Product Identification NGPI Update October 9 GSMP Lisbon Agenda topics 2 Project team and key contacts Project update MO integration NGPI project structure 3 NGPI Core Team Overall project leadership ID: 691127
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Slide1
Partnership Framework
Next Generation
Product Identification
(NGPI)
Update - October 9 - GSMP, LisbonSlide2
Agenda topics2
Project team and key contactsProject updateMO integrationSlide3
NGPI project structure3
NGPI Core TeamOverall project leadership IndustryGerd Wolfram, Metro/Retailer - Chair
Barron Witherspoon, P&G/Manufacturer - Chair
Mike Yorwerth, Tesco/Retailer
Greg Buckley, PepsiCo/Manufacturer
Jim Flannery - Grocery Manufacturers Association
Organizational connectivity
Ruediger Hagedorn - TCGF
Malcolm Bowdon - GS1
Lynda Costa - GS1
GS1 Expert Team
Internal
functional expertiseMary Wilson - USAndrew Osborne - EuropeJuan-Felipe Ochoa - ColombiaRichard Jones - AustraliaMalcolm Bowden - Data Excellence
Scott Gray - Technical liaisonMichael Sarachman - GSMPSlide4
The NGPI project team consists of 36 CGF Board member companies4
Representation across Manufacturers, Retailers, & key Stakeholders NameCompanyCountryYlva Heivert
ICA
Sweden
Gerd Wolfram
Metro AG
Germany
Armand Schins
Royal Ahold
Netherlands
Afrererico Santos
Sonae
PortugalMike YorwerthTesco Stores Ltd.GB(tbd)Wal-Mart Stores, Inc.
USAPaul DavidWal-Mart Stores, Inc.USAKathy WelchWegmans Food Markets
USA
Katrin Recke
AIM
Belgium
Charmaine Wiggins
FMI - Food Marketing Institute
USA
Patrick J. Walsh
FMI - Food Marketing Institute
USA
Fintan Hastings
Food Drink
Europe
Derek Nighbor
Food & Consumer Products of Canada (FCPC)
CAN
Jeanne IglesiasGMAUSAJim FlanneryGMAUSALynda CostaGS1 GOUSAMalcolm BowdenGS1 GOBelgiumScott GrayGS1 GOUSAAndrew OsborneGS1 UK (for Europe)GBChristian PrzyollaGS1 GermanyGermanyUlrich SchaeferGS1 GermanyGermanyIndigo WoltersGS1 GermanyGermanyMary WilsonGS1 USUSARuediger HagedornThe Consumer Goods ForumFranceJohn M. (Mike) WallaceAbbottUSAJeffrey A HouseCampbell Soup CompanyUSALynette ShawdGeneral MillsUSAAkikazu SatoKao CorporationJapanDetlef KoenigsMars GmbHGermanySusanne HolzhausenMars GmbHGermanyRyan C. RichardMondelezUSAA. Sven DianettHermann Hagemeyer, GmbH GermanyDavid SheldonNestléSwitzerlandRobin KiddNestléSwitzerlandAndrew WhitmanNestle NutritionUSAGreg BuckleyPepsiCoUSAKathrin KieselHenkel Rich WilsonThe J.M. Smucker CompanyUSABarron WitherspoonProcter and Gamble CompanyUSAEttore PiccirilloUnileverNetherlandsCaroline FrickeAccentureUKJose Antonio BarcoAccenture Ted SchultzeSymbology, Inc. Slide5
On behalf of Industry, Robin Kidd is making significant contributions!
5Delivering change in the pastLeading change for the futureNGPISlide6
We have a lot at stake…6
NGPI has the potential to produce one of the most significant, truly transformational decisions our industry will undertake since 1971… Slide7
Magnitude of impact and the need for change
Brand integrity and Consumer trust is a key driver-AND-Business value: conservatively, there is a cost avoidance upward $7 Billion annually
NGPISlide8
At a very high level, this is the functionality the Industry needs...
