1. Tapping Into Supply Chain Technologies Implementing the Floral GTIN ® Gary Fleming Produce Marketing Association Vice President Industry Technology & Standards gfleming@pma.com Sponsored By:

2. About Today’s Session Put your phone on mute – not HOLD Put your phone on mute – not HOLD Questions & Answers Questions & Answers Time will be allocated Time will be allocated Live meeting Q&A function will be monitored Live meeting Q&A function will be monitored

3. GS1 US Overview N ot-for-profit, user-driven, standards management and services organization N ot-for-profit, user-driven, standards management and services organization Headquarters in Lawrenceville, New Jersey Headquarters in Lawrenceville, New Jersey Support offices in Dayton, OH and Chicago Support offices in Dayton, OH and Chicago Established in 1973 to oversee U.P.C. development Established in 1973 to oversee U.P.C. development Previously named the Uniform Code Council (UCC) Previously named the Uniform Code Council (UCC) Over 200,000 Member Companies in the U.S. Over 200,000 Member Companies in the U.S. Drives development, implementation and maintenance of GS1 identification standards in the U.S. Drives development, implementation and maintenance of GS1 identification standards in the U.S. Food & Beverage Food & Beverage Consumer Packaged Goods Consumer Packaged Goods General Merchandise General Merchandise Apparel & Footwear Apparel & Footwear Office and School Supplies Office and School Supplies And many more….. And many more…..

5. Floral GTIN Implementation Guide Sponsoring Associations Produce Marketing Association Association of Floral Importers of Florida Wholesale Florist and Florist Supplier Association California Cut Flower Commission Society of American Florists California Association of Flower Growers and Shippers GS1 United States

6. Agenda Current State of Floral Industry Current State of Floral Industry Floral Industry of the Future Floral Industry of the Future Goal of GTIN Project Goal of GTIN Project Format of GS1 System standards Format of GS1 System standards Steps for Incorporating the GTIN Steps for Incorporating the GTIN Summary Summary Questions Questions

7. Today’s Floral Industry Little-to-no standardization Little-to-no standardization Little-to-no automation Little-to-no automation Error-prone Error-prone Informationally challenged Informationally challenged Disjointed/Fragmented Supply Chain Disjointed/Fragmented Supply Chain

8. Current Technology State of Floral No current opportunities that could be used by all members of the supply chain No current opportunities that could be used by all members of the supply chain Little to no electronic commerce Little to no electronic commerce Little use of barcodes (pallet and box level - proprietary only) Little use of barcodes (pallet and box level - proprietary only) No use of RFID No use of RFID No data synchronization efforts No data synchronization efforts No supply chain standard protocols No supply chain standard protocols

9. The Floral Industry of the Future

10. Industry Efficiencies Proprietary vs. Supply Chain Initiatives Proprietary vs. Supply Chain Initiatives Proprietary Practices Proprietary Practices Benefits available only to your company Benefits available only to your company Causes a lot of extra work to translate Causes a lot of extra work to translate Creates multiple ways of doing the same thing Creates multiple ways of doing the same thing Breeds errors and failed expectations Breeds errors and failed expectations Renders technologies inefficient Renders technologies inefficient Causes confusion Causes confusion

11. NO STANDARD = MULTIPLE LABELS, MULTIPLE NUMBERS

12. Supply Chain Initiatives Supply Chain Initiatives: Supply Chain Initiatives: All members of the supply chain can benefit All members of the supply chain can benefit Based upon standards/protocols Based upon standards/protocols Systems configured ONE way Systems configured ONE way Maximizes productivity gains and increases ROI Maximizes productivity gains and increases ROI Aimed at the entire supply chain, but also beneficial within your own four walls Aimed at the entire supply chain, but also beneficial within your own four walls

13. ONE STANDARD = ONE LABEL, ONE NUMBER

14. ONE STANDARDMultiple StandardsVS

15. Why The Need For Change Four different perspectives (equally important): Four different perspectives (equally important): Inefficient supply chain Inefficient supply chain Buying community demanding change Buying community demanding change Marketplace has changed Marketplace has changed Competitive advantage Competitive advantage

16. Buyers Demanding Change Mass merchants already doing it for: Mass merchants already doing it for: CPG products CPG products Produce (in the process) Produce (in the process) Other fresh foods (in the process) Other fresh foods (in the process) Floral Floral All products on one standard All products on one standard Distributors Distributors For efficiencies For efficiencies For better visibility and control For better visibility and control

