Visibility and GS1 Standards

Outline Traceability and Visibility Traceability: value-creating business processes such as recall, tracking, tracing, pedigree Visibility: having the data that supports traceability To have visibility you need to do the following (using GS1 stds): Identify those things for which you need visibility Capture information about them Share the information with business applications and trading partners The visibility information that is shared includes: Master data Business transaction data Physical Visibility data Physical Visibility data – the EPCIS standard Examples of how these pieces fit together and are used GS1US Visibility in Action Program

What is It? Visibility Knowing exactly where a given asset is or has been at any point in time, and why. (What, when, where, why) May also include physical condition of the asset, physical relationship to other assets, other information

Visibility and Traceability Government agencies considers Recall, Tracking, Tracing, and Pedigree all a part of “Traceability” – business processes Recall Simple = initiate a notification to bring it back Smarter Find locations of product Initiate the recall Track the recall Tracking “Where is my product now?” Tracing “What is the history of where has my product has been?” Pedigree Who has handled or had ownership of this product? *Visibility data supports Traceability

Traceability and Visibility To answer questions about Recall, Tracking, Tracing, and Pedigree (business processes) you need VISIBILITY into supply chains (data) In order to have VISIBILITY, it is essential to have……

GS1 System of Standards GS1 STANDARDS enable you to Identify, capture and share value chain information globally. Let’s see how this works First, we must IDENTIFY items in the value chain in a standardized way to ensure a common language. We identify products at each packaging level with the appropriate GS1 identification number. This illustration denotes a Global Trade Item Number or GTIN, for the item and case level and the Serial Shipping Container Code or SSCC, is used for identifying each pallet. Also, note that each company has a different Global Location Number or GLN: Manufacturer Distributor, and For the Retailer, their Distribution Center and individual store location. Then, once we are speaking the same language, we need to capture it in a standardized format. Trading partners must CAPTURE the data using GS1 system carriers via barcodes and EPC-enabled RFID tags. Starting on the far left, is the most recognizable barcode - the U.P.C. , or Universal Product Code carrying a GTIN The images on the far right are Electronic Product Code or EPC–enabled Radio Frequency Identification tags. The CPG industry is beginning to see these tags on pallet and case labels in addition to the barcode. Now that we are identifying and capturing product information, we then need to SHARE it with one another electronically. GS1 has three standards that help facilitate electronic information flow. You can use just one or a combination of the three. They include: The Global Data Synchronization Network or GDSN – which allows you to share Master Data about a product (attributes). Electronic Commerce for Transactional Data such as Electronic Data Interchange or EDI. And EPC Information Services, which enables partners to share physical event data about a specific instance of a product. This interoperability enables you to share vital information with your trading partners including: Item data - Pricing and promotional data - Purchase orders - Shipping notice - Invoices - Product recalls/withdrawals HOW:STANDARDS: Identify, capture and share value chain information globally. GS1 US is focused on improving the value chain for our stakeholders. To summarize: - GS1 identification numbers provide the link between a product and the information pertaining to it. - When a company assigns a GS1 identification number to a product, they define a set of standardized information about the product (e.g., size, weight, location, etc.). - Once defined by the company, the standardized product information can then be captured, stored, and shared with their trading partners. The GS1 System of standards enables companies to: - globally, and uniquely identify products and locations, - capture the standardized identification in a common approach; then - once companies are using a common language to identify and capture product data, the information can then be shared with trading partners, with the assurance that their data is complete and accurate.

As provided earlier, the GS1 System provides three standardized approaches for sharing information. You may choose to implement one or a combination of all three depending on your organization’s needs. Master data with the Global Data Synchronization Network enables ‘one source of truth’ for specific product information. It includes basic product attributes, such as product ID or GTIN, brand owner, color, classification, etc. Transactional data – it provides evidence of the completion of a business transaction, such as the completion of a transfer of ownership (purchase and sale) or a transfer of custody (shipping and receiving). One of the GS1 standards that supports transactional data is Electronic Data Interchange or EDI . Physical event data – it captures actual product observations. Each observation captures what, when, where, and why of a specific product at a point in time. The GS1 standard for this type of data is EPC Information Services or EPCIS. © GS1 US 2010

