Always on time! Real time tracking and RFID help improving service offering on transport & logistics.

How can consignment-checking time be reduced by more than two thirds?

2012 NR11

IRELAND

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content edito SUPPLY CHAIN

03 Is full traceability the future for all business?

WAREHOUSING04 Lower TCO with next generation voice

solutions

12 Efficiency & ergonomics at L’Oréal warehouse get a boost

PHARMA06 Pharmaceutical serialisation: a must?

MANUFACTURING07 From the reel: Tarkett opts for flexible

application

08 Consignment-checking reduced from 7 to 2 minutes

TRANSPORT & LOGISTICS10 Irish Postal Service to deliver its best

ever service

11 Easy integration with Zetes MD applicators

12 Mobilise your warehouse process... the easy way with StokTrak

ALWAYS ONE STEP AHEAD

Dear reader,

Traceability is a relatively new concept in supply chain management. For many years, tracing batch numbers was sufficient, but today’s demands are ever more stringent. Providing full visibility and control over the origin and movement of goods has become a must. This market evolution forces companies to adapt processes in order to comply with new regulations, fulfil critical customers’ demands and gain competitive advantage. In addition, continuous technological evolution drives companies to adapt their processes. Following the rise of the internet and mobility, consumer behaviour and expectations are changing. Companies must ensure their supply chain execution meets these changing expectations whilst working as efficiently as possible to stay ahead of the competition.

As our customers’ environments change and become more demanding, our Auto-ID solutions continue evolving to help customers face fresh challenges. In this newsletter, you will discover the latest developments in voice technology, how RFID or Proof of Delivery solutions help optimise traceability and how image based shipment verification reduces consignment checking times by over 30%. L’Oréal shows us how Auto-ID supported their business and at the same time optimised operator ergonomics and improved efficiencies. Finally, Mr. Jean-Marc Bobée from pharmaceutical manufacturer Sanofi shares his view on the sector’s traceability requirements.

Plenty of challenges in this issue, but even more solutions - all developed and implemented by our Auto-ID experts - each of which can help keep you ahead of your competition!

Robert van VlietCountry Manager Zetes Ireland

ZETES The National Technology Park

Plassey - Limerick Phone +353.(0)61.333.188

Fax +353.(0)61.333.133 info@ie.zetes.com

This is the Irish edition of the Zetes newsletter. For more information visit www.zetes.com

Responsible Editor: Sarah Dheedene, rue de Strasbourg 3, 1130 Brussels, Belgium

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From batch number identification to item level information

For decades, tracing batch numbers was satisfactory until two major events changed this. First, food crises due to ‘mad cow disease’, bird flu and pork and vegetable crises have led the demand for item-level identification and information including date, origin and producer, as well as batch numbers. Then, the 9/11 terrorist attacks exposed the limitations of traditional control systems. More paperwork and border controls cannot accommodate globalisation, without end-to-end traceability in production or shipping and accountability from stakeholders. Nevertheless, the costs of full traceability, technological and legislative harmonisation delays, and the lack of investment between supply chain stakeholders, have created significant obstacles for rapid implementation of new traceability standards.

A period of harmonisation

Today, organisations like the FDA (Food and Drug Administration) or European Union and private entities, have set new international standards and regulations. The trend is for unit processing or individual identification via a unique serial number (serialisation). Each product has its own identity, making it possible to track both its origins, the path it has followed and events encountered before reaching the consumer. Whilst batch numbers make it possible to link a group of products to the raw materials, resources and processes used during manufacture, serialisation introduces a dynamic dimension to product identification. The added value is threefold: the authenticity of a product can be controlled; critical events in its life can be traced; and the pre-alerting system for precise product parameters improves safety (by simplifying recalls and blocking distribution).

‘ Each product has its own identity, making it possible to track both its origins, the path it has followed and events encountered. ’

New generations of identifiers

Whereas 1D barcodes store limited information and cannot distinguish between similar products produced at a different time, RFID’s success is limited because of the high unitary cost of tags and technical issues with signal strength and receiver distance. Two-dimensional codes (PDF417, Datamatrix, QR) open

new doors, as they contain enhanced item information, can be duplicated easily and read barcodes when parts are missing.

