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Improving Food Safety
with GS1 DataBar
Joint Project by
October 2010
Korea
Project Partner
� Established in 1998
Lotte Shopping is 94th in WW Top 100 retailers. ( * only 1 company from Korea)
Part of Lotte Shopping and 3rd largest Hypermarket Chain in Korea
LOTTELOTTE
MartMartDept.Store
Sky
Park
Food
Manufacturing
Krispy Kreme
DoughnutsToy’s R Us
LOTTE
Cinema
LOTTE
SuperLOTTELOTTE
ShoppingShopping
Project Partner
Korea (86)
China (78)
Vietnam (2)
Indonesia(21)
Lotte Mart Globalization : 187 stores/4 countries, Sales 6.5B US Dollar
Domestic Global
B to C
B to B
Global LOHAS companySince started as a small organic produce in 1984
Foodmerce
Pulmuone WildwoodMonterey gourmet foods
Core Business
•Mission A Global company that loves
both nature and humanity
•Vision A company goal to reach sales of
5 trillion won (about USD 4.5 billion) at the
year 2015.
•Core values TISO (Trust, Integrity,
Solidarity, Openness)
•Market leader (M/S No.1) in Tofu, Sprout,
Refrigerated Noodle in Korea
•Created synergy through core
competence in sourcing, manufacturing
& logistics
•Net revenue was USD 1 billion in 2009
Project Partner
Mission & Values
Project Partner
Name of Company : Educational Foundation Konkuk Dairy Ham Industry
ㆍㆍㆍㆍTo contribute in Citizen health, education and become World best product line of
food company
History
Our Vision & Mission
ㆍㆍㆍㆍSales(2009) : USD 1.04 Billion
ㆍㆍㆍㆍBranch retail stores : 300 stores
ㆍㆍㆍㆍCustomers(2009) : 1 Million persons
ㆍㆍㆍㆍ1960’s : Established “Konkuk Dairy Company(University Milk Product Lab.)(1964)
ㆍㆍㆍㆍ1970’s : Production of Premium ham&sausage(department store)
ㆍㆍㆍㆍ1980’s : Production of Carton Paper pack Milk
ㆍㆍㆍㆍ1990’s : Completion of New factory
ㆍㆍㆍㆍ2000’s : Unified Konkuk Dairy and Konkuk Ham
Project Partner
Korea
GS1 is a not-for-profit organization that develops global standards for theidentification of goods and services. (108 member organizations spanning 5 countries)
Ever since becoming a member organization of GS1 in 1988,
GS1 Korea has been active in promoting implementation of global standardsto improve the supply and demand chain representing the interests of Korea
As the GS1 DataBar solution provider, GS1 Korea is leading this project basedon active cooperation with LotteMart and its suppliers
“Improving Food Safety with GS1 DataBar” Korea
Background
WHERE‘where was it produced?’
WHEN‘when was it
produced?’ WHAT‘ what is the
ingredient of it?’
HOW‘ how was it produced?’
A company or B company?
In Korea or other countries ?
A month ago? A year ago?
WHO‘ who produced
it?’
Increasing concerns over food safety around the globe, accordingly
management of expiration date is becoming more important
Vitamin A or C?
Organic or Nonorganic?
“Improving Food Safety with GS1 DataBar” Korea
Background
Fresh Marketing among manufacturers is more accelerating
# Example 1 : One of the leading milk companies in Korea is enjoying high popularity
by providing production date in addition to expiration date
“Improving Food Safety with GS1 DataBar” Korea
# Example 2 : Pulmuone built traceability system for tofu products by using private
barcode and it lead to increased brand loyalty
Background
“Improving Food Safety with GS1 DataBar” Korea
Background
“Expiration date is marked in a human
readable format, that is, shelf-
life checking is done manually”
“Expiration date is marked in a human
readable format, that is, shelf-
life checking is done manually”
“It sometimes causes
expired products to be passed
through POS”
“It sometimes causes
expired products to be passed
through POS”
“These all combined increase waste
and cost from expired food products
and threaten consumer safety”
“These all combined increase waste
and cost from expired food products
and threaten consumer safety”
But current situation in the retail store is …
“Improving Food Safety with GS1 DataBar” Korea
What is GS1 DataBar ?
