Promoting Trade in Agriculture through Improved Supply Chains

Promoting Trade in Agriculture through Improved Supply Chains Geneva, 12 May 2004 Bolivar Pereira pereira@ean-int. org

Myths about EAN International n –––––––––––––––––– EAN is a bar code label vendor n ––––––––––––––– EAN is an RF tag vendor n EAN stands for the European Article ––––––––––––––––––––– Numbering

Mission Statement The mission of EAN International and the Member Organizations is to take a leading role in establishing a global multi-industry system of identification and communication for products, services, locations based on internationally accepted and business led standards.

FOCUS OF EAN The focus of EAN is to provide solutions and standards that add value to the relationship AMONG TRADING PARTNERS. The focus is not to optimize internal enterprise systems.

The global EAN Membership

EAN International - World Map § 99 local EAN Organizations § 1 million member companies worldwide § 5 billon scanning transactions per day EAN International member countries Manufacturer numbers are allocated on a direct basis by EAN International

EAN member companies come from a large variety of industries Other: • Fishing • Electricity • Construction • Hotels • Education • Health & social work • Mining • Real estate • Transport

EAN Milestones n 1974 – Ad-hoc council of manufacturers & distributors look at developing UPC compatible product numbering standard for Europe n 1977 – Establishment of EAN system & association. 12 founder members n 1991 – Adoption of current “global” Mission

EAN Milestones (cont’d) n 1995 – Creation of EAN. UCC Global Policy Committee n 1996 – With UCC, adoption of “Global Policy Principles Guiding UCC/EAN Standards” n 1998 – EAN and UCC agree joint strategic plan and common committee structure

EAN Milestones (cont’d) n 2000 – EAN and UCC agree to use a project approach in decision-making related to the maintenance and development of the EAN. UCC system n 2002 – UCC and ECCC join EAN International as Member Organizations n Today network of 101 Member Organizations covering 103 countries n 30 staff in Brussels and >1, 400 world-wide

EAN Structure n User-driven organization ¤ Two-thirds of the EAN Management Board are from trade and industry ¤ Users are represented on the Boards of the Member Organizations ¤ Member Organizations and users participate at the EAN General Assembly ¤ Users’ demands are submitted by the Member Organizations to EAN Head office

EAN International Explained The Global EAN. UCC system: n Delivers a multi industry identification standard based on a structured, non significant numbering system n Endorsed set of symbologies (bar codes) and other data carriers (RFId) as well as messaging standards n System identifies: products and product attributes, services, shipments, assets, locations, etc. n Is a recognized ISO standard and uses UN/EDIFACT

EPCglobal… EPCglobal is leading the development and adoption of industrydriven technology standards for the revolutionary Electronic Product Code (EPC) Network to support the use of radio frequency identification (RFID) in today’s fast-moving, information rich trading networks.

What makes RFID different compared to barcodes?

Functionality RFID - Where It Fits Active Tag • Long Range • Location Finding • Larger R/W Memory • Non-Line-of-Sight • Simultaneous ID • R/W Memory • Non-Line-of-Sight • Simultaneous ID • Very Rugged Passive Tag 2 D Bar Code • Larger Data Capacity • Greater Data Integrity Linear Bar Code • Lowest Cost But. . . • Most Expensive • Limited Life • Less Rugged

Why RFID? n Eliminates human error n No line of sight required n Performs in rugged, harsh environments n Dynamic multi-block Read/Write capability n Simultaneous reading & identification of multiple tags in field

Why Bar code? n Very inexpensive n Eliminates human error n Performs in some 5 412345 678908 > EAN. UCC LOGISTICS LABEL From EAN International rue Royale 145 B-1000 Brussels To UNIFORM CODE COUNCIL 8136 Old Yankee Road Dayton, Ohio 45459 U. S. A. SSCC 3 54123456789 2 rugged, harsh CONSIGNMENT 541234550127501 SHIP TO POST 840 45459 environments n Line of sight required (4 0 1)5 4 1 2 3 4 5 5 0 1 2 7 5 0 1 (4 2 1)8 4 0 4 5 9 (0 0 )3 5 4 1 2 3 4 5 6 7 8 9 2