Traceability’s best advocates

The pharmaceutical industry has taken the lead by adopting 2D coding. This has triggered other sectors facing the same challenges with regards to security, counterfeiting and parallel markets to follow suit, e.g. cosmetics, luxury goods or food industries. GS1, the organisation responsible for standardising barcodes, followed this trend with its new Databar that can contain more data.

Whilst globalisation, mass production and ‘offshoring’ intensify supply chain complexity, health risks to consumers increase with the use of processed ingredients. With drops to unit coding costs and increased sanctions, regulators require manufacturers and shippers to comply for the consumers’ benefit. Traceability is non-negotiable now that end consumers demand it.

Read the full white paper on www.zetes.com/traceability.

Is full traceability the future for all business?Traceability is a relatively new concept applicable to supply chain control and management. In recent decades, demand for more stringent traceability has risen dramatically. What are the reasons behind its evolution? What are the repercussions?

SUPPLY CHAIN

There is a strong trend towards unit processing

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WAREHOUSING

Lower TCO with next generation voice solutions

Voice solutions are well established in logistics, especially for improving order picking processes. Next generation voice solutions offer new opportunities and advantages, plus lower Total Cost of Ownership, which addresses the needs of today’s mature market.

Trained or untrained

The performance of mobile platforms and voice recognisers has improved, background noise is better filtered out and voice computers sound more human. Most significant is the arrival of ‘untrained’ voice systems. Contrary to classic ‘trained’ systems, where recognition is based on commands registered by the operator in advance, recognition of an ‘untrained’ system is based on phonemes within the users’ language. This means an operator no longer needs to register commands in advance and can start working immediately. In addition, new commands can be added to the system directly (without new registration) and user profiles are managed easily. The extra time gained represents a significant cost saving, especially for companies with high staff turnover or strong demand seasonality.

‘ Operators no longer need to register commands in advance, but can start working immediately. ‘

One solution, many processes

In the past, users would choose either voice or another technology to input data but new solutions often support a combination of different interfaces. In this ‘multimodal’ approach, voice can be used together with a keyboard, touch screen or scanner for data input. Therefore processes previously too complex to be handled by voice only can now be optimized too. Consider the following scenarios for example:

• Voice picking combined with scanning Datamatrix codes for optimal traceability

• Quality control whereby an operator receives orders through the voice system and consults additional information on items to be inspected via a screen (e.g. location)

• Multi-client picking with voice assisted by a light signal indicating where an operator needs to place picked items (‘put to light’).

Freedom of choice in hardware

If a system integrator works with all major manufacturers, customers can extend existing estates with terminals from the same hardware brand for easier management, or opt for different terminals that bring additional features to their current implementation.

Out of the box

The days when voice was reserved for large, highly customised projects are long gone. Next generation voice solutions now offer an ‘out of the box’ approach requiring minimal customisation. When designed with a thorough understanding of business processes, these solutions can offer smaller companies with a limited number of operators and straightforward processes fast access to the benefits voice will bring.

ZETES, SPECIALIST IN VOICE SOLUTIONS

Zetes has been developing, improving and implementing its voice solution, 3iV Crystal, for many years. Key benefits at a glance include:

• Proven technology: Zetes’ voice solution serves 60% of the EMEA voice market, running 1500 projects and supporting over 100.000 users

• Specialists with extensive experience of both voice technology and how supply chain processes can be improved

• In collaboration with its sister company MCL Technologies, Zetes offers both a ‘trained’ voice solution and a high performing ‘untrained’ version, based on MCL voice

• Optimise a wide range of processes: picking, inventory, quality control, cross-docking, put-away.

• Freedom of choice for hardware and partnerships with all leading manufacturers

• Direct or middleware integration, depending on whether the host system requires additional functionality to execute the voice application or not.

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WAREHOUSING

Voice combined with Datamatrix scanning complies with traceability requirements of pharmaceutical sectorPharmaceutical distributor CERP Bretagne Nord uses Zetes’ voice solution 3iV Crystal, powered by MCL voice, and Datamatrix scanning to comply with traceability requirements in the pharmaceutical industry and meet ‘just-in-time’ delivery requirements from customers. During order picking, an operator receives picking instructions by voice, prepares the order and sends back information using the same means. Each product is individually scanned by a wearable ring scanner to capture the Datamatrix codes. This step has been integrated in order to verify batch references, use-by dates and to meet French regulations for the traceability of pharmaceutical products in France. According to Daniel Galas, President of CERP France and Managing Director of CERP Bretagne Nord, “Voice enables us to maintain levels of productivity required by our business in terms of order preparation whilst simultaneously reducing margins for error.”