Linear Barcode Symbology
International Standards (ISO/IEC 24724)
Capable of encoding additional information such as expiration date,
lot number and price
Can be used without changing existing scanning equipment
(01)08801043004022 (15)030320 (10)7887300 (3202)000105 …
GTIN Expiration
DateLot Number Price …
“Improving Food Safety with GS1 DataBar” Korea
Objective
Short term
To manage shelf-life data automatically
To block expired products’passing through POS
To capture markdown pricing automatically
To provide traceability information through
Smart Phone
To provide mobile coupons through Smart Phone
Creating Shopping Value
Long term
“Improving Food Safety with GS1 DataBar” Korea
Target Product
Target Product : Tofu, Milk
- Perishables & Fast Moving Consumer Goods
Tofu Milk
“Highly needed for expiration data management”
“Improving Food Safety with GS1 DataBar” Korea
Scanner
ReadinessScanner
Readiness
Dual Symbol
Use
(EAN/UPC AND
GS1 DataBar)
Dual Symbol
Use
(EAN/UPC AND
GS1 DataBar)
Issues
- Most scanners are GS1 DataBar capable but
need upgrade process
- As most SMEs don’t have GS1 DataBar capable scanners,
manufacturers should use dual symbol for quite some time
- Manufacturers are reluctant to use dual symbol due to
the increased space need for both symbols
- Retailers need capturing only DataBar to check
expiration date at pos
Single Symbol
Use(EAN/UPC OR GS1 DataBar)
Single Symbol
Use(EAN/UPC OR GS1 DataBar)
- Manufacturers will have some burden to manage inventory
dually due to single symbol use
1
2
3
“Improving Food Safety with GS1 DataBar” Korea
Issues
Printing
Efficiency &
Environment
Printing
Efficiency &
Environment
EducationEducation
- To print variable information in bar codes in high-speed
printing and packaging lines is required
- Unstable printing environment such as wet process,
vibrant conveyor belt is one of the biggest hurdles
- Education about what the adoption of GS1 DataBar
means for retailers and manufacturers is needed
- Education for handling DataBar attached products at POS is required especially for staffs in retail stores
System
Development
for New Data
System
Development
for New Data
- Technology upgrades for systems such as ERP and POS
to process GS1 DataBar as valid data
4
5
6
“Improving Food Safety with GS1 DataBar” Korea
Solutions
Printing Efficiency &
EnvironmentPrinting Efficiency &
Environment
EducationEducation
System Development for
New DataSystem Development for
New Data
Scanner ReadinessScanner Readiness
Dual Symbol Use(EAN/UPC AND GS1 DataBar)
Dual Symbol Use(EAN/UPC AND GS1 DataBar)
Single Symbol Use(EAN/UPC OR GS1 DataBar)Single Symbol Use
(EAN/UPC OR GS1 DataBar)
DataBar Printing
Solution
DataBar Printing
Solution
New POS System
Development
New POS System
Development
CollaborationCollaboration
Issues Solutions
1
2
3
4
5
6
“Improving Food Safety with GS1 DataBar” Korea
Solutions – DataBar Printing
Attach after printing DataBar on film
“Improving Food Safety with GS1 DataBar” Korea
Solutions – DataBar Printing
Attach after printing DataBar on label
“Improving Food Safety with GS1 DataBar” Korea
Solutions – DataBar Printing
Seal after printing DataBar on package
“Improving Food Safety with GS1 DataBar” Korea
Create “Shopping Value”
Improved consumer shopping experience leads to Creating Shopping Value
SupplierRetailer
�Better control overexpiry dates
�Decrease waste and
cost
�Better control of
inventories, shrinkageand product recalls
� Increased satisfaction
for food safety
� Improved shopping experience
with more efficient bar codes
Consumer
Expected Benefits
�Better control overexpiry dates
�Decrease waste and
cost
�Better control of
inventories, shrinkageand product recalls
“Improving Food Safety with GS1 DataBar” Korea
PrePrePrePre----Launch Launch Launch Launch Launch Launch Launch Launch Results &Results &Results &Results &Learnings Learnings Learnings Learnings Expansion Expansion Expansion Expansion
• choice ofchoice ofchoice ofchoice ofproducts for pilot products for pilot products for pilot products for pilot
• initiated byinitiated byinitiated byinitiated byLOTTE Mart LOTTE Mart LOTTE Mart LOTTE Mart • implementingimplementingimplementingimplementing
field test infield test infield test infield test inone store one store one store one store • ROI analysis ROI analysis ROI analysis ROI analysis
• expansion toexpansion toexpansion toexpansion toother productother productother productother productcategories categories categories categories
Jan Jan Jan Jan ---- Sep 2010 Sep 2010 Sep 2010 Sep 2010
• checking thechecking thechecking thechecking thetechnical stability technical stability technical stability technical stability
• makingmakingmakingmakingaction plan action plan action plan action plan
• public public public public announcement announcement announcement announcement
• expansion toexpansion toexpansion toexpansion toall stores all stores all stores all stores
• improving improving improving improving technical stability technical stability technical stability technical stability
Oct Oct Oct Oct –––– Dec Dec Dec Dec 2011 2011 2011 2011 ----
Progress & Next Step
• expansion toexpansion toexpansion toexpansion toother retailers &other retailers &other retailers &other retailers &manufacturersmanufacturersmanufacturersmanufacturers
“Improving Food Safety with GS1 DataBar” Korea
Thank You !