GS1 - The global language of business
Grocery
GS1 standards make a critical difference in the grocery industry, through
the use of bar codes and automatic data capture along the supply chain
to the check-out. In fact, the grocery sector was the early industry wide
adopter at a global level of AIDC and scanning technologies because of
the efficiencies in business process that could be derived from its use.
While the adoption of GS1 standards in the grocery is ubiquous, the sector
is still the most active retail user of GS1 supply chain tools. So much
so, that the major grocery retailers in both New Zealand and Australia
insist that all suppliers obtain GS1 verification for their bar codes
before releasing a new product, so they can guarantee that those bar codes
will scan first time, every time in the busy retail environment where
process efficiencies are critical.
The grocery sector is also one of the main users of the electronic data
catalogue named GS1net, as it appreciates that this is an efficient and
cost-effective way to communicate with thousands of trading partners and
suppliers.
As an example of the use of GS1 systems in the retail industry, goods
arriving at the store are receipted by scanning the bar code on their
packaging. When the retail bar code is read at the check-out that transaction
then updates the store's inventory system.
This in turn triggers an automatic re-order when pre-set stock levels
are reached, while the point-of-sale information also provides critical
data for the retailer's forecasting systems.
GS1's bar-coding systems coupled with electronic data interchange (EDI)
solutions assist retailers by:
- reducing inventory and logistics costs
- allowing quicker response to customers' demands
- capturing product movement and sales data from the wholesale and retail level for the manufacturer
- transmitting sales and inventory reports promptly, so the manufacturer can make critical decisions based on accurate and timely data