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GS1 StandardS in tranSport, LoGiSticS and cuStomS - GS1 Slovakia

GS1 StandardS in tranSport, LoGiSticS and cuStomS - GS1 Slovakia

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Japan’s Initiatives <strong>in</strong><br />

Supply Cha<strong>in</strong> Visibility<br />

The Challenge<br />

Many Japanese manufacturers have offshore production<br />

sites <strong>and</strong> trade around the world. However, s<strong>in</strong>ce they<br />

generally consign the cargo shipp<strong>in</strong>g associated with<br />

production <strong>and</strong> sales to other companies, it has been<br />

difficult for them to effectively manage the global<br />

supply cha<strong>in</strong>. To optimize the whole supply cha<strong>in</strong>, these<br />

manufacturers need to underst<strong>and</strong> the process <strong>in</strong> real time<br />

<strong>and</strong> take necessary measures <strong>in</strong> a timely manner, but a<br />

visibility platform to share cargo movement <strong>in</strong>formation<br />

among global supply cha<strong>in</strong> parties has not yet been<br />

established. Therefore, build<strong>in</strong>g such a visibility platform to<br />

capture the cargo movement around the world us<strong>in</strong>g <strong>GS1</strong><br />

EPCglobal st<strong>and</strong>ards is under consideration.<br />

In Japan, the movement to make the whole supply cha<strong>in</strong><br />

process visible us<strong>in</strong>g automatic identification technologies<br />

such as RFID has been accelerat<strong>in</strong>g among manufacturers<br />

for several years. The M<strong>in</strong>istry of Economy, Trade <strong>and</strong><br />

Industry (METI) held a study committee for global supply<br />

cha<strong>in</strong> visibility platform to foster this movement. At the<br />

same time, METI has also held Supply Cha<strong>in</strong> Visibility<br />

Workshop at <strong>in</strong>ternational conferences such as APEC<br />

(Asia-Pacific Economic Cooperation) <strong>and</strong> promoted<br />

the establishment of a visibility platform to share cargo<br />

movement <strong>in</strong>formation among global supply cha<strong>in</strong> parties.<br />

Cooperation with APEC<br />

When build<strong>in</strong>g a platform to share cargo movement<br />

<strong>in</strong>formation, it is crucial to adopt technologies based on<br />

<strong>in</strong>ternational st<strong>and</strong>ards <strong>and</strong> obta<strong>in</strong> agreement by the<br />

countries <strong>and</strong> <strong>in</strong>dustries <strong>in</strong>volved <strong>in</strong> its operation. METI<br />

organized a Supply Cha<strong>in</strong> Visibility workshop at the APEC<br />

meet<strong>in</strong>g <strong>in</strong> September 2010 <strong>in</strong> Sendai, Japan.<br />

At the beg<strong>in</strong>n<strong>in</strong>g of this workshop, METI discussed the<br />

importance <strong>and</strong> necessity of supply cha<strong>in</strong> visibility, <strong>and</strong><br />

then the various <strong>in</strong>dustries, governments, <strong>and</strong> <strong>in</strong>ternational<br />

st<strong>and</strong>ards organisations reported on their perspectives <strong>and</strong><br />

efforts.<br />

From the <strong>in</strong>dustries, global companies such as Canon,<br />

Toshiba, Oracle, IBM, DHL, <strong>and</strong> NYK L<strong>in</strong>e expressed their<br />

own corporate expectations for supply cha<strong>in</strong> visibility. At<br />

the same time, <strong>in</strong> addition to reports by the governments<br />

of Japan, Ch<strong>in</strong>a, Korea, Peru, Taiwan, Hong Kong, <strong>and</strong><br />

Russia, the European Commission (EC) <strong>in</strong>troduced their<br />

efforts toward supply cha<strong>in</strong> visibility. Regard<strong>in</strong>g the<br />

progress of <strong>in</strong>ternational st<strong>and</strong>ards organizations, the<br />

World Customs Organization (WCO), the United Nations<br />

Centre for Trade Facilitation <strong>and</strong> Electronic Bus<strong>in</strong>ess (UN/<br />

CEFACT), <strong>and</strong> <strong>GS1</strong> also expla<strong>in</strong>ed the related trends of<br />

st<strong>and</strong>ardisation. It was a highly significant workshop that<br />

deepened participants’ underst<strong>and</strong><strong>in</strong>g of supply cha<strong>in</strong><br />

visibility issues.<br />

Based on the outcome of this workshop, it was clearly<br />

stated <strong>in</strong> the Jo<strong>in</strong>t Statement of APEC M<strong>in</strong>isterial Meet<strong>in</strong>g<br />

that APEC would cont<strong>in</strong>ue to consider supply cha<strong>in</strong><br />

visibility at its meet<strong>in</strong>gs. As such, the movement toward<br />

supply cha<strong>in</strong> visibility is expected to accelerate <strong>in</strong> the APEC<br />

economies.<br />

At the meet<strong>in</strong>g, many countries <strong>and</strong> regions announced<br />

that they are consider<strong>in</strong>g the establishment of <strong>in</strong>formation<br />

platforms us<strong>in</strong>g EPCIS (EPC Information Services) of <strong>GS1</strong><br />

EPCglobal. The shar<strong>in</strong>g of cargo movement <strong>in</strong>formation<br />

us<strong>in</strong>g EPCIS will be achieved <strong>in</strong> the near future with<strong>in</strong> the<br />

APEC region.<br />

The Japanese Approach<br />

In Japan, a study committee for global supply cha<strong>in</strong><br />

visibility platform has been organised to consider <strong>and</strong><br />

promote the system of cargo <strong>in</strong>formation shar<strong>in</strong>g among<br />

companies (visibility platform) with the participation of<br />

academic experts, related organizations of shippers <strong>and</strong><br />

distributors, the M<strong>in</strong>istry of L<strong>and</strong>, Infrastructure, Transport<br />

<strong>and</strong> Tourism (MLIT), <strong>and</strong> METI.<br />

EPCIS, a st<strong>and</strong>ard specification of <strong>GS1</strong> EPCglobal, is<br />

a promis<strong>in</strong>g tool for build<strong>in</strong>g the visibility platform.<br />

Therefore, <strong>GS1</strong> Japan has researched EPCIS adoption<br />

case studies <strong>in</strong> other countries <strong>and</strong> reported to the study<br />

committee; one is the ezTRACK provided by <strong>GS1</strong> Hong<br />

Kong <strong>and</strong> the other is the EPCIS application platform<br />

developed by a pallet leas<strong>in</strong>g company <strong>in</strong> partnership with<br />

<strong>GS1</strong> S<strong>in</strong>gapore. In addition, s<strong>in</strong>ce the Unique Consignment<br />

Reference (UCR) proposed by World Customs Organization<br />

(WCO) is one of the key ideas to facilitate the global supply<br />

cha<strong>in</strong> visibility, the study committee <strong>in</strong>vited the Customs<br />

<strong>and</strong> Tariff Bureau of the M<strong>in</strong>istry of F<strong>in</strong>ance to learn the<br />

trends of the UCR.

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