17. Marketplace Has Changed Options available today that were not available years ago Options available today that were not available years ago Technologies available today that were not available years ago Technologies available today that were not available years ago Cutting costs is more reasonable than raising price Cutting costs is more reasonable than raising price The need for information is greater The need for information is greater The time to market is shorter The time to market is shorter annot continue to operate in today’s BOTTOM LINE: We cannot continue to operate in today’s marketplace the same way we did years ago

18. Competitive Advantage More efficient to do business with More efficient to do business with Easier to do business with Easier to do business with Increased partnership Increased partnership Time saved spent on value-added activities Time saved spent on value-added activities More collaborative relationships More collaborative relationships Reduction in the cost of doing business Reduction in the cost of doing business

19. So Why the Floral GTIN Project Address inefficiencies Address inefficiencies Increase automation Increase automation Reduce supply chain costs Reduce supply chain costs Increase visibility Increase visibility Bring industry to one standard Bring industry to one standard

20. The means to an end Start with product identification standards Start with product identification standards Needed for supply chain technologies Needed for supply chain technologies Move to automation Move to automation Data Synchronization Data Synchronization Barcodes Barcodes Electronic Commerce Electronic Commerce RFID RFID Move together as an industry to allow for critical mass Move together as an industry to allow for critical mass

21. Product Identification Standards Use of a common protocol to ensure accurate identification Use of a common protocol to ensure accurate identification Allows flexibility within each organization while providing uniqueness by brand owner Allows flexibility within each organization while providing uniqueness by brand owner NOT a single number that everyone uses for a single item NOT a single number that everyone uses for a single item

22. The GS1 standards Used in 145 countries world-wide, by more than 2 million companies in over 25 different industries. Used in 145 countries world-wide, by more than 2 million companies in over 25 different industries. Has standards for: Has standards for: Product identification (e.g. U.P.C., EAN,GTIN) Product identification (e.g. U.P.C., EAN,GTIN) Asset identification (e.g. AIN) Asset identification (e.g. AIN) Location identification (e.g. GLN) Location identification (e.g. GLN) Pallet identification (e.g. SSCC) Pallet identification (e.g. SSCC) Already used by every supermarket/mass merchant operation using a U.P.C. Already used by every supermarket/mass merchant operation using a U.P.C.

23. Format of GS1 standards All GS1 numbers essentially have 3 parts: All GS1 numbers essentially have 3 parts: Company Prefix = a number assigned and managed by GS1 that uniquely identifies a company from any other company across the globe. Company Prefix = a number assigned and managed by GS1 that uniquely identifies a company from any other company across the globe. Reference Number = assigned by the owner of the Company Prefix to identify what is being numbered (e.g. a pallet, a case, an item, a location, etc.) Reference Number = assigned by the owner of the Company Prefix to identify what is being numbered (e.g. a pallet, a case, an item, a location, etc.) Check Digit = an algorithm that serves as a “checks and balances” to ensure preceding digits were entered correctly. Check Digit = an algorithm that serves as a “checks and balances” to ensure preceding digits were entered correctly. NOTE: All three parts must not be separated in order to maintain uniqueness

24. GS1 Data Structures Company Prefix Reference Number Check Digit Indicator Used For X X X X X X X X X XX X X X Item/CaseItemLocationPallet U.P.C. 12 digits GTIN 14 digits SSCC 18 digits GLN 13 digits

25. ITEM (U.P.C.) assignment ITEM 1ITEM 2ITEM 3 COMPANY PREFIX REFERENCE # CHECK DIGIT ITEM 1 ITEM 2 ITEM 3 533925 00001 00002 00003 6 3 9 533925 000010000200003639 NOTE: Company Prefix can vary from 6 to 9 digits U.P.C. is 12 digits long

26. Example of a U.P.C. (item level) Company Prefix Reference Number (i.e. Item Number) Check Digit U.P.C. = Universal Product Code

27. GTIN Diagram 1413121110987654321 10NNNNNNNNNNNCD Position Position 14 = Recommendation: Use “1” for floral companies Position 2 - 12 = Combination of Company Prefix and Item # Company Prefix assigned by GS1 Item # assigned by owner of Company Prefix Position 1 = Check Digit Algorithm to serve as a “checks and balances” to ensure preceding digits are accurate 1 4 D I G I T S L O N G Position 13 = Recommendation: Use “0” for companies in U.S. GTIN = Global Trade Item Number

