Professional Documents
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The Global Language of Business: Making The GS1 Vision A Reality
The Global Language of Business: Making The GS1 Vision A Reality
In This Report
We continue to increase the We hope that the format and
communication and visibility into content of this 2005/2006 Annual
and across the organisation. In this Report gives you the opportunity
report you will find detailed financial to know and understand the global
reporting (pages 35-37), progress reach of GS1 and the significant
reports from each of our business impact we are achieving towards
units (page 7) and a list of the global a more efficient supply chain.
business leaders represented on our
Boards (pages 40-41).
Making Our Vision a Reality: As we embrace these beliefs, Simple But Powerful:
“Making Our Vision a Reality” is we also embrace the diversity “Simplicity is the ultimate
our most important goal at this represented in the 104 member sophistication,” said Leonardo da
critical juncture in GS1’s organisations. Our Governing Vinci. The substance of what GS1
development. Our credibility and Boards (Management Board, does, is to connect the flow of
momentum come from day-to-day EPCglobal Board, GDSN Board) goods and services with the flow
achievements, both foundational are comprised of leaders from 17 of information. As we continue to
and transformational, in pursuit different nationalities, 6 different build upon the time honored and
of our vision. sectors, 13 manufacturers, 17 trusted bar code, we will improve
retailers, and 14 member the ways and speed of collecting
The Uniqueness of GS1: organisations. (Throughout the this information. The success will
report you will find statements continue to be the recognition of
As we recognise and appreciate from our board members
the true uniqueness of the GS1 simple successes in the everyday
supporting the GS1 standards processing of invoices, control of
organisation, our vision is unified and solutions.)
and sustained by our Basic Beliefs inventory, and continuously
and Values. They are: replenishing store shelves safely
This diversity is a strength as we and effortlessly.
• We are a not-for-profit keep our common vision before
organisation us. As individual member
organisations and as one global Visibility and Permission:
• We are neutral from the organisation, our unity comes from: Finally, I would like to express
business partners gratitude for the people in the
• Understanding our vision
Member Organisations and all
• We are user-driven and • Appreciating and living our the companies that are dedicated
governed basic beliefs to providing the visibility in our
• We serve all companies, both • Embracing the strength found in supply chain that gives each of us
multinationals and SMEs our diversity the permission to do what is right
• Seeing one vision, speaking for our consumer.
• We are a platform for
collaborative agreements one voice: acting as one
between business partners organisation
Seeing One Vision, So much has been accomplished The tireless efforts of so many
by the constituents, customers and people and organisations have
Speaking With One Voice,
leaders of GS1, I am truly honored clearly positioned GS1 well to
Acting as One Organisation. to begin my tenure as Chairman. move rapidly from this remarkable
The GS1 Community has unified period of creation and community
around the world to engineer this development into one of adoption
remarkable period of creation. and value creation. The potential
GS1 Leaders and Member of this global community is
Organisations have listened to unlimited because of the
customers needs and have learned progressive membership
how to enable Electronic Trading organisations and world class
Communities that are beginning leadership team. As a business
to eliminate disruption and leader, I am grateful to the entire
transform the way we all do GS1 Community for leading us to
business. The GS1 Organisation the point where we are today.
has grown stronger in the core As the incoming Chairman, it is
sectors that support and sustain with great honor and thanks that
the vision while developing I begin my term.
significant expertise and
momentum in emerging and
strategic sectors. The members
of GS1 have shared best practices
openly and have embraced
change and compromise in the
spirit of creating a world vision.
So much has happened to get us Danny Wegman
where we are today. Incoming Chairman
Since adopting our GS1 Strategy Never before in my professional full scope of the GS1 System, and
two years ago, we have dedicated career have I seen such dramatic, will go a long way to helping us
wholesale progress in such a short support improved traceability in
our efforts to develop, promote time. In a matter of 24 months, a the supply chain.
and propagate a single, worldwide massive movement toward global
system of open, multi-sectoral alignment on priorities, projects The Electronic Product Code
standards to enhance and and resources has facilitated (EPC) also achieved a significant
improve supply and demand quantum leaps in realising milestone. During the year, the
our vision. International Organisation for
chain efficiency. I am pleased to Standardisation (ISO) approved
announce that these efforts are GS1 is now a strong, vibrant, the EPC Gen 2 protocol as an ISO
meeting with tremendous success. standards-based community standard, allowing us to reach
of 104 Member Organisations out to many new companies in
representing business interests in countries around the world.
145 countries around the globe. This development, along with a
And great strides have been made dramatic drop in EPC equipment
to vest each and every member prices, have encouraged a
company within our MOs with growing number of companies
tangible ownership of the system to implement RFID technology in
and its powerful, collaborative their own supply chains, moving
potential in their own enterprises. us closer to critical mass in the
adoption of EPC worldwide.
