    M aking a start

    There are three elements to theEANUCC system:

    >Standard numbering

    >Standard bar coding

    >eMessaging standards

    All of these elements are necessary to achieve the benefits ofcontemporary business best practice,including Just in Time

    manufacturing (JIT),Quick Response distribution (QR),EfficientConsumer Response (ECR) and overall Supply ChainManagement (SCM).

    Full implementation can be both demanding and complex,involving fundamental changes to an organisations internal

    business processes and computer systems,but also torelationships with trading partners. Changes of this nature areoften referred to as business process re-engineering and whichmay involve other parties in the supply chain. The end result is aprocess called inter-enterprise integration.

    It is important to keep in mind,however,that fullimplementation does not have to take place in one step. Aproper business plan will help to carry out the process over anextended period of time,which can smooth the impact ofcultural operational and organisational changes.

    Implementation or just compliance?

    Partial implementation of the EANUCC system - possibly tocomply with the needs of a trading partner - should not be

    confused with a planned implementation of the system with aclear objective of achieving desired operational andadministrative efficiencies.

    Compliance will bring benefits to a relationship with a tradingpartner. Implementation offers the full spectrum of cost savings

    and benefits.

    There arestrategic reasons to implement the system;for

    example,when your organisation wishes to introduce thebenefits of efficient supply chain management throughout all

    departments,extend into the supply chains of other businesspartners and create a free flow of information between allparties involved to effect costs and efficiencies.

    There are also tactical reasons; for example when yourorganisation wishes to achieve efficiencies in specific business

    procedures such as inventory or production control, based onthe additional flow of information enabled by the adoption ofbar codes and EANUCC numbering.

    Implementation

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    Step 1:Form a project management team

    Larger organisations will wish to include all the people who willbe affected by the proposed implementation,including people

    from management,manufacturing,sales, information systems andfinance. All these areas will be affected,and must understand and

    support the project.

    Smaller organisations may only be able to devote one or two keypeople to drive the project.

    Management support is essential to successful implementation.The full support of the CEO is essential,as is the presence of asenior manager who can champion the project through uppermanagement discussions.

    Step 2:Identify your objectives

    The role of the team is to define objectives and identify the first

    project to be accomplished,hence the first project must haveachievable objectives with clear,highly visible benefits.The projectmust not only be a success,but must stimulate further stages inthe adoption and implementation of the full EANUCC system.

    Understand all customer and business requirements,and define

    achievable objectives.Remember that your own suppliers andtrading partners will be affected,so keep them informed ofyour plans.

    Step 3:Prepare a business case

    A business case will be essential to win the support oforganisation owners or management.

    Clearly show how the information collected using the EANUCCsystem will bring specific benefits to the business - for example,maintaining or growing a relationship with a valued customer,orpursuing a new trading relationship.

    Step 4:Apply EANUCC numbers and bar codesto retail items

    The first step in the practical implementation of the EANUCCsystem begins with the application of bar codes and EANUCCnumbers to the retail products you manufacture and distribute.

    You may need to invest in appropriate hardware and software,and integrate numbers into computer systems.

    All items sold will require unique numbers and codes,includingindividual items,multiple packs and cartons.The various types ofnumbers and their associated bar codes are described in theApplying the Bar Code section.

    The following stepsrepresent a controlled implementation of the EAN UCC

    system and follow a logical pattern. That doesnot mean individual organisations

    cannot vary the order depending on their own specific requirements.

    8 Steps to Implementation

    Note that before an organisation can commence implementing the EANUCC system, it must have attended to the following tasks:

    >Become a member of EAN Australia>Receive an EANUCC company prefix,providing access to all the benefits and services available to EAN Australia members

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    Implementation

    Step 5:Apply EANUCC numbers and bar codesto non-retail items

    The second step in the implementation of the EANUCCsystem is to apply bar codes and EANUCC numbers to items

    not sold through traditional retail outlets.This can includeindividual,multiple-packed industrial products,and products forspecialist end-users.

    Again,you may need to invest in appropriate hardware andsoftware,and integrate numbers into computer systems,as well

    as making decisions on how bar codes should be applied (pre-printed or via label).

    Step 6:Apply EANUCC numbers and bar codescontaining variable data

    There are four reasons to bar code variable data: for productidentification,product track and trace,product measurement,and logistical purposes.

    This level of identification and data capture usually involvesspecialised equipment such as on-site label printing orapplication and scanning technology, as well as an investmentin computer hardware and software that can manipulate thedata gathered.

    You will also need to make decisions regarding:

    >The additional data needed to assist your businessprocesses.This can include batch numbers,serial

    numbers,production dates,use-by dates,customerpurchase order numbers,as well as ship-to andbill-to locations

    >The best means of application of variable bar codes;

    normally by printing or applying codes on site

    Step 7:Apply EANUCC numbers and bar codesto logistical units

    Bar coding of logistical units adds further flexibility to trackingand tracing consignments of products both within your

    company (through manufacture and warehousing) andexternally (transport and distribution).

