GS1 India’s e-newsletter for subscribers

Standards@Work

www.gs1india.org January, 2008

GS1 India is a standards-based not-for-profit organization promoted by the Ministry of Commerce and Indian Industry to spread awareness and provideguidance on adoption of global standards in Supply Chain Management byIndian Industry for the benefit of consumers, Industry, Govt. etc.

This e-newsletter is meant for GS1 India subscribers. You are receiving thise-newsletter either because you are a GS1 subscriber, or have asked to beincluded in our mailing list, or attended a GS1 India workshop or requestedinformation. If you do not wish to receive this e-newsletter, or have beensent this communication in error, please scroll to the bottom for informationon how to unsubscribe. We respect your privacy.

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CONTENTS:

>> From the CEO’s desk>> Cover Story: Allocating product codes? Keep it simple

>> GS1 Update: News from India and Abroad Report on standards in Healthcare published Daimler joins EPCglobal Industry head honchos underline need for standards Aditya Birla organises barcode training for suppliers

>> Alerts: Time to take action! Subscription r enewal Take an E-learning course Bar code implementation workshops

==========================================From the CEO’s desk==========================================

Dear Subscriber,

Heartiest New Year greetings from GS1 India!

I am sure that by now most of you would haveimplemented GS1 bar codes on your products anduploaded the information on GS1 India’s GEPIRwebsite (www.gs1india.org.in). In case you haven’t,

I urge you to do so at the earliest.

Use of bar codes and global product identification standards hascaught up rapidly in the country, with over 80% consumerproducts now bearing GS1 bar codes. Just pick up any consumeritem and you will find a bar code with a unique 13-digit human

readable number below it beginning with 890, signifying India asthe country of origin.

Type this 13-digit code in the search web page on GS1 India’s GEPIRwebsite (http://www.gs1india.org.in/servlets/Ean.SearchServlet) and you’ll have instantaneous access to the contact information ofthe manufacturer. As you can see, this service offers you a greatway to multiply exposure to your products at no extra cost. Besides, adopting GS1 standards can also help you streamlineyour own internal stock management, reduce costs and improveproductivity.

Hope you make the best use of the enormous potential ofGS1 standards.

Regards,Ravi Mathur

^TOP==========================================Cover Story: Allocating product codes? Keep it simpleBY: MUKESH MANN

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A GS1 Global Trade Item Number (GTIN) is a 13-digit code that givesevery product a unique identity. GTIN begins with a company prefix (allocated by GS1) and is followed by a product code whichis allocated by the company generating GTINs. In case of GTIN-13,the company prefix and product code must always add up to 12 digits.The last digit, called a check digit, is used to ensure that the code iscorrectly composed, and is calculated on the basis of the preceding 12digits. In India, all GTINs begin with ‘890’, signifying the country of originas India.

The company prefix remains the same for all product variants of acompany. However, the product code for each variant has to bedifferent. Do you know the most convenient way to allocate productcodes? Well, it is to simply assign the numbers serially. Try not to buildin any form of intelligence in the product code since it is an invitation toproblems later.

900900 1435678

Company Prefix

Product Code

Check Digit

This recommendation is based on sound business practice and hasstemmed from Industry’s experiences gained over many years in different countries throughout the world. The allocation of productcodes in sequential order ensures there are no duplications. It also makes managing the number allocation process much simpler.

Let us now look at some mistakes companies commonly make whileallocating product codes.

Some companies split their number bank by leaving gaps fordifferent product ranges or product groups. In such cases,problems arise when new products are introduced after a rangeis exhausted.

Problems also arise when companies attach significance to specificdigit positions within the product code to identify the product bygroup, category, type, etc. By doing so, you would end up limitingthe numbers available for allocation severely and restrict its usageto within your own environment which understands and deciphersthe significance behind each digit.