As I travel from country to country
and continent to continent, I see Another highlight was the
potent examples of our work in expansion of our data
progress. There is a clear pride in synchronisation efforts. Our Global
membership. There is a boon to Data Synchronisation Network
participation in work groups and (GDSN) became an active reality
in our standards factory (GSMP with more than 10,000 companies
and EPCglobal) around the world. populating the network through
There is keen interest in emerging seven interconnected data pools,
technologies and innovative with more on the way. And we
applications using our standards. achieved an agreed data quality
And everywhere there is a rising protocol among trading partners
sense of trust and confidence in which will further enhance the
the ability of GS1 standards and network’s ability to perform at
our organisation to solve some of peak levels.
business’ most pressing challenges.
I am also happy to report that GS1
Among the highlights of the last has a very promising pipeline of
year was GS1 Management Board products and services in the works,
approval of Reduced Space including developments around
Symbology (RSS). This exceptional traceability standards and our work
system provides for the with the Global Upstream Supply
identification of small items and Initiative (GUSI) supporting the
variable measure products such upstream efforts between
as meat and produce within the manufacturers and their suppliers.
During the past fiscal year, the wheels GS1 BarCodes and the GS1 Identification System
of progress turned at an impressive GS1 BarCodes and the GS1 Identification System have delivered consumer
rate in the BarCodes and eCom benefits for over thirty years. Consumers trust and accept them; industry
knows how to use them; and their growth potential increases every year as
Business Units. Beginning with the
GS1 moves into new sectors and creates new solutions.
GS1 Forum launch, staff from every
corner of the globe began to In short: the state of the GS1 BarCodes & Identification System is strong.
organise their collective experience
to expand the GS1 System in new The momentum behind GS1 BarCodes activity around the world continues
to carry the standards into new territory, both in terms of company usage
applications like RSS for existing
and sector penetration. “The Benefits of Beep” campaign has produced result
customers and to lay the groundwork in awareness and recognition within GS1 community and beyond. Our
for progress in new arenas like brand message of “Save Time. Save Money. Live Life, ” resonates well with
Patient Safety and eGovernment. global audiences. With 100,000 GS1 BarCode “beeps” every second, the
world’s product consumers save time and money. And when these benefits
are shared with patients through GS1’s efforts in healthcare, it will provide
opportunities for them to live life to its fullest.
GS1 Reduced Space The adoption date of 2010 sets the To meet these challenges, the
Symbology - RSS goal for bar code systems to be GS1 eCom Strategy Initiative was
In June, the GS1 Board endorsed a capable of scanning RSS bar codes launched with the aim to cover
global sunrise date of 1 January and processing GS1 Application all strategic aspects of electronic
2010 for a new bar code called Identifiers. Separate dates will be business messaging and to be
Reduced Space Symbology (RSS). set for the use of the additional business driven. It will provide
This marks the first time since the data for new application areas by GS1 and its members with a clear
EAN/UPC bar code was adopted global standards work groups. understanding of how the different
that GS1 has endorsed a bar code Initial priorities were established for components in our eCom standards
for global, open (unrestricted) identification of fresh food, variable fit together as well as a high level
trade item identification. The measure, and pharmaceutical roadmap for future development.
announcement followed a business products sold at retail. In addition,
case review by a global task force research areas will be supported
comprising retailers, fast moving such as boosting GS1’s variable
consumer goods manufacturers, bar code printing technology
pharmaceutical companies, knowledge and expert network.
GS1 Member Organisations,
and trade associations. GS1 eCom Strategy
GS1 has a rich portfolio of
While EAN/UPC will remain useful eCom message standards and
for product identification, RSS technologies to meet the demands
enables expanded bar code from different sectors and regions.
implementation by meeting But the breadth and depth of the
the objective of identifying solutions often requires extensive
small items and carrying more support and guidance within GS1
information than the current and amongst user companies to
EAN/UPC bar code. With its answer the questions, “Should I
smaller size, RSS will enable GTIN use a proven and well established
identification for hard-to-mark standard or a new more advanced
products like fresh foods and one?” and “What tools exist for
pharmaceutical products, as well smaller companies?”
as providing new support for
shrink reduction and category The world of electronic business
management. RSS’ ability to carry messaging is also rapidly changing.
GS1 Application Identifiers like GDSN and EPC will change the
serial numbers, lot numbers, and way information is exchanged.
expiration dates, opens the door The growing number of players
to identification solutions in the XML standards world will
supporting product authentication require coherent, consistent
and traceability, product quality communication among member
and effectiveness, variable companies and external
measure product identification, organisations.
and couponing.
9
PRESIDENT’S MESSAGE
Sally A. Herbert
President
GS1 GDSN, Inc.
