1. Product Identification Partnership Framework
Next Generation
Product Identification
(NGPI)
Partnership Framework
Update - October 9 - GSMP, Lisbon 1

2. Agenda topics Project team and key contacts Project update
MO integration

3. NGPI project structure
NGPI Core Team
Overall project leadership
Industry
Gerd Wolfram, Metro/Retailer - Chair
Barron Witherspoon, P&G/Manufacturer - Chair
Mike Yorwerth, Tesco/Retailer
Greg Buckley, PepsiCo/Manufacturer
Jim Flannery - Grocery Manufacturers Association
Organizational connectivity
Ruediger Hagedorn - TCGF
Malcolm Bowdon - GS1
Lynda Costa - GS1
GS1 Expert Team
Internal functional expertise
Mary Wilson - US
Andrew Osborne - Europe
Juan-Felipe Ochoa - Colombia
Richard Jones - Australia
Malcolm Bowden - Data Excellence
Scott Gray - Technical liaison
Michael Sarachman - GSMP

4. The NGPI project team consists of 36 CGF Board member companies
Name
Company
Country
Ylva Heivert
ICA
Sweden
Gerd Wolfram
Metro AG
Germany
Armand Schins
Royal Ahold
Netherlands
Afrererico Santos
Sonae
Portugal
Mike Yorwerth
Tesco Stores Ltd. GB
(tbd)
Wal-Mart Stores, Inc.
USA
Paul David
Kathy Welch
Wegmans Food Markets
Katrin Recke
AIM
Belgium
Charmaine Wiggins
FMI - Food Marketing Institute
Patrick J. Walsh
Fintan Hastings
Food Drink
Europe
Derek Nighbor
Food & Consumer Products of Canada (FCPC)
CAN
Jeanne Iglesias
GMA
Jim Flannery
Lynda Costa
GS1 GO
Malcolm Bowden
Scott Gray
Andrew Osborne
GS1 UK (for Europe)
Christian Przyolla
GS1 Germany
Ulrich Schaefer
Indigo Wolters
Mary Wilson
GS1 US
Ruediger Hagedorn
The Consumer Goods Forum
France
John M. (Mike) Wallace
Abbott
Jeffrey A House
Campbell Soup Company
Lynette Shawd
General Mills
Akikazu Sato
Kao Corporation
Japan
Detlef Koenigs
Mars GmbH
Susanne Holzhausen
Ryan C. Richard
Mondelez
A. Sven Dianett
Hermann Hagemeyer, GmbH
David Sheldon
Nestlé
Switzerland
Robin Kidd
Andrew Whitman
Nestle Nutrition
Greg Buckley
PepsiCo
Kathrin Kiesel
Henkel
Rich Wilson
The J.M. Smucker Company
Barron Witherspoon
Procter and Gamble Company
Ettore Piccirillo
Unilever
Caroline Fricke
Accenture UK
Jose Antonio Barco
Ted Schultze
Symbology, Inc.
Representation across Manufacturers, Retailers, & key Stakeholders

5. On behalf of Industry, Robin Kidd is making significant contributions!
Delivering change in the past
Leading change for the future
NGPI

6. We have a lot at stake…
NGPI has the potential to produce one of the most significant, truly transformational decisions our industry will undertake since 1971…

7. Consumer trust is a key driver
Magnitude of impact and the need for change
Brand integrity
and
Consumer trust is a key driver
-AND-
Business value: conservatively, there is a cost avoidance upward $7 Billion annually
NGPI

8. At a very high level, this is the functionality the Industry needs...
More Consumer Information
Accurate Data On-line & Mobile
Facilitate Online Order Fulfillment from Stores
Low Disruption to POS & Supply Chain
Provide consumer information relevant to each product package variation (B2C)
Ensure information of package and web are aligned, easy to use, and trusted (EU Regulations/Digital)
Support order picking for package variations to fulfill online orders accurately
Support supply chain and POS checkout (B2B) activities with minimal disruption
All without changing the GTIN for every variant to avoid unnecessary costs 8

9. NGPI face-to-face meeting… September 23-24, 2013
NGPI momentum continues… strong Industry alignment is secured across Retailers, Manufacturers, and other key stakeholders

10. 'Next Generation’ Product Identification Project Dusseldorf Key Takeaways
September 23-24, 2013

11. Meeting Summary

12. Introduction
On the 23th and 24th of September, 2013, the NGPI Project Team met in Dusseldorf to discuss and agree preliminary recommendations to the Consumer Goods Forum Board in December, 2013
Our key objective was to develop a recommendation to the CGF board, by answering the following questions:
What information do we need to carry?
How do we carry it?
How do we test it to see if it works?
How do we implement it?

13. The Future Consumer & Trading Partner Information Strategy is the Driving Force of the NGPI Project
The overarching NGPI goal is to enable better communication of product information for consumers and trading partners. The Consumer and Trading Partner Information Strategy is therefore designed to:
Define new Data Items that will improve “package-level” product identification and product information communication to support emerging Digital Commerce and Regulatory requirements.
AND
Avoid the need to change the GTIN in order to communicate accurate “label-level” product information during a "soft transition" due to a minor product formulation or packaging change.

