ecr korea improving food safety with gs1 data bar

Improving Food Safety

with GS1 DataBar

Joint Project by

October 2010

Korea

Project Partner

� Established in 1998

Lotte Shopping is 94th in WW Top 100 retailers. ( * only 1 company from Korea)

Part of Lotte Shopping and 3rd largest Hypermarket Chain in Korea

LOTTELOTTE

MartMartDept.Store

Sky

Park

Food

Manufacturing

Krispy Kreme

DoughnutsToy’s R Us

LOTTE

Cinema

LOTTE

SuperLOTTELOTTE

ShoppingShopping

Project Partner

Korea (86)

China (78)

Vietnam (2)

Indonesia(21)

Lotte Mart Globalization : 187 stores/4 countries, Sales 6.5B US Dollar

Domestic Global

B to C

B to B

Global LOHAS companySince started as a small organic produce in 1984

Foodmerce

Pulmuone WildwoodMonterey gourmet foods

Core Business

•Mission A Global company that loves

both nature and humanity

•Vision A company goal to reach sales of

5 trillion won (about USD 4.5 billion) at the

year 2015.

•Core values TISO (Trust, Integrity,

Solidarity, Openness)

•Market leader (M/S No.1) in Tofu, Sprout,

Refrigerated Noodle in Korea

•Created synergy through core

competence in sourcing, manufacturing

& logistics

•Net revenue was USD 1 billion in 2009

Project Partner

Mission & Values

Project Partner

Name of Company : Educational Foundation Konkuk Dairy Ham Industry

ㆍㆍㆍㆍTo contribute in Citizen health, education and become World best product line of

food company

History

Our Vision & Mission

ㆍㆍㆍㆍSales(2009) : USD 1.04 Billion

ㆍㆍㆍㆍBranch retail stores : 300 stores

ㆍㆍㆍㆍCustomers(2009) : 1 Million persons

ㆍㆍㆍㆍ1960’s : Established “Konkuk Dairy Company(University Milk Product Lab.)(1964)

ㆍㆍㆍㆍ1970’s : Production of Premium ham&sausage(department store)

ㆍㆍㆍㆍ1980’s : Production of Carton Paper pack Milk

ㆍㆍㆍㆍ1990’s : Completion of New factory

ㆍㆍㆍㆍ2000’s : Unified Konkuk Dairy and Konkuk Ham

Project Partner

Korea

GS1 is a not-for-profit organization that develops global standards for theidentification of goods and services. (108 member organizations spanning 5 countries)

Ever since becoming a member organization of GS1 in 1988,

GS1 Korea has been active in promoting implementation of global standardsto improve the supply and demand chain representing the interests of Korea

As the GS1 DataBar solution provider, GS1 Korea is leading this project basedon active cooperation with LotteMart and its suppliers

“Improving Food Safety with GS1 DataBar” Korea

Background

WHERE‘where was it produced?’

WHEN‘when was it

produced?’ WHAT‘ what is the

ingredient of it?’

HOW‘ how was it produced?’

A company or B company?

In Korea or other countries ?

A month ago? A year ago?

WHO‘ who produced

it?’

Increasing concerns over food safety around the globe, accordingly

management of expiration date is becoming more important

Vitamin A or C?

Organic or Nonorganic?


Background

Fresh Marketing among manufacturers is more accelerating

# Example 1 : One of the leading milk companies in Korea is enjoying high popularity

by providing production date in addition to expiration date


# Example 2 : Pulmuone built traceability system for tofu products by using private

barcode and it lead to increased brand loyalty

Background


Background

“Expiration date is marked in a human

readable format, that is, shelf-

life checking is done manually”

“Expiration date is marked in a human

readable format, that is, shelf-

life checking is done manually”

“It sometimes causes

expired products to be passed

through POS”

“It sometimes causes

expired products to be passed

through POS”

“These all combined increase waste

and cost from expired food products

and threaten consumer safety”

“These all combined increase waste

and cost from expired food products

and threaten consumer safety”

But current situation in the retail store is …


What is GS1 DataBar ?