In the past year, the Global For the first time in the history of Additionally, leading companies
Data Synchronisation the GDSN, the majority of users of all sizes are using the
registered reside outside of North implementation of the GDSN, and
Network has grown from America. This represents the the data cleansing process which
350 users registered in the beginning of true global expansion it provides, as the foundational
GS1 Global Registry™ to of the network and, more step in the rollout of other
more than 10,000 global, importantly, a sizeable increase collaborative supply chain initiatives
regional and local retailers in the number of users benefiting such as sales and promotion
from data synchronisation. The planning, CPFR, and activities via
and suppliers doing business number of products registered has the EPCglobal Network®.
in all continents across also grown significantly. The GS1
the globe. Global Registry contains over New Business Model Positioned
830,000 products representing a the GDSN for Expansion
noteworthy increase in business In response to user demand, GS1
transactions across the network. GDSN, Inc. launched a data pool
This year also brought the funded business model in January
successful execution of a data pool 2006. This model replaced the
certification event that certified trading partner subscription model
eleven additional data pools into which required all trading partners
the GDSN. The twenty data pools to pay a separate fee to GS1 GDSN,
represent over 30 countries in Inc. in order to benefit from the
North America, South America, use of the GS1 Global Registry. The
Asia, Europe and MEMA, (Middle new model removed unnecessary
East, Mediterranean and Africa). barriers and allows the GDSN
certified data pools to fully migrate
Underlying this growth is a their user community to the GDSN.
movement that will surely transform The GDSN Board was expanded
how companies look at data. This to allow for representation of
year, GS1 announced the launch commercial data pools. Additionally,
of The Data Quality Management the Data Pool Advisory Council
Protocol, including best practices became a formal Board
for suppliers and retailers to subcommittee joining the
establish, implement, maintain and other three subcommittees:
improve data quality management Communications, Certification, and
programmes in parallel with data Finance, giving all certified data pools
synchronisation activities. a direct voice at the Board level.
business needs, define high-level The User Group consists of retailers, draft-standard was made available in
business requirements, and provide suppliers, GS1 Member Organisations June 2006 to retailers, suppliers and
input to the prioritisation of GDSN and certified data pools representing their data pools for development and
functionality designed to meet global Asia Pacific, Central, Eastern and testing through an industry pilot. The
and local needs. The Advisory Group Western Europe, Latin America, MEMA industry pilot will test the standard to
is responsible for providing direction (Middle East, Mediterranean, and ensure it meets the end user business
to the GDSN management team Africa) and North America. The group needs. The pilot, followed by data
in matters related to business consists of equal representation pool certification, ensures a fully-tested
requirements gathering and between retailers and suppliers. and proven standard prior to
standards development. The data pools and Member production launch by the end users.
Organisations are uniquely positioned
to provide input and to represent the GDSN, Inc. continues to work closely
small and medium size organisations with the global community to bring
which may not have the resources this standard to fruition as quickly as
to participate in all development the end users and their data pools
activities. The User Group has been can support its implementation.
instrumental in the development
of the 2007 GDSN Release Plan Other Key Achievements
designed to deliver the next set • Item Authorisation: In July 2006
of functionality to drive further the Item Authorisation standard was
implementation of the network. tested and put into production. This
standard will allow brand owners to
Price Synchronisation better manage their inventory and
Industry studies indicate that supply chain by automating the
synchronisation of price process to authorise the sale of
information along with item and products to a specific region,
“Working with national GS1 location information brings greater country or even single store.
organisations on data synchronisation, financial return as companies expand
Unilever is seeing significant benefits the scope of data synchronisation • New Item Form: This year GS1
across a range of processes. As these and collaboration by further reducing GDSN, Inc. and the GSMP
programs are integrated into GDSN, we costs within their supply chains. In introduced the New Item Form
anticipate gaining greater internal May 2006, the Price Synchronisation process based on end user needs
efficiency, which will improve the project team completed the first of retailers and suppliers. The New
benefits for our consumers, our trading global price synchronisation solution. Item Form process automates the
partners, and for Unilever.” The draft standard consists of a single manual processes associated with
Rudy Markham message approach already in use by the introduction of new items and
Unilever GS1 Member Organisation data pools accelerates the introduction of new
Member of the GS1 Management Board
outside the GDSN. The solution products to market. Retailer use
meets the global end user business cases show that automation of the
requirements of the retailers and new item process accelerates the
suppliers active on the Price introduction of products to market
Synchronisation project. The by as much as two weeks.
12
• Data Pool Certification: The second • Architecture Committee: A GDSN GS1 Launches the Data Quality
data pool certification event was Architecture Committee was Management Protocol
completed, and it launched over launched in January 2006. The In May 2006 GS1 announced the
20 certified data pools into the mission of the Architecture publication of the GS1 Data Quality
network. This presents a significant Committee is to advise the GDSN Framework, including a best practice
growth from the previous year of User Group, GDSN Inc, and GSMP protocol for companies to establish,
10 certified data pools. Additionally, on the technical design and implement, maintain and improve
the third certification event was implementation of business their data quality management
launched in 2006, further increasing requirements and their impact on systems. GS1 and the Global
end user access to the GDSN. The network integrity and performance. Commerce Initiative (GCI), along
2006 certification event consisted with representatives from suppliers,
of optional and mandatory Global Product Classification (GPC) retailers and industry associations,
components providing a process The Global Product Classification worked together as a team to
to introduce functionality based system provides a classification establish the framework. Good
on local, regional or sector-specific methodology for the GDSN. Sellers quality data – data that is complete,
market needs. and buyers require a common consistent, accurate, time-stamped
• Education and Awareness: GDSN, language to group products the same and industry standards-based – is
Inc., working in close collaboration way, globally. Having a standardised foundational to collaborative
with end users, Member and consistently implemented commerce and global data
Organisations, and certified data classification system enables global synchronisation. The GS1 Data Quality
pools, expanded the education and search and reference, category analysis Framework incorporates a data
awareness program launched in and global data synchronisation. GPC quality management system to validate
late 2005 to include programs in is a mandatory within the GDSN and the existence and effectiveness of key
Asia Pacific, Australia, and Latin provides a valuable categorisation data management business processes.
