These technologies strongly rely upon a standard identification number for a product. Without a standardized way of identifying the product, the technologies would serve only to automate complexity and inaccurate or inconsistent information and would therefore increase the chance for errors. It is with these issues in mind that the EFR Executive Committee has made voluntary implementation of standard product identification and bar coding its highest priority.In order to assure the industry is prepared to take advantage of standard product ID and bar code technologies, the EFR Executive Committee has set the following goals:

• 100 percent of all products should utilize standard product identification;
• 100 percent of all cases should be labeled - with a readable bar code on two adjacent sides of the container; and,
• 100 percent of all intermediate (saleable unit) packaging should be bar coded.

FREQUENTLY ASKED QUESTIONS

Why it is Important to Standardize the Way We Identify Products
It has been painfully clear that members of the foodservice industry have different ways of identifying a product. Some suppliers use the Universal Product Code (U.P.C.), some use their own internal number, some use the distributor's number and still others use the operator's number - all to identify the same product. As members of the supply chain communicate with each other, each must cross-reference its product number with the other party's product number. As each function within a company uses this process, the chances for errors increase. As your communications about that product increase with additional members of the supply chain, the chances for error further increase. You can quickly see how using this process can create miscommunications.

Additionally, someone on each side of the communication process has to maintain a database that stores these different numbers. Today, the industry itself cannot control what numbers trading partners assign to a product. As a result, multiple numbers can be assigned to the same product, or, conversely, different products might share the same product number.

Today's process contributes to:

• additional time-consuming database management;
• an increase in database errors;
• incorrect orders;
• incorrect shipments;
• incorrect invoices;
• an increase in invoice deductions;
• mislabeled products; and,
• inaccurate communications.

As the product moves through the supply chain, it would be much more efficient for all parties to reference the product based on the number given to the product by the label owner. The product, for example, could travel to the supplier's distribution facility from the plant using the U.P.C. on the product, ordered by the distributor using the same number, ordered by the operator using the same number and billed to all appropriate parties using the same number. Each member of the supply chain would be able to use one number to uniquely identify the product.

The Benefits of Standardizing How Products are Identified

• the product number is unique anywhere in the world;
• the product number is tied to the label owner;
• no duplicate numbers;
• no cross-referencing required;
• no unnecessary database management and maintenance;
• no misordering or misbilling due to wrong numbers;
• no need to re-sticker product with internal SKU
• numbers;
• communications are more accurate;
• all members of the supply chain can reference the product using the same number; and,
• timely dissemination of product information.

The Efficient Foodservice Response initiative endorses the voluntary adoption of the Universal Product Code (U.P.C.) to uniquely identify products within the foodservice industry. The U.P.C. is currently being successfully used in many industries and countries throughout the world and is administered by GS1 US (formerly the Uniform Code Council).

The Benefits of Bar Coding Products
Bar coding products allows for information to be captured immediately once the product is scanned, thus eliminating the need to manually read and key the information into systems. This information not only identifies the product, but can include additional attributes of that product that are beneficial for members throughout the supply chain that physically handle the product. It can also reduce the labor associated with manually keying in the information and the time spent on errors caused by miskeying data.

The EFR initiative identified potential supply chain savings of $847 million annually by bar coding products (estimated in 2002). This is a result of streamlined transportation, handling, and administration due to the efficiencies bar codes offer. These estimatyed efficiencies accrue as follows: $152 million in savings to manufacturers, $466 million in savings to distributors, and $229 million in savings to operators.

The importance of the U.P.C. to standardizing product identification cannot be overemphasized, as it is essential to other efficiencies identified in the EFR initiative. Each EFR strategy is based upon foodservice industry members referencing a product using the same number - the U.P.C.

Why Your Company Should Utilize Standard Product ID and Bar Codes
For the past quarter century, the evolution of technology and escalating demand for information has driven fundamental shifts in the way the world does business. The information made available by technology allows global trading partners to know exactly what is being sold, in what quantities, and to whom. It allows them to track everything from product inventory levels in a factory to product movement to the distributor and operator for product recall purposes. All of this information, in turn, allows trading partners to make knowledge-based decisions about doing business faster and more effectively. In order to maximize value within the foodservice supply chain, we must begin to broadly adopt and implement standard product identification and bar coding. The benefits are enormous and include:

• Utilize the UCC Company prefix to uniquely identify your products throughout the supply chain;
• Utilize standards to enable consistent business communications between trading partners;
• Obtain the capability to link critical supply chain information to your company;
• Capture data in a bar code symbol that can be read by other trading partners;
• Provide information about your products to your trading partner's as the product travels through the supply chain;
• Utilize electronic transmission of business information using a standard format;
• Reduce errors and increase efficiencies through quick and accurate retrieval of information;
• More effectively track your product for food safety/recall purposes; and,
• Better manage inventory within the foodservice supply chain.

The Role of the GS1 US (formerly the Uniform Code Council)
GS1 US plays an important role by standardizing the way trading partners identify, communicate about, and bar code their products and shipments in the global supply chain. The first step to placing a U.P.C. bar code on your product is completing a membership application for GS1. Members receive a unique licensed number to create U.P.C. bar codes and other GS1 identification numbers, plus many exclusive tools and resources. By becoming a member, you join over 1 million companies who use GS1 standards to conduct business efficiently with their customers around the world.

Once your company becomes a GS1 member, critical supply chain information can be automatically:

• Linked to Your Company: GS1 provides guidelines for identifying your products and shipments using the company prefix you receive with membership. It's important that your products are identified in a standard, unique way so that there are no mistakes about who is selling or shipping the product. Your GS1 company prefix is globally unique so your products and shipments will be linked back to you wherever they travel around the world.
• Captured in a Bar Code Symbol: With your GS1 company prefix in hand and your products and shipments identified, you can take advantage of GS1 bar code standards. By putting your identification numbers into a bar code, your trading partners will be able to automatically look up product information that is stored in their computer systems.
• Communicated to Your Trading Partners: Through electronic commerce, business information can be sent through standard, electronic messages to your trading partners. With your accurate messages in their systems and bar codes printed on your products and shipments, your trading partners can directly connect your products and shipments to information as they travel through the supply chain.

Additional information may be found in the resouces section of this page.