Linear Barcode Symbology

International Standards (ISO/IEC 24724)

Capable of encoding additional information such as expiration date,

lot number and price

Can be used without changing existing scanning equipment

(01)08801043004022 (15)030320 (10)7887300 (3202)000105 …

GTIN Expiration

DateLot Number Price …


Objective

Short term

To manage shelf-life data automatically

To block expired products’passing through POS

To capture markdown pricing automatically

To provide traceability information through

Smart Phone

To provide mobile coupons through Smart Phone

Creating Shopping Value

Long term


Target Product

Target Product : Tofu, Milk

- Perishables & Fast Moving Consumer Goods

Tofu Milk

“Highly needed for expiration data management”


Scanner

ReadinessScanner

Readiness

Dual Symbol

Use

(EAN/UPC AND

GS1 DataBar)

Dual Symbol

Use

(EAN/UPC AND

GS1 DataBar)

Issues

- Most scanners are GS1 DataBar capable but

need upgrade process

- As most SMEs don’t have GS1 DataBar capable scanners,

manufacturers should use dual symbol for quite some time

- Manufacturers are reluctant to use dual symbol due to

the increased space need for both symbols

- Retailers need capturing only DataBar to check

expiration date at pos

Single Symbol

Use(EAN/UPC OR GS1 DataBar)

Single Symbol

Use(EAN/UPC OR GS1 DataBar)

- Manufacturers will have some burden to manage inventory

dually due to single symbol use

1

2

3


Issues

Printing

Efficiency &

Environment

Printing

Efficiency &

Environment

EducationEducation

- To print variable information in bar codes in high-speed

printing and packaging lines is required

- Unstable printing environment such as wet process,

vibrant conveyor belt is one of the biggest hurdles

- Education about what the adoption of GS1 DataBar

means for retailers and manufacturers is needed

- Education for handling DataBar attached products at POS is required especially for staffs in retail stores

System

Development

for New Data

System

Development

for New Data

- Technology upgrades for systems such as ERP and POS

to process GS1 DataBar as valid data

4

5

6


Solutions

Printing Efficiency &

EnvironmentPrinting Efficiency &

Environment

EducationEducation

System Development for

New DataSystem Development for

New Data

Scanner ReadinessScanner Readiness

Dual Symbol Use(EAN/UPC AND GS1 DataBar)

Dual Symbol Use(EAN/UPC AND GS1 DataBar)

Single Symbol Use(EAN/UPC OR GS1 DataBar)Single Symbol Use

(EAN/UPC OR GS1 DataBar)

DataBar Printing

Solution

DataBar Printing

Solution

New POS System

Development

New POS System

Development

CollaborationCollaboration

Issues Solutions

1

2

3

4

5

6


Solutions – DataBar Printing

Attach after printing DataBar on film



Attach after printing DataBar on label



Seal after printing DataBar on package


Create “Shopping Value”

Improved consumer shopping experience leads to Creating Shopping Value

SupplierRetailer

�Better control overexpiry dates

�Decrease waste and

cost

�Better control of

inventories, shrinkageand product recalls

� Increased satisfaction

for food safety

� Improved shopping experience

with more efficient bar codes

Consumer

Expected Benefits

�Better control overexpiry dates

�Decrease waste and

cost

�Better control of

inventories, shrinkageand product recalls


PrePrePrePre----Launch Launch Launch Launch Launch Launch Launch Launch Results &Results &Results &Results &Learnings Learnings Learnings Learnings Expansion Expansion Expansion Expansion

• choice ofchoice ofchoice ofchoice ofproducts for pilot products for pilot products for pilot products for pilot

• initiated byinitiated byinitiated byinitiated byLOTTE Mart LOTTE Mart LOTTE Mart LOTTE Mart • implementingimplementingimplementingimplementing

field test infield test infield test infield test inone store one store one store one store • ROI analysis ROI analysis ROI analysis ROI analysis

• expansion toexpansion toexpansion toexpansion toother productother productother productother productcategories categories categories categories

Jan Jan Jan Jan ---- Sep 2010 Sep 2010 Sep 2010 Sep 2010

• checking thechecking thechecking thechecking thetechnical stability technical stability technical stability technical stability

• makingmakingmakingmakingaction plan action plan action plan action plan

• public public public public announcement announcement announcement announcement

• expansion toexpansion toexpansion toexpansion toall stores all stores all stores all stores

• improving improving improving improving technical stability technical stability technical stability technical stability

Oct Oct Oct Oct –––– Dec Dec Dec Dec 2011 2011 2011 2011 ----

Progress & Next Step

• expansion toexpansion toexpansion toexpansion toother retailers &other retailers &other retailers &other retailers &manufacturersmanufacturersmanufacturersmanufacturers


Thank You !

ecr korea improving food safety with gs1 data bar

Documents

gs1 korea

gs1 databar korea issues

gs1 databar capable

gs1 databarexpiration

gs1 databar solution

member organization

korea lotte

consumer safety