More Consumer Information
Accurate Data On-line & Mobile
Provide
consumer information
relevant
to each product package
variation (B2C
)
Ensure information
of package
and
web
are
aligned, easy
to
use, and trusted (EU Regulations/Digital)
Low Disruption to POS &
Supply Chain
Support
supply
chain
and POS checkout (B2B) activities with minimal disruption
Facilitate
O
nline Order Fulfillment from Stores
All without changing the GTIN for every variant to avoid unnecessary costs
Support order picking for package variations to fulfill online orders accuratelySlide9
9NGPI momentum continues…strong
Industry alignment is secured across Retailers, Manufacturers, and other key stakeholders NGPI face-to-face meeting… September 23-24, 2013Slide10
September 23-24, 2013'Next Generation’ Product Identification Project
Dusseldorf Key TakeawaysSlide11
Meeting SummarySlide12
Our key objective was
to develop a recommendation to the CGF board, by answering the following questions:IntroductionOn the 23th and 24th of September, 2013, the NGPI Project Team met in Dusseldorf to discuss and agree preliminary recommendations to the Consumer Goods Forum Board in December, 2013What information do we need to carry?How do we carry it?How do we test it to see if it works?
How do we implement it?Slide13
The overarching NGPI goal is to enable better communication of product information for consumers and trading partners. The Consumer and Trading Partner Information Strategy
is therefore designed to:Define new Data Items that will improve “package-level” product identification and product information communication to support emerging Digital Commerce and Regulatory requirements. ANDAvoid the need to change the GTIN in order to communicate accurate “label-level” product information during a "soft transition" due to a minor product formulation or packaging change.The Future Consumer & Trading Partner Information Strategy is the Driving Force of the NGPI ProjectSlide14
Proposed information strategy data items
Data ItemsPotential Benefits
Manufacturers
Retailers
Consumers
Product Variant Number
Increased speed to market; streamlined
Communication
Increased accuracy of online order fulfilment
Accurate product information ordered online
URL
Increased capability for tracking / tracing
Increased confidence in product quality and traceabilityExpiry date
Reduced waste of spoiled productsMobile app-based reminders of when to use productsLot NumberIncreased control over information provided
Increased reliability of additional information
Serial Number
Increased capability for tracking / tracing
Increased confidence in product quality and traceability
Potential value from new data items
Our a
nalysis suggests industry
could
realize
greater
benefits by providing more product information to stakeholders across the value chainSlide15
In
addition to the GTIN, the NGPI Project Team has Identified Five Data Items as the Most Desirable to Include in a Future Information Strategy It is proposed that GS1 standards be made available for these Data Items, at the product level
A code that contains any additional information that is
package specific, known as a PVN
Package
Variant Number
1
Additional Data
I
tems
URL
A unique web address for a product where the consumer can find more information about the product
2Expiry dateThe period of time items are given before they can be considered unsuitable for sale, use or consumption 3Lot NumberID number assigned to a lot of material from a single manufacturer
4Serial NumberUnique code that contains manufacturer’s information 5… to dynamic data From static …Slide16
The PVN shall be used to identify the package-version of a product package during a “soft transition” due to a minor change to product formulation or packaging.Changing of the PVN shall not be used to trigger the re-introduction or listing of an item.
The PVN will require its own use and allocation rules, which will complement existing GS1 GTIN Allocation rules.Use of the PVN could be made more straightforward with further clarification of the current “minor change” GTIN Allocation rules.The existing URL standard also requires further investigation:Confirm the syntax and scope of the URL, e.g. is it a full URL to an individual product or a company level URL which can have GTIN+PVN+serial, etc., to get to an individual productOf the Five, the PVN is the only Data Item for Which GS1 Standards have not been Previously DefinedThe group agreed some key parameters for the development of a PVN standard:Slide17
“Ability” of carrier to deliver
GS1 2D Carriers Have Been Identified as the Most Capable of Delivering The Desired Future StateGS1 2D Carriers can hold the GTIN, as well as the additional Data ItemsAdditional Data Items1D EAN/ UPC1D
GS1 DataBar
Either
2D GS1 QR Code or DataMatrix
Package Variant Number
No
Yes
Yes
URL
No
Short
URLsYesExpiry dateNoSome items
More itemsLot NumberNo Some items
More items
Serial Number
No
Few items
More items
It was also noted that, while
consumers are already using “native” QR codes, these are not capable of carrying the
GTIN.Slide18
The intention to install image-based scanning in the
future
3-5 years
8-10 years
5-8 years
10+ or no plans
2-3 years
Industry is polarized in implementing