Untrained, multimodal voice solutions drive operational efficiency at Pallas FoodsPallas Foods is using Zetes’ untrained voice solution, 3iV Crystal, powered by MCL voice, to increase efficiency and speed up stock put away, inventory management and order-picking procedures. The system runs on a hand-held mobile computer. Zetes’ untrained voice solution doesn’t require operators to register individual voice profiles so new or interim operators are up and running in no time, which delivers important productivity advantages during peak time periods. According to Donald Riordan, Information Manager with Pallas Foods IT Department, “Zetes’ system was technologically superior and not only offered us greater redundancy and resilience, it was also hardware independent, giving us the freedom to use different devices in the future. Direct integration reduces the potential for data errors to occur because there is no database sitting between our ERP system and the voice terminals, data is exchanged in real time whenever an item of stock is moved.”

New operator up and running in no time with untrained voice system

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Towards European harmonisation

By 2017, the entire pharmaceutical industry in Europe must comply with the “falsified medicines” directive 2011/62/EU “a Community code relating to medicinal products for human use, as regards the prevention of the entry into the legal supply chain of medicinal products which are falsified in relation to their identity, history or source”. To comply with this regulation, and to facilitate the detection of falsified products in the European Union, “companies operating in the pharmaceutical industry of all European states need to introduce a serialisation system with a control at the point of dispensation,” explains Jean Mark Bobée, “This system must be associated with devices allowing the inviolability of the packaging of all prescription drugs.”

Patient safety first and foremost

Beyond regulation, patient safety is the main concern. Recognised by all countries in the world and universally applicable, serialised Datamatrix can not only improve traceability and assist governments to combat refund fraud, but also help fight against counterfeiting, which has become a real scourge over the past ten years. “Technological advances and their increasing accessibility are making counterfeiting easier and easier,” says Jean-Marc Bobée, recalling also that, for a long time, falsifying medicines was more lucrative and less dangerous than drug trafficking ... Ensuring product serialisation and the tracking of these serial numbers can secure the supply chain and make the flow of products more reliable, within Europe’s borders and beyond.

A collaborative and responsible chain

The solution proposed by Europe is the introduction of the serialisation of prescription drugs (by the manufacturer) with systematic control at the point of delivery (Pharmacy or Hospital). This approach offers a compromise between the pursued aim of efficiency (ensuring patient safety) and cost control “it avoids rolling out the aggregation process between the serial numbers of the different logistics units, a process that incurs very high investments, and greater complexity for the manufacturers and distributors. The setting up of equipment necessary for this serialisation measure does however come at a significant cost”.

For manufacturers, integrating serialisation means equipping packaging lines with Datamatrix tagging and reading systems, driven by dedicated software feeding a centralised database. Distributors for their part must set up tools to read and call up data, allowing regular control of products (returns for example). Finally, the pharmacist must also be equipped with reading tools capable of interrogating the centralised database to check that a) the serial number of the product exists, b) that the product has not already been sold or c) is the subject of a batch recall.

A need for robust systems

Costs aside, the implementation can be complex, especially for the manufacturer. “On high speed lines, for example, it is difficult to introduce serialisation without impacting production. In addition, the new system must be able to adapt to existing lines, each with their specificities. A flexible, robust and adaptable solution that can be rolled out across the board is essential,” says Jean-Marc Bobée. Serialisation certainly implies costs and constraints in its implementation phase, but ultimately, it allows greater efficiency and, more importantly, it ensures the safety of the patient, which is, after all, the primary objective.

Pharmaceutical serialisation: a must?Reliable traceability, the fight against counterfeiting, compliance with European regulations; for Jean-Marc Bobée, director of the industrial anti-counterfeiting strategy with Sanofi and a member of the EFPIA* working group on drug codification and identification in Europe, the serialisation of prescription drugs is inevitable.

