Guidelines for Product ID, Labels and Shipments (GPID)
Supply Chain Foundation Guide (SCF)
Label Implementation Guide (LIG)
Pet Industry Supply Chain Foundation Guide (SCF)
3. Organizing The Labeling Project
3.1 Overview of Organizing a Compliance Labeling Project
· Product labeling using the EAN.UCC standard numbering system, which is explained in Chapter 4.
· Serial numbering of shipping containers using the Serial Shipping Container Code (SSCC) format which is also explained in Chapter 4.
Many aspects of these two projects are different but initial preparation steps for either project are the same. These common preparation steps are described in this chapter.
Compliance labeling is not necessarily hard but it is a project that may take several months to implement. Successful implementation will require dedicated effort of experienced people. It’s important to recognize this up front because failure to do so could lead to understaffing, under-funding and unrealistic expectations.
The diagram below
illustrates the stages of a typical compliance labeling project. The bullets
below the diagram briefly summarize each stage.
· A project team led by a dedicated project leader with a mandate from management to implement is highly recommended because several disciplines are often involved.
· Understanding the specifications will prevent making innocent but costly errors.
· The information system needs to be capable of supplying the information that the customer wants. This may require some modifications to the system which the MIS / Data Processing department must plan and implement.
· After the information system is capable of providing the necessary information, the organization must decide how the labels or symbols will be printed and applied.
· The new system should be tested to cover the full range of labeling situations and modified if problems surface.
· Once perfected, the new procedures are "rolled-out" and become routine.
This document makes many recommendations but the most important is this… senior management must make a financial and time commitment to get involved and act.
EAN.UCC numbering, bar code labeling and EC/EDI affect vendor and customer relationships as well as every operating department within an organization. As such, transitioning to these technologies requires leadership from one or more persons in the organization with the power to override territorial disputes and overcome resistance to change.
Considering the potential beneficial impact on Sales, Gross Margins and Overhead, making the time and financial commitment is worth the most senior manager's time. Federal Express uses bar code because the president saw its potential to differentiate their service. Milliken & Company and the entire textile and apparel industries adopted bar code and EC/EDI technology in record time because the most senior managers in those industries got personally involved to initiate projects that never would have succeeded without their political and financial support.
The secret to benefiting from these technologies is more than understanding them. It's using them. This may sound obvious but a surprising number of companies have been thinking about EAN.UCC numbering, bar code and EC/EDI for years! Without management support, these programs are studied indefinitely, going through phases of high and low priority. Each re-examination of the technology consumes valuable resources. Ultimately, the final implementation cost is much higher than a concerted implementation program supported by management would have been.
Management involvement and support is probably the single most important factor differentiating companies that successfully implement and benefit from those that don't.
It’s a mistake to under-staff these projects. Compliance labeling requires the coordinated efforts of several functional areas of the company. The following disciplines should be represented on the project team.
· Project leader with a mandate from senior management to implement the project. The project leader will need an understanding of project management, bar code technology, the company’s inventory, and the specification. In some cases, the project leader is also the company bar code coordinator.
· MIS (data processing, computer skills). Bar code projects involve computers. Bar code printers will need to be connected to a computer. Sometimes, changes will need to be made to the company database. MIS will play a vital role in the success of the project.
Every company has a shortage of qualified MIS professionals but bar code labeling projects will require their support. Some of the work can be subcontracted to bar code vendors / systems integrators but that only reduces the time demands on the company’s own resources. It doesn’t eliminate them.
· Customer Liaison to coordinate and document communications between you and the customer. This could be a customer service representative or someone from sales or marketing.
· Operations / User representatives to develop workable procedures to apply the symbols / labels.
· Purchasing representative to develop vendor selection criteria and to develop the skills needed to purchase bar code equipment efficiently.
The team should meet regularly (weekly) to review progress and issue new assignments. Minutes of each meeting should be prepared. Minutes should include individual assignments, due dates and progress against these due dates. The manager that issued the mandate to implement should receive a copy of each week’s minutes.
Recommendation: Appoint a company bar code coordinator, broadcast this person’s appointment and responsibilities to the entire company and make certain that all inquiries from your trading partners are directed to that person.
By centralizing the knowledge with a company bar code coordinator, additional applications for bar code will be implemented faster and at less overall cost. Easy access to a company bar code coordinator enables employees to discuss potentially beneficial applications with an insider that really understands how to use it. This, too, will accelerate the process of finding beneficial applications and gaining user support.
Regardless of which type of compliance labeling project you are being asked to implement, it’s vital that each member of the team understand the specification. Without a common understanding, individual members of the team can work at cross purposes.
The set of EAN.UCC specifications can be thought of as different report formats designed for specific applications. One format is used to count individual consumer units, one is used to count cartons containing multiple consumer units and one is used for EDI transactions. The "reports" can be printed directly on the item or on a label applied to the item, carton, pallet, etc.
Each different specification clearly specifies:
3.7 Implementation Roadmap
1. Management Initiates Project
2. Team Formed
3. Work Plan is Developed
1. Determine how many types of labels will be needed.
2. Prepare label samples (hand drawn if necessary) and submit to customer for approval.
3. Customer confirms that samples are correct.
1. MIS flow charts inputs / outputs
2. Prepare information system to adhere to specific industry application specifications.
3. Select Printer interface method.
4. Site Diagram is prepared
2. Operational procedures to print and apply the labels are in place and accepted by operations / user representatives.
3. Brands of Hardware and Software are selected
4. Label materials selected and documented for the purchasing department
5. Hardware and Software purchased.
6. Maintenance Procedures Documented
7. Quality Procedures Documented (see Chapter 7)
8. Training Program Developed
1. Pilot Test demonstrating all different types of labels needed is designed and conducted.
2. Modifications to system are made (if necessary)
3. Another test if modifications were substantial
1. Customer Communications
2. Label Quality Checking
3. New Operator Training