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The use of barcodes in supply chain management at Philip Morris Polska SA

The paper was presented at the International Logistics Conference “Logistics 2002 – Flexible supply chains – concepts, experiences, challenges”. Poznań, May 14-15, 2002.

Implementation of new logistics solutions at PMP – automatic system for conveying and palletizing master cartons
Barcodes on pallets of finished goods have been used at Philip Morris for a long time. Since there are many branches of the company around the world, and until now there was a lack of unified requirements regarding the appearance of the logistics label and the code itself, they were different in each country. Moreover, these labels were not standardized. Starting in November 1999, the process of implementing barcode labels on pallets and cartons of finished goods began in all European branches of the company. Today, standard EAN-128 barcodes are used on cartons and pallets of finished goods in at least twenty countries. The symbology used in the barcode labels complies with EAN/UCC standards.
In June 2001, an automatic system for conveying master cartons directly from packaging machines to the palletizing area was implemented in our company. At the same time, logistics labels containing the standard EAN-128 barcode were introduced for master cartons. The automatic conveying system was supplied by Stork BP&L (Stork Bottling, Packaging & Logistics Systems BV), while the labels and printers were supplied by Logopak. Starting in September, new logistics labels for pallets of finished goods were also used. The most important tasks that the new system had to fulfill were:
• control of label printers for master cartons and pallets of finished goods,
• supervisory control of the automation system,
• data collection from the system,
• system interface with external IT systems.

The main functional advantage is the fact that the supervisory control of the system ensures that only cartons with the same product code and production variant, and from the same machine, can be on the same sorting table and be placed on the same pallet. The system also ensures the accuracy of data on logistics labels. Furthermore, the system has the ability to interface with external systems. This is a regional product coding system and SAP R/3. This system solution is still in the implementation stage.

Characteristics of the label for master cartons with finished goods
The label consists of the following elements:
• product information (product codes, production variant),
• customer information (if the customer wishes, it is possible to place specific information on the label),
• operational information (production date, time hh:mm:ss, machine number, factory symbol).

Two barcodes appear on the label: EAN-13 and EAN-128.
The EAN-128 code includes the following information presented using standard application identifiers:
• AI 01 – specifying the EAN item number,
• AI 20 – characterizing the product variant (price change, promotions),
• AI 11 – representing the production date (date of packing the product into the master carton),
• AI 10 – identifying the production batch number characteristic of the given unit.

Characteristics of the label for pallets with finished goods
Regardless of the production center, both labels for master cartons and labels for pallets have the same appearance and barcode structure.
The following information is placed on the pallet label:
• company logo,
• serial shipping container code (SSCC),
• product information (product name, product code, EAN-13 code from the carton level, product variant),
• operational information (packing date, number of cartons on the pallet, order number),
• customer information (optional at the customer’s request).

The structure of the EAN-128 barcode is represented by the following application identifiers:
• AI 00 – serial shipping container code (SSCC),
• AI 10 – production batch number characteristic of the given unit,
• AI 02 – EAN-13 product code,
• AI 20 – product variant,
• AI 13 – production date,
• AI 37 – number of master cartons on the pallet,
• AI 90 – for internal use.

The entire article in PDF format.

Ref-3.pdf