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Major FMCG retailers mandate Ean barcodes for all supplies
 
Indiantelevision.com Team
(11 August 2004 4:00 pm)
 
In a first of its kind move, retail majors Foodworld Supermarkets, Giant Wholesale Club, Trinethra Super Retail, and Nilgiris Franchise Division have jointly announced their plan to standardise on identification of Fast Moving Consumer Goods (FMCG) products in India. They have mandated that all suppliers use the universal Ean barcodes on all product supplies by next month.
 
 
This move will benefit both the retailers and the suppliers through major reductions in their labeling and inventory costs and in product stock outs at retail shelves. Foodworld, Giant, and Nilgiris have also announced that they will charge a penalty from those suppliers who don't conform to the requirement. Ean India is a non-profit organisation set up by various industry bodies and the Ministry of Commerce, Govt. of India for administering and promoting the use of global supply chain standards in the Indian industry.
 
 
Ean India CEO Ravi Mathur said, "Organised retailing in India is still at a nascent stage when compared to developed countries in terms of adoption of International best practices and International standards in their supply chains. One key area relates to the use of internationally accepted Ean UCC barcode standards for unique and universal identification of products and consignments in the supply chain. Coupled with this is the need for aligning of information on new product introductions, price changes and returnables among suppliers and buyers to reduce errors in ordering, dispatching, and invoicing."

Foodworld Supermarkets VP K. Radhakrishnan said, "Foodworld expects to save over four million rupees in just direct labeling costs by switching to scanning of EAN barcodes on all consumer products. Besides this, it will facilitate collaborate demand forecasting, consumption based production scheduling and replenishment by our suppliers benefiting all of us. It will not be long before retailers make bar-coding mandatory for their business."

Trinethra Super Retail MD, K. Anjaneyulu said, "Standardising our supply chain with our suppliers will help us respond faster to any fluctuation in demand, and help us innovate and meet a very high service level, besides enabling efficient monitoring of stocks at retail outlets and warehouses"

Nilgiris Franchise Division, Managing Director C. Gopalakrishnan, added, "Nilgiris is on the verge of spreading itself all over the country very soon. Thus it makes good sense for us to mandate a consistent product identification standard for all our products to enable data sharing among our outlets."

Besides domestic items, retailers are increasingly stocking imported merchandise, which are already marked with Ean/UPC barcodes. Over five billion EAN barcodes are scanned each day at point of sale counters across the world, making them the de-facto global standards in Retail.

Indian exporters to international retailers like Wal-Mart, Target, Home-Depot etc. have been incorporating Ean/UPC barcodes since long based on their directives.

 
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