Master Data with GDSN Let’s begin by demonstrating the GS1 standard that supports master data - the Global Data Synchronization Network or GDSN. The GDSN is an automated, standards-based global environment that enables secure and continuous data synchronization, which allows all trading partners to have consistent product data in their systems at the same time. Additionally it ensures that ALL parties in the supply chain are working with the same data. With GDSN, trading partners always have the latest information in their systems, and any changes made to a product ….. © GS1 US 2010

Master Data with GDSN ……are automatically and immediately provided to all of the companies they do business with. Enter once – send to many – it is that easy. © GS1 US 2010 9

Enabling: Master Data with GDSN One source of the truth Enhanced product information Health and wellness Sustainability attributes Nutrition and allergen information The Global Data Synchronization Network enables: - one source of truth about a product, optimizing data accuracy and quality; and - it provides enhanced product information such as health and wellness, attributes for sustainability, nutrition and allergen information, and much more. © GS1 US 2010

Transactional Data with EDI Next is a GS1 standard that supports transactional data - Electronic Data Interchange or EDI. In this illustration, a Purchase Order is sent from the Retail Store to the Distributor using EDI transaction 850. And the Distributor is fulfilling the order and sending an Advance Ship Notice or ASN to the Retailer’s Distribution Center, EDI transaction set 856, with details about the products being shipped. © GS1 US 2010

Transactional Data with EDI We build on the illustration to see the completion of the purchase and fulfillment of goods between the Distributor and Retail Store – an Invoice is sent, 810 – and Payment is received, 820. © GS1 US 2010

Transactional Data with EDI Then we see similar transactions taking place between the Distributor and the Manufacturer. Now let’s look at specific event data…. © GS1 US 2010 13

Physical Event Data with EPCIS Physical event data are actual observations of products or other assets. It captures or answers these questions: - what was observed? - when was it observed? - where was it observed? - and why was it observed (that is, what was the business context in which the observation took place)? This type of data is often generated as the result of automatic identification, such as scanning a barcode or reading an EPC-enabled RFID tag. The GS1 standard that support physical event data is EPC Information Services. Let’s see how this works…. © GS1 US 2010

Physical Event Data with EPCIS As a specific instance of a product moves through the supply chain (yes, serialization), we can capture what it is, when it was last observed, where it was observed, and why it was observed. All this information – is captured in a database – by the trading partner who observed the product. So in this specific illustration, we show that a pallet vitamins was observed by the distributor on October 27, 2009 at 10:00am at the dock door because it was a shipment being received. Since the ‘receiving’ event took place at the distributor location, the distributor captures and stores this information in his database. And, other trading partners, such as the manufacturer, and retailer can access the data, just as the distributor can access theirs. Thus allowing visibility throughout the value chain. © GS1 US 2010 15

Physical Event Data with EPCIS Enabling: Product Track and Trace Improve On-Shelf Availability Reduced Shrink Product Safety Faster & more accurate recalls Identify history and proximity in supply chain Capturing and storing physical event data with EPC Information Services enables companies to: - track and trace specific products, leading to an increase in on-shelf availability and a reduction in shrink; and - execute an effective product safety strategy. © GS1 US 2010

Physical Event Data: EPCIS EPCIS Data consists of physical events; each records something that happened in the real world. Often, though not necessarily, triggered by reading an RFID tag or bar code. An event answers 4 questions: What: what physical objects were involved (EPC or other identifier) When: when the event took place (timestamp) Where: where the event took place (location identifier) Why: what business process step was being carried out EPCIS Event ---------------- urn:epc:id:sgtin:0400001.000001.2 2007-10-02 10:00:00 urn:epc:id:sgln:0400001.00300.0 urn:epcglobal:cbv:bizstep:receiving

EPCIS vs Biz Transaction Data Physical visibility (EPCIS) is different than business transaction data (EDI): Not all business transactions correspond to a physical event E.g.: invoice Not all physical events correspond to a business transaction E.g.: product moves from back of store to front of store Sometimes, both happen at the same time E.g.: shipping, receiving Physical visibility data helps you know what actually happened, not just what was supposed to happen

Full Bar Code / RFID Interoperability Business Applications Visibility Applications 1. Biz application wants to query for visibility data and integrate that visibility data into its business calculation 2. Visibility application wants to correlate with business transaction data 3. Automated business transaction wants to use RFID data as input 4. Visibility data captured by bar code scan (rare in practice) 1 2 EPCIS Query Interface eCOM Business Transaction Data Visibility (EPCIS) Data 3 EPCIS Capture Interface 4 Enterprise Edge Data Capture Infrastructure – Business Transaction Automation … or Visibility Data Capture Infrastructure – Visibility …or Business Transaction Automation