America. The program consists of solution to the end user. In addition, it offers several options to
basis data synchronisation and end show compliance, by offering rules for
user case studies illustrating the This past year the GPC Task Group self-declaration and an inspection
financial value, operational benefits under GDSN, Inc. leadership added procedure to physically validate
and lessons learned by experienced 14 new categories and has 20 live product attributes. By improving the
users. This program has been well in the GDSN. GS1 has made the quality of data, trading partners
received by the local users and will decision to integrate the GPC system reduce costs, improve productivity
continue to be expanded to further within the United Nations Standard and accelerate the speed to market
educate emerging regions. Products and Services Code (UNSPSC) for new products. GS1 is responsible
Additionally, new marketing classification system in 2007. UNSPSC for updating and publishing the Data
collateral was introduced hierarchy will serve as the primary Quality Framework and provides
showcasing retailer and supplier basis, with GPC providing the overall stewardship. The framework
benefits, a GDSN and GPC overview necessary granularity across key also supports the GS1 System
and benefits as well as a How to categories and sectors. The GPC standards for measurement
Join guide. A completely re-written structure will be preserved and will tolerances. The 104 Member
GDSN Guide was also introduced remain the classification system used Organisations of GS1 will leverage
providing valuable information and within the GDSN. the protocol in the data quality
step-by-step instructions on how services offered to their customers
to implement the GDSN. around the world.
13
PRESIDENT’S MESSAGE
Chris Adcock
President
EPCglobal, Inc.
Congratulations and thanks are Public policy outreach Worldwide network of testing
due to the members of the The Public Policy Steering centres accredited
EPCglobal community for an Committee (PPSC) and its working September 2005, EPCglobal Inc
groups have established open awarded the first EPCglobal
incredible year of progress.
dialogue with key stakeholders, Performance Test Centre
The EPCglobal community has including legislators and Accreditation Marks to four
grown stronger with each passing regulatory bodies. The PPSC works worldwide testing facilities.
day as an increasing number of proactively to inform and educate Additional testing facilities will
organisations are embracing interested parties about EPC be added to the list of accredited
technology, and to address centres as they qualify. EPCglobal
the vision of working together
matters regarding the responsible Performance Test Centres will
to create a global standards deployment of the EPC. Many make it easy for end users to ensure
infrastructure for this remarkable political leaders and regulators are that their tagged shipments can be
enabling technology. The taking a pragmatic approach in read before sending them through
EPCglobal community is indebted supporting the use of EPCglobal their global supply chains.
standards-based RFID to allow
to the many individuals who
organisations to transform their First software standard for
donate their time, experience business processes, whilst ensuring EPC/RFID ratified
and expertise to fulfilling the aims that industry takes appropriate September 2005, the Application
and ambitions of EPCglobal. measures towards responsible Level Events standard, or ALE,
implementation. was ratified. The ALE standard
is essential for the continued
First standards-compliant build-out of the EPCglobal Network
hardware certified because it provides an important
September 2005, EPCglobal standardised approach for
awarded the first EPCglobal collecting, managing, and
Certification Marks to seven routing EPC data as items move
solution providers, ensuring their throughout the supply chain.
products comply with EPCglobal The standard will enable more
technical standards. The Marks efficient collection and movement
certify that the hardware products of EPC Data, making supply chains
have been tested and will work visible and traceable in real time.
according to the EPCglobal UHF The standard was developed by
Generation 2 Air Interface Protocol more than 100 leading companies
Standard ratified in December within a work group of the
2004. Certification enables EPCglobal Software Action Group.
companies that are implementing
EPCglobal Standards to have easy
access to objective and reliable
information about EPC hardware.
15
16
1000
_ 873
810
_ 733
709
_
_ 584
510
_ 449
_
_
191
_
0
Month Total June December March June September December March June
2004 2004 2005 2005 2005 2005 2006 2006
© Metro AG
19
A primary vision for GS1 is the The project framework has been
development and growth of defined and parties ready to
commence the pilot on transportation
new sectors using the GS1 of bulk wine from Australia to the UK.
System. During the past year, The project team aims to provide first
great strides were made in a results in Q1 2007. Currently the pilot
number of new sectors, bringing GS1 in Transport and Logistics is focused on basic consignment
the vision closer to reality. transactions with the intention to
GS1 has established a Logistics
address more complex scenarios of
initiative with the vision to lead the
international transportation.
Global Healthcare User Group development and implementation
The global Healthcare User Group of the GS1 Logistics Solutions for
NATO Technical Cooperation
(GS1 HUG™) has chosen GS1 as the Transport and Warehouse management
Agreement
sole system of standards in healthcare. with initial focus on FMCG.
