By James Butcher (B-Eng), Managing Director – Claricom Limited, Claricom Limited - Package Coding Management
SubscribeTechnological breakthroughs are being made regularly in warehouse logistics, to ensure that the picking and shipping of products is fast and effective. Yet, what if the product or package coding data that underpin these systems is incorrect? James Butcher, Managing Director of Claricom, explains how package coding management systems can eliminate coding and barcoding errors in the essential data that these systems depend on.
Much creativity and investment has been made in warehouse logistics, and in particular in technologies such as barcode scanning and sortation or RFID, to enable automatic distribution centres and to ensure that stock is rotated and directed, according to product or product life, quickly and efficiently.
Especially in an automated depot or fulfilment factory, the operation depends on the accuracy of coding data, because that is ultimately what ensures that the right products are being picked. What is often taken for granted is that the barcode data being scanned is itself correct – which is all too often unfortunately not the case.
For example, imagine a scenario where a case of ‘Strawberry Yoghurt’ is scanned, sorted and diverted to a store…but the contents of the case are actually ‘Raspberry Yoghurt.’ It is assumed that the depot has over or under supplied in error – there is now no Strawberry Yoghurt on the shelf, and the excess of Raspberry product often goes unsold or in to the ‘discount bin’.
This is not an unusual scenario. According to a wide range of industry groups, the Grocery Manufacturers of America and the Food Marketing Institute being the most prominent, unsaleables in the USA alone accounted for a total of $2.6 Billion in lost sales in 2002, up from $2.5 Billion the previous year. Alarmingly, this rate has climbed steadily from 1996.
What is more disturbing is that over 20% of unsaleables – almost $600 million – were products either ‘out of code’ or with the wrong code. Ensuring accurate package coding and barcoding at source is essential given the whole supply chain is dependent upon them!
If the manufacturer detects the problem before despatch this ‘near miss’ will result in product waste, re-work and the probable failure to deliver on time. Once the product is despatched, the costs of the same coding error and potential product withdrawal are much greater, where a single incident can costs tens of thousands of pounds.
The Claricom approach recognises that, regardless of when a coding error is detected, the damage in terms of unwanted costs or failure to deliver has already been done. As a result, Claricom’s solution is to target the prime cause of coding mistakes - human error - by replacing the need for manual input on a day-to-day basis with an automated rule-based approach.
The Package Coding Management System (PCMS) provides network control of coding, labelling and barcode reading equipment-using data that is centrally managed and validated. Recommended by leading retailers, Claricom’s systems are a proven and efficient method of eliminating coding errors at source.
For example, the operator, using a portable SCANPOINT hand-held barcode reader, scans the production schedule to select the product for manufacture. The operator is then prompted to scan the point-of-sale packaging or other essential documentation to confirm this selection, and that it is valid for the current product and packaging. The product coding rules are then retrieved from the product database to set up the date and traceability codes automatically - meaning that data need no longer be keyed in separately to each machine and thereby removing human error.
Because the correct data is transmitted to the coding and labelling equipment automatically, consistent information is ensured across the multiple layers of packaging – including transit barcode packaging essential to effective distribution. Finally, on-line barcode reading equipment can be connected to the same CLARiNET network ensuring correct and legible barcodes throughout production.
Importantly, Claricom products are compatible with the major brands of in-plant coding equipment including, Domino, ICE, Imaje, Linx, Markem, Mectec, TEC, Videojet, Zebra and more, allowing manufacturers to select the most suitable equipment for the different parts of their operations and still retain centralised, network control.
“We selected Claricom to give greater flexibility and reliability in data transfer between our manufacturing sites,” comments Andy Hamilton, Manufacturing Development Manager for Monkhill Confectionery, part of Cadbury Trebor Bassett, and a business unit of Cadbury Schweppes.
“The Claricom software will ensure accurate information, first time, every time. Claricom’s independence and the ability of its software to work with all types of coding and labelling equipment will allow us to continue buying the most appropriate machine for each application. Claricom is the only supplier able to combine these two essential elements.
“Because of its independent multi-brand approach, we will be able to link products from different manufacturers in a way that is reliable and operator friendly.”
The benefits of a PCMS extend to packaging inspection, to confirm the correct packaging for the correct product. Consider the scenario of a production line packing a product containing 5 Slices of Cooked Ham. In the middle of production the base label is inadvertently changed to the wrong label, identical in every respect, other than it is for “10 Slices,” rather than “5.” The operator did not notice the one difference on the label and the result is, at best, lost production and wasted product/packaging; or, if not detected before shipment, a product withdrawal or problems with trading standards.
The use of Package Coding Management System at the inspection stage can reduce such risks. With centralised network control of packaging barcode validation equipment, the set up of each job is barcode specific and is combined with correct set up of the package coding equipment.
Portable hand-held barcode reading equipment is used to confirm the correct use of packaging and materials for the selected job before the on-line inspection equipment is set up to inspect every item throughout the production run. These SCANPOINT hand-held readers can also be used at any point during production to allow periodic quality inspection and production of an audit log.
“The use of a Package Coding Management System from Claricom has delivered proven benefits to the accuracy, flexibility and speed of our coding process,” explains Mark Lodge, Operations Director at Hazlewood Chilled Meals, part of the Greencore Group. “To protect the reputation of both the retailer and ourselves is undoubtedly an asset we would not be without.”
The supply chain is dependent upon accurate product and package coding, and the on-time delivery of product to depot and to store. Package Coding Management Systems (PCMS) at the point of manufacture remove manual operations, remove human error, eliminate risk and ensure accuracy.