Companies should also avoid using internal product codes withinGTINs, primarily as there is no standard or common approach usedin such internal coding. One company may code at carton level,another at intermediate or multi-pack level while still another maycode at the consumer item level. In addition, some companies thatcode at the carton level use the same internal product code forcartons containing different configurations of a product, for example:24 loose, 4 x 6 and 2 x 12. In this instance, what internal code wouldbe allocated to each of the intermediary units within the GTIN structure? In such scenarios, use of internal product coding within GTINs would lead to duplication and conflict.

GS1 standards call for a separate number to be allocated to everyproduct variant in shape, size, weight, colour, flavour, etc. and alsoto each different packaging type and level.

Finally, it should be borne in mind that GTINs would have to be crossindexed to the internal product code within a company’s system,which, in any event, negates the purpose of using internal codeswithin the GTIN structure.

^TOP==========================================GS1 Update==========================================

International News

Report on standards in Healthcare published

Michigan State University School of Packaging has developed "TheCase for Global Data Standards in the Healthcare Supply Chain" forGS1 global Healthcare User Group.

This report summarizes the benefits and advantages of global standardsfor automatic identification for all stakeholders in the worldwide healthcare supply chain. It provides a brief overview of the complexitiesof the current situation, and makes recommendations regarding howglobal standards can play a role in ensuring that the healthcare supplychain is safe and efficient.

The report can be accessed at: http://www.gs1.org/docs/healthcare/Case_Global_Data_Standards_Healthcare.pdf

^TOP

Daimler joins GS1 EPCglobal

Automobile manufacturer Daimler AGhas become the first company in theautomotive sector to join EPCglobalInc a subsidiary of GS1 responsiblefor the development of the ElectronicProduct Code (EPC) for theinter-sectoral deployment of RFIDacross the global supply chains. EPCwill help reduce the number of different identification systems in the automotive industry, allowingsuppliers and service providers to optimize their complex logistics andbusiness processes. This includes related economic sectors such asretail and transportation, where the EPC-compatible GS1 numberingsystem is already established.

EPC Gen 2 technology is being implemented in an increasing numberof applications and systems. Its standardized infrastructure enablesreduction of hardware costs and coordination efforts with tradingpartners. This is especially significant for the production structurewithin the automotive branch, which until now has been unable tobenefit from an industry-wide standard.

“The implementation of RFID technology gives our organization thepotential to increase process quality and reduce costs,” explainsDr. Michael Gorriz, Chief Information Officer, Mercedes-Benz Cars &Vans of Daimler AG. “Membership of GS1 EPCglobal allows us tointroduce the requirements of the automotive industry into thedevelopment of RFID standards at an early stage, thereby avoidingfuture harmonization costs.”

About EPCglobal Inc:EPCglobal Inc is a subsidiary of the global not-for-profit standardsorganization GS1, and supports the global adoption of the ElectronicProduct Code as industry-driven standards to enable accurate, immediate and cost-effective visibility of information throughout thesupply chain. In the end, the business community is improving itsoperations through EPCglobal standards in order to be more efficient,flexible and responsive to consumer needs. For more informationabout EPCglobal please visit www.epcglobalinc.org

^TOP

National News

Industry head honchos underline need for supply chainstandardization

In recognition of the crucial role ofsupply chain efficiency, Federationof Indian Chambers of Commerce andIndustries (FICCI) organised aconvention, 'Winning with IntelligentSupply Chain 2007' (WISC 07) in NewDelhi on Dec 17-18, 2007. Ravi Mathur,CEO, GS1 India, delivered a presentationon “Enabling competitiveness throughstandards and technologies adoption”on the occasion.

Prominent industrialists and bureaucratsaddressed a large audience, comprisingmostly of senior executives from across Industry.

Several speakers, including Ted Huffman, Director-Supply Chain,Wal-Mart India; Anshuman Singh, CEO, Future Logistics SolutionsLtd., Dhruva Chanderi, COO, Next Electronic Retail India Ltd., Rahul Chadha, Director, SAK Customer Retail Services and J.S. Shinde, General Secretary, All-India Chemists and DruggistsAssociation emphasized the need for global and inter-operablestandards to improve supply chain efficiency in various sectors.