The North Atlantic Treaty
The HUG is a voluntary and Organisation (NATO) and GS1 have
open group formed by 40 leading Its objective is to achieve the benefits
of integration of the global supply signed a Technical Co-operation
pharmaceutical and medical devices Agreement (TCA). Over the last few
companies, wholesalers, hospitals and chains by fostering interoperability
and addressing visibility and years, a number of GS1 Standards
trade associations from around the have been included within NATO
world. The HUG’s primary objective is scalability, identified by participants
as key issues for the sector. The Standards Agreements and Ministries
to enhance patient safety worldwide of Defense have initiated a number of
through accurate and standardised current scope includes identification,
bar coding, and eCom solutions in enhancements to GS1 Standards on
product identification. NATO’s behalf.
supply chain activities.
Accurate product identification is The agreement broadens the
crucial to patient safety in three GS1 in Customs
co-operation between the NATO
key aspects: Based on the revised Unique
and GS1 in the fields of supply chain
• avoiding medication errors by Consignment Reference (UCR)
standards and technologies. It
ensuring that the right drug is recommendation of the World
formally enables direct contributions
delivered to the right patient Customs Organisation, the UK
by NATO to the establishment of
Customs initiated a pilot to test
• preventing the use of counterfeit relevant GS1 standards. On an equal
the use of the GS1 Serial Shipment
drugs and medical devices basis, the agreement formally
Container Code (SSCC) on the
enables GS1 to contribute to the
• allowing the traceability of international flow of wine and spirits
standardisation activities of the NATO
medical products for Constellation and Diageo between
standardisation community.
the UK and Australia. After evaluation,
After one year of successful operation SSCC proved to be compatible with
of the GS1 HUG™, HUG officially the UCR recommendation and
announced on 26 July 2006 that it meeting UCR criteria. Both customs
will use GS1 standards exclusively as and trade identified potential benefits
the basis for its automatic product of leveraging existing identification
identification developments (Bar systems and, as such, stressed the role
Codes and Radio Frequency of SSCC in global trade.
Identification Product Tags).
21
Core Competencies:
Global Standards
Development
Effectively manage the global,
user-driven develoment and
implementation process to
deliver high quality, easy-to-
implement standards to
industry and solution providers.
Global Reach
Maintain and develop a
global network of national
affiliates which deliver high
quality standards-oriented
services to their members.
Cross-cultural
Communication
Develop and maintain a broad
range of communtication
capabilities which enable
effective two-way
communications between
GS1, its affiliates, its
membership and the wider
community.
Vicente Escribano
Chief Operating Officer
The staff and management of GEPIR Strategy All business units now follow a
GS1’s Global Office, along with The Global Electronic Party common planning process, which
Information Register (GEPIR) is a connects Long Term Strategies and
representatives of our Member Programs with Projects into a one
distributed database that contains
Organisations, worked closely year business plan. Updates are made
basic information on over 1,000,000
together during the year to companies in over 100 countries. through quarterly reports and include
improve the understanding a dashboard with the status of the
and delivery of both the At the time of its conception, GEPIR Top 10 Programs and projects.
architecture and internal was a GS1 Member Organisation
initiative to interlink the different GS1 Architecture
operations of GS1. The traction
membership databases in order to The aim of this new initiative is to
generated across the enterprise efficiently fulfill information requests research GS1 standards and services
has produced a number of from GS1 System end-users. Over and to provide a recommendation
significant results. time, some of the users discovered on how the components of the
this service and started to directly GS1 System portfolio should work
connect into the GEPIR network to together to support the existing
validate Global Location Numbers global user community as well as
(GLN) and Global Trade Item Numbers the newly engaged industries.
(GTIN) that are manually captured in
their ERP systems. One of the key deliverables is
expected to be an outline of end-user
The aim of the GEPIR strategy is to business processes supported by
enhance this service by motivating GS1 standards and services and how
major software houses to include they are related. Others include the
these validation processes into their relationships between various GS1
product offerings. Furthermore, standards, inclusive of Bar Codes and
GEPIR has the ambition to become Identification Systems, eCom, EPC
the future portal for Business to and GDSN.
Consumer communication. Mobile
technology is expected to enable An integral part of the initiative is to
consumers to scan GS1 bar codes. identify future strategic opportunities
Via GEPIR consumers may be able to and development of a GS1 key data
receive useful product information, translator prototype, which would
such as cooking instructions or demonstrate how GS1 Bar Codes
nutrition values. relate to EPC tags.
23
Oversight
Body Board Committee for Standards (BCS) 1. Clearer and more
BCS Governance
effective governance
Groups
Operations Group Architecture Group Process Group
2. More responsiveness
to business needs
Business Requiremnets Groups (BRG)
3. Increased efficiency in
Master BarCodes & producing standards
Development
GDSN GPC eCom 4. Improve membership
Bodies Data Identification
return on investment
(ROI)
User
Groups Work Groups (WG) 5. Improve “Change
Technology
Request” visibility
Center
Technology Center (TC) and processing
• GSMP Advisory Groups are replaced by three groups that support GS1 Management Board
decisions: Architecture, Process and Operations. This will result in improved governance by
directly connecting GSMP operations to the GS1 Management Board in order to meet industry
priorities and ensure implementation commitment.
