May 17, 2020

Forget multi-sourcing: the retail future is omni-channel

Freddie Pierce
4 min
There is now new demand on the labelling process
It is some 40 years since the barcode first created a ‘hyper efficient supply chain, when the grocery industry first used the barcode and adopted...

It is some 40 years since the barcode first created a ‘hyper efficient supply chain’, when the grocery industry first used the barcode and adopted global identification standards. 

Today, the simple barcode is ubiquitous in virtually every industry and in the lives of billions of people, used more than 5 billion times a day across the globe. The Universal Product Code data incorporated into the barcode spans across continents, governments, economies, markets, and cultures to create a global standard of business, capable of identifying, capturing, and sharing information automatically and accurately. 

For GS1 US (GS1), however, the story of the barcode does not stop here. The global non-profit standards company are working to develop the capability of the barcode even further to ensure it remains at the centre of the retail industry for years to come. 

Bernie Hogan, Senior Vice President of Emerging Capabilities & Industries as GS1, is the man at the centre of future developments in global standards.

“I can’t imagine a world without barcodes; companies around the world use GS1 as a global system, and the same identification and data capture standards operate everywhere; you sign a number in the US and it works around the world and vice versa. The implementation of the barcode has really helped companies regardless of industry to achieve scale and efficiencies that they would not be able to without a global standard,” he said.

Hogan is currently working towards developments in omni-channel retailing, which aims to integrate online and traditional retailing to create a seamless customer centric buying experience.

“My primary focus is on GS1 identification in the digital world; how we can help the retail community with their omni-channel strategies. Historically when we work with companies our primary point of contact was the Chief Supply Chain or Information Officer. What’s happening now in the marketplace when retailers have strategies around omni-channel is the supply chain person is focused on inventory optimisation; getting that product to the right place at the right time for the consumer,

“Now our negotiations focus on Sales and Marketing Directors and their focus is channel optimisation; getting away from siloed inventory and providing convenience and satisfaction so the consumer can buy something at 2am in the morning on their smartphone and get it from the store the next day. Our focus is how we get the supply chain community and the sales and marketing community to use standards which help automate some of these processes and reduce some of the manual intervention,” said Hogan.

One primary way that GS1 is addressing the new retail focus is through transforming labelling, as traditional high street stores adapt their function to that of the distribution centre. This shift in focus puts new demand on the labelling process; streamlining the processes involved in locating a product and offering a fulfilment service to customers. 

“We’re not saying brick and mortar stores are going away, but that online or mobile purchasing will continue to grow; the industry figures speak for themselves. This is all about the omni-channel experience; the consumer expects to buy online, pick it up at the store or buy something and have it delivered to next day to their home and all the permutations of that; we need to bring that into a seamless consumer experience. So, how do we as GS1 help suppliers and retailers with these transformations through standards in technology,” explained Hogan.

In the future, GS1 aims to adapt the ID codes within a product’s barcode to become a more consumer-facing tool, which can be entered online to gain more details about a product.

“We’re at the very early stages of engaging companies in the area of how GS1 identifies areas. The most important thing is not the barcode but the ID number within that barcode and how that operates in the digital world; so when you key in a product in a search engine how can you consistently final all of the data you need?

“There are some deficiencies in how keying in a barcode works today. Retailers are transforming their processes so selling on their platforms to require GS1 identification. We need to help the traditional brand owner companies to provide not only the identification but also the associated product attributes and consumer facing information, images and consumer facing attributes to these search engines or app providers,” said Hogan.

The rise of online and mobile retail demands a new approach to sales and product delivery, where GS1 will continue to be at the centre of standards and identification technology, streamlining processes and guaranteeing concise and correct identification for products around the world, through new online ID systems in addition to the humble barcode.

“GS1 will help these companies optimise their processes and help traditional retailers carry through the same ID that they use for brick and mortar stores to the digital space, so they’re not working to two different systems,” concluded Hogan. 

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Jun 21, 2021

Elon Musk's Boring Co. planning wider tunnels for freight

2 min
Elon Musk’s tunnelling firm plans underground freight tunnels with shipping containers moved on “battery-powered freight carriers”, according to reports

Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports. 

A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers. 

Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US. 

The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two. 


Boring Co.'s new freight tunnels

The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.

The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete. 

Tesla’s supply chain woes 

Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue. 

Elon Musk Tweet

Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely

Top Image credit: The Boring Company / @boringcompany

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