Conformance and Certification Global Forum, Brussels, 15 February 2007

©2007 GS1 2 GS1, 30 years leading towards the global vision A G E N D A Pierre Georget, GS1 France Business Case (GS1 France & IRI Study, June 2006) Miodrag Mitic, GS1 Global Office Introduction to the program Vision Benefits Next Steps

The impact of poor quality barcodes at the point of sale A study by GS1 France & IRI June 2006 Presented by Pierre Georget, CEO GS1 France

©2007 GS1 4 GS1, 30 years leading towards the global vision The results at a glance 21.2% of all trolleys 1.9% of all items % of the total number trolleys items Check-out transactions studied 504 trolleys 623 items Number of trolleys with at least one reading error Errors by type of store HM+ : 38% HM - : 26% SM+ : 36% HM+ : 37% HM - : 29% SM+ : 34% Errors by volume of sale HM+ : 21% HM - : 24% SM+ : 20% HM+ : 1.8% HM - : 1.7% SM+ : 2.2%

©2007 GS1 5 GS1, 30 years leading towards the global vision % of the trolleys regarding the number of errors Repartition by store type Based on 504 caddies Most (81%) of the problems concern one single item in the basket

©2007 GS1 6 GS1, 30 years leading towards the global vision Cashier action: item manipulation Cashier action: call another employee Base : 623 The customer decides to not buy Base : 623 Average number of times the cashier attemps to re-scan the item Base : 525/ 623 Average number of times the cashier tries to enter the item manually Base : 515/ 623 Average time spent trying to solve the problem: 23 seconds! Cashiers always try to solve the problem…

©2007 GS1 7 GS1, 30 years leading towards the global vision Average Margin poor print quality Damaged label barcode height color problem Unknown GTIN Time spent per type of problem (in seconds) The Worst Cases: Damaged Label and Unknown GTIN

©2007 GS1 8 GS1, 30 years leading towards the global vision Poor quality barcodes cost time and money 2% had reading errors 23 seconds on average to resolve each error 20% of super/hypermarket shoppers had a poor experience due to non-conform barcodes. The equivalent of 2700 cashiers per year spend time trying to solve these problems. 20% of super/hypermarket shoppers had a poor experience due to non-conform barcodes. The equivalent of 2700 cashiers per year spend time trying to solve these problems. 31 billion annual POS item transactions in France

©2007 GS1 9 GS1, 30 years leading towards the global vision GS1 Conformance & Certification Program

©2007 GS1 10 GS1, 30 years leading towards the global vision CONFORMANCE AND CERTIFICATION (1) What does it mean in the context of Conformance to GS1 Standards? Adherance to a single set of global, uniformly applied GS1 conformance clauses and assessment methodologies An assessment for conformance performed by one GS1 MO is recognised and accepted by all of them Conformance: Minimum requirements that must be met to declare a Bar Code or eCom message in conformance with GS1 specifications.

©2007 GS1 11 GS1, 30 years leading towards the global vision CONFORMANCE AND CERTIFICATION (2) In other words… "GS1 Certified" has global significance: Certified once and accepted everywhere! Certification: A formal process of testing that Bar Codes or eCom messages conform to GS1 specifications. What does it mean in the context of GS1 Certification? GS1 MOs and/or third parties provide this service on a voluntary basis GS1 Conformance & Certification allows for self-assessment by the brand owner, customer assessment by the buyer or by a designated 3rd party (GS1 MO or other)

©2007 GS1 12 GS1, 30 years leading towards the global vision T H E C H A L L E N G E Out of 27 MOs surveyed in Europe (July 2006): 3 have retailer mandates for their bar code certification programmes 5 do not check the validity of the data contained in the bar code 9 do not check for truncation 13 do not check for symbol placement 6 accredit user companies to carry out their own bar code verification (3 follow ISO; 2 inspect management procedures; 4 make training of the user companys staff mandatory; and none inspect users equipment) 5 endorse third parties to carry out verification under the third partys brand

©2007 GS1 13 GS1, 30 years leading towards the global vision A S H A R E D V I S I O N Bar code certification and accreditation services offered by MOs are harmonised to adhere to the Conformance Clauses as defined in the GS1 General Specifications. As a result, there is recognition in one country of the certificates issued in other countries. Companies trading in several countries meet identical GS1 conformance and certification requirements in each. Bar code certification is voluntary and allows for self- assessment (brand owner), customer assessment (retailer) or designated 3rd party assessment (MO or other).

©2007 GS1 14 GS1, 30 years leading towards the global vision Conformance Assessment Report Conformance Criteria Pass / Fail Thresholds B A R C O D E S C O N F O R M A N C E Methodology to Assess Conformance People (knowledge) Methodology (process) Equipment 1.ISO Parameters of Quality 2.Symbol Structure 3.Data Standard 4.Barcode Applications 5.Symbol Placement MO Support and Training STANDARDS IMPLEMENTATION Migration Implementation

©2007 GS1 15 GS1, 30 years leading towards the global vision B E N E F I T S (1) Benefits for Users and Solution Providers Ensure integrity and equivalency of various GS1 Bar Codes certification and accreditation programs worldwide Have confidence that products purchased are tested and certified for conformance to GS1 Standards. Demonstrate to customers that products and services conform to GS1 Standards. Train employees using GS1-certified education courses, trainers and publications

©2007 GS1 16 GS1, 30 years leading towards the global vision B E N E F I T S (2) Benefits for GS1 Member Organisations Plug into a voluntary turn-key solution Provide new added-value services to users and solution providers Facilitate correct implementation of GS1 Standards in your market Participate in managing and developing the GS1 conformance and certification framework Benefit from global recognition and network

©2007 GS1 17 GS1, 30 years leading towards the global vision N E X T S T E P S Publish Bar Codes Conformance Clauses and General Requirements for Conformity Assessment Convene a Steering Group to assist with implementation and benchmarking Initiate a program to assist MOs to migrate to the new clauses and general requirements Appoint Regional Coordinators to help with migration or adoption Begin work on eCom conformance and certification clauses, requirements, methodology & guidelines

©2007 GS1 18 GS1, 30 years leading towards the global vision Website

©2007 GS1 19 GS1, 30 years leading towards the global vision Thank you!

©2007 GS1 20 GS1, 30 years leading towards the global vision Contact details GS1 Solutions – Conformance & Certification Avenue Louise 326, bte 10 B-1050 Brussels, Belgium T F W E