    Bar coding of logistical units takes your capability beyondcoding pallets of a single type of packaged retail product. Itenables the capture of data for cartons and pallets of mixed

    products,as well as goods such as racks of clothes and bundlesof steel.

    At this stage,you will need to make decisions on the following:

    >Allocation of Serial Shipping Container Codes (SSCCs)to logistical units

    >The best and most efficient means of application oflogistical unit bar codes

    >The acquisition of appropriate hardware and software

    >Integration of SSCC information into your computersystem,to enable business objectives to be achieved

    Step 8:eMessaging

    eMessaging is the ultimate goal of all businesses wishing to takeadvantage of the speed and efficiency of trading electronically,with ordering and invoicing taking place as completely paperlesscomputer-to-computer transactions.

    It will be necessary to analyse business processes to establishwhere eCommerce can be introduced, in order to facilitateorder processing,receiving or despatch.

    Only then should introduction of eMessaging technology,acquisition of appropriate hardware and software,andintegration of eMessaging into electronic records processingapplications be undertaken.

    It is important to remember that by moving progressively,youwill be able to observe the benefits that result from each stage,and you will be motivated to maximise the potential benefits.

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    The first step in EANway requires the collection of POS scanning data which is then analysed

    with algorithms to identify trends and make demand predictions.This data can be shared withall supply chain contributors to help more accurately forecast future demand all the way backto primary production.

    An electronic order,based on EANCOM,is then transmitted by the retailer,which requiresthe supplier to either confirm the order fulfilment and delivery or to act on immediate supply.

    In an Evaluated Receipts Settlement (ERS) scenario, ie no invoice,the order message will alsoinclude the expected price of the items ordered.The order response electronic message willrequire the supplier to acknowledge that all details in the order message are correct andaccepted,including the price.

    The supplier will pick the order,using a method called scan-packing which usually involves anoperator scanning the EAN/UCC bar code during the picking process. This picking process isautomatically linked to the outstanding order from the retailer.

    Upon completion,the order picking system reconciles the pick as completed,leaving thewarehouse operator to label the consignment with an EAN/UCC logistics label, which will

    carry the Serial Shipping Container Code (SSCC).

    An EANCOM despatch advice or electronic shipping advice will be transmitted by thesupplier to the retailer giving forewarning of the shipment due.When the shipment isreceipted and the SSCC is scanned,the receiving application system will reconcile with theearlier advice.

    The shipment may be further trans-shipped in a cross-docking centre to each store.

    In an ERS environment, the accounts payable application will generate payment based on theagreed payment terms between retailer and supplier.

    The EANCOM remittance advice is appropriately transmitted by the retailer to the supplieradvising of the payments made.The retailer may at the same time give instructions to their

    appropriate bank or financial institution for the payment to be made.

    EAN way is a business process utilising allthe elements of the EAN UCC system.

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    Implementation

    EAN way Process Flow

    21

    Supplier Retailer

    Finalise order

    Send priced purchase order(stand alone or bulk)

    Amend order

    Resend order (back to No.6)

    Plan production and/or purchases

    Retrieve purchase order

    Validate purchase order

    Any discrepancies advised to buyerwithin 2 working days

    If required

    If required

    Retrieve store break up and pass intoScan Pack System

    Produce pricing requirements

    Pick merchandise and make floor ready

    Scan Pack merchandise by store and affixSSCC labels (builds despatch advice)

    Send despatch advice

    Despatch merchandise

    Retrieve remittance advice

    (Electronic Funds Transfer)

    Receive EFT payment

    Scan GTINs at POS

    Send sales and forecast data to supplier

    1

    2

    3

    6

    7

    8

    12

    13

    14

    15

    16

    17

    24

    25

    4

    5

    18

    19

    20

    21

    22

    23

    9

    10

    11 Send store break up (If required)

    Receive despatch advice

    Match despatch advice to order (pre receive)

    Scan SSCCs to receive delivery(authorises payment)

    Cross Dock to stores

    Move to store fixture

    Pay suppliers via ERS (Order Cost

    Evaluated Receipts settlement)

    Goods

    Shipment

    Carrier

    Bank

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    EAN Supply Chain Knowledge Centre

    EAN Australia,in conjunction with our Alliance Partner community and the Australian Government

    (NOIE) have developed a state of the art learning facility to share the secrets of supply chain efficiency.

    The EAN Supply Chain Knowledge Centre brings the abstract concepts of supply chain to life andenables participants to simulate realistic supply chain scenarios without the risk and cost associatedwith real life experimentation.

    Learn how you can improve your supply chain efficiency, improve your trading relationships,andimprove your bottom line,by attending a six-module training programme at the EAN Supply ChainKnowledge Centre in Melbourne.