PHARMA

Jean-Marc Bobée, Director of Product Protection Strategy at Sanofi

* EFPIA: European Federation of Pharmaceutical Industries and Associations

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MANUFACTURING

Wood, tiles and chips - the range of patterns and motifs on Tarkett’s flexible PVC flooring is huge. With approximately 9,200 employees and 32 manufacturing sites, the manufacturer serves customers in over 100 countries. At its German plant in Konz, large flooring reels of different sizes are churned out every 30 seconds.

Three labels are automatically affixed to reels, each carrying article and ordering data. Since November 2011, Tarkett has used two applicators specially developed by Zetes to apply its labels. They are mounted directly on a rail over the end of the reel line, onto which they can move horizontally and vertically.

Exact positioning

A large label is pasted by one of the machines from above onto the wound reel and affixed onto the curved surface by a small roller. This label contains all the product information and logos. Printing data for the label is sent to the applicator directly from Tarkett’s HYDRA MES system, together with the role’s dimensions. At the same time, this provides information about the applicator’s position for affixing the label, which is transmitted via a PLC control unit to the conveyor system.

‘ Zetes’ smart technical approach was what convinced us. ‘

The two smaller labels must be positioned accurately. “These are used for rapid identification of the reels in the warehouse and during shipping,” emphasises Lothar Hein, the system administrator.

A two-part applicator plate

The second applicator also receives the print data and reel size directly from the MES system and has its own PLC control. But in this case not only do the dimensions of the reels vary, but also the size of the plugs or brims. Zetes solved this problem using a two-part applicator plate. The distance between the two parts can be adjusted as required and adapted exactly for each plug. This is done immediately after the label dispenser has dispensed the two labels on the applicator plates.

The correct height of the applicator is measured with an optical sensor. Another special feature of the second applicator is the scanner coupled to it. This means the readability of each label

pasted is checked immediately. In addition, captured data is transmitted as a production document to the HYDRA MES system and the entire labelling process takes no longer than 15 seconds.

Smart approach

Zetes’ applicator solution has been running without a hitch for almost a year. “Each reel contains 3,000 labels, which lasts us for about four days,” explains Lothar Hein.

The precise and automatic positioning of labels on the different sized wheels, however, was the project’s biggest technical challenge and one that Zetes overcame in just eight weeks. “Zetes’ smart technical approach was what ultimately convinced us,” recalls Mr Hein and adds: “Another of Zetes’ strengths is the far-reaching personal commitment of its employees who, before and during the project, were always by our sides with constructive input”.

From the reel: Tarkett opts for flexible applicationTarkett, the flooring manufacturer, labels its PVC flooring using Zetes applicators. Its customised solution automatically accomodates diverse product dimensions and checks barcodes using integrated scanners.

Reel size is automatically detected for a precise application

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Consignment-checking reduced from 7 to 2 minutesSaulais, the leading French producer of plants grown from seed, has extended its Visidot consignment-checking solution. The company now makes deliveries that conform 100% to orders placed and can check consignments in record time.

MANUFACTURING

Visidot system detects Datamatrix codes in 3 to 5 seconds

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Saulais employs a fleet of 1300 wagons (or rolls). In busy periods, up to 470 rolls of 19 tiers of honeycombed plates (re-usable plastic containers), each containing 57 different references, are dispatched daily. Checking paper delivery notes used to involve manually ticking off merchandise. This took a long time, errors were common and following up returnable containers was unsatisfactory.

Ready in seconds

To solve these problems, Saulais invested in Visidot, which uses digital imaging technology, in 2008. This solution comprises a cabin fitted with cameras into which rolls are placed for checking before loading and dispatch.

‘ It is impossible for a customer to receive the wrong batch, any errors must have arisen when the original order was taken. ’

Each tier of young plants comprising a roll is identified by 2 Datamatrix labels; the first sets out the elements identifying a product; the second contains instructions for the tier. At dispatch, rolls are placed into a cabin fitted with cameras. Within seconds, sensors detect the Datamatrix codes, regardless of where they are placed or the direction they face, including labels that are partly obscured or altered. The system compares the composition of rolls against the order form, records the instructions, takes photos and records this information on the server. Data is kept for 6 months and can be consulted in case of disputes. The delivery note and invoice are then generated automatically, completing the traceability process.

Fast training: ½ day of theory and 1 day practical

When the system was first unveiled for operators, they acknowledged that checks would be more effective, less time consuming and easier than with paper forms. Users were trained very quickly, requiring just half a day of theoretical instruction followed by a day of practical guidance, before an operator can work unassisted.