2D scanning – pervasive use of a 2D GS1 Carrier at retailer POS is as much as
ten years awayAlmost half of all respondents plan to install 2D scanners within five years, while half will wait more than 10 years, or not install 2D scanners at all
# of respondents
(34%)Slide19
Preliminary Board RecommendationSlide20
Supports the use of PVN at the consumer package level as a means to improve the “label-level” product information disclosure to consumers without increasing the frequency of GTIN changes and the resulting supply chain disruption costs
Suggests that industry maintain support for current GS1 GTIN allocation rules and commit to define and support related allocation rules for use of PVNSupports accelerating the adoption of the 2D GS1 Data Matrix / QR code at the consumer package level with a goal to achieve global adoption within 10 yearsEnables industry to build the capability to utilize the GS1 DataBar at the POS and throughout the supply chain, in the meantime, as an additional choice to today’s EAN/UPC, thus enabling new capability while we work toward adoption of the 2D GS1 Data Matrix / QR codeDISCLAIMER: All work of The Consumer Goods Forum (TCGF) is carried out in accordance with TCGF Antitrust Guidelines, and in compliance with all competition laws, thus ensuring independence of activity, collaboration only on non-competitively sensitive issues, and confidentiality of information.The NGPI Team proposes that the CGF Board:The Next Generation Product Identifier Project is about providing consumers with the information they want, as effectively as possibleSlide21
Next StepsSlide22
Pilot projects will be conducted by “pilot pairs” – retailer / manufacturer combinations – across representative marketsEach pair will have the opportunity to select the use cases of interest to testAt a minimum, the portfolio will include both brick & mortar and e-commerce use cases, and PVNWe will seek to achieve use case, data item, sub-segment and geographic diversity in the pilot project portfolioParticipants commit to collecting data and providing feedback to the standards development process
Planning (Sep-Dec 2013)Develop pilot project charterEstablish governance structureEstablish pilot pairsOutline pilot terms of reference by mid-end NovemberTesting (Jan-Mar 2014)Begin projects in JanuaryEnd project (or at least have generated useful results) in MarchReporting (Apr-Jun 2014)Facilitate extended team meeting to review findings in AprilGS1 board meeting in May, present preliminary findings; key inputs to future standards development and draft implementation planCGF board meeting in June, present findings and next stepsIndustry Proposes to Undertake Targeted Pilot Projects as proof-of-concept for our Recommendations to the CGF BoardKey featuresTimelineSlide23
Deployment will be led by geography, whether national, multi-national or regionalDeployment roadmap development will be shared between the markets by the NGPI Core TeamThe process will live within the decision matrices of the markets in questionMarket / regional champions will be required in each marketUser guides will be developed by market, or group of markets
Sunrise dates will be set by industry / region for 1D GS1 DataBar (it is recommended that there be no sunset date on use of the EAN/UPC barcode)Incorporation of the PVN and other relevant data items into GS1 Services Standards, e.g. GDSN, GS1 SourceGS1 will recommend a global sunrise date to industry for mobile phones use of GS1 standards once OMA and GS1 standards alignment is achievedTogether with Regional Liaison Groups & Industry Associations, the NGPI Project will develop a guideline for local Rollout and ImplementationKey featuresSlide24
Jul
AugSepOctNovDecWe are on target to deliver pre-reading materials for the December CGF Board meeting by November 1st H1
2014H22014
Pilot Project
Deployment
Case for Action
A
Future Information Strategy
B
Future Carrier Strategy
C
Plan for Implementation
EPilot Project DesignD
Stakeholder EngagementMobilisationMilestonesDec. 3CGF Board Meeting
Nov. 1
Circulate Board Pre-read
OpExCom
Meeting
Draft and Circulate Deliverables
Review Period
(
inc.
legal)
Finalize
Deliverables
Project Management and Communication
Phase III
Options analysis
Workshop – 23-24 September
Extended team engagement
Oct .17OpExCom MeetingTargeted CEO engagementSlide25
Immediate next steps – high level overviewImmediate next steps
Milestone / ActivityTimeframeEnter GSMP (Business needs, Call to action, etc.)Oct. 2013Begin integration of GS1 standards and servicesOct, 2013Pilot project design – retailers/manufacturers paired, outlines completeNov. 30, 2013CGF Board Meeting – GO/NO GODec. 2013Begin to develop migration plan (local sunrise dates)Jan. 2014Conduct pilot projectsJan. – Mar. 2014Pilot project – results reportingGS1 BOD meetingCGF BOD meetingMay 2014;Jun. 2014Slide26
26
GS1 Expert Team
Liaison with respective MOs
Internal alignment
One voice
Mary, Juan, Richard
Andrew
Lynda
Malcolm
Scott
Technology groups
Many ways to keep connected to NGPI
Retail Network
Regional MO representativesSlide27
What we need from you…27
Remain grounded on the vision to accelerate changeMaximize Industry input… get involved Drive local adoption to enable Industry capability