Bar Code Compliance Labeling for the Supply Chain : How to Do It

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9780941668118: Bar Code Compliance Labeling for the Supply Chain : How to Do It
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This book is a "how to" book for the project team charged with implementing a compliance labeling project or studying the project prior to making a recommendation to management regarding compliance. This book is also applicable to companies who are mandating that their vendors provide bar codes on their products.

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About the Author:

RICK BUSHNELL has lectured before many professional societies and events at Georgia Tech, the University of Louisville, North Carolina State, Notre Dame and Ohio University -- as well as other conferences in the United States, Australia and Europe. He was selected to the College Industry Council for Material Handling Education (CICMHE), and was instrumental in founding Insight, the only vendor-independent bar code and supply chain technology support group.

Rick is a highly respected author, material management system designer, and a sought-after lecturer. He has been interviewed on CBS Nightly News, ABC (Australian Broadcast Company) and by Investors Business Daily, Industry Week, PC Week, Nation's Business, and OMNI Magazine.

Many well-known companies, including Xerox, IBM, DuPont, McDonald's, and UPS, as well as less-broadly-known companies, have employed systems of his design. He has also been retained by Andersen Consulting and Sarnoff Research.

JIM DOOLEY is President of Integrated ID Systems, Inc. and has constantly been involved in shipping and product identification systems. He co-founded The Identification Business (IBI), a company focused on desktop laser printers and, prior to that, was Vice President of Advanced Marking Systems for Diagraph Corporation, where he dealt with on-site printing systems and carton-direct inkjet printers.

In the early 1990's, Jim served as Show and Seminar Chairman of SCAN-TECH, at that time the world's largest data collection trade show, and served on the board of directors for the Automatic Identification Manufacturers (AIM) trade association. He has written articles, served as a technical editor for Automatic ID News and presented papers at many industry educational events in the U.S. and abroad.

Jim is a frequent guest lecturer at the University of Wisconsin and has lectured for Texas Tech and Clemson over the years. Companies who have used his products and services include the Metal Container Division of Anheuser-Busch, McDonnell Douglas (now Boeing), CIGNA Chemical, General Motors, Ford, Chrysler and the Department of Defense.

Excerpt. Reprinted by permission. All rights reserved.:

What Does Compliance Labeling Mean?

Dear Valued Supplier:

In an effort to improve customer service through more efficient control of our inventory and material handling costs, our company is preparing to implement bar code scanning in a variety of areas within our facility. We are in the planning phase now, but we expect to be fully operational within 18 months.

This program requires all our suppliers to apply a bar code label to the products we purchase from them. After considering alternatives, we have decided to base our bar code program on the Universal Product Code (U.P.C.) standard numbering system administered by the Uniform Code Council (UCC) in Dayton, Ohio, for several reasons:
· It is internationally accepted.
· It has been thoroughly tested and successfully used for over 20 years.
· As an internationally accepted standard, it makes it easier for our suppliers to justify the expense of converting their system to comply.

The purpose of this letter is to inform you of our intentions and formally advise you that all merchandise shipped to us will need to be marked in accordance with this specification within 12 months of the date of this letter. We know we can count on your cooperation.

Thousands of letters like this one have already been sent and an estimated 50,000 more will be sent to manufacturers and distributors over the next several years. "Compliance labeling" is a term used to describe the process of complying with customer mandates –– or very strong requests. Normally, the mandates reference guidelines that have been reviewed and approved by a specific industry or standards–setting organization. Mandates are issued because voluntary participation takes too long.

Companies that receive letters such as the one above typically have one of three reactions:
1. “Who do those @#%$$#!! think they are? They aren’t going to tell me what to do!
2. “Well they are a big customer. We might as well do what they want. We’ll put labels on for them.”
3. “We should think about how we can take advantage of this. Might be an opportunity for us here somewhere.”

Companies that demonstrate the first reaction are going to lose a customer. Customers are partners, not inconveniences.

Those with the second reaction will simply add cost to their operation in order to keep a customer. They view the mandate as a cost of doing business. Their cost justification is that the margin they receive from that customer(s) makes up for the investment they must make to comply with the mandate. Since supply chain partnerships exchange information and eventually drive costs out of both parties' operations, this approach will only benefit the customer in the long run. The supplier needs to examine the benefit potential for themselves as well.

Those with the third approach not only are going to be good partners, but have a progressive attitude that will position them to realize the economic benefits of becoming a cost-effective supplier.

Compliance labeling is part of a nationwide trend to adopt three well–proven communications technologies.
1. For a standard numbering system, many industries use the U.P.C. (Universal Product Code) standard numbering system.
2. Bar code to reduce errors, cost and time to enter transactional data.
3. EDI (Electronic Data Interchange) to permit direct, application-to-application exchange of business data via computer.

The benefits of these communications technologies are discussed in Chapter 2: Benefits of Bar Code found later in this book but, generally speaking, they all seek to improve communications between independent trading partners by minimizing the use of proprietary numbering systems and manual data entry methods whenever possible.

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Jim Dooley; Rick Bushnell
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