Deliveries that conform 100% to orders

For operators, the checking stage was made much easier thanks to real time error alerting. What’s more, traceability of returned containers was much improved, saving considerably on costs. And customers now receive supplies faster, with products shipped conforming 100% to orders placed.

A solution that improves with time

In 2011, Saulais acquired a second Visidot cabin. “This meant we benefitted from improvements Zetes made to the system. Our entire checking operation, from handling to correcting preparation errors, takes less than 2 minutes per roll, whereas it used to take an average of 7 minutes,” comments Mr. Maël Rétif, head of dispatch. “Today, it’s impossible for a customer to receive the wrong batch, any errors must have arisen when the original order was taken.”

A great selling point

Managing instructions, which used to be very complicated for a fleet of 1300 rolls like Saulais’, is now done automatically and very smoothly. Thanks to Datamatrix codes and Visidot identification, Saulais has all the information needed to locate equipment and can even consult archived pictures to resolve disputes.

“Preventing errors, saving time, improving traceability and customer-satisfaction - for us, deploying imaging technology is a considerable advance and ensures the quality we promise in sales guarantees,” concludes Mr. Saulais. “It goes without saying that new sites we open will be equipped with Zetes’ system.”

MANUFACTURING

Deploying imaging technology is a considerable advance

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What triggered An Post to prioritise implementing proof of delivery?

Liam O’Sullivan Well, as one of Ireland’s largest indigenous businesses, we are constantly looking for ways to improve quality and efficiency using technology to enhance internal processes. Obviously Christmas is our busiest time and this season we are providing people who buy gifts online or through catalogues the facility to track their purchases in real-time.

What’s different about the way An Post approached this project?

Liam O’Sullivan Electronic Proof of Delivery (ePOD) has been around for some time, but no other national postal operator has completed an implementation spanning its entire postal workforce. An Post was first to equip all 4,200 postal delivery staffs - foot, bicycle and van based workers - with Zetes’ ePOD solution running on Intermec CN50 scanners to confirm and track deliveries or returns in real-time. This means we can deliver on An Post’s brand promise of reliability and the best possible doorstep experience every working day.

What project objectives did you specify?

Liam O’Sullivan We had four objectives when we commissioned the project: improve the overall delivery experience by providing real time tracking data; reduce the manual administration required for proof of delivery (POD); ensure we can take advantage of future developments in mobile technology and finally, improve our environmental footprint through lower paper consumption.

‘ We’ve introduced 3-in-1 mobile working across a huge workforce, combining in-van scanning, mini track and trace and real-time traceability of consignments. ’

Which achievements are particularly innovative?

Liam O’Sullivan Firstly we’ve introduced 3-in-1 mobile working across a sizeable workforce, combining in-van scanning, mini track and trace and real-time traceability of consignments. Secondly, the system confirms that a parcel or letter has reached the recipient within two hours of delivery. Lastly, Zetes’ delivery of the solution itself as a three year ‘managed service’ is highly innovative. An Post simply pays a fixed monthly fee which includes hardware, software and support, rather than incurring a single capital cost.

What challenges did you overcome?

Liam O’Sullivan We opted for a three-phased implementation to cope with the scale of the project. Eliminating paper from delivery processes required extensive internal change management among 4,000+ postal workers, but involving our people in the selection and testing of handheld devices ensured their buy-in.

How did you find working with Zetes?

Liam O’Sullivan Zetes delivered each stage of the project within budget and on time. We have been impressed by the project team’s communication skills and knowledge. The practical advice they’ve given us on achieving additional cost savings, e.g. maximising battery lifespan, was invaluable.

How will your investment improve business?

Liam O’Sullivan Driven by the boom in e-commerce, postal operators work with trusted international partners to cross multiple borders and complete ‘last mile’ deliveries. Ensuring a parcel gets to the right recipient at the right time is the most important stage of the process and An Post wants to continue being the ‘last mile’ partner of choice. This Christmas gives us a perfect opportunity to showcase what we can achieve.

An Post ready for happy ePOD Christmas Irish Postal Service to deliver its best ever service An Post, Ireland’s national postal operator implemented an (ePOD) solution, as part of a wider programme of quality improvement. Liam O’Sullivan, An Post’s Director of Mail Operations is confident of success as Christmas beckons.

