Download ALC Supply Chain Standards Working Group

ALC Supply Chain Standards
Working Group
Supply Chain Week 2012
Michael Kilgariff, Managing Director ALC
Ken Brown, National Manager Linfox
Agenda
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ALC overview
Some industry facts
New industry working group
Work plan
How to get involved
About ALC
• The Australian Logistics Council is the peak national body
representing the major and national companies participating in
the Australian freight transport and logistics supply chain.
• ALC is the lead advocacy organisation to all levels of Government
and industry on freight transport and logistics supply chain
regulation and infrastructure issues.
• The mission of ALC is to influence national transport and
infrastructure regulation and policy to ensure that Australia has safe,
secure, reliable, sustainable and internationally competitive supply
chains.
Some Facts
The T&L industry is a significant contributor to Australia’s
economy:
• 14.5% of GDP
• 1 million jobs
• 165,000 companies
Australia is facing a rapidly increasing freight task:
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500 billion tonne kilometres in 2010
• 1000 billion tonne kilometres in 2030
• 1400 billion tonne kilometres in 2050.
Productivity growth for the transport sector only 0.6%
per annum in the five years to June 2011
ALC Supply Chain Standards
Working Group
Mission
To enable the Australian Transport & Logistics
industry to improve supply chain efficiency and
increase product and shipment visibility.
ALC Supply Chain Standards Working Group
Objectives
• To work with industry groups to help resolve supply chain issues including
non-compliant pallet labelling, poor intermodal visibility, rapid recall and
withdrawal of defective products and poor data quality.
• To consider the potential benefits that other relevant technologies and
services may provide including:
GPS (Global Positioning Systems)
Location Management (GS1 Locatenet)
GSM (Global System for Mobile communications)
RFID (Radio Frequency Identification)
Data Synchronisation Solutions (GS1net)
Product Information Databases
Industry recall notification portals (GS1 Recallnet)
• Develop industry guidelines and case studies.
Start up participants
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Some identified challenges
• Lack of interoperability – b/w modes, b/w carriers
• Pallet label compliance
• Data quality is sub optimal
• Re-working of the same information along the supply chain
• Existing standard information not being leveraged
• Weight/dimension data - getting it right from source
• Location data management – difficult to keep up to date
• Recall & withdrawal management
Four key issues…
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Working group team structure
ALC
Board of
Directors
ALC Industry Work Group
Leadership Team
Chair: Ken Brown (Linfox)
Pallet labeling
work group
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Inter-modal
interoperability
work group
Inter-modal interoperability work group
Inter-modal interoperability Challenges
• Interoperability – a lack of standards hindering the ability to
achieve full end to end visibility across the supply chain.
Re-work & transaction errors
Sub optimal data quality
Added cost
• Integration is currently achieved by building point to point
solutions with each trading partner. This is not scalable and is
costly to manage and support
Increases complexity
Difficult to achieve agility and rapid response to customer demands
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Integration without standards…
Buyer 1
Supplier 1
Buyer 2
Supplier 2
Buyer 3
Supplier 3
Buyer 4
Supplier 4
Buyer 5
Supplier 5
Buyer 6
Supplier 6
Standards support Global Interoperability
Pallet label Non–compliance cost
• Pallet label quality – 44% discrepancy across FMCG
Poor pallet labelling is the biggest emerging issue in
retailers’ supply chains
• Cost to re-work labels that can’t be scanned ~ $10 ea
• 27,000 non compliant shipments in 13 week period
• 36% identified as label issues
• Total cost $10 x 9,720 = $97,200 x 4 quarters = $388,800 pa
• $388K x ‘n’ retailers = Cost to Australian business $$$$$$$$
• Re-labeling logistics units with proprietary labels
• Recipients can’t auto receipt goods
• Use of third party warehousing increases risk of non-compliance
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Pallet label compliance challenges
• Pallet label compliance – there was consensus that the industry is
suffering a huge cost burden due to poor labeling of shipments. Some of
the problems encompass:
poor quality
Multiple SSCC labels applied
different formats
load shifting destruction of labels
Incorrect product information
Manually adjusted SSCC labels.
pallet label position
3PL engagement
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Poor Print Quality
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Damaged label – wont’ scan
No SSCC Label – can’t scan
Multiple Labels Applied
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Incorrect Product Information
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Manually Adjusted Information
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Two different SSCCs
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GTIN on carton is
different from GTIN
on label…
• Incorrect goods
will be receipted
• Inventory will be
incorrectly
updated
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Timelines
• First meeting was held 16th August
• Ken Brown from Linfox is Group Chair
• Work groups scheduled to kick off mid October
Pallet labelling
Interoperability
• Next Steering Committee meeting 25th Oct
• Will report progress to ALC board in November
How do you get involved?
• If you are interested in joining and participating in either of these
industry wide project teams.
• We are currently taking expressions of interest so if you are
interested you can contact either:
Ken Brown at [email protected]
or
Bonnie Ryan at [email protected]
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