The words ‘data standards’ may send chills down the spines of board level executives across the continent, evoking thoughts of burdensome legislation and compliance, but in today’s economic climate, it has never been so important to recognise the benefits an efficient and secure supply chain can bring. Standards are the foundation for clear, understandable exchanges between companies in an increasingly globalised economy. At GS1, we believe that not only can data standards and supply chain efficiencies save industries billions, but in some cases, they can be the difference between life and death.

We work with a multitude of global companies across the retail, healthcare, foodservice, manufacturing and defence industries. We help them improve safety, drive cost and time efficiencies and improve supply chain visibility through the use of common data standards for the identification of everything from products to assets to locations and even (in the case of health care) patients.

These standards seamlessly connect the physical world to the electronic, for example linking logistics data to pallets and containers, patients to medicines, products scanned at cash registers or by a mobile phone to inventory levels. It is through these interactions that we have seen first hand how critical data standards are to driving the changes needed to pull through today’s turbulent economy and why they must gain a place on the boardroom agenda to drive efficiency, visibility and sustainability.

Crunching the data
The Consumer Goods Forum recently issued the results of its bi-annual ‘Top of Mind’ survey, which reveals the priorities of 345 key decision makers in global retail and consumer goods companies across 46 countries. The survey highlighted that the number one priority for 50 percent of those questioned remained the economy and consumer demand.

This result is hardly surprising, but when GS1, in collaboration with the UK’s four largest supermarkets, Tesco, Sainsbury’s, Asda and Morrisons, and four of the largest product suppliers, Nestle, Unilever, Proctor & Gamble and Mars, analysed product data and data practices between the participating companies, it was revealed that UK grocery retailers and suppliers can realise savings of at least £1bn over the next five years if data inconsistencies are ironed out across the industry. In fact, inconsistencies in what should have been identical information were discovered in over 80 percent of instances. If this is the case in just the grocery sector in the UK, it is almost unfathomable how much money can be saved globally across many industries by improving data quality within the supply chain.

Consumers and regulatory bodies are continually demanding better product information and labelling for nutrition, health and lifestyle, as well as information related to packaging and the environment. Technology has evolved to the point where consumers can scan products and instantly expect to see accurate data in terms of source of origin and content information on mobile phones and self-scanning machines. Combined with the industry predicting a 400 percent increase in the amount of data retailers need to hold about products, inconsistencies in data across the supply chain will only get worse unless industry action to investigate and adopt data standards is undertaken.

An issue of accountability
Business accountability is not an issue that will disappear any time soon, on the contrary it is set to get more serious as time progresses and needs to be dealt with head-on. Sustainability and the environment have become particularly pertinent issues across all industries, with consumers and business investors demanding more ethical and green work practices to be put in place. Quite simply data standards are essential to achieving more sustainable supply chains and the benefits of increasing transparency is a leaner, far more efficient and, in an overwhelming number of cases, more cost effective process.

Safety is another hot issue that is showing no sign of abating. Whether it be food and allergen information within the grocery sector or prescription dosage information and counterfeit drugs within the healthcare and pharmaceutical industry, it is clear that transparency of the supply chain can mean the difference between life and death.

Full traceability of products can only be achieved if all organisations involved in the supply chain adopt data standards to ensure information is consistent across the board. People are used to seeing bar codes on consumer packaging all over the world, but worryingly, many organisations, particularly within healthcare and pharmaceuticals, are failing to recognise the benefits of this technology to prevent the significant health and safety implications of counterfeit drugs entering the supply chain, incorrect medical stocks entering into hospitals and the loss of vital medical equipment.

The National Patient Safety Agency in the UK reported that in 2007 alone there were over 80,000 medication blunders within the NHS. This is just one example within the healthcare sector of how the implementation of simple data standards and automated identification systems, such as bar coded patient wristbands and equipment, could have a great impact. The Connecting for Health programme within the NHS is working to drive the adoption of standards within trusts across the country to save costs, precious time, staffing resources and most importantly improve the quality of patient care.

Call for a standard action
In a world where people are demanding instant access to information, all organisations have a responsibility to be transparent and accountable for all the data that crosses their supply chains. There is no denying that legislations and regulation can feel like a headache for businesses across every industry, but the increase in efficiency and sustainability and profitability that are gained as a result of implementing and adhering to simple data standards really can not be ignored.

For more information visit: www.gs1uk.org/forum/Topic271-20-1.aspx