GS1 India CEO Ravi Mathur urged business leaders to adopt globalstandards in supply chain management. He also explained howstandardization led to improved supply chain efficiency and reducedcosts. Later, he answered queries from members of the audience.

He also participated in a panel discussion on the second day, whichincluded Rajan Bharti Mittal, MD, Bharti Enterprises; Sanjeev Asthana,President and Chief Executive, Reliance Retail Limited; R.C. Agrawal,MD, Vishal Mega Mart Ltd.; Arvind Singhal, Chairman, Technopak

Advisors Limited; Vikram Bakshi, MD, Ms Donald’s, Pinakiranjan Mishra,Partner, Ernst and Young; Yawar Ali Khan, Chairman, Nestle PakistanLimited and Rajiv Srivastava, General Manager – Enterprise and PartnerGroup, Microsoft Corporation India Pvt. Ltd.

Subodh Kant Sahai, Minister of State, Food Processing Industries,Government of India, Minister of State for Industries, and RaghuvanshP. Singh, Union Minster for Rural Development, Govt. of India werepresent on the first and second day of the event respectively.

The convention was organised as a platform for Industry to shareexperiences, learn, network and deliberate on issues related to SupplyChains, and brainstorm on constraints and strategies for making IndianSupply Chains more efficient using technology and global standards.

^TOP

Aditya Birla Retail organises bar code implementation trainingfor suppliers

Aditya Birla Retail Ltd., one of the major players in India’s expandingretailing industry, gave a mighty push to its standardization initiativeby inviting GS1 India to train its suppliers in GS1 bar codeimplementation. The Company organised a special session on Dec 27,2007 at the Aditya Birla Retail Centre, Mumbai. About 50 participantsrepresenting approximately 40 supplier organisations attended thesession. The participants eagerly heard the instructor from GS1 India,and sought clarifications on issues related to bar coding.

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==========================================Alert==========================================

Subscription RenewalThe renewal of your GS1 India subscription is due on March 31, 2008.It has been observed that due to preoccupation with other importantbusiness matters like taxation, annual meetings, etc. during the lastquarter of the Financial Year, many companies fail to renew theirsubscription on time. This results in unnecessary hassles and delays.We have therefore decided to accept Renewal requests withimmediate effect.

You are requested to kindly send in the Subscription Fee well inadvance, preferably by January 2008. If you do not look aftersubscription renewals, please pass on this message to the personconcerned in your organisation. For more information or clarification, please write to vinay@gs1india.org

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Take an E-learn course in GS1 standardsIf you're involved in implementing GS1 standards, including 13-digitGS1 product coding on consumer items, and want to know how youcan benefit by adopting GS1 Standards, then GS1’s e-learn coursesare the right opportunity for you.

You can now e-learn from the comfort of your home or office, and at your own time & pace. Our world class multi-media learningmaterial is easy to understand and apply. You can also take onlinetests to check your understanding.

These courses take learners through programmes such as GS1 BarCode Applications in consumer items, cartons (trade items) andcontainers (logistic units); Developing and implementing EANCOM;Basics of GPC (Global Product Classification); GS1 ApplicationIdentifiers & ID Keys, etc.

The courses will be of interest to professionals engaged in packaging, logistics, procurement, IT, etc. For more information, emailinfo@gs1india.org

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Events: Bar code implementation workshopBar code implementation workshops are held at GS1 India’s New DelhiOffice premises. In January 2008, workshops will be held on 10 and 31.Seats are limited, and are available on a first-come-first-serve basis.There are no charges. To register, email mukesh@gs1india.org Register early to avoid last-minute rush.

==========================================GS1: The global language of business==========================================© 2008 GS1 India 330, 2nd Floor, ‘C’ Wing, August Kranti Bhawan, Bhikaji Cama Place, New Delhi - 110066Telephone: +91-11-26168720/721 Fax: +91-11-26168730Web site: www.gs1india.org==========================================

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