• A GS1 Architecture framework will guide the development of the entire family of GS1
standards to ensure their interoperability and eliminate eventual redundancies.
• Project Teams replace standing committees for complex work items. This will eliminate the
“committee queue”, ensure that business expertise is properly involved and improve the
opportunities for participation.
As per the commitment to continuously improve the GSMP, the next steps include the
establishment of a GSMP Charter, Conformance & Certification specifications, and a step
change improvement in GSMP communications and membership management.
24
Mentors Latin
Asia Pacific
35% America
5
Mentorees 6
North
Mentorees per Region
65%
America
1 Latin
America Asia Pacific
Middle East 9 14
Africa
1 North
Mentoring Programme America
0
The Mentoring programme has been Europe
15
up and running for a number of years
Middle East
and is now a firmly established activity Africa
within the GS1 Member Organisation 15
(MO) community. The Mentoring
programme contributes to the goal Mentor and Mentoree Member
of building a world-class GS1 Organisations
organisation by: Europe
Mentors Mentorees 12
• Leveraging knowledge and Argentina Algeria Lebanon
experiences within the GS1 MO Australia Albania Libya Mentors awarded at the 2006
Austria Armenia Macau
community Belgium Azerbaijan Mauritius
General Assembly
• Creating a framework where young Brazil Bahrain Macedonia For the first time this year, a slot
Colombia Bolivia Moldova was included at the General
and developing MOs can ask for and Costa Rica Bosnia-Herzegovina Mongolia
receive support and advice from Croatia Bulgaria Morocco Assembly event in Malta to award
mature MOs Denmark Cambodia Nicaragua and give recognition to four GS1
• Bridging the gap between mature
Finland Cyprus North Korea champion Mentors. The MOs and
France Dominican Republic Paraguay CEOs who were awarded were:
and developing MOs Germany Ecuador Peru
Greece El Salvador Romania
• Avoiding that developing MOs will Guatemala Estonia Saudi Arabia Klara Karivan, GS1 Croatia
have to ‘re-invent the wheel’ Hong Kong Georgia Slovenia Peter Gietelink, GS1 Netherlands
• Fostering a spirit of cooperation and India Ghana Sri Lanka Rafael Florez, GS1 Colombia
Ireland Guatemala Thailand
sharing among the MO community Italy Honduras Tunisia Tan Jin Soon, GS1 Singapore
• Promoting consistency and quality Malta Indonesia Turkey
in the services offered by all MOs Mexico iran United Arab Emirates As the list of champions is long,
Netherlands Ivory Coast Uruguay the Mentor awards will become
Russia Jordan Uzbekistan
A survey conducted by the GS1 Singapore Kazahkstan Venezuale an annual event at the General
Global Office in October-November South Africa Kenya Vietnam Assembly.
Switzerland Kyrgystan
2005 revealed that 80% of the United Kingdom Kuwait
MOs participate in the Mentoring USA Latvia
programme and 92% of the MOs
supported by a Mentor (Mentorees)
are entirely satisfied with the support
they receive. The role at the GS1
Global Office is to make sure that
the Mentoring Programme runs as
smoothly as possible. This is done by:
27
On other fronts, GS1’s relationship was intensified with ISBN (books) by assigning
a member of the GS1 leadership team to the ISBN Board, and the organisation
made substantive progress in initial discussions with IATA (airlines and airport
operators) with regard to potentially tagging baggage and freight with EPC.
Over the past year, great progress was made with the incorporation of the
EPCglobal Gen 2 standard into the relevant ISO standard. Quite a number of
GS1 staff, at the Global Office and MO level, are closely involved in ISO work and
participate in the workgroups either as workgroup leaders or specialists. We also
engage with ETSI (European Telecommunications Standards Institute) for work in
EPC and UN/CEFACT (United Nations Centre for Trade Facilitation and Electronic
Business) for alignment with GS1’s Electronic Data Interchange standards
developments using EDIFACT and XML as well as with the GPC (Global Product
Classification) initiative.
28
Broaden awareness and develop have been successful in engaging and its working groups consist of
understanding amongst key with the FDA in the US. HUG have representatives of industries and
governmental and non- also been working with the Japanese trade associations worldwide
governmental bodies Health authorities and in meeting including healthcare, technology,
with the NHS in the UK. food, consumer products, retail, and
GS1 recognises the key influence others. The PPSC works closely with
on commerce standards exerted EPCglobal Inc and representatives committee members to address
by governmental and inter- of various industry sectors that are public policy issues and inform
governmental organisations. The implementing RFID and EPC industry leaders, consumers, and
main mission of these bodies is not technology have formed the legislators about the benefits of
to develop standards, but to regulate EPCglobal Public Policy Steering EPC technology.