14. Proposed information strategy data items
Our analysis suggests industry could realize greater benefits by providing more product information to stakeholders across the value chain
Potential value from new data items
Proposed information strategy data items
Data Items
Potential Benefits
Manufacturers
Retailers
Consumers
Product Variant Number
Increased speed to market; streamlined
Communication
Increased accuracy of online order fulfilment
Accurate product information ordered online
URL
Increased capability for tracking / tracing
Increased confidence in product quality and traceability
Expiry date
Reduced waste of spoiled products
Mobile app-based reminders of when to use products
Lot Number
Increased control over information provided
Increased reliability of additional information
Serial Number
Barcode cartoon
The five – you’ll never have to change the thing again – identify any product at any level of detail, as URL will link to any other info that we’ll need
Retailers, manufacturers, consumers and regulators will all see the benefits of new static and dynamic data accrue over time… and the supply chain will not suffer. For individual companies, this is not about a hard switch, but providing choices for adoption. For example:
- the Product Variant Number could enable manufacturers to increase speed to market and streamline their B2B and B2C communication;
- the Expiry Date could enable retailers to reduce food wastage, thus improving sustainability performance. One retailer estimated that they could save €8-12 million in lost revenues and reduce significant amounts in food loss, if they could track the expiry date through the supply chain.
- And the URL could give the consumer increasingly granular and flexible data on the products they buy, increasing brand trust.

15. Package Variant Number
In addition to the GTIN, the NGPI Project Team has Identified Five Data Items as the Most Desirable to Include in a Future Information Strategy
It is proposed that GS1 standards be made available for these Data Items, at the product level
A code that contains any additional information that is package specific, known as a PVN
Package Variant Number 1
Additional Data Items
URL
A unique web address for a product where the consumer can find more information about the product 2
Expiry
date
The period of time items are given before they can be considered unsuitable for sale, use or consumption  3
Lot
Number
ID number assigned to a lot of material from a single manufacturer 4
Serial Number
Unique code that contains manufacturer’s information 5
… to dynamic data
From static …

16. Of the Five, the PVN is the only Data Item for Which GS1 Standards have not been Previously Defined
The group agreed some key parameters for the development of a PVN standard:
The PVN shall be used to identify the package-version of a product package during a “soft transition” due to a minor change to product formulation or packaging.
Changing of the PVN shall not be used to trigger the re-introduction or listing of an item.
The PVN will require its own use and allocation rules, which will complement existing GS1 GTIN Allocation rules.
Use of the PVN could be made more straightforward with further clarification of the current “minor change” GTIN Allocation rules.
The existing URL standard also requires further investigation:
Confirm the syntax and scope of the URL, e.g. is it a full URL to an individual product or a company level URL which can have GTIN+PVN+serial, etc., to get to an individual product

17. “Ability” of carrier to deliver Either 2D GS1 QR Code or DataMatrix
GS1 2D Carriers Have Been Identified as the Most Capable of Delivering The Desired Future State
GS1 2D Carriers can hold the GTIN, as well as the additional Data Items
“Ability” of carrier to deliver
Additional Data Items
1D EAN/ UPC
1D GS1 DataBar
Either 2D GS1 QR Code or DataMatrix
Package Variant Number No
Yes
URL
Short URLs
Expiry date
Some items
More items
Lot Number
Serial Number
Few items
Slide #8 ('some' vs 'more')
The irritation stems from a mixture of benchmarking 'technically possible' and 'feasible in practice'.
Example 1: it is technically feasible to encode&carry a URL via the DataBar, but there is a size constraint to the length, hence in practice not all (=some) can be carried.
Example 2: it is technically feasible to encode&carry an expiry date via the DataBar, but there is a production constraint getting the info/data on time to the line printer, hence in practice not all (=some) can be carried.
Propose to:
leave table at is, add a star (*) to some/more fields and add legend: length or process constraints might apply depending on supply chain/data setup, but technically
CARRIER, FROM SCOTT
Somewhere I think we noted we agreed with the HC position on RFID on consumer items that it could be used as an additional carrier but the bar code is the minimum for the foreseeable future  agreed w/ Rudy to cover in Q&A document
It was also noted that, while consumers are already using “native” QR codes, these are not capable of carrying the GTIN.