EPCIS Data Capture Manufacturer Retailer Dist Ctr Dist Ctr Store Tagging Station EPC Capture Apps Palletizer Portal Portal Shelving Portal Portal Doorway EPCIS Events Observe Disaggregate Commission Observe Observe Aggregate Observe Observe Observe Observe Observe

EPCIS Data – Full Supply Chain Physical Visibility Manufacturer Retailer Dist Ctr Dist Ctr Store EPCIS Events Observe Disaggregate Commission Observe Observe Aggregate Observe Observe Observe Observe Observe Case #123 of Cherry Hydro 2/5 1:23pm Mfr DC #2 Shipping 2/7 4:28am Retail Store #5 back room Receiving 2/8 5:23pm Retail Store #5 front room Observe Mfr EPCIS Retailer EPCIS +

Outline Traceability and Visibility Traceability: value-creating business processes such as recall, tracking, tracing, pedigree Visibility: having the data that supports traceability To have visibility you need to do the following (using GS1 stds): Identify those things for which you need visibility Capture information about them Share the information with business applications and trading partners The visibility information that is shared includes: Master data Business transaction data Physical Visibility data Physical Visibility data – the EPCIS standard Examples of how these pieces fit together and are used GS1US Visibility in Action Program

Example: Product Recall Traceability business process: recall tainted instances of product Visibility data: used to Locate all instances of product that require recall Trace the progress of bringing recalled instances back to manufacturer Three GS1 Standards Pillars: Identify: product (GTIN + serial), parties (GLN), physical locations (GLN + extension) Capture: using serialized bar codes or RFID Share Master data (GDSN) – to ensure all identifiers are meaningful to all parties Biz Transactions (eCom) – evidence of ownership of product at time of recall Physical event data (EPCIS) – evidence of where product physically is

Food Safety – Case Study March 26, 2010: Thailand gov’t announces program to trace agricultural products from farms to store shelves Unique serialization using bar code and RFID Data shared with trading partners using EPCIS September 21, 2010: Vietnam gov’t announces similar program for seafood

EPCIS in the field Track and Trace as a component in reducing illicit trade in tobacco industry British American Tobacco develops and pilots a global track and trace solution based on EPCIS for tobacco, in preparation for compliance with impending international law . Using SAP’s Object Event Repository, serialized barcodes were used to capture and follow the path of cases and pallets. http://www.movilitas-consulting.com/content/view/17/40/ Cross-border delivery of freight using EPCIS and Discovery Complex use case trial tracking freight transported via air and ground. EPCglobal Core Business Vocabulary plus industry specific vocabulary values (Cargo2000). Discovery Services and ONS utilized. INSERT HYPERLINK: Success of EPCIS pilot in Sweden eTrace: EU sponsored food traceability project. a joint effort between SINTEF Fisheries and aquaculture(NO), TraceTracker (NO), Lund University (SE), Matis (IS) and The Swedish Board of Fishery (SE). The initial scope was to track fish all the way from fishing boats in Simrishamn, through the supply chain to a retailer in Gothenburg, Sweden www.trace.eu.org/.../20100623_eTrace%20EPCIS%20success_article-eng%20v%202.pdf

Outline Traceability and Visibility Traceability: value-creating business processes such as recall, tracking, tracing, pedigree Visibility: having the data that supports traceability To have visibility you need to do the following (using GS1 stds): Identify those things for which you need visibility Capture information about them Share the information with business applications and trading partners The visibility information that is shared includes: Master data Business transaction data Physical Visibility data Physical Visibility data – the EPCIS standard Examples of how these pieces fit together and are used GS1US Visibility in Action Program

GS1 US Support for Visibility in Action 27

GS1 US Visibility in Action Methodology for bringing communities together ENGAGEMENT Industry, Sector, Company If GO: Executive Sponsorship IMPLEMENTATION Industry, Sector, Company Vision (Industry/Sector/Company) What are we trying to solve? Opportunity Analysis Investment/ Return Action Awareness Education How GS1 US Standards and Solutions Fit OUTPUT: Clear definition of Opportunity for GS1 US to support Working Group Communication & Marketing Gay – we shorten the definition of what Visibility in Action means….suggest we keep it clean and simple. 28 28