them; sometimes in all sectors, like Committee (PPSC) to foster open
the European Union, and other dialogue with key audiences around
times in specific sectors like the public policy and other important
FDA in the US. areas relative to EPC technology and
the EPCglobal Network. The PPSC
GS1 has been active among these key
influencers and booked initial success
in a number of areas. GS1’s leading
role in the EU sponsored BRIDGE
project, which promotes the use of
RFID technology in the EU is a prime
example. In the world of Customs,
GS1 established a solid working
relationship with the World Customs
Organisation (WCO) and worked
alongside them on UCR/SSCC
projects. In defence, GS1 has signed
an agreement with NATO. And in
Healthcare, the GS1 Healthcare User
Group (HUG) and the EPCglobal
Healthcare and Life Science group
29
Practical Examples
GS1 China
GS1 Colombia
GS1 France
GS1 Japan
LOGyCA: Latin American Centre c. Subjects: automatic data CABASnet are: Synchronisation, POS
for Value Networks capture, pharmaceutical unit dose Sales and Inventory Data service,
implementation, redesign and Global Registry and DAM (Digital
LOGyCA, the Latin-American Centre simulation of extended value Asset Management) for the trading
for Value Networks, is a business networks, warehouse design, etc. partners involved.
laboratory dedicated to virtual
simulation services, market research 4. EPC LAB: At the end of 2005, CABASnet began
studies and specialised human talent LOGyCA has three main laboratory offering its services in seven Latin-
training. The Centre was built on spaces: the supermarket, the hospital American countries, and right now,
GS1 Colombia’s “value network”* and the warehouse. There are two it is preparing to enter three new
training and consulting services for EPC implementations, one in the markets. CABASnet’s electronic
Colombian companies and more than supermarket and the other in the catalogue has been certified by GDSN
17 years of accumulated experience. warehouse. Inc. and it is the only one catalogue in
Latin-America that synchronises price
In 2005, the Centre served more than a. Supermarket: Smart shelf, product information between trading partners.
18,000 people, including attendees movement from the retailer back
from 12 countries, as well as visiting office to the POS area and capture in Recent RESULTS (statistics from the
members of the GS1 Advisory Council. the receiving dock from the supplier. Colombian catalogue)
b. Warehouse: Capture at entrance,
The main services offered by product flow along the conveyor 1. Synchronisation: 650 users. Among
LOGyCA were: belt and loading of trucks for delivery. them, there are retailers; Carrefour,
Éxito – Casino, Carulla Vivero, Cafam
1. Training 5. Other services and Colsubsidio and suppliers; Procter
& Gamble, Unilever and Colgate.
a. Customised training programmes: Other services are offered with the
support of 72 partners. LOGyCA has 2. POS Sales and Inventory Data
i. Companies: Bavaria, Colsubsidio agreements with 12 universities service: At the end of 2005, 501
and Éxito. and has implemented 53 software companies useutilise CABASnet to
ii. People trained: 1,200 applications implemented such as exchange information about the
WMS (Warehouse Management number of GTIN’s sold.
b. General training programmes:
System), TMS (Transportation 3. Global Registry: Acting as a certified
i. Companies: 31 Management System), ERP catalog since 2005.
ii. People trained: approx. 450 (Enterprise Resource Planning), etc.
4. CABASnet Media: A tool for digital
c. Thirty-three seminars with different asset management.
companies in different cities around The biggest challenges for 2006 are
the country. to ensure LOGyCA’s premises are
Expected results in 2006
occupied at least 40% of the time, to
get the EPC LAB accredited, to increase Thanks to the commitment of the
2. Market research:
the number of the software applications catalogue’s main users, CABASnet
The Centre provided a number of has begun a process to extend its
used and to provide an unforgettable
studies for multinational companies, use. The objective is to get 2,800
customer experience full of value
including: consumer behavior studies companies to permanently use the
through creativity and innovation.
regarding product changes, new Synchronisation service and the POS
product development, product Sales and Inventory Data service
CABASnet: a platform for
exhibition design, competence analysis through CABASnet.
collaborative electronic commerce.
and advertising impact studies.
CABASnet is a multinational
In 2006 CABASnet will start
3. Consulting collaborative platform between clients
measuring and formally following-up
and suppliers. Its objective is to offer
a. Companies: 25 both logistics KPI’s (e.g. On-Time,
solutions that reinforce and increase
In-Full) that are affected by its use
b. Projects: 31 the efficiency of the value network
and its impact on the reduction of
through the exchange of relevant
the out-of-stock levels.
information. The solutions offered by
32
* Formerly known as “Supply Chain”.
GS1 France Rewards Innovative Pierre Chatelain, Product Technical Beyond the financial benefits,
Companies Support Manager for Norauto e-invoicing allows Norauto to avoid
summarised the project this way: errors, to verify invoices, and to
Since 1994, GS1 France has been “You have to communicate extensively reduce the volume of storage
rewarding companies that have with your suppliers before launching necessary, while at the same time
launched the most innovative this technology, so that everything increasing the security of archived
services using GS1 standards. goes smoothly afterward. It’s the invoices. The quantity of disputes and
necessary condition for the success of follow-up calls has also been reduced.