What future for bar codes? n RFID offers some important advantages: ¤ Non line of sight ¤ Read/write ¤ ‘Near simultaneous’ multiple detection But there are drawbacks - not least cost! The future will be a hybrid world The right technology for each different application

er ta Ca rri ce Da er m m Co E- s EAN. UCC Standards for Traceability ID Numbers n Standard Identification of items n Standard data carriers for representing data n Standard Electronic Commerce messages

Principles of Traceability n The ability to find the history, use or localisation of an item by: ¤ Recording, and storing, every movement of an item in the supply chain ¤ Registering the source of the item ¤ Maintaining the database information for the life- cycle of the product

Traceability in action n Product traceability ¤ to identify defective lots ¤ to recall concerned products n Logistic traceability ¤ to follow the logistic unit through the supply chain ¤ to enable the capture of detailed information ¤ to allow a response in case of problem

UCC/EAN-128 Symbol For tracing your products Log unit / 01 01 / 22

The SSCC n The Serial Shipping Container Code is a standard for the individual identification of logistic units (pallets, barrels, crates, containers, . . . ) n The SSCC can be used by all parties in the supply chain as a “KEY” to the relevant information held in computer files

The Serial Shipping Container Code (SSCC) Extension digit N 1 n EAN. UCC Company Prefix Serial reference N 2 N 3 N 4 N 5 N 6 N 7 N 8 N 9 N 10 N 11 N 12 N 13 N 14 N 15 N 16 N 17 Check Digit N 18 It is a non-significant, fixed length, 18 digits number which contains no classifying elements. The whole number identifies the logistic unit.

Structure of License Plate Number Serial Shipping Container Code Unique Identification of Transport Units ISO/IEC 15459 -1 ISO/IEC 15459 -2 General Registration Procedures unique Issuing Agency Code (IAC) allocated to administering body unique code allocated from administering body to user unique code allocated to transport unit by user check digit 3 4054321 123456789 5 EAN International is registered issuing agency (allocated IAC 0 to 9)

EAN • UCC Keys n AI 401: Consignment Number - Identifies a logical grouping of goods (one or more physical entities) that has been consigned to a freight forwarder and is intended to be transported as a whole. Company Prefix N 1. . . Consignment information Ni Xi+1. . . variable length Xj (j<=30)

EAN • UCC Keys n AI 402: Shipment Identification Number (Bill of Lading) - A number assigned by a consignor. It provides a globally unique number that identifies a logical grouping of physical units for the purpose of a transport shipment. Company Prefix Shipper Reference N 1 N 2 N 3 N 4 N 5 N 6 N 7 N 8 N 9 N 10 N 11 N 12 N 13 N 14 N 15 N 16 Check digit N 17

Industry Endorsements What Logistics Users Are Saying about EAN. UCC System

FIATA – International Federation of Freight Forwarders n Memorandum of Understanding Signed in August 2001 n “FIATA will participate in the standards development work of EAN International related to the transport sector” n “FIATA will promote the use of the existing EAN UCC standards within the transport and freight forwarding environment” n “FIATA will encourage its national and direct members to become members of national EAN organisations”

Australian Logistics Council n Barcoding the Logistics Industry (1/4/03) n Compatible along the supply chain n Faster delivery of goods, fewer handling and shipping errors, better inventory management and a reduction of ordering and replenishing times n Will make it easier for Australian exporters to meet the tightened security requirements

Swedish International Freight Association n Issued a recommendation last year, based on EAN • UCC standards for Shipment ID n Builds upon best practice in international trade and industry n “SSCC is the most widespread concept for tracking of individual packages, recommended by FIATA” n EAN • UCC organization stands as a guarantee for long lasting stability

EAN Standard’s Role in Trade Facilitation n “Trader id” concept via the GLN (Global Location Number) which can be validated through internet n Can be applied to all international goods movements, unique at both national and international level n Facilitation of trade-customs partnership n Minimize bottlenecks in the global supply chain

Questions? Bolivar Pereira pereira@ean-int. org