28. CASE (GTIN) assignment CASE 1CASE 2CASE 3 COMPANY PREFIX REFERENCE # CHECK DIGIT CASE 1 CASE 2 CASE 3 533925 00001 00002 00003 6 3 9 533925 000010000200003639 NOTE: Company Prefix can vary from 6 to 9 digits 10

29. Example of a GTIN (case level) 1 0 5 3 3 9 2 5 9 9 9 9 9 6 Company Prefix Reference Number (i.e. Case Number) Check Digit

30. Steps for Incorporation of GTIN Step 1: Brand owners to obtain Company Prefix from regional GS1 (see www.gs1.org for location of regional GS1 office) Step 1: Brand owners to obtain Company Prefix from regional GS1 (see www.gs1.org for location of regional GS1 office)www.gs1.org Who needs a Company Prefix? Who needs a Company Prefix? Where do you go to get a Company Prefix? Where do you go to get a Company Prefix? What questions will you be asked? What questions will you be asked? How long does it take to get one? How long does it take to get one?

31. Steps for Incorporation of GTIN Step 2(a): Brand owners to assign GTINs to all box configurations (see Floral GTIN Assignment Strategy) Step 2(a): Brand owners to assign GTINs to all box configurations (see Floral GTIN Assignment Strategy) Is the item # the same as the box #? Is the item # the same as the box #? Will all boxes of one item have the same GTIN? Will all boxes of one item have the same GTIN? Step 2(b): Brand owners to assign U.P.C.s to all bunches and bouquets (see Floral GTIN Assignment Strategy Step 2(b): Brand owners to assign U.P.C.s to all bunches and bouquets (see Floral GTIN Assignment Strategy Can use the same strategy as the GTIN Can use the same strategy as the GTIN

32. Steps for Incorporation of GTIN Step 3(a): Brand owners to communicate GTIN information to buyers Step 3(a): Brand owners to communicate GTIN information to buyers What does this GTIN number mean? What does this GTIN number mean? Specific meaning, no ambiguity Specific meaning, no ambiguity Data Synchronization Data Synchronization Data behind GTIN is the same for buyer and seller Data behind GTIN is the same for buyer and seller Step 3(b): Brand owners to communicate U.P.C. information for bunches and bouquets to buyers Step 3(b): Brand owners to communicate U.P.C. information for bunches and bouquets to buyers

33. Steps for Incorporation of GTIN Step 4: Those packing product responsible for putting GTIN information in human readable format on box Step 4: Those packing product responsible for putting GTIN information in human readable format on box Needed in the event the barcode cannot be read Needed in the event the barcode cannot be read

34. Steps for Incorporation of GTIN Step 5: Those packing product responsible for putting GTIN information into a barcode shown on box Step 5: Those packing product responsible for putting GTIN information into a barcode shown on box Needed for the automated capture of information Needed for the automated capture of information

35. Steps for Incorporation of GTIN Step 6: All business transactions should begin using GTIN as primary source of identification (e.g. purchase orders, invoices, etc.) Step 6: All business transactions should begin using GTIN as primary source of identification (e.g. purchase orders, invoices, etc.) The number shown on the box MATCHES The number shown on the box MATCHES The number shown on the purchase order MATCHES The number shown on the purchase order MATCHES The number shown on the invoice MATCHES The number shown on the invoice MATCHES The number shown on the bill of lading The number shown on the bill of lading ALL can be reconciled using the same number ALL can be reconciled using the same number

36. The Floral Opportunity Elimination of cross references Elimination of cross references Elimination of manual input Elimination of manual input Differentiation of product by supplier Differentiation of product by supplier Product movement by supplier Product movement by supplier Effective category management Effective category management Reduction of box sizes Reduction of box sizes Automation of manual processes Automation of manual processes Ability to track product through supply chain Ability to track product through supply chain Tracking shrink Tracking shrink

37. Begin the path of automation GTIN is a necessary cornerstone to all supply chain technologies GTIN is a necessary cornerstone to all supply chain technologies Real ROI comes in the form of automation Real ROI comes in the form of automation Data Synchronization Data Synchronization Electronic Commerce Electronic Commerce Barcoding Barcoding RFID RFID Subsequent work to take place after GTIN implementation to lead the floral industry in the use of these technologies Subsequent work to take place after GTIN implementation to lead the floral industry in the use of these technologies

38. For More Information Gary Fleming Produce Marketing Association Vice President, Industry Technology & Standards gfleming@pma.com Visit the Floral GTIN website at www.floralGTIN.com