A committee is convened every year a project. Tests carried out by various
to study business cases submitted by governmental organisations here in One number that says it all: over 1.8
candidate companies. This selection France (internal revenue, fraud million merchandise invoices have
team is made up of representatives detection...) clearly demonstrated the been handled since the start of the
from retail and manufacturing value of the solution we chose.” project. Without an e-invoicing
(including the previous year’s system built with GS1 eCom
winners) as well as journalists from Norauto’s e-invoicing services are standards, that would be a stack
the supply chain and logistics trade now being extended to its European of paper invoices twice as tall as
press. Candidate companies must subsidiaries. The company uses the Eiffel Tower!
have successfully carried out a project the main French platform to store
applying GS1 standards in electronic invoices from the eleven countries in Norauto is today continuing to roll
data exchange, electronic invoicing, which it has activities. “We decided it out services that use GS1 standards
traceability or any other of the many was a better choice to share the tools with a project for automatic orders.
areas where our standards add value. we developed,” notes Pierre Chatelain,
“As a result, Norauto France is a true
The most innovative and high- service provider! But it took a lot of work
performance companies receive a to get to this level...”
trophy at a prestigious dinner and
ceremony. In 2005, the Norauto
group won a GS1 France Trophy
for its exemplary use of GS1 eCom
standards. Norauto is France’s leading
creator and distributor of automotive
services for all makes of vehicles,
with a large chain of equipment,
maintenance and service outlets.
33
GTIN-14
04512345671235
34
General
GS1 Financial Statements
Prefix
mer
Financial Statements
CHIEF FINANCE OFFICER’S MESSAGE
36
GS1 Consolidated FY 2005-2006: YTD Actuals for the period ending 30/06/06 (EURO 000’s *)
Consolidated GS1 CO EPC Inc. (100%) GDSN Inc.
Revenue 24,157 13,777 7,155 3,224
Fixed/Recurring Expenses 2,486 1,805 216 466
Discretionary Expenses 9,642 3,352 4,718 1,573
Payroll Expenses 10,875 7,785 2,220 871
Operating Expenses 23,004 12,942 7,153 2,910
Operating Result 1,153 836 2 315
Other Revenue / (Expenses) 91 93 (2) -
Income Statement, reserves in case of adverse currency In terms of types of expenses, not
Cash and Headcount fluctuations. The EPCglobal Income much has changed over the past
Our consolidated Income Statement Statement is break-even, in line years. Our main investment remains
shows a positive result of €1,243K for with expectations. As for GDSN, our people, with 76 employees on
the fiscal year ending June 2006. We the financial picture is starting to the payroll at the end of June 2006,
continued to build a reserve from our stabilise after having gone through moving towards 90 by the end of the
bases business (GS1 Central Office), to a typical start-up phase with upfront next fiscal year. As for discretionary
cover current and future investments investments, which will have to be spending, travel and large user
in new technologies and applications, recovered over the next few years. meetings/events (Global Forum,
but also to have the necessary GSMP events, ECR, …) continue
to be the big ticket items.
Global Coverage
Revenue By Region
(€ 000’s)
37
General
GS1 Board Members
Member
Organisations
23% Retailers
28%
New Sectors
28%
Manufacturers
28%
39
40
41
(Left to right) : Vicente Escribano, Chief Operating Officer; Sally Herbert, President, GS1 GDSN Inc; Eric Decroix,
Chief Marketing Officer; Michel van der Heijden, Chief Finance Officer; Susan West, Chief Human Resources Officer;
Chris Adcock, President, GS1 EPCglobal Inc; Miguel A. Lopera, President & CEO.
42
General
Membership
GS1 Membership
110 -
GS1 has evolved from a modest 12 member
European-based organisation in 1977 to a truly 100 -
international organisation today with 104 Member 90 -
Organisations spanning the entire globe. This year we 80 -
welcomed 3 new Member Organisations representing 70 -
Ghana, Albania and the Ivory Coast, and we expect to 60 -
add more members to our GS1 family in 2007. 50 -
40 -
GS1 Member Organisation Growth 1977-2006
30 -
Our Member Organisations, staffed by 1,700 20 -
professionals, are delivering the GS1 standards and
10 -
services to over 1 million users companies representing
20 industry sectors. An impressive 5 billion transactions 0-
-
are registered on a daily basis. Companies that are not 1977 1987 1997 2006
served by a GS1 Member Organisation may obtain
GS1 services and support directly from our Central Middle East, Africa Europe
Office in Brussels. At present, 39 countries are served
on a direct basis.
Latin America North America
Asia Pacific
• Over 5 billion
transactions daily
• 20 represented
sectors
44
The information below was correct at time of going to press. For most recent
information, please visit http://www.gs1.org/contact/worldwide.php.
46
47
48
49
GS1 Turkey
Ankara
T +90 312 413 8000
E gs1turkiye@tobb.org.tr
W www.gs1.tobb.org.tr
GS1 Ukraine
Kiev
T +380 44 486 0734 / 482 0521
E ean@ean.ua
W www.ean.ua
GS1 UK
London
T +44 207 6559000
E info@gs1uk.org
W www.gs1uk.org
GS1 US
Lawrenceville
T +1 609 620 0200
E info@gs1us.org
W www.gs1us.org
50
GS1 AISBL
Blue Tower
Avenue Louise 326, b10
B-1050 Brussels, Belgium
T +32 (0)2 788 78 00
F +32 (0)2 788 78 99
contactus@gs1.org
www.gs1.org