POSTAL / COURRIER

ePOD is offering the best possible doorstep experience

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WAREHOUSE & MANUFACTURING

MD Pallet applicators offer a range of advantages such as easy integration on your current production lines, easily maintained and services plus the direct integration and communication with other business software packages such as your ERP or WMS.

There are various types of label applicators depending on the type of application required, below are some outlined.

Pallet Applicators

If you print one or more labels to identify your pallets along the transport line, Zetes MD applicators make it possible to create and print the labels just before they are affixed to the pallets. They allow for profoundly more individualised information to be added such as batch numbers, series numbers, date and time of processing and barcodes created on the spot.

Product Applicators

When you need fast and efficient labelling to be applied to a product regardless of it shape or size, Zetes MD applicators can be tailored for this. Labels can be printed in real time and immediately applied to the product containing information such as the batch number, expiration date, weight and barcodes etc.

Box Applicators

When you need to efficiently label boxes of any sizes or dimensions, Zetes MD applicators allow many different configurations and applicator arms. Labels can be applied to any position of a box whether it be on the top, front, side or corner of the box or in fact every side.

Decorative Applicators

Decorative labelling solutions from Zetes allow the application of pre-printed labels to be applied to boxes or products at a high speed without bubbles or creases. Labels can be applied in a number of different ways depending on where the label is to be positioned, or what it is to be applied to.

Zetes always delivers a total solution. We take responsibility for the entire process, from analysis over production to installation and maintenance. This has been demonstrated throughout our various installations for customers like Glanbia and Baxter Healthcare.

Zetes ApplicatorsThe Zetes’ MD Label applicators integrate seamlessly with existing production lines, even when space is very limited. One single base integrates the various components such as the print engines, various applicator arms and various I/O’s for use with external systems.

Zetes MD Pallet Applicator at Coca-Cola

‘ Zetes design and produce a wide range of printing and labelling applications in its 3i Print & Apply Competence Centres. These centres are responsible for designing both standard and highly customised applications. ’

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What is StokTrak?

StokTrak is a rapid deployment, low cost warehouse task execution solution that provides real-time inventory visibility to help improve efficiency and accuracy in your supply chain activities. It provides Multi-site capability which enables you to manage your core inventory, extend full warehouse functionality to remote, multiple locations either within or outside of the main facility.

Enhance core warehouse tasks

StokTrak enhances your core warehouse tasks with your ERP or finance package by monitoring Goods in, Goods out, returns, picking, batch traceability, stock take and put away. Stoktrak replaces the need for manual, paper based systems with a solution that is easily integrated with various ERP and finance systems.

Integration

With Zetes’ Stoktrak solution, it is customisable and modular which enables you to integrate it easily into your workplace with only the functions and information you require. With additional add-ons whether it be standard or custom it also guarantees future proofing the solution as times and your business processes change.

Real time data capture

Stoktrak integrates multiple data capturing solutions such as RF scanning, RFID and Voice. Voice can be easily implemented whereby operators increase productivity and reduce errors because the process allows them to work hands- and eyes-free. The real-time data synchronises with the Stoktrak server, providing real-time information and exchange between the back office and warehouse location. Particular strengths in the reporting function enable you to set up locations, products, lot numbers, expiry dates, capture bins and report on replenishment levels.

Benefits

StokTrak boasts real-time stock visibility and reporting which enables you to monitor your warehouse stock efficiently. With greater visibility comes enhanced performance and higher service levels to your customers.

Support

StokTrak was developed by Zetes and is fully supported by our software support team right from the initial planning and implementation to ongoing support and maintenance. Zetes have flexible support and maintenance contracts to tailor our customers’ requirements.

Zetes provide you with a fully managed solution including the hardware infrastructure, hosting, support and consumable items such as labels, ribbon and print heads.

Zetes also support all the hardware from your wireless access points, printers and handheld and truck mount terminals.

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Mobilise your warehouse process... the easy way

TECHNOLOGY

Stoktrak- the rapid deployment task execution system

‘ The need for rapid deployment solutions are growing and as Zetes we are delighted that our warehouse task execution system provide this greater visibility which comes with enhanced performance and higher service levels to your customers which is fundamental in competitive times like this. ’