September 24, 1998

1
Barcoding and EDI Implementation

• September 24, 1998
• Presented by
• Dave Morton, President CEO, The Quaker Oats
• Company of Canada Limited
• Nick Jennery, President CEO, CCGD.

2
Canadian Barcode Initiative

• Selling Unit
• Case
• Pallet

3
Canadian Selling UnitBarcode Initiative

• Progress strong with accuracy 99
• Validation procedures in place
• Driving efficiency in Canadian Industry

4
Canadian CaseBarcode Initiative

• Current Situation
• Required to drive efficiencies
• Warehouse receiving
• Warehouse picking accuracy
• D.S.D. receiving
• Canadian Standard case bar code one side
• Some distributors live - others investing
• Industry agreed Compliance Date September 98

5
Canadian CaseBarcode Initiative

• Current Issues
• May survey - 60 cases with bar codes
• Efficiency require critical mass
• Some suppliers hesitate to invest
• Quality/Accuracy an ongoing challenge

6
Canadian CaseBarcode Initiative

• Next Steps
• Grace period established to January, 1999
• All Distributors will take the action required
  to ensure compliance to the January 1999
  deadlines
• Cost recovery a real possibility

7
Canadian Pallet License Plate/ASN Initiative

• Part of Canadian Supply Chain Vision
• Supports efficient distribution/receiving/warehous
  ing
• Each pallet Bar Coded with license plate
• Supported by Advanced Ship Notice Transaction

8
Canadian IndustryEDI Overview

• EDI A Key Enabler To Overall Supply Chain Cost
  Reduction

• Provides accurate and timely information
• Reduces manual effort
• Eliminates many errors
• Supports many ECR initiatives

9
Canadian IndustryEDI Overview

• Current Status
• Canadian Industry Progress - Unsatisfactory
• Limited to P.O. and Invoices
• Advanced practitioners few - little benefit
• Key Industry Issue - Critical Mass
• Broad EDI transaction base
• Wide partner usage

10
Canadian IndustryEDI Overview

• Barrier to Development
• Benefits unique/tough to quantify
• Large - long-term investment
• Competing corporate priorities - Year 2000
• Multiple versions - Labour intensive
• Overall - Lack of future vision

11
Canadian IndustryEDI Overview

• Key Initiatives
• 1) Industry Adoption VICs 4010
• Year 2000 capable
• General merchandising standard
• Canadian Industry Implementation Guide
• Broad Industry endorsement

May 1999 Conversion Deadline
12
ECR Canadian Grocery Industry Migration Schedule
to EDI VICS-4010 StandardLatest Scheduled Date
Is To Be May 1999
Indicate in the appropriate box
the planned date for moving to
Parmalat Canada Ltd.
The Quaker Oats Co.
Pepsi-Cola Canada
Proctor Gamble
Unilever Cda. Ltd.
the EDI-4010 standard for each
Kraft Canada Inc.
FBI Brands Ltd.
Coca-Cola Ltd.
trading partner
of Cda. Ltd.
Culinar Inc.
Inc.
Ltd
Canada Safeway Ltd.
Co-op Atlantic
Federated Co-operators Ltd.
Great AP Co. Canada Ltd.
Loblaw Companies Ltd.
Metro-Richelieu Inc.
Overwaitea Food Group
Provigo Inc.
Sobeys Inc.
The Oshawa Group Ltd.
Thrifty Foods
13
Canadian IndustryEDI Overview

• Key Initiatives
• 2) Industry Adoption - Supply Chain Vision
• Covers 4 major Supply Chain processes
• Data Alignment
• Efficient Replenishment
• Physical Distribution/Warehousing
• Financial Reconciliation
• Specific EDI transactions/timing

14
Canadian IndustryEDI Overview

• Summary
• Major financial benefits
• Execution of implementation plan critical