    Education & Training Series

    Discover how you can use the power of the EANUCC system to the advantage of your business byattending an EAN Australia Education and Training session.

    There are two sessions you can attend:-

    Session 1:EANUCC the Essentials:A comprehensive overview on what to do & the why ofimplementing the EANUCC system

    Session 2: Supply Chain Technology:Everyone knows that technology influences the efficiency ofsupply chain management and this session provides technical advice on how to apply & what to usewhen implementing the EANUCC system

    Sessions will be supported by the Portable Supply Chain Knowledge Centre,which will aid thelearning experience for delegates. Also on-hand will be our Alliance Partners to discuss product,support and service offerings to improve your supply chain performance.

    Participants will leave with the knowledge of how to:

    >apply the EANUCC system >enjoy speedier time to market

    >reduce distribution costs >enhance data flow between trading partners

    Both members and non-members are encouraged to participate.

    To find out more information about EAN Education and Training visitwww.ean.com.au/education or call 1300 366 033

    Education and Training

    How are N umbers Entered intoTrading Partner Systems?

    The following six steps give a broad outline on how product data is synchronised between trading partners in the supply chain:

    1. Assign a number to the product as outlined in the section above

    2. Enter the product number/description/attribute into your product database

    3. Forward this information to retail partners in hardcopy,softcopy or via a suitable eCatalogue such as EAN AustraliasEANnet

    4. Retailer will enter this information into their own database and data will be transmitted or downloaded at the retailers store(s)

    5. Customer selects product at retail outlet

    6. Product is scanned at POS and POS system looks up item records in the retailers database and appropriate price anddescription is displayed at register and on price docket

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    Furtherassistance

    National toll free number & Help Desk: Nationaltelephone access to technical and industry-specific experts forassistance with EANUCC system queries. Call 1300 366 033

    Web site:Offering downloadable guidelines and up-to-dateinformation to help keep you and your business abreast of the

    latest developments within EAN Australia,supply chain industry,and new technologies.Our online check digit calculator and

    guide to allocating a GTIN will direct you to on how to getstarted.Visit www.ean.com.au

    Site Visits:You can arrange a visit to your premises for individualdiscussion or group presentations by EAN Australia staff.

    Education & Training:Refer to previous page for detailedinformation.

    Solution Providers Directory:Provides information on awide range of suppliers of goods and services who can assist inimplementing EANUCC numbering,bar coding, electronicmessaging and electronic product code (EPC) network.

    Bar Code Verification & Imaging:Ensure your bar codesmeet EANUCC specifications by sending them to us fortesting.While we check the bar code,we may also image yourproduct and put it into the EANnet electronic catalogue.

    Alliance Partnerships:The Alliance Partner communityconsists of over 40 providers of supply chain products andservices who understand the requirements of the EANUCCsystem.Members can work confidently with our AlliancePartners,knowing that they offer proven and practicalEANUCC compliant outcomes.

    Industry Engagement Programme: As part of EAN

    Australias commitment to industry,the Industry EngagementProgramme is geared towards helping industries successfullyimplement a manageable approach to eCommerce basedsupply chain management strategies. Through the programme,

    EAN Australia leads the development and execution of the useof the EANUCC standards in industries.

    EAN Australia offers members a numberof specialised services on a fee for servicebasis including:

    Professional Services: Provides project advice,training andsupport to ensure you increase transaction accuracy andefficiency,improve inventory management practices and

    increase management capabilities. Utilising resources from ouralliance partner community,industry bodies and technologyproviders our Professional Services team will build the bestsolution for your business.

    EAN Accreditation:Is a quality assurance programme tohelp organisations with high numbers of GTINs gainaccreditation for verifying bar codes internally. Members whocomplete the programme are regulated to produce effective

    and reliable bar codes.

    Data Synchronisation and Product Registry Service:Commonly known as EANnet,is a catalogue source for

    standardised item master data,including product details,pricing,images and attachments. Accessible via the Internet,EANnet

    allows the continuous and automated sharing of item masterdata between trading partners for over 300 companies.

    EPCglobalAustralia: Is the local peak body for the newEANUCC standard for radio frequency identification (RFID)

    called the EPC Network.The EPC network offers a broadrange of applications and can be implemented by any industry.

    RosettaNetAustralia: Is responsible for administering theRosettaNet internet-based business standards in Australia.Using RosettaNet global eBusiness Standards allow companies

    specifically within the information technology,electronic

    components,semiconductor manufacturing andtelecommunications industries to reduce operations costswhile increasing supply chain efficiencies.

    A great deal of advice and assistance isavailable to EAN Australia members

    actively involved in implementing the EAN UCC system. Thisincludes:

    Further

    AssistanceEAN Australia Services

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    The EAN UCC

    system

    EAN AUSTRALIA'S PRODUCT AND SERVICE OFFERINGS,SPEAKING WITH ONE GLOBAL VOICE.