18. The intention to install image-based scanning in the future
Industry is polarized in implementing 2D scanning – pervasive use of a 2D GS1 Carrier at retailer POS is as much as ten years away
Almost half of all respondents plan to install 2D scanners within five years, while half will wait more than 10 years, or not install 2D scanners at all
The intention to install image-based scanning in the future
# of respondents
(34%)
I think we should focus on how many in each survey would upgrade within 5 years versus after 5 years if at all
Survey 1: 47% within 5 years; 53% 5-10 years if at all
Survey 2: 48% within 5 years; 52% 5-10 years if at all
This is the best way to simplify reporting and show congruency.
54% of respondents plan to install 2D scanners, but 46% are not
The details would show all six answer possibilities if they care.
3-5 years
8-10 years
5-8 years
10+ or no plans
2-3 years

19. Preliminary Board Recommendation

20. The Next Generation Product Identifier Project is about providing consumers with the information they want, as effectively as possible
The NGPI Team proposes that the CGF Board:
Supports the use of PVN at the consumer package level as a means to improve the “label-level” product information disclosure to consumers without increasing the frequency of GTIN changes and the resulting supply chain disruption costs
Suggests that industry maintain support for current GS1 GTIN allocation rules and commit to define and support related allocation rules for use of PVN
Supports accelerating the adoption of the 2D GS1 Data Matrix / QR code at the consumer package level with a goal to achieve global adoption within 10 years
Enables industry to build the capability to utilize the GS1 DataBar at the POS and throughout the supply chain, in the meantime, as an additional choice to today’s EAN/UPC, thus enabling new capability while we work toward adoption of the 2D GS1 Data Matrix / QR code
DISCLAIMER: All work of The Consumer Goods Forum (TCGF) is carried out in accordance with TCGF Antitrust Guidelines, and in compliance with all competition laws, thus ensuring independence of activity, collaboration only on non-competitively sensitive issues, and confidentiality of information.

21. Next Steps

22. Industry Proposes to Undertake Targeted Pilot Projects as proof-of-concept for our Recommendations to the CGF Board
Key features
Timeline
Pilot projects will be conducted by “pilot pairs” – retailer / manufacturer combinations – across representative markets
Each pair will have the opportunity to select the use cases of interest to test
At a minimum, the portfolio will include both brick & mortar and e-commerce use cases, and PVN
We will seek to achieve use case, data item, sub-segment and geographic diversity in the pilot project portfolio
Participants commit to collecting data and providing feedback to the standards development process
Planning (Sep-Dec 2013)
Develop pilot project charter
Establish governance structure
Establish pilot pairs
Outline pilot terms of reference by mid-end November
Testing (Jan-Mar 2014)
Begin projects in January
End project (or at least have generated useful results) in March
Reporting (Apr-Jun 2014)
Facilitate extended team meeting to review findings in April
GS1 board meeting in May, present preliminary findings; key inputs to future standards development and draft implementation plan
CGF board meeting in June, present findings and next steps
Add a point that this will be included in the board recommendation

23. Together with Regional Liaison Groups & Industry Associations, the NGPI Project will develop a guideline for local Rollout and Implementation
Key features
Deployment will be led by geography, whether national, multi-national or regional
Deployment roadmap development will be shared between the markets by the NGPI Core Team
The process will live within the decision matrices of the markets in question
Market / regional champions will be required in each market
User guides will be developed by market, or group of markets
Sunrise dates will be set by industry / region for 1D GS1 DataBar (it is recommended that there be no sunset date on use of the EAN/UPC barcode)
Incorporation of the PVN and other relevant data items into GS1 Services Standards, e.g. GDSN, GS1 Source
GS1 will recommend a global sunrise date to industry for mobile phones use of GS1 standards once OMA and GS1 standards alignment is achieved

24. We are on target to deliver pre-reading materials for the December CGF Board meeting by November 1st
Jul
Aug
Sep
Oct
Nov
Dec H1
2014 H2
Mobilisation
Pilot Project
Deployment
Phase III
Case for Action A
Draft and Circulate Deliverables
Review Period (inc. legal)
Finalize Deliverables
Options analysis
Workshop – September
Extended team engagement
Future Information Strategy B
Future Carrier Strategy C
Pilot Project Design D
Plan for Implementation E
Stakeholder Engagement
Targeted CEO engagement
Oct .17
OpExCom Meeting
Milestones
OpExCom Meeting
Nov. 1
Circulate Board Pre-read
Dec. 3
CGF Board Meeting
Project Management and Communication

25. Immediate next steps – high level overview
Milestone / Activity
Timeframe
Enter GSMP (Business needs, Call to action, etc.)
Oct. 2013
Begin integration of GS1 standards and services
Oct, 2013
Pilot project design – retailers/manufacturers paired, outlines complete
Nov. 30, 2013
CGF Board Meeting – GO/NO GO
Dec. 2013
Begin to develop migration plan (local sunrise dates)
Jan. 2014
Conduct pilot projects
Jan. – Mar. 2014
Pilot project – results reporting
GS1 BOD meeting
CGF BOD meeting
May 2014;
Jun. 2014

26. Many ways to keep connected to NGPI
Retail Network
Regional MO representatives
GS1 Expert Team
Liaison with respective MOs
Internal alignment
One voice
Scott
Andrew
Malcolm
Lynda
Technology groups
Mary, Juan, Richard

27. What we need from you…
Remain grounded on the vision to accelerate change
Maximize Industry input… get involved
Drive local adoption to enable Industry capability