Wake up! Time to get ready for "2005 Sunrise" This is a tale of two retailers come January 15, 2005.
Retailer #1 is busy selling a hot new product from an
overseas trading partner. Demand is high, sales are brisk and the retailer
can’t keep enough of it on the shelves. For retailer #2 it’s another story. This retailer
did not address the systems issues to become “2005 Sunrise”
compliant and now cannot handle the 13-digit EAN-13 bar code that appears
on this overseas product. While the retailer wrangles over unnecessary
and time-consuming relabeling issues with the manufacturer, sales are
being lost to competitors.
Since the introduction of the 12-digit Universal Product
Code (UPC) more than 30 years ago, the use of the EAN.UCC System has emerged
as the standard of choice to facilitate efficient global commerce. While
U.S. and Canadian companies have used the 12-digit UPC to identify products,
the rest of the world uses eight-digit and 13-digit EAN symbols. To sell products in the U.S. and Canada, overseas manufacturers
have had to relabel the products with a 12-digit UPC, which has created
additional expense and time-to-market issues. On January 1, 2005, this
requirement will end, and overseas manufacturers and suppliers will be
free to use EAN bar codes on all products. To avoid problems, all U.S. and Canadian companies should
be capable of scanning EAN-8 and EAN-13 symbols in addition to the 12-digit
UPC symbols, at point of sale, by the first of the year. The decision to switch in 2005 occurred back in 1997,
and the UCC publicized “2005 Sunrise.” But many retailers, understandably,
put off making the changes until the need was more pressing. That time
is now. Many retailers will discover they are already capable
of reading EAN codes. For others, the change means a software upgrade
of their point-of-sale systems. It may be as simple as downloading a software
upgrade, but since there are so many kinds of retail operations, it’s
impossible to say how much work will be involved or what it will cost
retailers to make the switch. If a retailer’s POS system feeds a purchase-order
management system or any kind of distribution system, there are more places
within the software where product identification codes may reside, which
means the retailer may have more work. Although there’s no legal mandate to upgrade, those
who wait face the risk of being at a competitive disadvantage. Some of
the costs will come in terms of customer service—misreads at the
register, longer lines while problems are sorted out and frustrated staff
and customers. Retailers who choose to deal with the issue now will see
a seamless transition; those who wait will find that it costs more in
the long run and will be more frustrating for all involved. Businesses that are or will soon be making these upgrades
are advised to go a step further and upgrade to process 14 digits, according
to Al Garton at UCC. They will then be prepared to handle any of the product
ID number structures that are part of the global system today, as well
as emerging technologies. The UCC refers to this ability to process 14 digits as
“GTIN compliant.” The Global Trade Item Number (GTIN) is simply
an umbrella term for the four EAN.UCC data structures used to uniquely
identify products at all levels of packaging. Businesses with systems that already scan 13 digits should
be aware they may have to make a business decision about when to upgrade
to 14 digits. See “Ask
Michigan Retailers” for specific steps you can take to ensure
your business is “2005 Sunrise” compliant. This article was written by Amy Buttery, Michigan
Retailer staff writer. |
This
scenario is not business make-believe. If your company has not addressed
the systems impact of the January 1, 2005, Sunrise initiative, this could
become a very real and costly issue.