GS1 US Visibility In Action Implementation Support Vision What are we trying to solve? Opportunity Analysis Investment/Return Action Vision statement a description of a future state that the community (industry/sector/group) agree on and will form the foundation for defining process improvement opportunities Result – Statement that community uses to describe the “end goal” and clearly describes shared value to be realized in achieving the vision 29

GS1 US Visibility In Action Implementation Support Vision What are we trying to solve? Opportunity Analysis Investment/Return Action Given the agreed vision, the community can quickly identify areas that represent issues to address or opportunities that can be realized. Mind mapping Given the agreed vision, mind maps are used to quickly identify areas that represent issues to address or opportunities that can be realized Result – Clear identification of opportunities/business processes to be addressed within the initiative – including impacts, beneficiary of solution and positive outcomes from adoption 30

GS1 US Visibility In Action Implementation Support Vision What are we trying to solve? Opportunity Analysis Investment/Return Action Step 1 - Each issue or opportunity is then analyzed to determine who will benefit from a change the cause or impetus for it and its impact when a solution is developed. Step 2 – Physical and information flows are mapped across the processes of the supply chain as agreed. Step 3 – Validate the information and physical flows by determining What questions do trading partners need to answer? Does a particular trading partner have enough data to answer the question? How do they get it? Once they have the data, can they answer the question? Step 1 - Each issue or opportunity is then analyzed to determine who will benefit from a change the cause or impetus for it and its impact when a solution is developed. Step 2 – Physical and information flows are mapped across the processes of the supply chain as agreed. Step 3 – Validate the information and physical flows by determining What questions do trading partners need to answer? Does a particular trading partner have enough data to answer the quesetion If they don’t have enough data, who can supply that data and how Once they have the data, can they answer the question If not, where should the additional data be located in order to ensure that information can be collected and shared accurately Result – Prioritization and detailed description on high priority processes as focus for an industry/sector initiative 31

GS1 US Visibility In Action Implementation Support Vision What are we trying to solve? Opportunity Analysis Investment/Return Action We can help trading partner can use financial models to value the benefits and costs that may result from an improvement opportunity and solution. Using financial model templates – member companies can value the benefits and costs to their company that may result from an improvement opportunity and solution. Result – Templates for investment/ROI model for member companies to use in their organizations - Gain company commitment 32

GS1 US Visibility In Action Implementation Support Vision What are we trying to solve? Opportunity Analysis Investment/ Return Action Action = Use and Adoption by Industry/Sector 33

GS1 US Visibility In Action Implementation Support Vision What are we trying to solve? Opportunity Analysis Investment/ Return Action Readiness Program = Guidance/Best Practices Workshops Group Implementation Support Simulation Pilot Projects Products and Services Master Data Management Data Quality 1 SYNC GLN Registration EDI EPCIS Validation Portal Authenticated prefix registry – white list Bar Code/ EPC Integrator Advisory Services 34

Creating new value from previous output 2015 Readiness Program – Complex supply chain simulation 35

Visibility in Healthcare Program Planning 2010 2011 2012 2013 2014 Visibility in Healthcare 2010 Traceability Adoption Working Group Go/No Go Readiness Programs (2015 continues) Proof of concept trials: Traceability Adoption WG 2015 Readiness Program 2-3 Findings Workshops 2-3 Executive Briefings Start Implementer’s Group Explore Advisory Services Test Portal Requires: Proof of Concept Resources Findings Workshops Executive Briefings Implementer’s Group Advisory Services U. S. Pharmaceutical Test Portal

Visibility in US Food Industry Foodservice GS1 US Standards Initiative Produce Traceability Initiative Meat & Poultry Initiative Seafood Initiative Governance Leadership Council Executive Committee Assoc/Commodity IG GS1 MO IG Governance Steering Committee Executive Committee Governance mpXML or Steering Committee Governance NFI Exec Committee or Steering Comm Working Group Working Group Working Group Master Data Attributes Working Group Master Data Attributes Master Data Attributes Master Data Attributes Data Integrity Implementation Implementation Implementation Implementation Technology Technology Marketing Marketing Technology Technology Food Safety 37 37

Visibility and GS1 Standards 38 38